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