US embassy cable - 05MADRID625

UNCLAS MADRID 000625 
 
SIPDIS 
 
SENSITIVE 
 
FOR EUR/WE AND PM/DTTC 
 
E.O. 12958: N/A 
TAGS: PREL, KOMC, ETTC, SP, Non-Proliferation Issues 
SUBJECT: SPAIN:  PM/DTTC COUNTRY BRIEFING ON THE BLUE 
LANTERN PROGRAM 
 
1.  (SBU) Summary:  A team from the Directorate of Defense 
Trade Controls (PM/DTTC) provided a background briefing 
February 10 on the Blue Lantern Program to an official from 
the Spanish Ministry of Defense's (MOD) Technology Transfers 
and Transactions Unit and mission's Commercial Service Office 
(USCS) and the Office of Defense Cooperation (ODC).  The 
Spanish representative said the MOD was willing to continue 
close cooperation on the Blue Lantern Program.  Overall, the 
briefing underscored the USG's interest in working with the 
Spanish MOD to help disrupt international gray arms trade 
networks through closer cooperation on the Blue Lantern 
program.  End Summary. 
 
2.  (SBU)  PM/DTTC office experts Peter Maxwell and C. Edward 
Peartree briefed Spanish Army Captain Juan Martinez Martinez 
of the MOD'S Technology Transfer and Transactions Unit, along 
with poloffs and officers from the ODC and the USCS on the 
Blue Lantern program.  The briefing covered DTTC's structure 
and legal authority; the goals, methods, and outcomes of the 
Blue Lantern Program; and the nature of the gray arms market. 
 The team noted that only 9% of the 93 unfavorable Blue 
Lantern cases reported in FY 2004 involved European end 
users, and 33% of them involved European intermediary 
companies. 
 
3.  (SBU) In response to DTTC's presentation, Martinez said 
that the MOD was interested in continuing its close 
cooperation with the U.S. on the Blue Lantern program.  The 
MOD used several end-user licensing mechanisms to stop gray 
arms transfers through Spain.  He noted that all valid 
end-user licenses are approved by the director general of the 
MOD's Office of Armament and Material and substitute a 
Spanish certificate for Section 8 Certification of Foreign 
Government on the DSP-83 Nontransfer and Use Certificate 
form.  Spanish end-user licenses are valid for six months and 
require end-users report the delivery the defense items 
listed on their licenses within one month of their arrival in 
country.  Martinez said the Spanish Congress recently 
approved legislation requiring the Spanish Customs Service to 
report to the MOD all commercial transfers of military items 
to Spain.  Martinez also said the Technology Transfer and 
Transactions Unit also employs a quality assurance inspector 
to verify end-users' bona fides. 
 
4.  (SBU) Comment:  The DTTC presentation broadened the 
Spanish Ministry of Defense's and mission's understanding of 
the goals, methods, and results of the Blue Lantern program. 
Most importantly for the Spanish, it made clear that Blue 
Lantern program is not an enforcement exercise but rather a 
collaborative process based on mutual trust between the U.S. 
and Spain.  We expect continued strong cooperation from the 
MOD in our efforts to disrupt the diversion of U.S. defense 
materials to gray arms networks through fraudulent arms 
dealers in Spain. 
MANZANARES