VZCZCXYZ0006
RR RUEHWEB

DE RUEHGT #0718 2081536
ZNR UUUUU ZZH
R 271536Z JUL 09 ZDK
FM AMEMBASSY GUATEMALA
TO SECSTATE WASHDC 7838

UNCLAS GUATEMALA 000718 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR PM/DTCC - BLUE LANTERN COORDINATOR KYLE M. BALLARD 
 
E.O. 12958: N/A 
TAGS: ETTC KMOC GT
SUBJECT: GUATEMALA: BLUE LANTERN POST SHIPMENT END-USE 
CHECK, 050140648 
 
REF: STATE 59089 
 
¶1.  (SBU) Summary:  In response to reftel, Emboffs researched 
the bona fides of the arms import company Black Desert (BD). 
The research included an on-site inspection of BD, an 
interview with the company's owner, and records checks of 
both the company and the owner with the Guatemala's Arms and 
Municions Control Department (DECAM).  As a result of the 
investigation, Post does not recommend approval of reftel 
license.  End Summary. 
 
¶2. (SBU) On June 18th, Emboffs conducted an on-site 
inspection of BD located at Ave Las Americas 15-14 Zona 13, 
Guatemala City and interviewed the company's owner, Maria del 
Carmen Balcarcel Pinto. Balcarcel, a recent divorcee with no 
prior gun knowledge, started this company in November 2008. A 
self-funded business, Balcarcel's storefront revealed upfront 
initial costs including large space store design and a heavy 
personnel/security presence that Emboffs determined, through 
additional interviews with industry experts, would exceed her 
current financial capabilities. At the time of the interview, 
and through multiple follow-up requests, Emboffs were not 
able to acquire business ownership certification documents to 
verify partnership shares or funding resources.  Therefore, 
Emboffs concluded that Balcarel was not forthcoming with all 
financial information about the business operation and 
continued capital needed to properly run a weapons store. 
 
¶3. (SBU) Located in a pristine, mixed residential/commercial 
use neighborhood, Balcarcel's store displayed no guns, but 
primarily weapons accessories. The store complied with all 
proper outside commercial signage and security precautions 
including security bars protecting the entire glass 
storefront and a hired security person guarding the front 
entrance. Emboffs noted that the store included a special 
concrete box for a nighttime security person. In comparison 
to the other weapons stores in the city that Emboffs have 
inspected previously, BD revealed a large front 
reception/salon area with a much smaller area to conduct 
retail business.  The retail area consisted of two glass 
weapons counters that were connected to an open office and 
weapons storage room, all located along the back wall of the 
store. The weapons storage room itself was unusually small 
(less than the standard 2 1/2 meters on each side) and simple 
in design revealing concrete walls covered by visible but 
thin steel bars and motion sensors, but without inventory. 
 
¶4. (SBU)  According to Balcarcel, this store began through 
her own funding resources. After a 13 year stint in the U.S. 
studying to be a chef (she was married and living with 
in-laws at the time), Balcarcel explained that she developed 
a passion for this industry and through interviews with 
professional bodyguards and other weapons store owners in the 
city,  she decided that she wanted to offer a special weapon 
(Hi-Point pistols) requested by bodyguards that is not 
currently sold in Guatemala. (Note: Emboffs cannot confirm 
the accuracy of Balcarcel's claim.  End Note.) 
 
¶5. (SBU)  A recent visit was conducted on July 1st by Emboffs 
industry sources who reported that there were limited guns on 
display (seven guns out of the 52 reftel shipment) with high 
pricing of 50% above local industry standards. The 36 
Hi-Point pistols,  4 Hi-Point Carbines (for hunters), 11 
Hi-Point Magazines, and one Charter Arms Revolver will be her 
first U.S. weapons purchase.  In addition to providing 
weapons to security personnel for private individuals, 
Balcarcel plans to buy the weapon hunting inventory of 
Defensa S.A., a Blue Lantern licensing applicant who did not 
QDefensa S.A., a Blue Lantern licensing applicant who did not 
receive approval due to bookkeeping and inventory 
discrepancies.  Balcarcel claims that she has purchased guns 
from other local weapons stores, and the store's selling 
activity revealed that she has made about 20 gun sales (for 
protection and hunting) to individuals since December 2008. 
Balcarcel confirmed with Emboffs that she knows the 
regulations governing the imports of U.S.-origin defense 
articles, including restrictions on re-transfer and re-export. 
 
¶6. (SBU) BD books and DECAM registries were well maintained, 
and indicated that BD has sold a small amount of weapons to 
private citizens. 
 
¶7. (SBU) BD has a satisfactory record with DECAM and has 
passed all routine inspections without incident.  According 
to DECAM's Director, Colonel Hector Del Cid, BD is a 
small-scale but well managed weapons store that is operating 
within local laws and regulations.  Nonetheless, based on the 
results of the on-site inspection, Post does not recommend 
approval of the reftel license. 
 
McFarland