VZCZCXYZ0005
RR RUEHWEB

DE RUEHC #9092 3221801
ZNR UUUUU ZZH
R 181755Z NOV 09
FM SECSTATE WASHDC
TO RUEHSN/AMEMBASSY SAN SALVADOR 0000
RUEHMN/AMEMBASSY MONTEVIDEO 0000
INFO RUETIAA/DIRNSA FT GEORGE G MEADE MD
RUEAIIA/CIA WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC 0000

UNCLAS STATE 119092 
 
SENSITIVE 
SIPDIS 
SAN SALVADOR FOR BRENT CHRISTENSEN 
MONTEVIDEO FOR ALFRED SCHANDLBAUER 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC ES UY
SUBJECT: BLUE LANTERN LEVEL 2: PRE-LICENSE END-USE CHECK 
ON LICENSE 050200117 
 
¶1. (U) This is an Action Request. See paragraphs 4 and 5. 
 
¶2. (U) The Department's Office of Defense Trade Controls 
Compliance (PM/DTCC) requests Post's assistance in conducting 
a pre-license check on license 050200117 for the export of 
firearms to El Salvador.  Post is requested to complete this 
Blue Lantern check within 30 days.  Lack of response to a 
Blue Lantern check will affect pending and future licenses 
involving parties to this license. 
 
¶3. (SBU) Reason for Request:  The purchase order from 
Salvadoran company, Cosase S.A., was issued to Glock America 
S.A. of Uruguay despite the latter not being listed on the 
license application.  Also, the document indicates that 
Cosase S.A. will be paying for this shipment of firearms with 
cash, which is common in money laundering activities. 
Finally, the Government of Austria (GOA) has informed the USG 
that under Austrian law, Glock Inc. of the United States is 
limited to sales in North America only, and any sales to 
third countries require re-export authorization from the GOA. 
 This check is to establish the bona fides of the Salvadoran 
and Uruguayan companies and determine the structure of this 
transaction. 
 
¶4. (SBU) Action San Salvador: Post is requested to establish 
the bona fides of end-user Cosase S.A. by making inquiries to 
representatives of the company and appropriate authorities of 
the Government of El Salvador.  Post is also requested to 
determine Cosase's relationship with Glock America S.A. of 
Uruguay and inquire about the mechanics of this cash 
transaction.  The following points are included for guidance: 
 
(To Cosase S.A. de C.V.) 
 
--When was your company established and who are its 
principals? 
 
--What products and services does your company provide?  Who 
are your regular customers and where do they reside?  Do you 
sell firearms to customers that reside outside El Salvador? 
 
--What are your annual sales of U.S.-origin firearms? 
 
--Your purchase order (PO No. 01-2009) indicates that you 
placed your order with Glock America S.A. based in 
Montevideo, Uruguay.  What role is Glock America S.A. playing 
in this transaction?  Did you have any direct contact with 
Glock Inc. in the United States?  If so, with what 
individuals?  Do you direct all your Glock purchase orders to 
Glock America S.A.?  Will the firearms be shipped directly to 
El Salvador or will they come through Glock America S.A. in 
Uruguay? 
 
--The purchase order for these firearms lists the total value 
of the order at $0 (zero dollars).  It also indicates that 
your company is paying for the shipment in cash.  To whom 
did/will you provide the cash?  How and when will the cash be 
delivered?  Why did you decide to pay in cash?  Is this a 
normal business practice of your company?  What is the total 
value of this order? 
 
--Are you familiar with the regulations governing the import 
of U.S.-origin defense articles, including restrictions on 
re-transfer or re-export? 
 
(To Appropriate Import/Export and/or Law Enforcement 
Authorities) 
 
--Is Cosase S.A. legally permitted to import and sell 
firearms in the El Salvador? 
 
--Do you have any information on Cosase S.A. that would 
question their reliability as a recipient of U.S. defense 
articles? 
 
In its reply, Post is encouraged to comment on any other 
information pertinent to these transactions such as security 
of facilities, end-use, and concerns about the entities 
involved. 
 
¶5. (SBU) Action Montevideo: Post is requested to establish 
the bona fides of intermediary Glock America S.A. by making 
inquiries to representatives of the company and appropriate 
authorities of the Government of Uruguay.  Post is also 
requested to determine Glock America's relationship with 
Glock Inc. of the United States and inquire about the 
mechanics of this cash transaction.  The following points are 
included for guidance: 
 
(To Glock America S.A.) 
 
--When was your company established and who are its 
principals? 
 
--What products and services does your company provide?  Who 
are your regular customers and where do they reside? 
 
--What is your relationship to Glock Inc. in the United 
States?  Glock in Austria?  Are there any legal ties between 
Glock America and other Glock business entities? 
 
--Please describe the normal procedure for and your role in 
facilitating a purchase of Glock firearms in South America. 
What services do you perform in such transactions and how are 
you compensated?  What is your sales territory? 
 
--The purchase order from Cosase S.A. of El Salvador (PO No. 
01-2009) indicates that the company placed their order with 
Glock America S.A.  Will the firearms be shipped directly to 
El Salvador or will they come through your company in 
Uruguay?  What services do you perform in this transaction 
and how are you being compensated?  Will you ever have 
physical possession of these firearms? 
 
--The purchase order from Cosase S.A. of El Salvador lists 
the total value of this order as being $0 (zero dollars).  It 
also indicates that Cosase S.A. is paying for the shipment in 
cash.  To whom did/will Cosase S.A. provide the cash?  How 
and when will the cash be delivered?  Did Glock America S.A. 
receive any cash from Cosase S.A.?  Did Glock America S.A. 
facilitate the transfer of cash to Glock Inc. of the United 
States?  Is this a normal business practice of your company? 
What is the total value of this order?  What percentage of 
the money received from Cosase will remain with Glock America 
S.A. and how much is transferred to Glock Inc. of the United 
States? 
 
--Are you aware that the re-export of Glock firearms from the 
United States to any third country requires authorization 
from the Government of Austria? 
 
--Are you familiar with the regulations governing the import 
of U.S.-origin defense articles, including restrictions on 
re-transfer or re-export?  Are you familiar with regulations 
governing the brokering of U.S.-origin defense articles, 
including the requirement for all brokers of U.S. defense 
articles to be registered with the U.S. Department of State? 
 
(To Appropriate Import/Export and/or Law Enforcement 
Authorities) 
 
--Is Glock America S.A. legally permitted to import and sell 
firearms in the Uruguay? 
 
--Is Glock America S.A. legally permitted to broker the sales 
of firearms in other countries? 
 
--Do you have any information on Glock America S.A. that 
would question their reliability as a recipient of U.S. 
defense articles? 
 
In its reply, Post is encouraged to comment on any other 
information pertinent to these transactions such as security 
of facilities, end-use, and concerns about the entities 
involved. 
 
¶6. (U) Details of license applications: 
 
DTC Case: 050200117 
 
QUANTITY/COMMODITY: 
 
210 Glock Pistols 
 
126 Glock Magazines 
 
License Value: USD $78,973 
 
SELLER: 
 
Glock Inc. 
6000 Highlands Parkway 
Smyrna, GA 30082 
 
FOREIGN INTERMEDIATE CONSIGNEE: 
 
Glock America S.A. 
Plaza Independencia 831, Office 802, 11100 
Montevideo, Uruguay 
Tel: 598-2902-2227 
(NOTE: Not/not listed on the license application.) 
 
FOREIGN END-USER: 
 
Cosase S.A. de C.V. 
Col. Y Av. Bernal Res. Montecarlo #21 S.S. 
San Salvador, El Salvador 
Tel: 0614-010791-103-9 
 
PURPOSE: 
 
For commercial resale in El Salvador 
 
¶7. (U) Submitted in support of the license application were 
the following documents (PM/DTCC will fax documentation to 
Posts upon request): 
 
DSP-83 signed by Carlos Guervara (Glock Inc. of he U.S.) 
dated 11/06/2009 and Miguel Menendez Avelar (Cosase S.A.) not 
dated 
 
Import Authorization Nos. 1816, 1817, and 1832 issued by the 
Ministry of National Defense signed by Jose Atilio Benitez 
Parada, Vice-Minister of National Defense dated 20 July 2009 
 
Purchase Order No. 01/2009 from Cosase S.A. to Glock America 
S.A. signed by Miguel Menendez Avelar not dated 
 
Purchase Order No. OC 2193 from Glock America S.A. to Glock 
Inc. dated 06 August 2009 
 
¶8. (U) Please slug reply for PM/DTCC - BLUE LANTERN 
COORDINATOR and include the words "Blue Lantern" and the case 
number in the subject line.  POC is Kyle M. Ballard, Phone: 
202-663-1929; Email: BallardKM@state.gov; SIPRNET: 
BallardKM@state.sgov.gov.  The Blue Lantern Guidebook (ref) 
is available as a PDF file on Intellipedia: 
http://www.intelink.gov/wiki/ 
Blue Lantern End-Use Monitoring Program 
 
¶9. (U) Department is grateful for Post's assistance in this 
matter. 
CLINTON