VZCZCXYZ0030
RR RUEHWEB

DE RUEHC #7843 0262137
ZNR UUUUU ZZH
R 262130Z JAN 10
FM SECSTATE WASHDC
TO RUEHGT/AMEMBASSY GUATEMALA 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 007843 
 
SENSITIVE 
SIPDIS 
GUATEMALA FOR ELIZABETH MANGINI 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC GT
SUBJECT: BLUE LANTERN LEVEL 2: POST-SHIPMENT END-USE CHECK 
ON LICENSES 050020587 
 
REF: 10 GUATEMALA 1 
 
¶1. (U) This is an Action Request. See paragraph 4. 
 
¶2. (U) The Department's Office of Defense Trade Controls 
Compliance (PM/DTCC) requests Post's assistance in conducting 
a post-shipment check on licenses 050020587 for the export of 
riot control grenades to Guatemala.  Post is requested to 
complete this Blue Lantern check within 45 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: Previous Blue Lantern check was 
unable to verify the bona fides of a transaction involving 
Guatemalan company, Proximidad S.A. (REFTEL).  The company 
was unable to produce a contract or purchase order from the 
supposed end-user for that transaction.  In addition, 
representatives of Proximidad claimed to re-export 
U.S.-origin defense articles to end-users in El Salvador, 
Honduras, and Panama.  This request is to verify that the 
defense articles listed were received by the Policia Nacional 
Civil de Guatemala (PNC).  This request is also to obtain 
specific information on Proximidad's third-country clients 
and the defense articles the company re-exports. 
 
¶4. (SBU) Action Request:  According to shipping data obtained 
by PM/DTCC, partial shipment on this license was made in 
December 2006.  Post is requested to confirm that the defense 
articles listed below were received by the Policia Nacional 
Civil de Guatemala (PNC).  Post is also requested to obtain 
detailed information from Proximidad S.A. regarding the 
company's international customers and the U.S.-origin defense 
articles the company claimed to re-export.  The following 
points are included for guidance: 
 
(To Proximidad S.A.) 
 
--Can you confirm the order by the Policia Nacional Civil of 
the items listed below?  Please provide all documentation for 
this transaction, including: the contract and/or purchase 
order from the PNC; all documentation demonstrating receipt 
of these items by Proximidad S.A.; and all documentation 
demonstrating the successful transfer to the PNC of all items 
received. 
 
--Please specify the exact articles and quantities ordered by 
the PNC.  Please specify the exact articles and quantities 
received by Proximidad S.A.  Please specify the exact 
articles and quantities received by the PNC.  Explain any 
discrepancies and provide all relevant documentation.  Why 
wasn't this transaction completed in full? 
 
--Did you ever retain physical possession of these articles? 
 
--In the case of a partial shipment, please explain why the 
transaction was not completed in full. 
 
--During a previous discussion with U.S. Embassy personnel, 
you stated that Proximidad S.A. has sold defense articles to 
customers that reside outside Guatemala.  Please provide 
documentation for all instances in which you exported 
U.S.-origin defense articles outside Guatemala. 
 
--Does Proximidad S.A. collaborate with any other companies 
or individuals to execute transactions outside Guatemala? 
Does Proximidad S.A. retain the services of any other 
companies or individuals to facilitate such transactions?  If 
so, please provide the names and address of all these 
companies and individuals. 
 
--Please name all your customers that reside outside 
Guatemala to which you or your associates have sold 
U.S.-origin defense articles. 
 
--Please describe your relationship to U.S. company, Combined 
Systems.  Have you ever engaged in any business activities 
outside Guatemala on behalf of Combined Systems?  If so, 
please describe your exact role and provide all relevant 
documentation. 
 
--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 the 
regulations governing the brokering of U.S.-origin defense 
articles, including the requirement to register as a broker 
with the U.S. Department of State? 
 
(To Policia Nacional Civil de Guatemala) 
 
--Can you confirm the order of the exact articles and 
quantities listed below? 
 
--Can you confirm receipt of all the items listed below? 
Please provide all documentation for this transaction, 
including the contract and/or purchase order issued by 
Government of Guatemala and any documentation demonstrating 
the successful shipment of all items to the PNC. 
 
--Please specify the exact articles and quantities ordered by 
the PNC.  Please specify the exact articles and quantities 
received by the PNC.  Explain any discrepancies and provide 
all relevant documentation. 
 
--Did Proximidad S.A. ever have physical possession of these 
items? 
 
(To Appropriate Export Authorities in Guatemala) 
 
--Is Proximidad S.A. properly registered and authorized to 
export defense articles outside Guatemala?  Is the company 
properly registered and authorized to broker defense articles 
outside Guatemala? 
 
--Do you have any record of Proximidad S.A. exporting or 
brokering U.S.-origin defense articles outside Guatemala? 
(NOTE: If yes, Post is requested to obtain all relevant 
documentation to include the names and addresses of other 
parties involved, if possible. END NOTE). 
 
¶5. (U) Details of license applications: 
 
DTC Case: 050020587 
 
QUANTITY/COMMODITY: 
 
10,000 CS Grenade Canisters, Triple Phaser 6231 (NOTE: 
According to shipment data, only 7,457 of these items were 
shipped) 
 
5,000 Smoke Grenade Canisters, Triple Phase 6211 (NOTE: 
According to shipping data, none of these items were shipped) 
 
5,000 37/38 CS Long Range Cartridges, Triple 3231 (NOTE: 
According to shipping data, none of these items were shipped) 
 
4,000 Flash Bang Grenades, 7290 (NOTE: According to shipping 
data, none of these items were shipped) 
 
10,000 Launching Cartridges, 12GA. Long Size 2600 (NOTE: 
According to shipment data, only 24 of these items were 
shipped) 
 
License Value: USD $506,000 (NOTE: According to shipment 
data, only $305,000 of this order was shipped) 
 
Combined Systems, Inc. 
226 Newton Road 
Plainview, NY 11803 
 
FOREIGN CONSIGNEE: 
 
Proximidad S.A. 
6A Avenida  0-60 Zona 4 
Torre Profesional II Oficina 506 
Guatemala City, Guatemala 01004 
TEL: 502 2335 2169 through 502 2335 2171 
 
(NOTE: This is the contact information listed on the license 
in question, which dates back to 2006.  The contact 
information below is listed on a license from 2010 and may be 
more current.) 
 
12 Calle 2-04, Zona 9 
Edificio Plaza del Sol, Oficina 317 
Guatemala City, Guatemala 
Tel: 542 2366 2286 
 
FOREIGN END-USER: 
 
Policia Nacional Civil 
Guatemala City, Guatemala 
 
PURPOSE: 
 
For riot and crowd control 
 
¶6. (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 Jacob Kravel (Combined Systems) dated 
09/28/2006; Jorge Lopez, Subdirector General (PNC) dated 
08/30/2006; and Antonio Grajeda (Proximidad) dated 08/30/2006 
 
Purchase Order No. 20069123 from Proximidad S.A. dated 
08/31/2006 
 
¶7. (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 
 
¶8. (U) Department is grateful for Post's assistance in this 
matter. 
CLINTON