US embassy cable - 03TEGUCIGALPA1398

UNCLAS TEGUCIGALPA 001398 
 
SIPDIS 
 
COMMERCE FOR 532/OEA/MARY R. CORSEY/MICHELLE ZAGER 
COMMERCE FOR 3134/FCS/OIO/WH/RD/DDEVITO 
PANAMA CITY FOR CUSTOMS ATTACHE 
 
E.O. 12958: N/A 
TAGS: BEXP, ETRD, ETTC, HO 
SUBJECT:  PRE-LICENSE CHECK: MINISTRY OF SECURITY 
 
REF: USDOC 02142 
 
1. In response to reftel, Economic Officer Nicholle 
Urdaneta performed a Pre-License Check for Application 
number (A) D306740 and (B) D306739 at the facilities of 
the Ministry of Security, Tegucigalpa, Honduras, on 
June 9, 2003. 
 
2. EconOff met with Minister of Security Oscar Alvarez 
and Secretary General Luis Pineda Batres. The meeting 
and visit was arranged without any delay or 
complication.  When EconOff explained the purpose of 
the visit all individuals were cooperative and 
forthcoming. 
 
3. The Ministry of Security has been authorized, 
through Executive Decree 132-2002 of August 6, 2002, to 
make direct purchases of special intelligence equipment 
and modern technology for safety and security purposes. 
The Ministry of Security plans to sign a Contract with 
Phoenix American Technologies for the purchase of 
thermal imager devices to be installed in two Bell-206 
helicopters. 
 
4. The total cost of the equipment, which will be 
funded by the Government of Honduras, is USD 1,053,000 
over the C.I.F. value.  An initial payment of USD 
526,500 will be provided to the U.S. firm through wire 
transfer to Ocean Bank of Miami, Florida.  The 
remaining 50 percent will be paid by letter of credit. 
All supportive documentation, including a draft 
purchasing contract, detailed description of the goods, 
and terms of payment, were provided by the consignee. 
 
5. The equipment and systems have been customized to 
the specific needs of the two Bell-206 helicopters, 
owned and operated exclusively by the Ministry of 
Security.  A strict 24-hour surveillance is given to 
the helicopters on a daily basis. The equipment will 
aid the National Police in a series of crime combat, 
prevention and control activities during night hours, 
such as narcotics and kidnappings, particularly in the 
urban areas of Tegucigalpa and San Pedro Sula.  Through 
the purchase of this modern equipment, the Minister 
will be able to view and monitor the helicopter's 
efforts directly from his office. 
 
6. Recommendation:  Based on the visit and information 
obtained about the purchasing transaction, consignee 
will be using the thermal imager equipment and systems 
in accordance with the terms of the license.  Consignee 
should be considered a reliable recipient of the 
exported material. 
 
PALMER