VZCZCXYZ0004
OO RUEHWEB

DE RUEHME #3530/01 3371426
ZNR UUUUU ZZH
O 021426Z DEC 08
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4159
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC IMMEDIATE
RUEKJCS/SECDEF WASHINGTON DC IMMEDIATE
RHMFIUU/FBI WASHINGTON DC IMMEDIATE
RUEAIIA/CIA WASHINGTON DC IMMEDIATE
RHMFIUU/HQ BICE INTEL WASHINGTON DC IMMEDIATE

UNCLAS MEXICO 003530 
 
SENSITIVE 
SIPDIS 
 
FOR PM/DTCC - BLUE LANTERN COORDINATOR, WHA/MEX, AND INL/LP 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC SNAR MX
SUBJECT: BLUE LANTERN PRE-LICENSE END-USE CHECK ON LICENSE 
050123038 
 
REF: STATE 102661 
 
¶1. (SBU) SUMMARY:  Mission Mexico has uncovered a 
misstatement on the license request by Transportadora de 
Proteccion y Seguridad (TPS) in conducting a pre-license 
end-use check (reftel).  Although TPS did not identify the 
correct end-user of abrasion resistant steel plates from U.S. 
supplier Kambio Corporation, experience suggests that TPS is 
a bona-fide company that fulfills all documentary and 
security requirements.  TPS armors vehicles for U.S. and 
Mexican government entities, including the Ambassador's car 
and CG's vehicle in Monterrey, and some of the largest 
businesses in Mexico.  TPS indicated that it misunderstood 
the new licensing requirement and would be willing to 
resubmit its application.  END SUMMARY. 
 
¶2. (SBU) Poloff spoke by phone to General Manager Rodolfo 
Amozurritia of Transportadora de Proteccion y Seguridad, S.A. 
de C.V. (its commercial name is TPS Armoring) based in 
Monterrey October 31 as well as Fernando Macias of Transcarga 
November 10 about the end-use check on license 050123038 
(reftel) for abrasion resistant steel plates.  In the course 
of these exchanges, it became evident that TPS already had 
delivered an armored vehicle to end-user Transcarga using 
plates that TPS had acquired previously when the current 
end-use check was not required.  Amozurritia acknowledged 
that with the purchase of new steel plates per the license 
under review, TPS had hoped to create a running stock of 
plates that it could use as orders came in. 
 
¶3. (SBU) At Embassy Mexico's request, Monterrey Consulate 
Poloff visited TPS and met with Chairman and CEO Enrique 
Herrera and General Manager Amozurritia November 24 for 
further information on the end-use license under review. 
Herrera and Amozurritia conveyed some confusion about the 
State Department's end-use check process.  In the past, TPS 
had ordered its parts from the U.S. without having to 
identify the ultimate recipient of each part ordered.  To 
meet running requests from a variety of customers, both 
governmental and private, the company sought to place orders 
on a monthly basis.  To meet requirements under the licensing 
process, TPS had identified Transcarga as an end-user. 
Ultimately, however, TPS made delivery of an armored car to 
Transcarga with plates that had come in while it was waiting 
on the State Department license to be approved. 
 
¶4. (SBU) Speaking to TPS' business record, Herrera and 
Amozurritia explained that 50 percent of its sales go to 
Mexican (including the Attorney General's Office (PGR), the 
Preventive Federal Police (PFP), the Secretariat of Public 
Security (SSP), CISEN, AFI and as many as 26 state 
governments) and U.S. government entities (TPS armored both 
the CG's car in Monterrey and Ambassador Garza's car and has 
provided service to both the DEA and FBI in Monterrey). The 
other 50 percent of its sales are made with the private 
sector, including the largest businesses in Monterrey, such 
as Cemex, Alfa, Femsa and others.  The company also sells to 
U.S. companies like Caterpillar and Colgate.  They showed 
Poloff purchase agreements with CISEN, PGR and a private 
company. 
 
¶5. (SBU) TPS maintains that it satisfies all documentary 
requirements on transactions, including permits and 
registration with SSP.  The company places an authentication 
seal on each vehicle it manufactures with a logo to attest to 
its origin.  It fully understands that the items from the 
U.S. source, Kambio Corporation in Miami, Florida, are not to 
be re-transfered or re-exported.  Until now TPS has only sold 
its products to government entities or Mexican private sector 
companies.  Herrera and Amozurritia showed Poloff its secure 
facilities and affirmed that the company uses proper 
accounting and security procedures.  The company serves many 
states in Mexico and has a sales office in Mexico City. 
 
¶6. (SBU) TPS is owned by Enrique Herrera, who founded the 
company in 1994.  He and Amozurritia are in the process of 
selling the company to the O'Gara Group, which they said is 
the most well-known and respected U.S. armored car company, 
but that the sale is not final.  After the sale, Herrera and 
Amozurritia plan to remain in the company's management.  More 
information about TPS can be found on the company website at 
www.tps.com.mx. 
 
¶7. (SBU) COMMENT: Consulate Monterrey's long experience with 
TPS suggests it is not only a legitimate firm but has proven 
 
a reliable partner to the Consulate's U.S. law enforcement 
(FBI and DEA) community.  Monterrey's FBI office has heard no 
derogatory information about TPS and services its cars with 
the company.  TPS told Monterrey's FBI representatives that 
it has no intention of selling armored cars to 
narcotraffickers as it does want to risk getting caught up in 
battles between the cartels.  It also said that it does not 
accept orders for armored cars with secret compartments or 
gunholes from which you can shoot.  Indeed, Monterrey's FBI 
Office indicated that it would face a hardship identifying as 
reliable a supplier as TPS were the USG's relationship with 
the company curtailed.  TPS has conveyed a willingness to 
resubmit an application to the State Department that would 
enable it to continue receiving abrasion resistant steel 
plates from U.S. suppliers for the production of armored 
vehicles.  To the extent it receives a running order of 
requests from a wide range of governmental and private 
requests for armored cars, TPS would like to explore the 
possibility of filing licenses in a manner that would enable 
it to create a running stock of steel plates. 
Notwithstanding Mission Mexico's determination that the 
presumption in reftel that the controlled items are to be 
used in an armored vehicle for the end-user Transcarga is not 
correct, everything suggests TPS is a bona-fide company that 
seeks to satisfy in full State Department licensing 
requirements that would allow it to continue purchasing its 
product from U.S. suppliers in the future.  END COMMENT. 
 
Visit Mexico City's Classified Web Site at 
http://www.state.sgov.gov/p/wha/mexicocity and the North American 
Partnership Blog at http://www.intelink.gov/communities/state/nap / 
GARZA