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

UNCLAS STATE 125664 SENSITIVE SIPDIS GUATEMALA FOR ELIZABETH MANGINI E.O. 12958: N/A TAGS: ETTC KOMC GT SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON LICENSE 050203752 REF: A. 09 GUATEMALA 80 ¶B. 09 GUATEMALA 462 ¶1. (U) This is an Action Request. See paragraph 4. ¶2. (U) The Department's Office of Defense Trade Controls Compliance (PM/DTCC) requests Post's assistance in conducting a pre-license check on license 050203752 for the export of firearms to Guatemala. 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. (SBU) Reason for Request: Post previously assessed end-user Defensa S.A. as an unreliable recipient of U.S. Munitions Listed defense articles due to the lack of security at its facilities, a significant number of administrative citations from Guatemalan authorities, and the company's tendency to re-sell firearms in bulk to other firearms dealers such as El Venadito of Guatemala (REFTEL A). PM/DTCC and Embassy Guatemala conducted a check on El Venadito and found no derogatory information on the company (REFTEL B). This request is for Post to revisit end-user Defensa S.A. to determine if the company has improved the security at its facilities and if it can be considered a reliable recipient of U.S. defense articles. ¶4. (SBU) Action Request: Post is requested to establish the bona fides of end-user Defensa S.A. by making inquiries to representatives of the company and appropriate authorities of the Government of Guatemala. The following points are included for guidance: (To Defensa S.A.) --What are your annual sales of U.S.-origin firearms? --Have you made any improvements to the security of your facilities since Embassy's last visit? If so, play describe and demonstrate. --Do you sell firearms in bulk to other firearms dealers in Guatemala? If so, please provide the company names and addresses. What percentage of your total sales are to other firearms dealers? --Do you sell firearms to customers that reside outside Guatemala? If so, who are these customers and where do they reside? --Have you been cited for any significant infractions by the Guatemalan authorities? If so, please explain. What remedial actions has your company taken as a result? --Are you familiar with the regulations governing the import of U.S.-origin defense articles, including restrictions on unauthorized re-transfer or re-export? (To Appropriate Import/Export and/or Law Enforcement Authorities) --Do you have any information on Defensa S.A. that would call in to question their reliability as a recipient of U.S. defense articles? --Please provide information on any significant citations Defensa S.A. has received. 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. (U) Details of license applications: DTC Case: 050203752 QUANTITY/COMMODITY: 20 Ruger LCP Pistols, .380ACP Caliber 20 Ruger P4MK3 Pistols, .22LR Caliber 5 Ruger Mark III Pistols, .22LR Caliber 70 Ruger 10/22 RIfles, .22LR Caliber 1 Ruger K10/22T Rifle, .22LR Caliber 1 Ruger K77/22VBZ Rifle, .22LR Caliber License Value: USD $40,250 SELLER: Lou's Police Distributors, Inc. 7815 West 4 Avenue Hialeah, FL 33014 305-416-0000 FOREIGN END-USER: Defensa, S.A. 6a Ave 14-37 Zona 9 Local No. 1 Guatemala City, Guatemala Telfax: (502) 2331-4451 and 2331-6129 Email: bady@terra.com.gt PURPOSE: For commercial resale in Guatemala ¶6. (U) Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Posts upon request): DSP-83 signed by Linda Riccobono (Lou's Police) dated 11/30/2009 and Farid Massis (Defensa S.A.) dated 11/11/2009 Import Authorization No. 110/ARM-2009 issued by the DECAM signed by Hector Rolando del Cid dated 04/23/2009 Purchase Order from Defensa S.A. signed by Farid Nassar Massis Massis dated 11/11/2009 ¶7. (U) 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. (U) Department is grateful for Post's assistance in this matter. CLINTON