BLUE LANTERN: DISCUSSIONS WITH EMBASSY AND

UNCLAS STATE 061434 SENSITIVE SIPDIS GUATEMALA FOR LANCE HEGERLE GUATEMALA FOR DREW BLAKENEY E.O. 12958: N/A TAGS: ETTC KOMC OTRA PARM PREL GT SUBJECT: BLUE LANTERN: DISCUSSIONS WITH EMBASSY AND GUATEMALAN OFFICIALS APRIL 9-11 REF: A. A. STATE 61431 ¶B. B. STATE 32825 ¶C. C. 07 GUATEMALA 801 ¶D. D. GUATEMALA 465 ¶1. (SBU) SUMMARY: Compliance Specialists from the Department,s Office of Defense Trade Controls Compliance (PM/DTCC) met April 9-11 in Guatemala City with USG and Guatemalan officials to discuss implementation of the Blue Lantern end-use monitoring program and other defense trade issues in Guatemala. Topics included an apparent unauthorized re-transfer of United States Munitions List (USML) items (ref A) and the export of firearms from the U.S. to Guatemala. The PM/DTCC representatives met with USG officials, Guatemalan Ministry of National Defense (MND) officers, and the owner of private Guatemala-based arms dealer GIR SA as part of the Department,s ongoing investigation of an apparent unauthorized re-transfer of firearms that had been provided to the Guatemalan MND under the U.S. Military Assistance Program (MAP). Briefings on the Blue Lantern program to the Defense Security Cooperation Agency,s (DSCA) SOUTHCOM End-Use Monitoring Regional Forum, country team members, and Guatemalan officials helped to clarify U.S. export controls and end-use monitoring requirements. Finally, the PM/DTCC team gained insights into Guatemalan firearms laws and import regulations by meeting with the head of the MND department responsible for regulating firearms and by conducting a Blue Lantern post-shipment check at a Guatemalan firearms dealer. END SUMMARY APPARENT AECA SECTION 3 VIOLATION 2.(SBU) PM/DTCC Compliance Specialists Judd Stitziel and Kyle Ballard dedicated a significant portion of their visit investigating the apparent unauthorized re-transfer of MAP-origin firearms that had been provided to the Guatemalan MND (Ref A). BLUE LANTERN AND THIRD-PARTY TRANSFER BRIEFINGS ¶3. (U) Administered by the Department,s Office of Defense Trade Controls Compliance (PM/DTCC),Blue Lantern is a global program designed to verify the end-use, end-users, and disposition of commercially exported defense articles, technology, and services. This visit to Guatemala was part of PM/DTCC's ongoing efforts to improve the effectiveness of Blue Lantern through outreach visits with posts and host governments. ¶4. (SBU) Stitziel and Ballard briefed country team members on April 9. In attendance were PolMil Officer Lance Hegerle, ECON Foreign Service National (FSN) Maricely Maldonado, ICE Attach Lupe Sepulveda, Senior Commercial Officer Patricia Wagner, and Narcotics Affairs Section Chief Ray Campos. Among many topics, attendees discussed potential benefits of involving Department of Commerce (DOC) representatives in select Blue Lantern checks and PolMil officers in DOC,s end-use monitoring program, Extrancheck. ¶5. (SBU) On April 10, Stitziel and Ballard briefed participants of the Defense Security Cooperation Agency,s (DSCA) SOUTHCOM End-Use Monitoring Regional Forum on the Blue Lantern program and third-party transfers. This was the first such meeting designed to bring together Security Assistance Officers (SAO) from SOUTHCOM MILGRPs to discuss end-use monitoring issues. PM/DTCC and DSCA have found that joint briefings have helped audiences to better understand the similarities and differences between the regulations governing the export of defense articles and technology exported via direct commercial sales (DCS) and Foreign Military Sales (FMS). The session began with back-to-back briefings on Blue Lantern and DSCA,s end-use monitoring program, Golden Sentry, as well as third-party transfers of items that had originally been exported via DCS and FMS. ¶6. (SBU) Discussions during the forum and sidebar meetings focused on the differing requirements and capabilities of end-use monitoring through Blue Lantern and Golden Sentry, especially concerning night vision devices (NVDs). Forum participants agreed that both DOS and DOD would benefit from increased communication and collaboration in end-use monitoring of DCS NVDs. Some forum participants expressed a desire for Blue Lantern points-of-contact at posts to play a more visible and active role in general in cooperative end-use monitoring efforts with their DOD counterparts. Several attendees reported difficulties in identifying the Blue Lantern POC at their post and obtaining information on commercial defense trade that would assist in end-use monitoring. Attendees also stated that they expect an increase in reports of AECA Section 3 violations in the SOUTHCOM region as USG staff and host country officials gain more knowledge of US regulations governing third-party transfers and destruction of defense articles. DEPARTAMENTO DE CONTROL DE ARMAS Y MUNICIONS (DECAM) ¶7. (SBU) On April 10, Stitziel, Ballard, and Hegerle met with Chief of the Guatemalan Departmento de Control de Armas y Municiones (DECAM),Col. David Napoleon Barrientos Giron, to brief the Blue Lantern program and discuss the regulations governing firearms in Guatemala. DECAM regulates the importation and ownership of firearms in Guatemala and reports directly to the Minister of Defense. Barrientos expressed the Minister,s desire for more direct collaboration with other countries in combating the illicit trade of firearms. Barrientos noted a direct order from the Minister to the DECAM chief to forge international relationships and exchange information on firearms related issues. Barrientos stated that a proposal is being considered to establish within DECAM an office responsible for the development of official channels of communication with other countries. Barrientos thought this would improve DECAM,s ability to verify the bona fides of foreign entities and to share information on transnational crime with DECAM,s foreign counterparts. ¶8. (SBU) PM/DTCC representatives welcomed closer communication and cooperation with DECAM, especially in verifying the bona fides and good standing of Guatemalan firearms dealers. While DECAM could provide derogatory information derived from its inspections of Guatemalan firearms dealers, PM/DTCC could contribute toward GOG,s efforts to prevent illicit arms trafficking. Barrientos enthusiastically accepted PM/DTCC,s offer to put him in contact with officials at BATFE who could tell him more about Guatemala participating in BATFE,s e-Trace electronic firearms tracing program. Barrientos stated that he met with BATFE representatives three weeks prior, had given them information about several seized firearms for tracing purposes, but had not yet received a response. ¶9. (SBU) After describing the process by which DECAM registers firearm ownership and maintains ballistics records that assist in law enforcement cases, Barrientos outlined Guatemalan firearms import laws and regulations. He stated that Guatemala currently has eighteen (18) authorized firearms importers and 170 authorized firearms dealers. Each business is subject to DECAM inspections, including surprise inspections. Inspectors thoroughly vet business records, inventory, and facilities and then submit a written report to DECAM lawyers. DECAM closed, at least temporarily, eleven (11) firearms dealerships in 2007 due to violations of the law. Guatemalan law does not limit the quantity of firearms imports, either in general or by individual importers. However, DECAM does not authorize the importation of firearms whose legitimate origins cannot be verified. DECAM is allowed to maintain possession of a firearm for one month to investigate the firearm,s chain of custody and to obtain the proper forensic samples. ¶10. (SBU) Barrientos also noted a recent addition to Guatemalan law that prohibits any two (2) gun shops from occupying the same business space. This is done to ensure greater transparency in paperwork and recordkeeping. Barrientos acknowledged that the law allows one principal to operate several businesses and that some use this practice to engage in both importation and domestic sales. He emphasized that the law still requires each business to maintain separate records. Barrientos noted that Guatemalan firearms dealer Corpo Q, the subject of a recent Blue Lantern check (ref C),is one of only two instances in which one owner operates multiple businesses. Barrientos and Hegerle noted the value of the Blue Lantern check in bringing Corp Q,s multiple businesses to the attention of DECAM, which is now working to consolidate the businesses into one in order to better regulate its activities. ¶12. (U) On April 11, Stitziel, Ballard, and Hegerle also conducted a post-shipment Blue Lantern check on firearms dealer STI Guatemala (ref D). ¶13. (U) PM/DDTC would like to express its gratitude to Embassy Guatemala and especially PolMil officer Lance Hegerle for his exemplary work in helping to arrange and execute this visit. RICE