US embassy cable - 05PANAMA837

UNCLAS SECTION 01 OF 02 PANAMA 000837 
 
SIPDIS 
 
SENSITIVE 
 
DEPARTMENT FOR WHA/CEN 
PM/DTCC PETER MAXWELL 
 
E.O. 12958: N/A 
TAGS: ETTC, KOMC, PM, LABOR, HUMAN RIGHTS,POLMIL 
SUBJECT: PANAMA RESPONSE TO BLUE LANTERN LEVEL 3 
 
REF: STATE 40241 
 
1.  (SBU)  Summary.  Fire Arms International Inc. is a 
legimate business.  While the present government would not 
have approved the import request, it has no plans to revoke 
it.  End Summary. 
 
2.  (SBU)  Per reftel request, PolOff visited Fire Arms 
International Inc.'s President Vicente Banon Requena at the 
company's office.  PolOff also spoke with Ministry of 
Government and Justice (MOGJ) Public Security Director Dr. 
Luis Adames and confirmed the company's bona fides.  The 300 
revolvers the company requested are commensurate with the 
legitimate local demand of its security firm customers. 
While Fire Arms International is likely to abide by USML 
restrictions, the MOGJ now believes the number of arms 
requested (and approved in July 2004) is too high, given that 
security firms often lose the guns to theft, a phenomenon 
that Fire Arms International confirmed. 
 
3.  (SBU)  Fire Arms International is located in a nice 
residential neighborhood and is marked with the generic sign 
"Armory."  The company stores its model weapons and arms for 
immediate pick up in a gun safe at its office.  The company's 
officers are Requena (President), Attorney Mariluz Taveras 
Castillo (Secretary and Requena's wife), and Vilka Barrios 
(Treasurer).  Requena's father-in-law, Renaul Espinozo 
Quintero, was company President from its incorporation in 
1993 until his retirement in 2003. 
 
4.  (SBU)  Requena provided the following information: 
 
-  Fire Arms International operated also as Precision 
Security (formed 1990) and Merlisstan Investment (formed 
1993), two now defunct companies.  The Ministry of Government 
and Justice (MOGJ) canceled Precision's re-export license a 
few years ago when the GOP eliminated such licenses.  The 
company currently does not sell arms for re-exportation and 
understands the restrictions on USML items. 
 
-  Fire Arms International's principal customers are private 
security firms (60-70%).  Other customers include the GOP, 
department stores, shopping centers, banks, and private 
citizens.  Customers are located in Panama City and Panama's 
provinces. 
 
-  The Panamanian market for revolvers and pistols is about 
2,000-2,500 annually.  In 2002, the company had about 25% of 
the market but its sales decreased in 2003 because the GOP 
had not approved as many importation requests. 
 
-  While few crimes are committed in Panama with registered 
guns, security firms often need to replace guns that are 
lost, stolen, or damaged. 
 
-  From 1991 to November 2002 Firearms International and its 
predecessor companies sold about 5,200 revolvers, 2,600 
pistols, and 900 rifles from a wide variety of international 
manufacturers. 
 
-  Requena, a Spanish born naturalized Panamanian, is also 
the Panamanian sales representative for Spanish companies 
Sercobe and Defex. 
 
-  The Panamanian market for small arms is shared by eight 
firms, only one of which (El Cazador, S.A.) is unreliable. 
 
5.  (SBU)  Dr. Adames confirmed Fire Arms International's 
bona fides and provided the following additional information: 
 
-  The former company president has a good reputation. 
 
-  He is unaware of any derogatory information regarding the 
company. 
 
-  The Torrijos Administration is concerned with the 
inability of security firms to safely handle and control 
firearms and has begun revoking the licenses of some private 
security firms. 
 
-  The Torrijos Administration (which took office after the 
company's request was approved) is no longer authorizing 
requests to import large numbers of firearms.  A request for 
300 revolvers is too large in the present context. 
6.  (SBU)  Fire Arms International has an index card system 
for tracking its customers that includes the purchaser's 
photo, citizen identification number, weapon model and date 
purchased, and address.  The company makes monthly written 
reports to the MOGJ on guns sold that contain most of this 
information.  PolOff requested access to the company's 
accounts, but was told they had been sent out for a routine 
audit. 
 
WATT