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