VZCZCXYZ0567
RR RUEHWEB

DE RUEHMN #0730/01 3491610
ZNR UUUUU ZZH
R 151608Z DEC 09
FM AMEMBASSY MONTEVIDEO
TO RUEHC/SECSTATE WASHDC 0083
INFO RUEHMN/AMEMBASSY MONTEVIDEO
RUEHSN/AMEMBASSY SAN SALVADOR

UNCLAS MONTEVIDEO 000730 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC ES UY
SUBJECT: BLUE LANTERN LEVEL 2: PRE-LICENSE END-USE CHECK ON LICENSE 
050200117 
 
REF: STATE 119092; SAN SALVADOR 1108 
 
¶1. (SBU) Emboffs conducted ref A Blue Lantern re-license check at 
the main office of Glock America S.A. (Plaza Independencia 831, 
Montevideo) on November 30.  Emboffs were received by Glock America 
Vice President Luiz Horta.  Responses to reftel questions follow: 
 
 
 
¶2. (SBU) Glock America was established in 2000 as a subsidiary of 
Glock Austria, supplying pistols and accessories to Latin American 
markets from Mexico through South America.  The company has a 
formal working relationship with Glock Inc. and Glock Austria. 
Glock America does not have retail operations in Uruguay, but works 
with a distributor in the local market. 
 
 
 
¶3. (SBU) Glock America's principal officers are: President - 
Brigitte Glock (daughter of Glock founder Gaston Glock), Vice 
President - Luis Horta, and Director - Stephan Doerler.  Luis Horta 
is a former Major in the Brazilian special forces who claims strong 
ties to military and security officials throughout the Latin 
America and elsewhere. 
 
 
 
¶4. (SBU) According to Horta, Glock America's annual sales are about 
30,000 units (approximately $12 million), although due to close 
ties with Glock Austria not all transactions are recorded on Glock 
America's books.  Primary customers include:  Ministries of 
Defense, Ministries of Interior and authorized representatives in 
each country.  Horta says Glock America does not work with brokers. 
Glock America is licensed by the Uruguayan Ministry of Defense to 
import weapons to Uruguay, but generally weapons are shipped 
directly from the manufacturing location (Austria) to the 
purchasing country.  Horta stated that Glock America facilitates 
the necessary import/export and end-use licensing paperwork issues 
and get all appropriate authorizations to sell to different markets 
in the region.  Ultimately the end-user has to prove that they have 
the required import permit or end-user certificate before the sale 
is concluded.  Horta stated that payment is either made to Glock 
America directly or to Glock Austria which compensates them after 
receiving full payment. 
 
 
 
¶5. (SBU) Regarding purchase order No. 01/2009, Horta said that 
COSASE placed their purchase order with his company, Glock America 
S.A., which is Glock's authorized sales agent for El Salvador. 
Horta said that COSASE first purchased from Glock America in 2007 
and that this would be their third sale to them, each time 
purchasing a similar number of handguns.  Shipments to El Salvador 
usually come directly from Austria.  However, Horta indicated that 
Glock Inc. in the U.S. had recently begun manufacture weapons at 
its plant in Smyrna, Georgia and Glock America was assessing the 
possibility of sourcing some South America purchases from the U.S. 
instead of Austria.  Glock America had not finalized sourcing for 
the weapons for COSASE, but filed export/import and transit 
paperwork for both options - weapons produced in Smyrna or weapons 
produced in Austria and shipped through Miami.  The pistols would 
not be shipped through Uruguay.   Horta is aware that U.S. sources 
weapons still require licensing from Austria and is using this 
purchase to work though the paperwork requirements that will be 
needed in future transactions.  COSASE will pay by wire transfer or 
in cash to Glock Austria or Glock Inc.  Horta said that the 
transaction was for 210 pistols and that the total sales amount was 
approximately $80,000, but the purchase order listed a price of $0 
pending final invoice that would be determined when final sourcing 
was established.  NOTE: Subsequent to our meeting, Horta called 
Emboffs to say his attorneys had informed him the export license 
from the U.S. for the COSASE purchase had been denied.  Horta 
intends to complete the transaction with weapons manufactured and 
shipped from Austria and will work with U.S. authorities to ensure 
future applications are handled in accordance with requirements. 
END NOTE. 
 
 
 
¶6. (SBU) Horta said he is aware of both the regulations governing 
the import of U.S.-origin defense articles, and the restrictions on 
re-transfer and re-export. 
 
 
 
¶7. (SBU) Embassy Commercial Assistant contacted Coronel Ruben 
Rodriguez, National Weapons Registry Division Chief to make 
 
 
inquiries on Glock America S.A.   Rodriguez confirmed that Glock 
America S.A. is legally permitted to import and sell firearms in 
Uruguay as well as to broker the sales of firearms to other 
countries.  Rodriguez indicated that his office does not have any 
information that would question Glock America S.A. as a recipient 
of U.S. defense articles. 
 
 
 
¶8. (SBU) COMMENT: Glock America is well-known, established and 
respected Uruguayan company.   The transaction with COSASE appears 
legitimate and part of their regular business.  Post assesses that 
paperwork irregularities may be a result of this being Glock 
America's first attempt to purchase Glock pistols manufactured in 
the U.S.  Horta seems to understand the steps and licensing 
required for future transactions. 
MATTHEWMAN