VZCZCXYZ0001
PP RUEHWEB

DE RUEHC #3925 0142238
ZNR UUUUU ZZH
P R 142229Z JAN 09
FM SECSTATE WASHDC
TO RUEHSN/AMEMBASSY SAN SALVADOR PRIORITY 0000
INFO RUETIAA/DIRNSA FT GEORGE G MEADE MD 0000
RUEAIIA/CIA WASHINGTON DC 0000
RHMCSUU/FBI WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC 0000

UNCLAS STATE 003925 
 
SIPDIS 
SAN SALVADOR FOR BRENT CHRISTENSEN 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC ES
SUBJECT: DEMARCHE REQUEST: POSSIBLE UNAUTHORIZED 
RETRASNFER AND RE-EXPORT OF U.S.-ORIGIN FIREARMS BY POLICE 
OF EL SALVADOR AND CENTRUM S.A. 
 
REF: A. 08 STATE 103371 
     ¶B. 08 SAN SALVADOR 1266 
     ¶C. EMAIL BBEROUD-KBALLARD OF 11 DEC 2008 
 
¶1. This is an Action Request. Please see paragraph 6. 
 
---------- 
BACKGROUND 
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¶2. The Department's Office of Defense Trade Controls 
(PM/DTCC) has recently obtained information indicating that 
the Policia Nacional Civil (PNC) of El Salvador has entered a 
"swap agreement" with Salvadoran company, Centrum S.A.  The 
terms of this agreement may lead to the unauthorized 
retransfer of U.S. Munitions List (USML) firearms if proper 
Department authorization is not sought and granted.  PM/DTCC 
has also obtained information indicating that Centrum S.A. 
plans to re-export to a third country the U.S. Munitions 
Listed firearms obtained through said agreement.  This may 
lead to an unauthorized re-export if proper Department 
authorization is not sought and granted. If unauthorized, 
these activities would constitute violations of the Arms 
Export Control Act (AECA) and its implementing regulation, 
the International Traffic in Arms Regulation (ITAR). 
 
¶3. A pre-license Blue Lantern end-use monitoring check was 
initiated on export license application 050124009 due to a 
"swap agreement" between the PNC and Centrum S.A. mentioned 
on the import authorization issued by the National Defense 
Minister of El Salvador (REFTEL A).  Post conducted the Blue 
Lantern check and discovered that the "swap agreement" 
referred to an agreement whereby the PNC would provide 4,598 
previously imported firearms as payment to Centrum S.A. for 
1,000 new Beretta 9mm pistols.  According to Embassy San 
Salvador, of the 4,598 firearms to be used as payment, 155 
were Browning 9mm pistols and 515 were Smith & Wesson .38 
caliber revolvers (REFTEL B).  According to documentation 
provided to Embassy officials by the PNC, a significant 
quantity of these commodities are USML defense articles that 
were exported to the PNC in 1994 (REFTEL C).  Department of 
Commerce-controlled shotguns and non-U.S.-origin firearms are 
also part of the swap agreement. 
 
¶4. Centrum S.A. informed Embassy officials that the company 
plans to re-export the firearms it obtains in the swap 
agreement to Guatemala and Nicaragua.  Any re-export of USML 
without proper authorization from the Department of State is 
a violation of part 127.1 of the ITAR.  To date, PM/DDTC has 
no record of a request for authorization for such re-export. 
 
¶5. Post is instructed to ask appropriate officials of the 
Government of El Salvador (GOES) to assure no unauthorized 
retransfers and/or re-export occur. 
 
------------------------------- 
ACTION REQUESTED/TALKING POINTS 
------------------------------- 
 
¶6. ACTION REQUEST FOR EMBASSY SAN SALVADOR: Post should 
engage the Government of El Salvador (GOES) and Centrum S.A. 
on the possible unauthorized retransfer and re-export of USML 
firearms with the objectives below. 
 
(TO OFFICIALS OF THE GOES) 
 
-- The U.S. Office of Defense Trade Controls (PM/DTCC) has 
information indicating that the Policia Nacional Civil (PNC) 
is engaged in a "swap agreement" with Centrum S.A. whereby 
the PNC will provide 4,598 used firearms in exchange for 
1,000 new Beretta 9mm pistols.  PM/DTCC is aware that a 
significant quantity of these used firearms were originally 
imported by the PNC from the United States. 
 
-- Transfer to a third party of any U.S. Munitions List 
(USML) defense articles requires USG permission pursuant to 
obligations set forth in part 123.9 of the ITAR (Note: the 
ITAR is available at 
www.pmddtc.state.gov/regulations laws/itar official.html). 
The retransfer of USML firearms pursuant to this swap 
agreement is subject to this requirement. 
 
-- We urge you to refrain from retransfering or re-exporting 
USML defense articles without appropriate authorization from 
the U.S Department of State. 
 
-- We urge you to seek authorization by submitting the proper 
information listed in part 123.9 of the ITAR. 
 
-- Failure to take these actions may constitute a violation 
of U.S. law and may have an adverse effect on PNC access to 
USML. 
 
(TO CENTRUM S.A.) 
 
-- The U.S. Office of Defense Trade Controls (PM/DTCC) has 
information indicating that Centrum S.A. is engaged in a 
"swap agreement" with the Policia Nacional Civil (PNC) 
whereby the PNC will provide 4,598 used firearms in exchange 
for 1,000 new Beretta 9mm pistols.  PM/DTCC is aware that a 
significant quantity of these used firearms were originally 
imported from the United States and that Centrum intends to 
re-export these firearms to a third country. 
 
-- Re-export to a third country of any USML defense articles 
requires USG permission pursuant to obligations set forth in 
part 123.9 of the ITAR.  The re-export of USML firearms 
obtained through the swap agreement with the PNC would be 
subject to this requirement. 
 
-- We urge you to refrain from any re-export of U.S.-origin 
firearms that has not been authorized by the U.S. Department 
of State. 
 
-- We urge you to seek authorization by submitting the proper 
information as explained in part 123.9 of the ITAR. 
 
-- Failure to take these actions may constitute a violation 
of U.S. law and may affect pending and future licenses to 
which you are party. 
 
END TALKING POINTS 
 
¶7. Please slug reply for PM/DTCC Kyle M. Ballard. 
 
¶8. Department is grateful for Post's assistance in this 
matter. 
RICE