VZCZCXYZ0006
RR RUEHWEB

DE RUEHC #9551 3231648
ZNR UUUUU ZZH
R 191643Z NOV 09
FM SECSTATE WASHDC
TO RUEHML/AMEMBASSY MANILA 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 119551 
 
SIPDIS 
MANILA FOR GIGI COFFIN 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC RP
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK 
ON LICENSES 050200227 AND 050200228 
 
¶1. This is an Action Request. See paragraph 4. 
 
¶2. The Department's Office of Defense Trade Controls 
Compliance (PM/DTCC) requests Post's assistance in conducting 
a pre-license check on licenses 050200227 and 050200228 for 
the export of rifles, magazines, and grenade launchers to the 
Philippines National Police (PNP).  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. Reason for Request:  These licenses are for significant 
military equipment.  Department seeks confirmation of the 
bona fides of these transactions and the parties involved. 
 
¶4. Action Request: Post is requested to establish the bona 
fides of these transactions by making inquiries to the 
Philippines National Police (PNP).  If necessary based on PNP 
responses, Post is requested to follow up with Ferfrans.  The 
following points are included for guidance: 
 
(To PNP) 
 
--Can you confirm these orders for rifles, magazines, and 
grenade launchers?  Please verify the exact quantities that 
you ordered. 
 
--How will these items be used by the PNP?  Will they be 
transferred to any other entities within the Philippines 
Government? 
 
--Will Ferfrans Specialties ever have physical possession of 
these items?  Who else may be handling these defense articles 
prior to delivery to PNP? 
 
--These two licenses have end-user's certificates issued by 
Philippines Government agencies.  One is from the Directorate 
of Logistics and the other is from the Logistics Support 
Service.  Can you please explain the difference between these 
two agencies and their functions?  Do both agencies have 
authority to issue end-user certificates on behalf of the PNP? 
 
--Do you have any information on Ferfrans Specialties that 
would call in to question their reliability as a recipient of 
U.S. defense articles? 
 
(To Ferfrans, if necessary) 
 
--Please verify the exact quantities of these items ordered 
by the PNP. 
 
--Will Ferfrans Specialties ever have physical possession of 
these items?  Who else may be handling these defense articles 
prior to delivery to PNP?  Please describe your procedures of 
securing these items. 
 
--There is a discrepancy between the quantities ordered by 
the PNP and the quantities Ferfrans is seeking.  Please 
explain this discrepancy.  For what will the excess items be 
used?  To whom will Ferfrans sell the excess items? 
 
In its reply, Post may also comment on any other information 
pertinent to these transactions such as security of 
facilities, end-use, and concerns about the entities involved. 
 
¶5. Details of license applications: 
 
¶A. 
 
DTC Case: 050200227 
 
QUANTITY/COMMODITY: 
 
550 Ferfrans SOAR-5.56 Rifles 
 
200 Ferfrans HV LAR 5.56 Rifles 
 
1,650 30 Round Magazines 
 
700 90 Round Drum Magazines 
 
License Value: USD $560,000 
 
SELLER: 
 
Ferfrans 
2649 E. Valley Blvd, Suite D 
West Covina, CA 91792 
 
FOREIGN CONSIGNEE: 
 
Ferfrans Specialties 
200 Montebello Court, Banilad 
Cebu City 
Philippines 
Tel: 6332-233-2842 
Email: francis@ferfrans.net 
 
FOREIGN END-USER: 
 
Philippines National Police Directorate for Logistics 
Camp Crame 
Quezon City 
Philippines 
 
PURPOSE: 
 
For use by anti-terrorist teams and commando units of the 
PNP. Shipped directly to Camp Crame. 
 
¶B. 
 
DTC Case: 050200228 
 
QUANTITY/COMMODITY: 
 
110 Ferfrans DEFCOM XL200 40mm Rail-Mounted Grenade Launchers 
 
1 Non-Firing Ferfrans DEFCOM XL200 40mm Rail-Mounted Grenade 
Launchers 
 
100 40mm Cartridges 
 
License Value: USD $88,150 
 
SELLER: 
 
Ferfrans 
2649 E. Valley Blvd, Suite D 
West Covina, CA 91792 
 
FOREIGN CONSIGNEE: 
 
Ferfrans Specialties 
200 Montebello Court, Banilad 
Cebu City 
Philippines 
Tel: 6332-233-2842 
Email: francis@ferfrans.net 
 
FOREIGN END-USER: 
 
Philippines National Police Directorate for Logistics 
Camp Crame 
Quezon City 
Philippines 
 
PURPOSE: 
 
For use by anti-terrorist teams and commando units of the 
PNP. Shipped directly to Camp Crame. 
 
¶6. Submitted in support of the license application were the 
following documents (PM/DTCC will fax documentation to Posts 
upon request): 
 
¶A. 
 
DSP-83 signed by Ferdinand Sy (Ferfrans U.S.) dated 
11/09/2009; Jesus Ame Verzosa (PNP) dated 11/05/2009; Luizo 
Ticman (PNP, Logistics) dated 11/09/2009; and Alan Francis 
(Ferfrans Specialties) dated 11/07/2009 
 
Import Authorization No. PI-F228-09 issued by National 
Headquarters, Philippines National Police signed by Jesus Ame 
Verzosa dated 11/05/2009 
 
Purchase Order No. NOV09-05 from Ferfrans Specialties signed 
by Alan Francis dated 11/05/2009 
 
End-User's Certificate issued by PNP Directorate of Logistics 
signed by Luizo Ticman dated 09/22/2009 
 
¶B. 
 
DSP-83 signed by Ferdinand Sy (Ferfrans U.S.) dated 
11/09/2009; Jesus Ame Verzosa (PNP) dated 11/05/2009; Luizo 
Ticman (PNP, Logistics) dated 11/09/2009; and Alan Francis 
(Ferfrans Specialties) dated 11/07/2009 
 
Import Authorization No. PI-F241-09 issued by National 
Headquarters, Philippines National Police signed by Jesus Ame 
Verzosa dated 11/05/2009 
 
Purchase Order No. NOV09-09 from Ferfrans Specialties signed 
by Alan Francis dated 11/09/2009 
 
End-User's Certificate issued by PNP Logistics Support 
Service signed by George Piano dated 09/30/2009 
 
¶7. 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. Department is grateful for Post's assistance in this 
matter. 
CLINTON