BLUE LANTERN LEVEL 3: POST-LICENSE/PRE-SHIPMENT

UNCLAS STATE 030527 SENSITIVE SIPDIS GUATEMALA FOR ELIZABETH MANGINI E.O. 12958: N/A TAGS: ETTC KOMC GT SUBJECT: BLUE LANTERN LEVEL 3: POST-LICENSE/PRE-SHIPMENT END-USE CHECK ON LICENSE 050143296 REF: GUATEMALA 80 ¶1. (U) This is an Action Request. See paragraphs 2 - 4. ¶2. (U) The Department's Office of Defense Trade Controls Compliance (PM/DTCC) requests Post's assistance in conducting a post-license/pre-shipment check on license 050143296 for the export of rifles 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: A recent unfavorable Blue Lantern end-use monitoring check on Guatemalan company, Defensa S.A., indicates that the end-user on this license, El Venadito, received a large quantity of rifles from Defensa S.A. (REFTEL). REFTEL also indicates that El Venadito is located in an area with documented ties to narco-trafficking. In addition, the stated end-use on this license is for "resale to the consumer and law enforcement use in Guatemala only." This check is to establish the bona fides of El Venadito and determine what ties, if any, exist between the company and Defensa S.A. This request is also to determine if El Venadito has any business agreement with the law enforcement community in Guatemala. ¶4. (SBU) Action Request: Post is requested to establish the bona fides of El Venadito by making appropriate inquiries to representatives of the company and officials of the Government of Guatemala. The following points are included for guidance: (To El Venadito) --Can you confirm the order of the firearms listed on this license application? Are you an authorized firearms retailer? --Who are your regular customers and where do they reside? What U.S.-origin firearms do you typically sell? What are your estimated annual sales of U.S.-origin firearms? In the past, what has been your source for U.S. firearms? --What quantity of these firearms are for sale to private end-users? What quantity of the firearms are for use by law enforcement agencies of Guatemala? Do you currently have a business agreement with any law enforcement agency in Guatemala for the procurement of firearms? --What is your relationship to Guatemalan arms dealer, Defensa S.A.? --Are you familiar with the regulations governing the import of U.S.-origin defense articles, including restrictions on re-transfer or re-export? (To DECAM) --Is El Venadito authorized to import firearms into Guatemala? Do you have any derogatory information on El Venadito? Are there any ties between El Venadito and Defensa S.A. In its reply, Post is encouraged to comment on any information pertinent to this transaction such as the location of El Venadito, security of facilities, end-use, and concerns about the entities involved. ¶5. (U) Details of license applications: DTC Case: 050143296 QUANTITY/COMMODITY: 75 Marlin Model 60 Rifles, .22 Caliber 25 Marlin Model 60SS Rifles, .22 Caliber License Value: USD $17,693 SELLER: Valor Corporation 1001 Sawgrass Corporate Parkway Sunrise, FL 33323 FOREIGN END-USER: El Venadito Calzada Centenario, Comercial Centenario, Local #3 Mazatenango, Guatemala Tel: 7872 4246 / 7872 1169 PURPOSE: For resale to the consumer and law enforcement use in Guatemala only. ¶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 Zoraida Elizabeth Valenzuela Gomez (El Venadito) dated 01/08/2009 and Harry Lopez (Valor Corporation) dated 01/28/2009 Import License No. 169/ARM-2008 (Expediente No. 1212633) issued by DECAM signed by David Napoleon Barrientos Giron dated 10/01/2008 End-User Certificate Letter from El Venadito signed by Zoraida Elizabeth Valenzuela Gomez Purchase Order from El Venadito signed by Zoraida Elizabeth Valenzuela Gomez dated 01/16/2009 ¶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 in the Bunche Library's E-Book Collection on the DOS Intranet: http://virtuallibrary.state.gov/ BlueLanternGuidebook2006%2520 final .pdf ¶8. (U) Department is grateful for Post's assistance in this matter. CLINTON