Guatemala Response: Blue Lantern Level 3:

UNCLAS GUATEMALA 000001

SIPDIS

E.O. 12958: N/A
TAGS: ETTC KOMC GT
SUBJECT: Guatemala Response: Blue Lantern Level 3:
Pre-Shipment/Post-License End-Use Check/Lic. 050184481

REF: STATE 116866


1. (SBU) Summary: In response to reftel, EmbOffs conducted
an interview with the arms import company Proximidad, S.A. At the
time of the interview, and per reftel, Proximidad, S.A. was not
able to provide a contract from the Guatemala's National Civil
Police (PNC). As a result of the investigation, Post does not
recommend approval of the pre-shipment/post-license authorization.

2. (SBU) Proximidad, S.A. is owned by Francisco Romeo Anleu
Arenales, and Mr. Jose Antonio Grajeda Recinos is its legal
representative. Neither person was available for an interview, but
the sales managers explained that this company has been operating
since 2002. Proximidad sells defense weapons and equipment to
government entities only, and the contracts are acquired through a
public bid solicitation process. Proximidad is not a retail
weapons store, but only a small office in back of another retail
business located in a large professional office building in the
city. (Note: A local name check with the PNC by the Chancery's
Residential Security Office did not reveal any derogatory
information on Anleu or Grajeda. End Note).

3. (SBU) The sales managers, Sandra Velasquez and Victor Hugo
del Pozo, estimated that Proximidad participates in two to four
contracts a year with the Guatemalan government. Therefore, annual
sales of U.S.-origin defense articles range around 1 million USD.
In addition to the Guatemalan government, Proximidad sells
U.S.-origin defense articles to government customers in El
Salvador, Honduras and Panama. Per reftel, Proximidad will not
have physical possession of the grenades, grenade launchers or
cartridges.

4. (U) Velasquez and del Pozo confirmed that they are
familiar with the regulations governing the import of U.S.-origin
defense articles, including restrictions on re-transfer or
re-export.

5. (SBU) Jorge Lopez Selva, former Sub Director of Logistics
and present technical advisor for the Logistics Division of the
PNC, confirmed that during the month of April, there was a purchase
by the PNC of approximately 4000 tear gas grenades, but the
grenades have not been delivered to-date. (Note: EmbOffs cannot
confirm if the current reftel has any relation to the April order
for 4000 grenades. End Note).

6. (U) Since this company is not registered with the MOD's
General Directorate for the Control of Firearms and Ammunition
(DIGECAM),EmbOffs cannot verify the validity of the company or its
inventory. However, Velasquez stated that with the new firearms
and ammunitions laws, Proximidad is required to obtain a license
from DIGECAM for each importation of defense equipment.

7. (U) Since Proximidad was not able to produce a legal
contract with the PNC for the reftel grenade equipment, EmbOffs
were not able to verify the potential purchase, and therefore, has
denied the pre-shipment/post-license application.
MCFARLAND