PRE-LICENSE CHECK: MINISTRY OF SECURITY

UNCLAS TEGUCIGALPA 001398

SIPDIS

COMMERCE FOR 532/OEA/MARY R. CORSEY/MICHELLE ZAGER
COMMERCE FOR 3134/FCS/OIO/WH/RD/DDEVITO
PANAMA CITY FOR CUSTOMS ATTACHE

E.O. 12958: N/A
TAGS: BEXP ETRD ETTC HO
SUBJECT: PRE-LICENSE CHECK: MINISTRY OF SECURITY

REF: USDOC 02142


1. In response to reftel, Economic Officer Nicholle
Urdaneta performed a Pre-License Check for Application
number (A) D306740 and (B) D306739 at the facilities of
the Ministry of Security, Tegucigalpa, Honduras, on
June 9, 2003.


2. EconOff met with Minister of Security Oscar Alvarez
and Secretary General Luis Pineda Batres. The meeting
and visit was arranged without any delay or
complication. When EconOff explained the purpose of
the visit all individuals were cooperative and
forthcoming.


3. The Ministry of Security has been authorized,
through Executive Decree 132-2002 of August 6, 2002, to
make direct purchases of special intelligence equipment
and modern technology for safety and security purposes.
The Ministry of Security plans to sign a Contract with
Phoenix American Technologies for the purchase of
thermal imager devices to be installed in two Bell-206
helicopters.


4. The total cost of the equipment, which will be
funded by the Government of Honduras, is USD 1,053,000
over the C.I.F. value. An initial payment of USD
526,500 will be provided to the U.S. firm through wire
transfer to Ocean Bank of Miami, Florida. The
remaining 50 percent will be paid by letter of credit.
All supportive documentation, including a draft
purchasing contract, detailed description of the goods,
and terms of payment, were provided by the consignee.


5. The equipment and systems have been customized to
the specific needs of the two Bell-206 helicopters,
owned and operated exclusively by the Ministry of
Security. A strict 24-hour surveillance is given to
the helicopters on a daily basis. The equipment will
aid the National Police in a series of crime combat,
prevention and control activities during night hours,
such as narcotics and kidnappings, particularly in the
urban areas of Tegucigalpa and San Pedro Sula. Through
the purchase of this modern equipment, the Minister
will be able to view and monitor the helicopter's
efforts directly from his office.


6. Recommendation: Based on the visit and information
obtained about the purchasing transaction, consignee
will be using the thermal imager equipment and systems
in accordance with the terms of the license. Consignee
should be considered a reliable recipient of the
exported material.

PALMER