BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK

UNCLAS STATE 120098 SIPDIS MANAGUA FOR KRZYWDA E.O. 12958: N/A TAGS: ETTC KOMC NU SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON LICENSES 050200863 AND GC-189609 REF: 09 SAN SALVADOR 126 ¶1. This is an Action Request. See paragraphs 4. ¶2. The Department's Office of Defense Trade Controls Compliance (PM/DTCC) requests Post's assistance in conducting a pre-license check on licenses 050200863 and GC-189609 for the export of revolvers to Nicaragua. Post is requested to complete this Blue Lantern check within 30 days. Lack of response to a Blue Lantern check will affect pending and future licenses involving parties to this license. ¶3. Reason for Request: A previous Blue Lantern in El Salvador found that a Salvadoran company was engaging in a swap agreement with the Salvadoran Policia Nacional Civil (PNC) in which the PNC was provided new firearms in exchange for old revolvers. The Salvadoran company stated that they had re-exported many of these old revolvers to Armeria Magnum of Nicaragua without prior authorization from the Department (REFTEL) (NOTE: GC-189609 is the Salvadoran company's post facto request for re-export authorization, which was ultimately granted. END NOTE). This check is to obtain further information on these transactions, establish the bona fides of Armeria Magnum, and determine the company's annual firearms sales. ¶4. Action Request: Post is requested to establish the bona fides of these transactions and end-user Armeria Magnum by making inquiries to representatives of the company and appropriate authorities of the Government of Nicaragua. The following points are included for guidance: (To Armeria Magnum) --What products and services does your company provide? Who are your regular customers and where do they reside? --What are your annual sales of U.S.-origin firearms? Who are your customers for these firearms? --In the past, you purchased U.S.-origin firearms from companies in third countries. Is this a common practice for Armeria Magnum? Who are your third country suppliers of U.S.-origin firearms? --What quantities of U.S.-origin firearms do you generally import every year? What percentage of these firearms come from third countries? --What is your relationship with Centrum S.A. of El Salvador? How often do you purchase defense articles from the company? How do you generally pay for these items? --Do you have any relationship to Gun Depot and/or Ricardo Alfonso Umana Luna of Guatemala? If so, please describe this relationship. --Do you sell firearms to customers that reside outside Nicaragua? If so, who are these customers and where do they reside? --Are you familiar with the regulations governing the import of U.S.-origin defense articles, including restrictions on re-transfer or re-export? (To Appropriate Import/Export and/or Law Enforcement Authorities) --Is Armeria Magnum properly authorized to import and sell defense articles in Nicaragua? --Do you have any information on Armeria Magnum that would call in to question their reliability as a recipient of U.S. defense articles? In its reply, Post may also comment on any other information pertinent to these transactions such as security of facilities, end-use, and concerns about the entities involved. ¶5. Details of license applications: ¶A. DTC Case: 050200863 QUANTITY/COMMODITY: 60 Smith & Wesson Model 10 Revolvers, .38 Caliber License Value: USD $9,000 SELLER: Century Arms 236 Bryce Blvd Fairfax, VT 05454 FOREIGN END-USER: Armeria Magnum, S.A. (Owner: Salvador Luna) Centro Comercial Managua Seccion D#5 Cruz Lorena 25 vrs. al Sur Managua, Nicaragua Tel: (505) 883-5700 PURPOSE: For commercial resale in Nicaragua ¶B. DTC Case: GC-189609 QUANTITY/COMMODITY: 200 Smith & Wesson Model 10 Revolvers, .38 Caliber SELLER: Centrum, SA de CV Urb. San Ernesto PSJE Pasaje San Carlos #149 San Salvador El Salvador Tel: (503) 2211-3454 FOREIGN END-USER: (NOTE: This authorization request lists two end-users: Armeria Magnum of Nicaragua and Gun Depot of Guatemala. END NOTE) Armeria Magnum, S.A. (Owner: Salvador Luna) Centro Comercial Managua Seccion D#5 Cruz Lorena 25 vrs. al Sur Managua, Nicaragua Tel: (505) 883-5700 PURPOSE: For commercial resale in Nicaragua ¶6. Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Posts upon request): ¶A. DSP-83 signed by George Samson (Century Arms) dated 11/17/2009 and Salvador Luna (Armeria Magnum) dated 11/17/2009 Import Authorization No. D-MGA-037/2009 issued by the Nicaraguan National Police signed by Horacio Sobalvarro Barberana, Chief of DAEM dated 11/09/2009 Purchase Order from Armeria Magnum S.A. signed by Salvador Luna dated 11/17/2009 ¶B. Lista de Empaque from Centrum S.A.to Armeria Magnum dated 10/17/2007 Letter Requesting (post facto) Re-Export Authorization from Centrum S.A. signed by Carlos Gustavo Lopez Davidson dated 08/17/2009 (NOTE: This letter lists two end-users: Armeria Magnum of Nicaragua and Gun Depot of Guatemala. END NOTE) ¶7. Please slug reply for PM/DTCC - BLUE LANTERN COORDINATOR and include the words "Blue Lantern" and the case number in the subject line. POC is Kyle M. Ballard, Phone: 202-663-1929; Email: BallardKM@state.gov; SIPRNET: BallardKM@state.sgov.gov. The Blue Lantern Guidebook (ref) is available as a PDF file on Intellipedia: http://www.intelink.gov/wiki/ Blue Lantern End-Use Monitoring Program ¶8. Department is grateful for Post's assistance in this matter. CLINTON