Cablegate: Blue Lantern Level 3: Pre-License End-Use Check

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RR RUEHWEB

DE RUEHC #0098 3241859
ZNR UUUUU ZZH
R 201854Z NOV 09
FM SECSTATE WASHDC
TO RUEHMU/AMEMBASSY MANAGUA 0000
INFO RUEHSN/AMEMBASSY SAN SALVADOR 0000
RUEHGT/AMEMBASSY GUATEMALA 0000
RUETIAA/DIRNSA FT GEORGE G MEADE MD
RUEAIIA/CIA WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC 0000

UNCLAS STATE 120098

SIPDIS
MANAGUA FOR KRZYWDA

E.O. 12958: N/A
TAGS: ETTC KOMC NU
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK
ON LICENSES 050200863 AND GC-189609

REF: 09 SAN SALVADOR 126

1. This is an Action Request. See paragraphs 4.

2. The Department's Office of Defense Trade Controls
Compliance (PM/DTCC) requests Post's assistance in conducting
a pre-license check on licenses 050200863 and GC-189609 for
the export of revolvers to Nicaragua. 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. Reason for Request: A previous Blue Lantern in El
Salvador found that a Salvadoran company was engaging in a
swap agreement with the Salvadoran Policia Nacional Civil
(PNC) in which the PNC was provided new firearms in exchange
for old revolvers. The Salvadoran company stated that they
had re-exported many of these old revolvers to Armeria Magnum
of Nicaragua without prior authorization from the Department
(REFTEL) (NOTE: GC-189609 is the Salvadoran company's post
facto request for re-export authorization, which was
ultimately granted. END NOTE). This check is to obtain
further information on these transactions, establish the bona
fides of Armeria Magnum, and determine the company's annual
firearms sales.

4. Action Request: Post is requested to establish the bona
fides of these transactions and end-user Armeria Magnum by
making inquiries to representatives of the company and
appropriate authorities of the Government of Nicaragua. The
following points are included for guidance:

(To Armeria Magnum)

--What products and services does your company provide? Who
are your regular customers and where do they reside?

--What are your annual sales of U.S.-origin firearms? Who
are your customers for these firearms?

--In the past, you purchased U.S.-origin firearms from
companies in third countries. Is this a common practice for
Armeria Magnum? Who are your third country suppliers of
U.S.-origin firearms?

--What quantities of U.S.-origin firearms do you generally
import every year? What percentage of these firearms come
from third countries?

--What is your relationship with Centrum S.A. of El Salvador?
How often do you purchase defense articles from the company?
How do you generally pay for these items?

--Do you have any relationship to Gun Depot and/or Ricardo
Alfonso Umana Luna of Guatemala? If so, please describe this
relationship.

--Do you sell firearms to customers that reside outside
Nicaragua? If so, who are these 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?

(To Appropriate Import/Export and/or Law Enforcement
Authorities)

--Is Armeria Magnum properly authorized to import and sell
defense articles in Nicaragua?

--Do you have any information on Armeria Magnum that would
call in to question their reliability as a recipient of U.S.
defense articles?

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. Details of license applications:

A.

DTC Case: 050200863

QUANTITY/COMMODITY:

60 Smith & Wesson Model 10 Revolvers, .38 Caliber

License Value: USD $9,000

SELLER:

Century Arms
236 Bryce Blvd
Fairfax, VT 05454

FOREIGN END-USER:

Armeria Magnum, S.A. (Owner: Salvador Luna)
Centro Comercial Managua
Seccion D#5 Cruz Lorena 25 vrs. al Sur
Managua, Nicaragua
Tel: (505) 883-5700

PURPOSE:

For commercial resale in Nicaragua

B.

DTC Case: GC-189609

QUANTITY/COMMODITY:

200 Smith & Wesson Model 10 Revolvers, .38 Caliber

SELLER:

Centrum, SA de CV
Urb. San Ernesto PSJE Pasaje San Carlos #149
San Salvador
El Salvador
Tel: (503) 2211-3454

FOREIGN END-USER:

(NOTE: This authorization request lists two end-users:
Armeria Magnum of Nicaragua and Gun Depot of Guatemala. END
NOTE)

Armeria Magnum, S.A. (Owner: Salvador Luna)
Centro Comercial Managua
Seccion D#5 Cruz Lorena 25 vrs. al Sur
Managua, Nicaragua
Tel: (505) 883-5700

PURPOSE:

For commercial resale in Nicaragua

6. 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 George Samson (Century Arms) dated
11/17/2009 and Salvador Luna (Armeria Magnum) dated 11/17/2009

Import Authorization No. D-MGA-037/2009 issued by the
Nicaraguan National Police signed by Horacio Sobalvarro
Barberana, Chief of DAEM dated 11/09/2009

Purchase Order from Armeria Magnum S.A. signed by Salvador
Luna dated 11/17/2009

B.

Lista de Empaque from Centrum S.A.to Armeria Magnum dated
10/17/2007

Letter Requesting (post facto) Re-Export Authorization from
Centrum S.A. signed by Carlos Gustavo Lopez Davidson dated
08/17/2009 (NOTE: This letter lists two end-users: Armeria
Magnum of Nicaragua and Gun Depot of Guatemala. END NOTE)

7. 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. Department is grateful for Post's assistance in this
matter.
CLINTON

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