US embassy cable - 05SANSALVADOR3045

UNCLAS SAN SALVADOR 003045 
 
SIPDIS 
 
STATE FOR PM/DTCC - BLUE LANTERN COORDINATOR 
 
E.O. 12958: N/A 
TAGS: ETTC, KOMC, ES 
SUBJECT: BLUE LANTERN 05-973965 
 
REF: A. STATE 193451 
 
     B. 97 SAN SALVADOR 5192 
 
1.  On November 1, 2005, Econoff visited the business office 
and a retail outlet of Tiros Cobra-CA, S.A. de C.V. (Tiros), 
the subject of Ref. A pre-license end-use check.  He met with 
Yanira Elizabeth de Melara, who in function appears to be the 
general manager but introduced herself as the owner's 
assistant.  Tiros, which previously operated as Expocafe (see 
Ref B.), has a well-established customer base, maintains good 
sales records, and has adequate physical security.  Post 
believes Tiros is a reliable recipient of USML items. 
 
Business Structure 
------------------ 
2.  Tiros is owned by Rene Llort and Carmen Salgado de Llort, 
who are husband and wife.  The Llorts had previously owned a 
coffee plantation, but began selling ammunition and arms in 
1996 under the name of their coffee business, Expocafe. 
(Note: In El Salvador, it is not unusual for owners of 
agricultural plantations to diversify into unrelated lines of 
business. End note.)  A year ago they decided to change the 
name of the company as part of a rebranding effort.  Tiros 
now operates 15 retail outlets throughout the country, as 
well as a facility that manufactures ammunition using U.S. 
components.  However the company does not make .22 caliber 
ammunition, the subject of this check.  Tiros does not import 
weapons directly, but sells arms imported by others. 
 
Customer Base 
------------- 
3.  Tiros' clients include private individuals, security 
firms, and other retailers.  Records show that the business 
maintains a large and diversified customer base.  Ms. de 
Melara said that the 30,000 rounds .22 caliber ammunition 
imported in the transaction that is the subject of this 
check, plus an addition 70,000 rounds purchased in April 2005 
from another U.S. vendor, would be sold roughly half to 
retail clients and half to wholesale clients.  By law, Ms. de 
Melara said Tiros may not import more 100,000 rounds of a 
given caliber in a year. 
 
Record-Keeping and Security 
-------------------------- 
4.  Documentation is well maintained--all sales of arms and 
ammunition are recorded in designated ledgers.  Physical 
security is adequate.  The retail outlet visited by Econoff 
was located in a shopping center within a bus depot in San 
Salvador.  The bus depot, which occupies one-half of a city 
block, is secured by three armed guards located at the 
perimeter of the facility.  Another armed guard at the rear 
of the bus depot is posted about ten feet from the retail 
outlet.  During business hours, Tiros' retail outlet is 
accessible through an unlocked door.  Display cases for 
weapons are unlocked, and ammunition is stored in an unlocked 
closet.  After hours, the store is protected by a locked 
steel cage.  Ms. de Melara said that security varies 
according to store location, and that other store that did 
not have armed guards on site had better access control. 
 
USML Restrictions and Local Licensing 
------------------------------------- 
5.  Ms. de Melara is generally aware of restrictions on USML 
articles.  Tiros is licensed by the Ministry of Defense to 
import and sell--both retail and wholesale--the ammunition 
that is the subject of this check. 
Barclay