Identifier
Created
Classification
Origin
09GUATEMALA921
2009-10-02 21:08:00
UNCLASSIFIED
Embassy Guatemala
Cable title:  

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

Tags:  ETTC KOMC GT 
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VZCZCXYZ0006
RR RUEHWEB

DE RUEHGT #0921/01 2752108
ZNR UUUUU ZZH
R 022108Z OCT 09
FM AMEMBASSY GUATEMALA
TO RUEHC/SECSTATE WASHDC 0123
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

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