BLUE LANTERN END-USE CHECK LICENSE 05-972668

UNCLAS SAN JOSE 001569

SIPDIS

SIPDIS

DEPARTMENT FOR PM/DTCC - BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: ETTC KOMC CS
SUBJECT: BLUE LANTERN END-USE CHECK LICENSE 05-972668

REF: A. STATE 46427

B. COPLEY/STITZIEL FAX 5/17/2006


1. PolOffs visited Marco Aguilar, President of Koruma Lenex
Seguridad, S.A. on July 10. Confirming the information sent
ref B, Aguilar readily admitted that all 20 Marlin rifles
purchased under the license in question had been sold
directly to Armeria Rex. Aguilar added that he had requested
another shipment of .22 caliber Marlin rifles on behalf of
Armeria Rex. Aguilar claimed he was unaware of any reason he
could not sell imported U.S. weapons to a fellow Costa Rican
arms dealer. Aguilar said that the owners of Armeria Rex
were becoming desperate and had requested his help in
obtaining very specific models and quantities of rifles.
Aguilar produced copies of the request he filed with the
General Directorate for Arms and Explosives (GDAE) to import
these weapons which declared they were for resale at the
wholesale and/or retail level. Aguilar also produced the
export request filed by Valor Corporation with the State
Department which declares the purpose of the transaction is
for "resale to consumers in Costa Rica."


2. Koruma Lenex does not appear to be selling ammunition to
Armeria Rex. Questioned about the unusually large quantity
of ammunition recently imported, Aguilar stated that it was a
single transaction for the Ministry of Public Security. With
some effort (records at Koruma Lenex are stored haphazardly
in boxes in a closet) Aguilar was able to produce a file
related to the transaction which included a receipt from then
GDAE Director Erik Karolicki. The transaction consisted of
800,000 rounds of 9 mm ammunition and 600,000 rounds of .38
caliber ammunition.


3. Koruma Lenex is not a traditional arms dealer in that it
does not sell weapons to the general public even though it
has all the necessary permits to do so. Weapons sales are a
side business conducted by lots purchased in advance by the
Costa Rican government (GOCR),security companies, and
Armeria Rex. Koruma Lenex's primary business remains the
sale of uniforms, protective wear, and other safety
equipment. The business has grown significantly since our
last visit in October of 2004. A recent purchase of gas
masks from the U.S. for the national bank was lucrative
according to Aguilar. Also growing rapidly is the demand
from security firms for cheap shotguns which Aguilar is
importing from Turkey. The business has outgrown its current
facility and will soon have to move to a larger one.
Security arrangements which seemed adequate when handguns
were occasionally stored on the premises have not been
upgraded and are not sufficient for the number of shotguns
(at least 300) that Aguilar intends to sell before moving to
a new facility. Per question reftel, Aguilar never took
possession of the 20 Marlin rifles, they were delivered
directly from the customs clearance warehouse to Armeria Rex.



3. Aguilar denies attempting to circumvent U.S. export
controls and suggested that the GDAE should change the format
of its import license paperwork which currently allows only
two categories: importation for the GOCR or for commercial
resale. The commercial resale category is overly broad and
most dealers automatically use it, even when they are vying
for government contracts, because this category has fewer
documentary requirements. Aguilar also stated that the U.S.
exporter, Valor Corporation, has frequently advised Costa
Rican dealers to reduce the quantities of arms requested and
to use the "for resale to consumers in Costa Rica"
declaration as the least restrictive and most probable way to
obtain an export permit from the State Department.


4. In Post's assessment, Koruma Lenex is a reliable
recipient of US weapons if and when it is purchasing those
weapons on behalf of the GOCR. Since Koruma Lenex only sells
weapons by lots, Aguilar has offered to document to our
satisfaction the end user of every lot of weapons he imports
from the U.S. Post believes we can rapidly and independently
verify any GOCR weapons contracts Koruma Lenex may claim.
FRISBIE