Cablegate: Blue Lantern Level 3: Post Shipment End-Use Check

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237278
2009-11-30 23:14:00
09MEXICO3376
Embassy Mexico
CONFIDENTIAL
09STATE57530
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FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9213
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC IMMEDIATE
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RHMFISS/FBI WASHINGTON DC IMMEDIATE
RUEAIIA/CIA WASHINGTON DC IMMEDIATE
RHMFISS/HQ BICE INTEL WASHINGTON DC IMMEDIATE

TAGS: ETTC KOMC SNAR MX
C O N F I D E N T I A L MEXICO 003376

SENSITIVE
SIPDIS

FOR PM/DTCC - BLUE LANTERN COORDINATOR, WHA/MEX, AND INL/LP

E.O. 12958: DECL: 08 OCTOBER 2019
TAGS: ETTC KOMC SNAR MX
SUBJECT: BLUE LANTERN LEVEL 3: POST SHIPMENT END-USE CHECK
ON LICENSE 050016624
REF: STATE 57530

Classified By: Political Minister Counselor Gustavo Delgado. Reason: 1.
4 (b) and (d).

1. Summary: Blue lantern Coordinators requested that Poloff
investigate the circumstances surrounding the recovery of an
U.S. licensed AR-15 rifle from a Mexican crime scene and
substantiate the chain of custody from the supplier to the
end user. The investigative branch of the Mexican Attorney
General (PGR CENAPI) used E-trace to determine that the last
legal point of sale was Bushmaster International, LLC.
Realizing that the recovered weapon was part of a USG
licensed sale, Bushmaster notified the State Department. The
Department does not track individual serial numbers of
weapons involved with USG licensed sales. Therefore, it is
reliant on supplier information to provide the basis of
investigations. This investigation tracked the chain of
custody for the weapon through the following entities: the
U.S. supplier, the U.S. manufacture representative in Mexico,
the Mexican customs-broker, the Mexican Army, and the State
Government of Michoacan. End Summary.

2. (SBU) The Defense Attach Office's sent an official
request to the Secretariat of Defense (SEDENA) on 23 June
2009 and received a response to reftel questions on 10 August
2009.

Q. Did the GOM receive all 1030 AR-15 type rifles exported
under license 050016624?

A. SEDENA received 507 rifles on 21 December 2006 and 523
rifles on 5 January 2007. SEDENA stated that all the items
were received in Nuevo Laredo, Tamaulipas.

Q. Can the GOM provide documentation demonstrating the
receipt of the rifles by SEDENA?

A. SEDENA provided the following documentation with regards
to the items received under license 0550016624: Application
and Permit of Permanent Exportation of Firearms, Warehouse
receipt of 507 firearms, Importation Contract 093/2006, Card
of Final Destination, Bushmaster Certificate of Origin,
Warehouse Receipt of 523 firearms, Transfer of Custody to
Government of Michoacan, and Warehouse Inventory. The
following information is deemed to be important from the
documentation.

-- On 21 November, 2006, SEDENA received the license from the
USG to receive Bushmaster 5.56x46 rifles as part of license
0550016624.

-- On 28 November, 2006, SEDENA received 507 Bushmaster
5.56x46 and the serial numbers of all of the weapons are
listed.

-- On 5 December 2006, SEDENA and Bushmaster Firearms
International, LLC signed importation contract 093/2006 for
1,030 Bushmaster 5.56x45 rifles and associated hardware.

-- On December 9, 2006, SEDENA presented a note of final
destination to Bushmaster Firearms International, LLC.
SEDENA stated that the 1,030 Bushmaster 5.56x45 rifles that
were purchased as part of contract 093/2006 were for ultimate
use by the states of Baja California, Chihuahua, and
Michoacan. The note also stated that SEDENA understood that
U.S. law prohibits the re-export of these weapons.

-- On 12 December, 2006 Bushmaster sent 523 Bushmaster 5.56
rifles to SEDENA. The list included the rifle with serial
number L428091.

-- On 10 January, 2007 SEDENA received 523 Bushmaster 5.56
rifles at the port of entry, Nuevo Laredo. The list matched
the Certificate of Origin issued by Bushmaster Firearms
International, LLC and L428091 was part of the list.

-- On 15 May 2007, L428091 was part of a shipment of 121
Bushmaster 5.56x45 rifles (contract number 093/2006) from
SEDENA to the Secretariat of Public Security in Michoacan.
SEDENA did not provide any further chain of custody
information on the specific state or local law enforcement
entity or the ultimate individual retaining the weapon.

-- On 21 May 2007, the SEDENA arms warehouse at Campo Militar
No. 1-D, Lomas de Tecamachalco, Municipio de Naucalpan de
Juarez, Estado de Mexico inventoried 500 pieces of hardware
that included 81 Bushmaster 5.56 rifles remaining in SEDENA
custody from contract number 093/2006. SEDENA is willing to
provide the transfer of custody paperwork for the weapons
that went to the Baja and Chihuahua in order to show complete
accountability for all the weapons that were part of contract
093/2006.

Q. Can the GOM provide documentation demonstrating that the
firearms were transferred and received by the Secretarias de
Seguridad Publica in Baja, Chihuahua and Michoacan

A. SEDENA provided documentation that shows that 121
Bushmaster 5.56x45 rifles including L428091 were transferred
to the government of Michoacan and signed off by Francisco
Gabriel Huerta Cruz, El Ciudadano Licencia del Gobierno
Michoacan.

Q. Did the GOM authorize the re-transfer of any of these
rifles?

A. No

Q. Does the GOM maintain sufficient records to allow a
thorough inventory of rifles in stock and account for the
current location of the 1030 AR-15 rifles?

A. SEDENA provided an inventory of 81 AR-15 rifles remaining
in its warehouse from the original shipment of weapons per
license 050016624. The inventory is not broken down by
serial number. SEDENA also provided the transfer document
for the 121 AR-15 rifles sent to the Government of Michoacan.
SEDENA insists that it strictly controls and documents the
distribution of weapons legally arriving in Mexico. SEDENA
has advised that it will provide us documentation that speaks
to the chain of custody for the remaining 828 AR-15 rifles
shipped in connection to license 050016624.

Q. Did the GOM or SEDENA re-export these weapons?

A. No

Q. Does SEDENA register and inventory arms that they export?

A. Mexico does not export war material.

3. (SBU) Poloff from Consulate Monterrey interviewed Carlos
Salas Sosa, Director of Operations, Central Aduanas de
Mexico, S.A. on 10 September 2009.

Q. When was your company established and who are its
principals?

A. Central Aduanas de Mexico (CAM) was established in 1949.
It is an association with offices in Mexico City, Toluca,
Guadalajara, and Monterrey. Eduardo Valle and Fortino
Escamillo are the principal officers in charge of CAM
operations in D.F. Carlos Salas Sosa is the principal
officer and Edna Alanis is the General Administrator in
charge of operations in Monterrey.

Q. What goods and services does your company provide?

A. CAM is a full service customs broker, specializing in the
import and export of goods to and from Mexico.

Q. Who are your regular customers?

A. Daimler, CADECO, John Deer and many other companies
specializing in trucks and agricultural equipment.

Q. What was your role in the transaction involving export
license 05001664?

A. CAM only handled the importation of the weapons. In the
case of firearms, the manufacturer is responsible for the
export license.

Q. Did CAM physically take possession of the firearms and
can you provide all the documentation involved in this
transaction?

A. CAM took possession of the arms in Laredo, TX.,
inventoried the arms, walked them through U.S. and Mexican
customs, and delivered them at the border to the Mexican
Army. The documents are available with CAM agent Orlando
Farza in Laredo. He can fax them upon request. His phone
number is (956) 722-6346.

Q. What is your relationship with Central Aduanas de Laredo,
TX?

A. This was CAM's branch in Texas. It was closed three
years ago because the employees were dishonest and it was not
profitable. As a result, no business or partnership
agreement with this office presently exist.

Q. What is CAM's relationship with Eduardo Jordan?

A. Eduardo Jordan is Bushmaster Firearms International
representative in Metepec, Estado de Mexico. CAM has no
contractual relationship with Eduardo Jordan. Orlando Farza
based in Laredo TX may be able to provide more information.
As noted above, he can be reached at 956-722-6346.

Q. What was Eduardo Jordan's role in this transaction?

A. Unknown

Q. Did Eduardo Jordan ever have physical possession of the
firearms?

A. Impossible. CAM claimed the weapons at the border,
cleared the weapons through customs, and the Mexican army
took immediate possession.

4. (SBU) Another Embassy poloff interviewed Eduardo Jordan
on 14 January 2008 for a pre-license check of 050054200,
050054678, 050055652, 050055694, 050055700, and 050054219.
Embassy's current Blue Lantern Officer made several attempts
to contact Eduardo Jordan for this investigation during the
months of August and September, however, his office indicated
that he was on travel and could not be reached. Eduardo
Jordan is operating from the same office and is using the
same number as in 2008. Contacts with Central Aduanas de
Mexico, the paper trail provided by SEDENA, and the
appearance of consistency based on the 2008 interview
indicate that Eduardo Jordan had only minimal involvement
with this transaction.

5. (C) Comment. Post's Blue Lantern Officer does not
believe that SEDENA, Bushmaster Firearms International LLC,
Central Aduanas de Mexico, or Eduardo Jordan committed
malfeasance with regards to export license 050016624.
Although there are a couple of discrepancies with regards to
the dates of the initial import of 507 rifles versus the
actual contract date for the 1030 rifles, the chain of
custody and transfer to the Government of Michoacan for the
rifle in question, L428091, is well documented and appears to
be valid. Post's Blue Lantern Officer is coordinating with
Immigration and Customs (ICE) Agents at Post to approach the
State Government of Michoacan. ICE agents indicated that
they may use a newly formed vetted unit to obtain additional
information. ICE agents at post do not believe that an overt
inquiry to the state official that signed the documents would
yield any significant information. Using the Mexican vetted
unit, however, could provide new details on tracking and
inventory procedures at the local and state level.

6. (SBU) On the basis of this and similar cases, it is not
evident that government officials at the state apply strict
enforcement measures to track the chain of custody of weapons
once SEDENA transfers them from its custody to the custody of
state officials. Given the lack of accountability for
weapons once they arrive at the state level, U.S. law
enforcement agencies have fair reason to worry that a number
of weapons simply "disappear." Because USG access to
recovered weapons in Mexico remains limited, it is difficult
to gauge just how serious a problem this is and to what
extent these weapons turn up in the hands of criminal
organizations in Mexico.

7. (SBU) Post believes both the USG and the GOM need to
take a more systematic approach to tracking weapon transfers
to the state level and beyond to the final end user. We
support the Blue Lantern Coordinator's proposal that his

office bundle, according to region, the cases of firearms
recovered from crime scenes. Mission Mexico's ICE and ATF
Attaches would then approach the Mexico Attorney General
PGR's International Relations Office with a list of the
serial numbers of confiscated weapons that had been
transferred to state authorities and request a fuller
accounting for how these weapons ended up in the hands of
criminals. On a broader policy level, the Embassy will urge
the GOM to work with states to develop a stricter policy with
regard to accounting for weapons once they arrive at the
state level. End Comment

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