VZCZCXYZ0023
RR RUEHWEB

DE RUEHZP #2319 3382101
ZNR UUUUU ZZH
R 042101Z DEC 06
FM AMEMBASSY PANAMA
TO SECSTATE WASHDC 9446

UNCLAS PANAMA 002319 
 
SIPDIS 
 
SIPDIS 
 
FOR PM/DTCC - BLUE LANTERN COORDINATOR 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC PM
SUBJECT: PANAMA - BLUE LANTERN LEVEL 3 LICENSE 05-1011679 
 
REF: STATE 1815041 
 
1.(U) On November 30, 2006, EconOff met with Ricaurte 
Garajales Pezet, the General Manager of Armas y Municiones 
Nacional, S.A. (ARMUNAL) at ARMUNAL's offices at Calle Abel 
Bravo, Panama City, Panama. 
 
¶2. (U) Garajales confirmed to EconOff that ARMUNAL ordered 
the purchase of 25 SP2022 9mm pistols and 13 P232-.380 
caliber blue pistols from Sigarms, Inc. of Exeter, New 
Hampshire as described in RefTel. 
 
¶3. (U) ARMUNAL's regular customers are private Panamanian 
security agencies and Panamanian citizens residing in Panama 
City.  Garajales told EconOff that none of the pistols 
ordered from Sigarms will be sold to private security 
agencies. 
 
¶4. (U) Garajales told EconOff that it has pre-sold almost 90% 
of the pistols to Panamanians residing in Panama City, Panama 
for private use. In order to purchase the pistol, the buyer 
must have a valid Panamanian gun license.  Garajales told 
EconOff that ARMUNAL will keep one pistol of each type in its 
offices for display purposes. 
 
¶5. (U) Garajales told EconOff that ARMUNAL maintains detailed 
records of the name, addresses and gun licenses of each buyer. 
 
¶6. (U) According to Garajales, the pistols will be held in 
the munitions depot of the Panamanian National Police (PNP) 
located in Cerro Tigre.  Upon arrival at Tocumen 
International Airport, Garajales along with members of the 
PNP will inspect the pistols and the PNP will transport the 
pistols to the PNP depot until such time as they are sold. 
The buyer can either receive the pistol directly from the 
PNP, or ARMUNAL will make arrangements to have the pistol 
delivered to its offices for delivery to the buyer. 
 
¶7. (U) According to Garajales, ARMUNAL was incorporated in 
October 2003 and received it license to operate as a gun 
wholesaler and retailer on October 30, 2003.  EconOff 
reviewed copies of ARMUNAL incorporation documents and 
business license, which appeared to be in order. 
 
¶8. (U) ARMUNAL's principal officers and shareholders are 
Garajales, Eduardo Mendez and Iuonne de la Lastre. 
 
¶9. (U) Garajales told EconOff that ARMUNAL had all requisite 
GOP licenses and authorizations to conduct its business and 
that he was aware of the restrictions governing U.S. 
Munitions List (USML) commodities, including the prohibition 
of unauthorized retransfer or re-export.  Garajales told 
EconOff that this order was the company's first order of USML 
commodities.  None of the pistols being purchased will be 
exported outside of Panama according to Garajales. 
 
¶10. (SBU) Post notes that RefTel states that ARMUNAL is on 
the Department's Directorate of Defense Trade Controls 
watchlist due to a 1994 U.S. Customs investigation and that 
ARUMUNAL attempted to obtain a Department license in 1999. 
Without disclosing this information, EconOff asked Garajales 
whether ARMUNAL or any of its officers or shareholders were 
in the gun wholesale or retail business prior to 2003. 
Garajales told EconOff that ARMUNAL and its current officers 
and shareholders only began operations as a gun dealer after 
¶2003. 
EATON