PANAMA - BLUE LANTERN LEVEL 3 LICENSE 05-1011679

UNCLAS PANAMA 002319 SIPDIS SIPDIS FOR PM/DTCC - BLUE LANTERN COORDINATOR E.O. 12958: N/A TAGS: ETTC KOMC PM SUBJECT: PANAMA - BLUE LANTERN LEVEL 3 LICENSE 05-1011679 REF: STATE 1815041 1.(U) On November 30, 2006, EconOff met with Ricaurte Garajales Pezet, the General Manager of Armas y Municiones Nacional, S.A. (ARMUNAL) at ARMUNAL's offices at Calle Abel Bravo, Panama City, Panama. ¶2. (U) Garajales confirmed to EconOff that ARMUNAL ordered the purchase of 25 SP2022 9mm pistols and 13 P232-.380 caliber blue pistols from Sigarms, Inc. of Exeter, New Hampshire as described in RefTel. ¶3. (U) ARMUNAL's regular customers are private Panamanian security agencies and Panamanian citizens residing in Panama City. Garajales told EconOff that none of the pistols ordered from Sigarms will be sold to private security agencies. ¶4. (U) Garajales told EconOff that it has pre-sold almost 90% of the pistols to Panamanians residing in Panama City, Panama for private use. In order to purchase the pistol, the buyer must have a valid Panamanian gun license. Garajales told EconOff that ARMUNAL will keep one pistol of each type in its offices for display purposes. ¶5. (U) Garajales told EconOff that ARMUNAL maintains detailed records of the name, addresses and gun licenses of each buyer. ¶6. (U) According to Garajales, the pistols will be held in the munitions depot of the Panamanian National Police (PNP) located in Cerro Tigre. Upon arrival at Tocumen International Airport, Garajales along with members of the PNP will inspect the pistols and the PNP will transport the pistols to the PNP depot until such time as they are sold. The buyer can either receive the pistol directly from the PNP, or ARMUNAL will make arrangements to have the pistol delivered to its offices for delivery to the buyer. ¶7. (U) According to Garajales, ARMUNAL was incorporated in October 2003 and received it license to operate as a gun wholesaler and retailer on October 30, 2003. EconOff reviewed copies of ARMUNAL incorporation documents and business license, which appeared to be in order. ¶8. (U) ARMUNAL's principal officers and shareholders are Garajales, Eduardo Mendez and Iuonne de la Lastre. ¶9. (U) Garajales told EconOff that ARMUNAL had all requisite GOP licenses and authorizations to conduct its business and that he was aware of the restrictions governing U.S. Munitions List (USML) commodities, including the prohibition of unauthorized retransfer or re-export. Garajales told EconOff that this order was the company's first order of USML commodities. None of the pistols being purchased will be exported outside of Panama according to Garajales. ¶10. (SBU) Post notes that RefTel states that ARMUNAL is on the Department's Directorate of Defense Trade Controls watchlist due to a 1994 U.S. Customs investigation and that ARUMUNAL attempted to obtain a Department license in 1999. Without disclosing this information, EconOff asked Garajales whether ARMUNAL or any of its officers or shareholders were in the gun wholesale or retail business prior to 2003. Garajales told EconOff that ARMUNAL and its current officers and shareholders only began operations as a gun dealer after ¶2003. EATON