MikeH.... play nicely with the other children, or I’m going to take away you mousie and non-musical keyboard, I’m supposed to be the Old Ogre here.

This, and parts below, were started right after Mike’s first post and then I got busy on something else for a while.
Icruz..... You have to know enough about your problem, have enough engineering knowledge on the subject, to ask a meaningful question, if you want some serious discussion in return. The way you have asked the question prompted Mike’s reply, and suggests that you are in way over your head. The admission that you are fresh out of school goes a long way toward letting us know where to start helping, rather than hassling. But, it never ceases to amaze me that the powers-that-be will give a young engineer this kind of problem, without any guidance or mentoring, ask a stupid question and just assume his answer should be a piece of cake, all because of their own ignorance. A sketch with complete dimensions, types of materials, weld sizes, force directions and values, etc. etc. would be very helpful in making this discussion meaningful. What does this 20' large piece of tubing do, that you can apply a 40kip load to its bottom with the sling? Does the 11cm deflection happen within 1cm of the weldment or over the 20' length? Your photos really don’t tell us much either: I see a force application lug (lifting lug?) with so much garbage welded to it, but not well detailed, that it will have a very low fatigue life. You haven’t really explained that this thing has a fatigue life or is it lifted 10 times over its life, and you are looking for max. stress and the potential of fracture? You have to describe the whole problem with enough info. so someone with experience and some judgement can see what’s going on, and offer some ideas.
I don’t think strain gages are going to help you solve your problem, or answer the wrong question either. How do you know which portion of the strain gage gave you the high strain/stress readings, and do you know how strain gages work and are used? What S-N curve would you compare your stresses to, how do you know it represents your conditions? You can strain gage that mess until you are blue in the face and the results won’t tell you much of anything.
If that’s what the customer speced. he should have designed it and know it will work. And, if your company is helping with the design, then you have to be smart enough to tell the customer that their detail stinks, and is not a good solution, and won’t work very well. Between the force lug and the three gussets perpendicular to the lug, you have an absolutely awful detail welded to a thinner tube, and have to be able to explain why this is so, not try to prove that it might work. Whether you designed it or not, to work on something like this you must understand the design and know how to fix it, or everyone is being ill served.
Show us some meaningful details and a description of the problem which will allow us to understand what you are really trying to do.