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

UNCLAS STATE 008244 SENSITIVE SIPDIS SAN SALVADOR FOR BRENT CHRISTENSEN E.O. 12958: N/A TAGS: ETTC KOMC ES SUBJECT: BLUE LANTERN LEVEL 3: POST-LICENSE/PRE-SHIPMENT END-USE CHECK ON LICENSES 050142683 AND 050142804 REF: 08 GUATEMALA 183 ¶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 licenses 050142683 and 050142804 for the export of firearms to El Salvador. 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: Previous Blue Lantern check in Guatemala indicates that Guido Lobo, owner of Salvadoran company Conavesa SA de CV, also has a business interest in Guatemalan firearms dealer, El Lobo (REFTEL). During the course of that check, representatives of El Lobo attempted to conceal Mr. Lobo's affiliation with the business. In addition, license 050142804 and the corresponding purchase order issued by Conavesa SA de CV lists "Beretta Model JX49220M" rifles which is actually the item number for the Beretta Model Cx4 Tactical Carbine. Mislabeling of this kind is often a deliberate attempt to evade further end-use documentation required for each individual tactical weapon exported from the United States. This check is to establish the bona fides of Conavesa SA de CV and to determine if the company was involved in evasive activity. ¶4. (SBU) Action Request: Post is requested to establish the bona fides of Conavesa SA de CV by making appropriate inquires with representatives of the company and authorities of local law enforcement. Post is also requested to determine any reason why Mr. Lobo's affiliation with Guatemalan company, El Lobo, may be concealed. The following points are included for guidance: (To Conavesa SA de CV) --Can you confirm that the firearms listed below are being purchased for commercial resale in El Salvador? Who are your regular 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? --Do any proprietors of Conavesa SA de CV have business interests outside El Salvador involving US-origin defense articles or services? If so, please describe these business interests and the individual's involvement. Is there a business relationship between Conavesa and these foreign business interests? Does commercial activity take place between Conavesa and these foreign businesses? --Can you explain why your purchase order on license 050142804 lists Beretta JX49220M rifles for these Beretta Cx4 carbines? Are these carbines presold? How many of these carbines do you sell per year? What is the ultimate end-use of these carbines? 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: ¶A. DTC Case: 050142683 QUANTITY/COMMODITY: 15 Marlin Model 60 SB Rifles, .22 Caliber 15 Marlin Model 60S-CF Rifles, .22 Caliber 5 Marlin Model 917VS-CF Rifles 15 Marlin Model 982VS-CF Rifles, .22 Caliber 15 Marlin Model 983S Rifles, .22 Caliber License Value: USD $13,500 SELLER: Valor Corporation 1001 Sawgrass Corporate Parkway Sunrise, FL 33323 FOREIGN INTERMEDIATE CONSIGNEE: Sercogua El Salvador SA de CV Avenida Masferrer Norte, Pasaje Las Rosas #5267 Lomas Verdes Colonia Escalon San Salvador, El Salvador FOREIGN END-USER: Conavesa SA de CV Calle Ramon Belloso y Avenida Republica de Alemania #4 Colonia Escalon San Salvador, El Salvador Tel: 2264-5233, 2264-6270, 2243-2384 PURPOSE: For commercial resale in El Salvador ¶B. DTC Case: 050142804 QUANTITY/COMMODITY: 25 Beretta Model JX49220M Rifles, 9mm (aka Beretta Cx4 Carbines) License Value: USD $20,000 SELLER: Valor Corporation 1001 Sawgrass Corporate Parkway Sunrise, FL 33323 FOREIGN INTERMEDIATE CONSIGNEE: Sercogua El Salvador SA de CV Avenida Masferrer Norte, Pasaje Las Rosas #5267 Lomas Verdes Colonia Escalon San Salvador, El Salvador FOREIGN END-USER: Conavesa SA de CV Calle Ramon Belloso y Avenida Republica de Alemania #4 Colonia Escalon San Salvador, El Salvador Tel: 2264-5233, 2264-6270, 2243-2384 PURPOSE: For commercial resale in El Salvador ¶6. (U) 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 Guido Roberto Lobo Sandoval and Harry A. Lopez dated 01/23/2009 Import Authorization No. 2994 signed by Marco Antonio Palacios Luna of the Ministerio de la Defensa Nacional dated 10/24/2008 (stamped 11/03/2008) Purchase Order from Conavesa SA de CV signed by Guido Lobo dated 11/11/2008 ¶B. DSP-83 signed by Guido Roberto Lobo Sandoval and Harry A. Lopez dated 01/26/2009 Import Authorization No. 3119 signed by Marco Antonio Palacios Luna of the Ministerio de la Defensa Nacional dated 11/06/2008 (stamped 11/10/2008) Purchase Order from Conavesa SA de CV signed by Guido Lobo dated 11/11/2008 ¶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