Identifier
Created
Classification
Origin
09SANSALVADOR1108
2009-11-24 21:35:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy San Salvador
Cable title:  

BLUE LANTERN LEVEL 2: PRE-LICENSE END-USE CHECK ON LICENSE

Tags:  ETTC KOMC UY ES 
pdf how-to read a cable
VZCZCXYZ0000
RR RUEHWEB

DE RUEHSN #1108 3282136
ZNR UUUUU ZZH
R 242135Z NOV 09
FM AMEMBASSY SAN SALVADOR
TO RUEHC/SECSTATE WASHDC 0036
INFO RHMFIUU/FBI WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEHMN/AMEMBASSY MONTEVIDEO
RUEHSN/AMEMBASSY SAN SALVADOR
RUEKJCS/SECDEF WASHINGTON DC
RUETIAA/DIRNSA FT GEORGE G MEADE MD
UNCLAS SAN SALVADOR 001108 

SENSITIVE
SIPDIS
STATE FOR PM/DTCC - BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: ETTC KOMC UY ES
SUBJECT: BLUE LANTERN LEVEL 2: PRE-LICENSE END-USE CHECK ON LICENSE
050200117

REF: 09 STATE 119092

UNCLAS SAN SALVADOR 001108

SENSITIVE
SIPDIS
STATE FOR PM/DTCC - BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: ETTC KOMC UY ES
SUBJECT: BLUE LANTERN LEVEL 2: PRE-LICENSE END-USE CHECK ON LICENSE
050200117

REF: 09 STATE 119092


1. (SBU) Econoff conducted reftel Blue Lantern pre-license check on
November 23 at COSASE's principal San Salvador store, meeting with
store manager Mario Serrano and general administrative manager
Romero Hernandez. Responses to reftel questions follow:




2. (SBU) COSASE was established over 20 years ago as a security
company, still its primary business, and has moved to offer a
"comprehensive" package including security, alarm systems and
monitoring, weapons sales, and a shooting range. COSASE now
operates four stores in El Salvador, two in San Salvador, one in
Santa Ana, and one in San Miguel.




3. (SBU) COSASE is owned by Miguel Menendez, a Salvadoran
businessman (and former race car driver) who also holds substantial
coffee interests. Menendez gained new prominence as one of the
main private sector backers and "friends" of President Mauricio
Funes. Menendez has now accepted a Presidential appointment as
chairman of El Salvador's International Fairgrounds and Convention
Center (CIFCO).




4. (SBU) According to Serrano, COSASE sells about 800 U.S.-made
weapons for 2009, both to private individuals and other security
firms. Because of El Salvador's deteriorating security situation,
Serrano added, COSASE's arms business was growing rapidly. COSASE
is a dealer for Smith and Wesson, Remington, and Glock, as well as
El Salvador's exclusive dealer for Remington-branded ammunition.
They are licensed by the Ministry of Defense to be able to import
weapons to El Salvador.




5. (SBU) Regarding purchase order No. 01-2009, Serrano said Glock
America S.A. of Uruguay was Glock's authorized sales agent for El
Salvador and therefore handled all their Glock purchases. The
weapons shipment itself will come from Glock Austria, only
trans-shipping the United States, and will be paid by wire transfer
directly to Glock Austria. Asked why the purchase order said "$0"
and "cash," Serrano replied that this is what Glock had told them
to use for the license paperwork, since Glock has not yet issued
the final invoice with the total purchase price. Hernandez said
that Glock shipments usually came directly from Austria to El
Salvador, and equated the US license process, which involved Glock
USA, to the requirement that Salvadorans have a US visa to transit
Miami on the way to/from Europe.




6. (SBU) Both Serrano and Hernandez were aware of the regulations
governing the import of U.S.-origin defense articles, but not the
restrictions on re-transfer and re-export, noting that they were
not authorized for re-export by the Ministry of Defense.




7. (SBU) COMMENT: COSASE is a well-known, established, respected,
and now politically well-connected Salvadoran company. On
COSASE's end, the Glock purchase appears legitimate and part of
their regular business. Paperwork issues stem from poor advice
from Glock, not any ill-intent on the part of COSASE.
BLAU