BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON

UNCLAS MANAGUA 001517

SIPDIS

SIPDIS

PM/DTCC REBECCA VALERIN, WHA/CEN

E.O. 12958: N/A
TAGS: NU KOMC ETTC
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON
APPLICATIONS 05-997983, 05-997984

REF: SECSTATE 78987


1. Summary: Econoff has performed the requested pre-license
check on application 05-997983. El Caza y Pesca in Managua,
Nicaragua, presents as a legitimate business selling weapons
for legal, personal and home security use. The Nicaraguan
National Police confirmed that the gun shop is a legitimate
business authorized by the police to import weapons. Sales
records show that the El Caza y Pesca sells both to
individuals and companies, including security companies and
other weapons purveyors. The Manager demonstrated familiarity
with applicable Nicaraguan laws and regulations, and
demonstrated compliance with United States Munitions List
(USML) regulations, including restrictions on re-exporting.
In post's assessment, this company is a reliable recipient of
the USML items listed in REFTEL. End Summary


2. The business had been open approximately one year and is
owned by Maria Rivera Centeno and Ana Maria de Chamorro.
Econoff met with Manager Lizbiana Araica, who shared the
shop's current license and registration. The shop is located
on a busy main street and is open to the public. An armed
guard is posted in front of the shop, and most weapons are
kept behind the sales counter, many of them displayed in
locked glass cases. Some weapons are mounted on the back
wall of the shop behind the counter. The rest of the
inventory is located in a closed room behind the counter and
office space, which can only be entered from within the
store. The door has a standard doorknob lock which was
unlocked during the visit. When asked, Araica said that only
she has the keys to the storage room and access is limited to
herself and two sales associates.


3. The shop has imported ammunition and hand-cuffs from the
U.S. previously, however, the REFTEL order from Valor marks
their first effort to import U.S. rifles and revolvers.
According to Araica, it is less expensive to import the
weapons directly from the U.S. than to buy them locally,
allowing the business to become more competitive. She feels
that the weapons she has ordered are those most demanded by
the Nicaraguan market and aims to increase sales by supplying
them at a better price than her competitors.


4. Sales records show that the El Caza y Pesca sells both to
individuals and companies, including security companies and
other weapons purveyors. The shop keeps good records,
recording the name, national identification number and
address of the buyer and the serial number(s) and quantity of
weapon or ammunition sold. Sales to or purchases from other
companies are recorded both in the sales register and with a
separate receipt of exchange that includes the number, type
and serial number of each gun bought or sold. The business
serves primarily the Managua area and the surrounding
countryside. The shop does not sell used weapons. The
request to import 80 weapons is consistent with the shops
sales records, which showed an average monthly sales rate of
between 10 and 20 weapons.


5. Araica showed a great familiarity with Nicaragua's gun
control laws, explaining to Econoff the latest legal reforms.
She even provided Econoff with a copy of the new Law 510
and the Nicaraguan National Police's promotional material
regarding the law. Araica also showed familiarity and
demonstrated compliance with applicable United States
Munitions List (USML) regulations, including restrictions on
re-exporting.


6. Comment: The manager was forthcoming in answering all
questions and cooperative in providing requested records. In
post's assessment, this company is a reliable recipient of
the USML items listed in REFTEL.
TRIVELLI