VZCZCXYZ0010
RR RUEHWEB

DE RUEHC #1434 1582210
ZNR UUUUU ZZH
R 062201Z JUN 08
FM SECSTATE WASHDC
TO RUEHGT/AMEMBASSY GUATEMALA 0000
INFO RUETIAA/DIRNSA FT GEORGE G MEADE MD
RUEAIIA/CIA WASHINGTON DC 0000
RHMCSUU/FBI WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC 0000

UNCLAS STATE 061434 
 
SENSITIVE 
SIPDIS 
GUATEMALA FOR LANCE HEGERLE 
GUATEMALA FOR DREW BLAKENEY 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC OTRA PARM PREL GT
SUBJECT: BLUE LANTERN: DISCUSSIONS WITH EMBASSY AND 
GUATEMALAN OFFICIALS APRIL 9-11 
 
REF: A. A. STATE 61431 
     ¶B. B. STATE 32825 
     ¶C. C. 07 GUATEMALA 801 
     ¶D. D. GUATEMALA 465 
 
¶1. (SBU) SUMMARY: Compliance Specialists from the 
Department,s Office of Defense Trade Controls Compliance 
(PM/DTCC) met April 9-11 in Guatemala City with USG and 
Guatemalan officials to discuss implementation of the Blue 
Lantern end-use monitoring program and other defense trade 
issues in Guatemala.  Topics included an apparent 
unauthorized re-transfer of United States Munitions List 
(USML) items (ref A) and the export of firearms from the U.S. 
to Guatemala.  The PM/DTCC representatives met with USG 
officials, Guatemalan Ministry of National Defense (MND) 
officers, and the owner of private Guatemala-based arms 
dealer GIR SA as part of the Department,s ongoing 
investigation of an apparent unauthorized re-transfer of 
firearms that had been provided to the Guatemalan MND under 
the U.S. Military Assistance Program (MAP).  Briefings on the 
Blue Lantern program to the Defense 
Security Cooperation Agency,s (DSCA) SOUTHCOM End-Use 
Monitoring Regional Forum, country team members, and 
Guatemalan officials helped to clarify U.S. export controls 
and end-use monitoring requirements.  Finally, the PM/DTCC 
team gained insights into Guatemalan firearms laws and import 
regulations by meeting with the head of the MND department 
responsible for regulating firearms and by conducting a Blue 
Lantern post-shipment check at a Guatemalan firearms dealer. 
END SUMMARY 
 
APPARENT AECA SECTION 3 VIOLATION 
 
2.(SBU) PM/DTCC Compliance Specialists Judd Stitziel and Kyle 
Ballard dedicated a significant portion of their visit 
investigating the apparent unauthorized re-transfer of 
MAP-origin firearms that had been provided to the Guatemalan 
MND (Ref A). 
 
BLUE LANTERN AND THIRD-PARTY TRANSFER BRIEFINGS 
 
¶3. (U) Administered by the Department,s Office of Defense 
Trade Controls Compliance (PM/DTCC), Blue Lantern is a global 
program designed to verify the end-use, end-users, and 
disposition of commercially exported defense articles, 
technology, and services.  This visit to Guatemala was part 
of PM/DTCC's ongoing efforts to improve the effectiveness of 
Blue Lantern through outreach visits with posts and host 
governments. 
 
¶4. (SBU) Stitziel and Ballard briefed country team members on 
April 9.  In attendance were PolMil Officer Lance Hegerle, 
ECON Foreign Service National (FSN) Maricely Maldonado, ICE 
Attach Lupe Sepulveda, Senior Commercial Officer Patricia 
Wagner, and Narcotics Affairs Section Chief Ray Campos. 
Among many topics, attendees discussed potential benefits of 
involving Department of Commerce (DOC) representatives in 
select Blue Lantern checks and PolMil officers in DOC,s 
end-use monitoring program, 
Extrancheck. 
 
¶5. (SBU) On April 10, Stitziel and Ballard briefed 
participants of the Defense Security Cooperation Agency,s 
(DSCA) SOUTHCOM End-Use Monitoring Regional Forum on the Blue 
Lantern program and third-party transfers.  This was the 
first such meeting designed to bring together Security 
Assistance Officers (SAO) from SOUTHCOM MILGRPs to discuss 
end-use monitoring issues.  PM/DTCC and DSCA have found that 
joint briefings have helped audiences to better understand 
the similarities and differences between the regulations 
governing the export of defense articles and technology 
exported via direct commercial sales (DCS) and Foreign 
Military Sales (FMS).  The session began with back-to-back 
briefings on Blue Lantern and DSCA,s end-use monitoring 
program, Golden Sentry, as well as third-party transfers of 
items that had originally been exported via DCS and FMS. 
 
¶6. (SBU) Discussions during the forum and sidebar meetings 
focused on the differing requirements and capabilities of 
end-use monitoring through Blue Lantern and Golden Sentry, 
especially concerning night vision devices (NVDs).  Forum 
participants agreed that both DOS and DOD would benefit from 
increased communication and collaboration in end-use 
monitoring of DCS NVDs.  Some forum participants expressed a 
desire for Blue Lantern points-of-contact at posts to play a 
more visible and active role in general in cooperative 
end-use monitoring efforts with their DOD counterparts. 
Several attendees reported difficulties in identifying the 
Blue Lantern POC at their post and obtaining information on 
commercial 
defense trade that would assist in end-use monitoring. 
Attendees also stated that they expect an increase in reports 
of AECA Section 3 violations in the SOUTHCOM region as USG 
staff and host country officials gain more knowledge of US 
regulations governing third-party transfers and destruction 
of defense articles. 
 
DEPARTAMENTO DE CONTROL DE ARMAS Y MUNICIONS (DECAM) 
 
¶7. (SBU) On April 10, Stitziel, Ballard, and Hegerle met with 
Chief of the Guatemalan Departmento de Control de Armas y 
Municiones (DECAM), Col. David Napoleon Barrientos Giron, to 
brief the Blue Lantern program and discuss the regulations 
governing firearms in Guatemala.  DECAM regulates the 
importation and ownership of firearms in Guatemala and 
reports directly to the Minister of Defense.  Barrientos 
expressed the Minister,s desire for more direct 
collaboration with other countries in combating the illicit 
trade of firearms.  Barrientos noted a direct order from the 
Minister to the DECAM chief to 
forge international relationships and exchange information on 
firearms related issues.  Barrientos stated that a proposal 
is being considered to establish within DECAM an office 
responsible for the development of official channels of 
communication with other countries.  Barrientos thought this 
would improve DECAM,s ability to verify the bona fides of 
foreign entities and to share information on transnational 
crime with DECAM,s foreign counterparts. 
 
¶8. (SBU) PM/DTCC representatives welcomed closer 
communication and cooperation with DECAM, especially in 
verifying the bona fides and good standing of Guatemalan 
firearms dealers.  While DECAM could provide derogatory 
information derived from its inspections of Guatemalan 
firearms dealers, PM/DTCC could contribute toward GOG,s 
efforts to prevent illicit arms trafficking.  Barrientos 
enthusiastically accepted PM/DTCC,s offer to put him in 
contact with officials at BATFE who could tell him more about 
Guatemala participating in BATFE,s e-Trace electronic 
firearms tracing program.  Barrientos stated 
that he met with BATFE representatives three weeks prior, had 
given them information about several seized firearms for 
tracing purposes, but had not yet received a response. 
 
¶9. (SBU) After describing the process by which DECAM 
registers firearm ownership and maintains ballistics records 
that assist in law enforcement cases, Barrientos outlined 
Guatemalan firearms import laws and regulations.  He stated 
that Guatemala currently has eighteen (18) authorized 
firearms importers and 170 authorized firearms dealers.  Each 
business is subject to DECAM inspections, including surprise 
inspections.  Inspectors thoroughly vet business records, 
inventory, and facilities and then submit a written report to 
DECAM lawyers.  DECAM closed, at least temporarily, eleven 
(11) firearms dealerships in 2007 due to violations of the 
law.  Guatemalan law does not limit the quantity of firearms 
imports, either in general or by individual importers. 
However, DECAM does not authorize the importation of firearms 
whose legitimate origins cannot be verified.  DECAM is 
allowed to maintain possession of a firearm for one month to 
investigate the firearm,s chain of custody and to obtain the 
proper forensic samples. 
 
¶10. (SBU) Barrientos also noted a recent addition to 
Guatemalan law that prohibits any two (2) gun shops from 
occupying the same business space.  This is done to ensure 
greater transparency in paperwork and recordkeeping. 
Barrientos acknowledged that the law allows one principal to 
operate several businesses and that some use this practice to 
engage in both importation and domestic sales.  He emphasized 
that the law still requires each business to maintain 
separate records.  Barrientos noted 
that Guatemalan firearms dealer Corpo Q, the subject of a 
recent Blue Lantern check (ref C), is one of only two 
instances in which one owner operates multiple businesses. 
Barrientos and Hegerle noted the value of the Blue Lantern 
check in bringing Corp Q,s multiple businesses to the 
attention of DECAM, which is now working to consolidate the 
businesses into one in order to better regulate its 
activities. 
 
¶12. (U) On April 11, Stitziel, Ballard, and Hegerle also 
conducted a post-shipment Blue Lantern check on firearms 
dealer STI Guatemala (ref D). 
 
¶13. (U) PM/DDTC would like to express its gratitude to 
Embassy Guatemala and especially PolMil officer Lance Hegerle 
for his exemplary work in helping to arrange and execute this 
visit. 
RICE