VZCZCXYZ0000
RR RUEHWEB

DE RUEHBU #1248/01 1781451
ZNR UUUUU ZZH
R 271451Z JUN 07
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 8520
INFO RUEHAC/AMEMBASSY ASUNCION 6280
RUEHRL/AMEMBASSY BERLIN 1067
RUEHBO/AMEMBASSY BOGOTA 1581
RUEHBR/AMEMBASSY BRASILIA 6145
RUEHLP/AMEMBASSY LA PAZ JUN MONTEVIDEO 6541
RUEHPE/AMEMBASSY LIMA 2077
RUEHQT/AMEMBASSY QUITO 0944
RUEAIIA/CIA WASHINGTON DC
RHMFIUU/DEPT OF HOMELAND SECURITY WASHINGTON DC
RHMFIUU/DEPT OF JUSTICE WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RHMFIUU/FBI WASHINGTON DC
RHMFIUU/HQ USSOUTHCOM MIAMI FL

UNCLAS BUENOS AIRES 001248 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
ICE/OIA FOR GERARDO CHAVEZ 
 
E.O. 12958: N/A 
TAGS: ETTC KCRM PGOV PREL AR
SUBJECT: ARGENTINA: INVESTIGATION INTO SUSPECT WEAPONS 
PARTS EXPORTS CONTINUES 
 
¶1. (SBU)  THIS INFORMATION IS LAW ENFORCEMENT SENSITIVE. 
 
¶2. (SBU) Summary:  A judicial investigation into a suspected 
tax evasion and, perhaps, arms smuggling case, involving 
Farmington, Connecticut-based company JLD Enterprises, 
continues here.  Argentine customs and judicial authorities 
have requested assistance from ICE and CBP to assist on the 
U.S. side with the investigation into the shipping of used 
and/or spare weapons parts from Argentina to the U.S.  Apart 
from the shipment halted in Buenos Aires, CBP in Hartford, 
Connecticut and Argentina's Trade Transparency Unit (TTU) 
identified another shipment bound for JLD originating in 
Germany.  However, this shipment of spare weapons parts from 
PAW PROPPE, a German firearms distributor, had all its 
shipping manifests and customs documentation in order and no 
anomalies were uncovered.  The Argentine investigation was 
leaked here to the press, which began the speculation about 
arms trafficking and supposed links to criminal and terrorist 
organizations, such as the FARC and Brazilian drug 
trafficking gangs.  As yet, Post is unaware of any evidence 
supporting these claims.  ICE/CBP in Hartford is looking at 
customs documentation from earlier shipments from Argentina 
to JLD, and Argentine officials continue the investigation in 
Buenos Aires.  End Summary. 
 
¶3. (SBU) In February 2007, Argentina's Trade Transparency 
Unit (TTU) flagged a shipment of used and/or spare weapons 
parts being shipped from Buenos Aires by U.S. company JLD 
Enterprises to its headquarters in Farmington, Connecticut. 
JLD is owned by Argentine citizen and U.S. resident Jose Luis 
Diaz.  The shipment caught TTU's attention because of the 
apparent discrepancy in the value of USD2,600 assigned to a 
planned shipment of what has been variously described by the 
press as either 6,700 kilos of used arms parts/scrap metal or 
6,700 individual arms parts. According to press reports here, 
JLD had a contract worth some USD310,000 with Fabricaciones 
Militares, the Argentine parastatal arms manufacturer, to buy 
and ship used parts/scrap metal to the U.S. 
 
¶4. (SBU) Argentine Customs contacted Mission's ICE 
representative at the Buenos Aires Port Container Security 
Initiative (CSI).  In March 2007, the ICE Attache initiated 
an investigation based on the information TTU/Argentine 
Customs provided.  ICE Attache contacted the Resident Agent 
in Charge (RAC) Hartford, Connecticut.  RAC Hartford, in 
connection with the CBP National Targeting Center CBP/NTC and 
TTU Argentina, identified seven containers bound for JLD 
originating in Germany.  Those containers, shipped by PAW 
PROPPE, a German firearms distributor, were inspected by CPB 
but the cargo matched the customs broker's customs entry 
documentation and invoices.  RAC Hartford and CBP are looking 
to see if the spare parts shipped from Germany and those from 
Argentina match, i.e. to see if the parts from the various 
shipments can be assembled into complete firearms. 
 
¶5. (SBU) In addition to the one shipment that was flagged 
before leaving Argentina, RAC Hartford indicates they have 
identified and obtained the U.S. Customs Entry forms for 36 
previous shipments from Argentina with the same importer and 
exporter.  ICE Attache is working with Argentine Customs to 
obtain additional shipping documents here.  As JLD is aware 
of the investigation in Argentina and the scrutiny in the 
U.S., it is highly unlikely there will be any more suspicious 
shipments from Argentina to the U.S., limiting ICE to 
reviewing historical documents and making it difficult to 
uncover any illegal activity. 
 
¶6. (SBU) ICE Attache contacts and the Argentine press 
speculate that the used parts/scrap metal are Argentine 
military weapons that are sold as "used" and/or "scrap" by 
corrupt officials to a group of individuals, reportedly to 
include Jose Luis Diaz.  Allegedly the parts are shipped to 
the U.S., reassembled into complete weapons and sold by JLD 
Enterprises.  The press goes on to speculate that some of 
 
these weapons have found their way into the hands of criminal 
and terrorist organizations in Latin America, such as the 
FARC and Brazilian drug trafficking gangs.  Embassy is 
unaware of any evidence supporting these allegations, but the 
investigation here in Argentina is not without precedence. 
There is an ongoing investigation, initiated in 2002, after a 
number of Argentine Military weapons from Fabricaciones 
Militares, including rifles, machine guns, pistols and 
grenades, turned up in Brazilian favelas. 
WAYNE