BLUE LANTERN POST-SHIPMENT END-USE CHECK ON

UNCLAS MEXICO 000994 SENSITIVE SIPDIS FOR PM/DTCC - BLUE LANTERN COORDINATOR, WHA/MEX, AND INL/LP E.O. 12958: N/A TAGS: ETTC KOMC SNAR MX SUBJECT: BLUE LANTERN POST-SHIPMENT END-USE CHECK ON LICENSE 050135227 REF: STATE 14417 ¶1. (SBU) Poloff met March 10 with President Ronald Dorney of Syspro International, S.A. de C.V. about the post-shipment end-use check on license 050135227 (reftel). Dorney confirmed the order for 600 ballistic plates from U.S. company High Com Technology, LLC and said they were sold to Syspro's agent, Grupo Legus, who in turn sold them to the end-user, the Municipal Secretariat of Public Security (police department) of Ciudad Juarez. Dorney told Poloff that Grupo Legus was the agent for this sale in a normal commercial arrangement to allow greater coverage of the country. He indicated that Grupo Legus was not listed on the export license because he did not see a place for it on the application form. Dorney asserted that he got the end-user certificate from Grupo Legus before making the sale and was sure that all 600 plates were now in the hands of the Ciudad Juarez police department. ¶2. (SBU) Dorney commented that he did not think that it was necessary for the manufacturer to know about the role of Grupo Legus but said that his company had no ill-intentions. He gave Poloff a copy of the receipt of the sale to Grupo Legus. Dorney told Poloff that he was aware that, when the shipment arrived at the border, the U.S. Immigration and Customs (ICE) got involved in El Paso and Ciudad Juarez because Grupo Legus was not listed on the license. He was under the impression that ICE then went to the Chief of Police in Ciudad Juarez to confirm the sale. (Note: Dorney is a regular contact of the Embassy's DAO office, appears to be a bona fide company and apologized for the oversight. End Note.) ¶3. (SBU) Poloff then met March 18 with Eduardo Colin Lezama, Director General of Grupo Legus, S.A. de C.V., who confirmed the purchase of 600 plates from Syspro that were then sold to the Ciudad Juarez police department. He told Poloff that with his contacts his company approached Syspro with the idea of the sale to the Ciudad Juarez police in the first place. He also said that he was sure that the plates arrived at the police department, giving Poloff a copy of the transaction indicating that they were received on February 20, 2009, at the police department's general warehouse. He explained that the plates were transferred directly from the freight forwarder on the border in the U.S. to the warehouse in Ciudad Juarez, Chihuahua. Grupo Legus appeared to be a bona fide company. ¶4. (SBU) Juarez ICE confirmed April 3 with the Juarez police department the sale of the plates, which it received on February 20. During ICE's inquiries with the Juarez police, there was some indication that Grupo Legus may have attempted to delay final delivery for a higher price due to the change in the exchange rate between the peso and dollar, but the Juarez police confirmed that the plates are in their possession. Poloff found no unwarranted actions during the sale and delivery of the plates except the omission of the intermediary on the export license. 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 / BASSETT