BLUE LANTERN LEVEL 3: POST SHIPMENT END-USE CHECK

237278 2009-11-30 23:14:00 09MEXICO3376 Embassy Mexico CONFIDENTIAL 09STATE57530 VZCZCXYZ0004 OO RUEHWEB DE RUEHME #3376/01 3342314 ZNY CCCCC ZZH O 302314Z NOV 09 FM AMEMBASSY MEXICO TO RUEHC/SECSTATE WASHDC IMMEDIATE 9213 INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC IMMEDIATE RUEKJCS/SECDEF WASHINGTON DC IMMEDIATE RHMFISS/FBI WASHINGTON DC IMMEDIATE RUEAIIA/CIA WASHINGTON DC IMMEDIATE RHMFISS/HQ BICE INTEL WASHINGTON DC IMMEDIATE TAGS: ETTC KOMC SNAR MX C O N F I D E N T I A L MEXICO 003376 SENSITIVE SIPDIS FOR PM/DTCC - BLUE LANTERN COORDINATOR, WHA/MEX, AND INL/LP E.O. 12958: DECL: 08 OCTOBER 2019 TAGS: ETTC KOMC SNAR MX SUBJECT: BLUE LANTERN LEVEL 3: POST SHIPMENT END-USE CHECK ON LICENSE 050016624 REF: STATE 57530 Classified By: Political Minister Counselor Gustavo Delgado. Reason: 1. 4 (b) and (d). ¶1. Summary: Blue lantern Coordinators requested that Poloff investigate the circumstances surrounding the recovery of an U.S. licensed AR-15 rifle from a Mexican crime scene and substantiate the chain of custody from the supplier to the end user. The investigative branch of the Mexican Attorney General (PGR CENAPI) used E-trace to determine that the last legal point of sale was Bushmaster International, LLC. Realizing that the recovered weapon was part of a USG licensed sale, Bushmaster notified the State Department. The Department does not track individual serial numbers of weapons involved with USG licensed sales. Therefore, it is reliant on supplier information to provide the basis of investigations. This investigation tracked the chain of custody for the weapon through the following entities: the U.S. supplier, the U.S. manufacture representative in Mexico, the Mexican customs-broker, the Mexican Army, and the State Government of Michoacan. End Summary. ¶2. (SBU) The Defense Attach Office's sent an official request to the Secretariat of Defense (SEDENA) on 23 June 2009 and received a response to reftel questions on 10 August ¶2009. ¶Q. Did the GOM receive all 1030 AR-15 type rifles exported under license 050016624? ¶A. SEDENA received 507 rifles on 21 December 2006 and 523 rifles on 5 January 2007. SEDENA stated that all the items were received in Nuevo Laredo, Tamaulipas. ¶Q. Can the GOM provide documentation demonstrating the receipt of the rifles by SEDENA? ¶A. SEDENA provided the following documentation with regards to the items received under license 0550016624: Application and Permit of Permanent Exportation of Firearms, Warehouse receipt of 507 firearms, Importation Contract 093/2006, Card of Final Destination, Bushmaster Certificate of Origin, Warehouse Receipt of 523 firearms, Transfer of Custody to Government of Michoacan, and Warehouse Inventory. The following information is deemed to be important from the documentation. -- On 21 November, 2006, SEDENA received the license from the USG to receive Bushmaster 5.56x46 rifles as part of license ¶0550016624. -- On 28 November, 2006, SEDENA received 507 Bushmaster 5.56x46 and the serial numbers of all of the weapons are listed. -- On 5 December 2006, SEDENA and Bushmaster Firearms International, LLC signed importation contract 093/2006 for 1,030 Bushmaster 5.56x45 rifles and associated hardware. -- On December 9, 2006, SEDENA presented a note of final destination to Bushmaster Firearms International, LLC. SEDENA stated that the 1,030 Bushmaster 5.56x45 rifles that were purchased as part of contract 093/2006 were for ultimate use by the states of Baja California, Chihuahua, and Michoacan. The note also stated that SEDENA understood that U.S. law prohibits the re-export of these weapons. -- On 12 December, 2006 Bushmaster sent 523 Bushmaster 5.56 rifles to SEDENA. The list included the rifle with serial number L428091. -- On 10 January, 2007 SEDENA received 523 Bushmaster 5.56 rifles at the port of entry, Nuevo Laredo. The list matched the Certificate of Origin issued by Bushmaster Firearms International, LLC and L428091 was part of the list. -- On 15 May 2007, L428091 was part of a shipment of 121 Bushmaster 5.56x45 rifles (contract number 093/2006) from SEDENA to the Secretariat of Public Security in Michoacan. SEDENA did not provide any further chain of custody information on the specific state or local law enforcement entity or the ultimate individual retaining the weapon. -- On 21 May 2007, the SEDENA arms warehouse at Campo Militar No. 1-D, Lomas de Tecamachalco, Municipio de Naucalpan de Juarez, Estado de Mexico inventoried 500 pieces of hardware that included 81 Bushmaster 5.56 rifles remaining in SEDENA custody from contract number 093/2006. SEDENA is willing to provide the transfer of custody paperwork for the weapons that went to the Baja and Chihuahua in order to show complete accountability for all the weapons that were part of contract 093/2006. ¶Q. Can the GOM provide documentation demonstrating that the firearms were transferred and received by the Secretarias de Seguridad Publica in Baja, Chihuahua and Michoacan ¶A. SEDENA provided documentation that shows that 121 Bushmaster 5.56x45 rifles including L428091 were transferred to the government of Michoacan and signed off by Francisco Gabriel Huerta Cruz, El Ciudadano Licencia del Gobierno Michoacan. ¶Q. Did the GOM authorize the re-transfer of any of these rifles? ¶A. No ¶Q. Does the GOM maintain sufficient records to allow a thorough inventory of rifles in stock and account for the current location of the 1030 AR-15 rifles? ¶A. SEDENA provided an inventory of 81 AR-15 rifles remaining in its warehouse from the original shipment of weapons per license 050016624. The inventory is not broken down by serial number. SEDENA also provided the transfer document for the 121 AR-15 rifles sent to the Government of Michoacan. SEDENA insists that it strictly controls and documents the distribution of weapons legally arriving in Mexico. SEDENA has advised that it will provide us documentation that speaks to the chain of custody for the remaining 828 AR-15 rifles shipped in connection to license 050016624. ¶Q. Did the GOM or SEDENA re-export these weapons? ¶A. No ¶Q. Does SEDENA register and inventory arms that they export? ¶A. Mexico does not export war material. ¶3. (SBU) Poloff from Consulate Monterrey interviewed Carlos Salas Sosa, Director of Operations, Central Aduanas de Mexico, S.A. on 10 September 2009. ¶Q. When was your company established and who are its principals? ¶A. Central Aduanas de Mexico (CAM) was established in 1949. It is an association with offices in Mexico City, Toluca, Guadalajara, and Monterrey. Eduardo Valle and Fortino Escamillo are the principal officers in charge of CAM operations in D.F. Carlos Salas Sosa is the principal officer and Edna Alanis is the General Administrator in charge of operations in Monterrey. ¶Q. What goods and services does your company provide? ¶A. CAM is a full service customs broker, specializing in the import and export of goods to and from Mexico. ¶Q. Who are your regular customers? ¶A. Daimler, CADECO, John Deer and many other companies specializing in trucks and agricultural equipment. ¶Q. What was your role in the transaction involving export license 05001664? ¶A. CAM only handled the importation of the weapons. In the case of firearms, the manufacturer is responsible for the export license. ¶Q. Did CAM physically take possession of the firearms and can you provide all the documentation involved in this transaction? ¶A. CAM took possession of the arms in Laredo, TX., inventoried the arms, walked them through U.S. and Mexican customs, and delivered them at the border to the Mexican Army. The documents are available with CAM agent Orlando Farza in Laredo. He can fax them upon request. His phone number is (956) 722-6346. ¶Q. What is your relationship with Central Aduanas de Laredo, TX? ¶A. This was CAM's branch in Texas. It was closed three years ago because the employees were dishonest and it was not profitable. As a result, no business or partnership agreement with this office presently exist. ¶Q. What is CAM's relationship with Eduardo Jordan? ¶A. Eduardo Jordan is Bushmaster Firearms International representative in Metepec, Estado de Mexico. CAM has no contractual relationship with Eduardo Jordan. Orlando Farza based in Laredo TX may be able to provide more information. As noted above, he can be reached at 956-722-6346. ¶Q. What was Eduardo Jordan's role in this transaction? ¶A. Unknown ¶Q. Did Eduardo Jordan ever have physical possession of the firearms? ¶A. Impossible. CAM claimed the weapons at the border, cleared the weapons through customs, and the Mexican army took immediate possession. ¶4. (SBU) Another Embassy poloff interviewed Eduardo Jordan on 14 January 2008 for a pre-license check of 050054200, 050054678, 050055652, 050055694, 050055700, and 050054219. Embassy's current Blue Lantern Officer made several attempts to contact Eduardo Jordan for this investigation during the months of August and September, however, his office indicated that he was on travel and could not be reached. Eduardo Jordan is operating from the same office and is using the same number as in 2008. Contacts with Central Aduanas de Mexico, the paper trail provided by SEDENA, and the appearance of consistency based on the 2008 interview indicate that Eduardo Jordan had only minimal involvement with this transaction. ¶5. (C) Comment. Post's Blue Lantern Officer does not believe that SEDENA, Bushmaster Firearms International LLC, Central Aduanas de Mexico, or Eduardo Jordan committed malfeasance with regards to export license 050016624. Although there are a couple of discrepancies with regards to the dates of the initial import of 507 rifles versus the actual contract date for the 1030 rifles, the chain of custody and transfer to the Government of Michoacan for the rifle in question, L428091, is well documented and appears to be valid. Post's Blue Lantern Officer is coordinating with Immigration and Customs (ICE) Agents at Post to approach the State Government of Michoacan. ICE agents indicated that they may use a newly formed vetted unit to obtain additional information. ICE agents at post do not believe that an overt inquiry to the state official that signed the documents would yield any significant information. Using the Mexican vetted unit, however, could provide new details on tracking and inventory procedures at the local and state level. ¶6. (SBU) On the basis of this and similar cases, it is not evident that government officials at the state apply strict enforcement measures to track the chain of custody of weapons once SEDENA transfers them from its custody to the custody of state officials. Given the lack of accountability for weapons once they arrive at the state level, U.S. law enforcement agencies have fair reason to worry that a number of weapons simply "disappear." Because USG access to recovered weapons in Mexico remains limited, it is difficult to gauge just how serious a problem this is and to what extent these weapons turn up in the hands of criminal organizations in Mexico. ¶7. (SBU) Post believes both the USG and the GOM need to take a more systematic approach to tracking weapon transfers to the state level and beyond to the final end user. We support the Blue Lantern Coordinator's proposal that his office bundle, according to region, the cases of firearms recovered from crime scenes. Mission Mexico's ICE and ATF Attaches would then approach the Mexico Attorney General PGR's International Relations Office with a list of the serial numbers of confiscated weapons that had been transferred to state authorities and request a fuller accounting for how these weapons ended up in the hands of criminals. On a broader policy level, the Embassy will urge the GOM to work with states to develop a stricter policy with regard to accounting for weapons once they arrive at the state level. End Comment Visit Mexico City's Classified Web Site at http://www.state.sgov.gov/p/wha/mexicocity and the North American Partnership Blog at http://www.intelink.gov/communities/state/nap / PASCUAL