VZCZCXYZ0003
PP RUEHWEB

DE RUEHC #2524 2742136
ZNR UUUUU ZZH
P R 012116Z OCT 09
FM SECSTATE WASHDC
TO RUEHTV/AMEMBASSY TEL AVIV PRIORITY 0000
INFO RUETIAA/DIRNSA FT GEORGE G MEADE MD
RUEAIIA/CIA WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC 0000

UNCLAS STATE 102524 
 
SENSITIVE 
SIPDIS 
TEL AVIV FOR JASON GRUBB 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC IS
SUBJECT: BLUE LANTERN LEVEL 1: PRE-LICENSE END-USE CHECK 
ON GENERAL CORRESPONDENCE GC1964-09 
 
REF: 08 GUATEMALA 482 
 
¶1. (U) This is an Action Request. See paragraph 4. 
 
¶2. (U) The Department's Office of Defense Trade Controls 
Compliance (PM/DTCC) requests Post's assistance in conducting 
a pre-license check on authorization request GC1964-09 for 
the retransfer of rifles from the Israeli Police to U.S. 
company Century Arms.  Post is requested to complete this 
Blue Lantern check within 30 days.  Lack of response to a 
Blue Lantern check will affect pending and future licenses 
involving parties to this license. 
 
¶3. (SBU) Reason for Request:  U.S. company Century Arms has 
requested authorization for the retransfer of M1 carbines 
from the Israeli Police for importation into the United 
States.  Century Arms submitted a letter from the Israeli 
Police signed by Commander Anat Gat of Nitzav Mishneh stating 
that the rifles were originally obtained via direct 
commercial sales and not/not a U.S. military assistance 
program.  Another letter from the Israeli Police sign by 
Commander Moti Yona indicates that Israeli company Contact 
International (Kalia) won a public tender for these rifles 
and subsequently took ownership.  Presumably, Century Arms 
will purchase the weapons from Contact International.  Past 
issues with Century Arms suggests that the company may use 
unauthorized brokers to purchase firearms from foreign 
military stocks (see REFTEL for example).  Also, any 
retransfer of U.S.-origin defense articles, whether acquired 
commercially or via a military assistance program, requires 
prior approval from the Department.  This request is to 
clarify the roles of the parties involved and the 
circumstances under which these rifles were sold by the 
Israeli Police. 
 
¶4. (SBU) Action Request: Post is requested to establish the 
bona fides of Israeli company Contact International (Kalia) 
and obtain more information on these transactions by making 
inquiries to representatives of the company and appropriate 
authorities of the Government of Israel.  The following 
points are included for guidance: 
 
(To Contact International) 
 
--When was your company established and who are its 
principals? 
 
--What products and services does your company provide?  Who 
are your regular customers and where do they reside? 
 
--How did you first learn of these M1 Carbines and the desire 
of the Israeli Police to sell them? 
 
--Describe your role in this transaction.  What specific 
services did you provide, if any? 
 
--Describe the process through which you purchased these 
rifles.  Please provide any documentation of your bid and 
your winning of the public tender. 
 
--Has your company ever officially represented the interests 
of Century Arms? 
 
--According to letters from the Israel Police, your company 
received 6,000 M1 Carbines.  To whom will the other rifles be 
sold?  Did the Israeli government provide you with 
documentation indicating that it had received re-transfer or 
re-export authority from the United States? 
 
--How did you first learn of Century Arms' desire to purchase 
these rifles?  What is the name of the Century Arms 
representative with which you have been doing business?  Were 
you aware of Century Arms' desire to purchase these rifles 
before you sought to purchase them from the Israeli Police? 
Please provide any correspondence between your company and 
representatives of Century Arms involving this transaction. 
 
--How did Century Arms pay for these rifles (e.g. cash, 
barter, etc.)?  Did you receive any fees or commissions for 
your services in this transaction? 
 
--Are you familiar with the regulations governing the 
brokering of U.S.-origin defense articles, including the 
requirement for foreign brokers of U.S.-origin defense 
articles to register with the U.S. Directorate of Defense 
Trade Controls? 
 
(To Israeli Police) 
 
--How were these Carbines originally acquired by Israel? 
Because different U.S. governmental authorities are involved, 
can you confirm with documentation that these weapons were 
acquired commercially? 
 
--Any retransfer of U.S.-origin defense articles, whether 
acquired commercially or via a military assistance program, 
requires prior approval from the U.S. Department of State. 
Did you seek authorization for the retransfer of these rifles 
before selling them to Contact International?  If so, please 
provide any related documentation. 
 
--Can you confirm that these M1 Carbines were legally sold to 
Contact International (Kalia)?  Please describe the process 
by which you sold these rifles to Contact International 
(Kalia). 
 
--Have you had any correspondence with Century Arms regarding 
these rifles?  If so, please provide details on the nature of 
these correspondence.  Who is the representative of Century 
Arms with which you corresponded?  Please provide any 
documentation you may have in this regard. 
 
--Under what circumstances did you decide to sell these M1 
carbines?  Did you have a purchaser in mind when this 
decision was made? 
 
--What role did Contact International play in this 
transaction?  Were you ever under the impression that Contact 
International was an official representative of Century Arms? 
 If so, please explain the circumstances that gave you this 
impression. 
 
--To your knowledge, did Contact International receive any 
fees or commissions for its services in these transactions? 
If so, please describe. 
 
(To Israeli Import/Export and/or Law Enforcement Officials) 
 
--Is Contact International properly registered and authorized 
in Israel to export or broker defense articles? 
 
In its reply, Post may also comment on any other information 
pertinent to these transactions such as suspicion of concerns 
about the entities involved. 
 
¶5. (U) Details of license applications: 
 
DTC Case: GC1964-09 
 
QUANTITY/COMMODITY: 
 
2,500 M1 Carbines, .30 Caliber 
 
2,500 15-Round Magazines 
 
License Value: Approx. USD $550,000 
 
US APPLICANT: 
 
Century Arms, Inc. 
236 Bryce Blvd. 
Georgia, VT 05454 
 
c/o Mark Barnes & Associates 
1350 Eye Street, NW 
Suite 1255 
Washington, DC 20005 
 
SELLERS: 
 
¶A. 
 
Israeli Police 
Head Quarters - Purchasing and Sales Department 
41 Baalei Hamelaha Ramla 
Israel 
Tel: 972-8-9124450 
 
¶B. 
 
Contact International (Kalia) 
Haruvit 23 
98510 Mishor Adumim 
Israel 
Tel: None provided 
 
 
PURPOSE: 
 
For import into the United States and commercial resale. 
 
¶6. (U) Submitted in support of the license application were 
the following documents (PM/DTCC will fax documentation to 
Posts upon request): 
 
Letter issued by the Israel Police. Subject: Sale of M1 
Carbine Rifles to Contact International (Kalia) Ltd. Signed 
by Anat Gal (Head of Purchasing and Sales Department) dated 
11 April 2007. 
 
Letter issued by the Israel Police. Re: Sale of Carbine 
Rifles.  Signed by Anat Gal (Head of Purchasing and Sales 
Department) dated 18 June 2007. 
 
Letter issued by the Israel Police. Subject: Sale of M1 
Carbine Rifles to Contact International (Kalia) Ltd. Signed 
by Moti Yona (Head of Purchasing and Sales Department) dated 
19 August 2009. 
 
¶7. (U) Please slug reply for PM/DTCC - BLUE LANTERN 
COORDINATOR and include the words "Blue Lantern" and the case 
number in the subject line.  POC is Kyle M. Ballard, Phone: 
202-663-1929; Email: BallardKM@state.gov; SIPRNET: 
BallardKM@state.sgov.gov.  The Blue Lantern Guidebook (ref) 
is available as a PDF file on Intellipedia: 
http://www.intelink.gov/wiki/ 
Blue Lantern End-Use Monitoring Program 
 
¶8. (U) Department is grateful for Post's assistance in this 
matter. 
CLINTON