GUATEMALA: Blue Lantern Level 3: Post-License/Pre-Shipment

UNCLAS GUATEMALA 000921 SIPDIS E.O. 12958: N/A TAGS: ETTC KOMC GT SUBJECT: GUATEMALA: Blue Lantern Level 3: Post-License/Pre-Shipment End-Use Check on Licenses, 050168405 and 050168509 REF: A. STATE 88236; B. 2008 GUATEMALA 183 ¶1. (SBU) Summary: In response to ref a, Emboffs researched the bona fides of the arms import company Importadora Milenium, S.A.(IMSA). The research included an on-site inspection of IMSA, an interview with the company's legal representative, and records checks of both the company and the representative with the MOD's General Directorate for the Control of Firearms and Ammunition(DIGECAM). As a result of the investigation, Post recommends approval of reftel license. End Summary. ¶2. (SBU) On September 17th, Emboffs conducted an on-site inspection of IMSA located inside a small commercial shopping center and interviewed the company's legal representative, Maria Gabriela Mendia Rodriguez, who cooperated fully with Emboff requests, and offered complete access to her records, and a tour of the facility. IMSA is owned by Mendia's uncle, Guido Roberto Lobo Sandoval, who has the majority ownership in IMSA and is the owner of another weapons store (Conavesa S.A.) located in El Salvador. Mendia was previously denied a license (ref b) because she claimed at the time (February 2008) that she was the sole owner of IMSA, but a background check of company records revealed that she has a 20% ownership share of IMSA with Lobo, who owns the remaining 80% of the company. In the September 17th meeting, Mendia explained her role in IMSA as manager and part owner and provided all the necessary documents to confirm this information. ¶3. (SBU) IMSA began its operation in 2005 and primarily works with distributors inside and outside the city. IMSA sells weapons such as rifles for hunters and revolvers and other pistols for security guards and private individuals. Per reftel, IMSA purchased two separate quantities of pistols (Beretta and Smith and Wesson) to sell to Industria Militar (IM),a weapons store that is operated by the MOD. IM provides firearms, accessories, and clothing to members of the Guatemalan Army only. Mendia presented two separate, signed and certified contracts between IMSA and IM for each of the weapons orders. The 250 Beretta carbine pistols and the 150 Smith and Wesson pistols will be used by the Guatemalan National Police, and some will be sold to Army officers, according to Colonel Alfredo Cotzajay, the director of IM. Cotzajay confirmed with Emboffs that there were two signed contracts with IMSA. Per reftel, IMSA will receive a commission for each contract and both orders will go directly to IM. ¶4. (SBU) IMSA is located on the first floor of a small, commercial retail location in Zone 9. The store is surrounded by three other stores, which sell medical, paint and garden supplies. There are various protective measures utilized inside the store including a private security guard, cameras, and infrared and motion sensors placed throughout the store and in the large but well-constructed weapons storage room. The store's presentation is well-organized with various cases featuring weapons for hunting and security guard clientele. Signage is well-marked on the storefront and on the front entrance to the commercial location. The front entrance is well-guarded with steel bars protecting a glass storefront, and inside the front door is a steel cage waiting area for customers. The well-lighted showcases throughout the store display a limited number of rifles and pistols, as well as many types of knives and hunting accessories. ¶5. (SBU) Most of IMSA's weapons are from Turkey, Argentina, and from local distributors in the city. The store sells about 300-500 weapons per year. Mendia had imported weapons previously from the U.S. (about 100 per year) prior to her license denial in 2008. ¶6. (SBU) Per reftel, Mendia confirmed that she is familiar with relevant regulations governing the import of U.S.-origin defense articles, including restrictions on re-transfer and re-export. She explained that all the weapons purchased by IMSA are for clients in Guatemala only. Mendia added that the weapons are not re-exported to Lobo's store or to clientele in El Salvador. Mendia actively sells to about 30 distributors throughout Guatemala, limiting sells to nine weapons per day to each distributor per DIGECAM regulations. ¶7. (SBU) IMSA books and DIGECAM registries were well-maintained, and indicated that while IMSA had sold some of the weapons imported from the U.S. to other arms distributors previously, the company also sold a small number of the weapons to private citizens. ¶8. (SBU) IMSA has a clean record with DIGECAM and has passed all routine inspections without incident. According to DIGECAM authorities, IMSA is a small-scale, well-managed weapons store that has always operated within local laws and regulations. Based on the results of the on-site inspection, interviews and a records check with DIGECAM, Post recommends approval of the reftel license. MCFARLAND