GUATEMALA: BLUE LANTERN POST SHIPMENT END-USE

UNCLAS GUATEMALA 000718 SENSITIVE SIPDIS DEPT FOR PM/DTCC - BLUE LANTERN COORDINATOR KYLE M. BALLARD E.O. 12958: N/A TAGS: ETTC KMOC GT SUBJECT: GUATEMALA: BLUE LANTERN POST SHIPMENT END-USE CHECK, 050140648 REF: STATE 59089 ¶1. (SBU) Summary: In response to reftel, Emboffs researched the bona fides of the arms import company Black Desert (BD). The research included an on-site inspection of BD, an interview with the company's owner, and records checks of both the company and the owner with the Guatemala's Arms and Municions Control Department (DECAM). As a result of the investigation, Post does not recommend approval of reftel license. End Summary. ¶2. (SBU) On June 18th, Emboffs conducted an on-site inspection of BD located at Ave Las Americas 15-14 Zona 13, Guatemala City and interviewed the company's owner, Maria del Carmen Balcarcel Pinto. Balcarcel, a recent divorcee with no prior gun knowledge, started this company in November 2008. A self-funded business, Balcarcel's storefront revealed upfront initial costs including large space store design and a heavy personnel/security presence that Emboffs determined, through additional interviews with industry experts, would exceed her current financial capabilities. At the time of the interview, and through multiple follow-up requests, Emboffs were not able to acquire business ownership certification documents to verify partnership shares or funding resources. Therefore, Emboffs concluded that Balcarel was not forthcoming with all financial information about the business operation and continued capital needed to properly run a weapons store. ¶3. (SBU) Located in a pristine, mixed residential/commercial use neighborhood, Balcarcel's store displayed no guns, but primarily weapons accessories. The store complied with all proper outside commercial signage and security precautions including security bars protecting the entire glass storefront and a hired security person guarding the front entrance. Emboffs noted that the store included a special concrete box for a nighttime security person. In comparison to the other weapons stores in the city that Emboffs have inspected previously, BD revealed a large front reception/salon area with a much smaller area to conduct retail business. The retail area consisted of two glass weapons counters that were connected to an open office and weapons storage room, all located along the back wall of the store. The weapons storage room itself was unusually small (less than the standard 2 1/2 meters on each side) and simple in design revealing concrete walls covered by visible but thin steel bars and motion sensors, but without inventory. ¶4. (SBU) According to Balcarcel, this store began through her own funding resources. After a 13 year stint in the U.S. studying to be a chef (she was married and living with in-laws at the time),Balcarcel explained that she developed a passion for this industry and through interviews with professional bodyguards and other weapons store owners in the city, she decided that she wanted to offer a special weapon (Hi-Point pistols) requested by bodyguards that is not currently sold in Guatemala. (Note: Emboffs cannot confirm the accuracy of Balcarcel's claim. End Note.) ¶5. (SBU) A recent visit was conducted on July 1st by Emboffs industry sources who reported that there were limited guns on display (seven guns out of the 52 reftel shipment) with high pricing of 50% above local industry standards. The 36 Hi-Point pistols, 4 Hi-Point Carbines (for hunters),11 Hi-Point Magazines, and one Charter Arms Revolver will be her first U.S. weapons purchase. In addition to providing weapons to security personnel for private individuals, Balcarcel plans to buy the weapon hunting inventory of Defensa S.A., a Blue Lantern licensing applicant who did not QDefensa S.A., a Blue Lantern licensing applicant who did not receive approval due to bookkeeping and inventory discrepancies. Balcarcel claims that she has purchased guns from other local weapons stores, and the store's selling activity revealed that she has made about 20 gun sales (for protection and hunting) to individuals since December 2008. Balcarcel confirmed with Emboffs that she knows the regulations governing the imports of U.S.-origin defense articles, including restrictions on re-transfer and re-export. ¶6. (SBU) BD books and DECAM registries were well maintained, and indicated that BD has sold a small amount of weapons to private citizens. ¶7. (SBU) BD has a satisfactory record with DECAM and has passed all routine inspections without incident. According to DECAM's Director, Colonel Hector Del Cid, BD is a small-scale but well managed weapons store that is operating within local laws and regulations. Nonetheless, based on the results of the on-site inspection, Post does not recommend approval of the reftel license. McFarland