VZCZCXYZ0001
RR RUEHWEB

DE RUEHSJ #0895 2922202
ZNR UUUUU ZZH
R 192202Z OCT 09
FM AMEMBASSY SAN JOSE
TO RUEHC/SECSTATE WASHDC 1325
INFO RUEAIIA/CIA WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC
RUEKJCS/SECDEF WASHDC

UNCLAS SAN JOSE 000895 
 
SIPDIS 
 
DEPT FOR PM/DTCC - BLUE LANTERN COORDINATOR 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC CS
SUBJECT: BLUE LANTERN LEVEL 3: POST-LICENSE/PRE-SHIPMENT 
END-USE CHECK ON LICENSES 050134369, 050175886, 050175888, 
050175889 
 
REF: A. STATE 83456 
     ¶B. ANDREW/BALLARD EMAIL 16 OCT 09 
 
¶1. Per Ref A request, on September 8, we met with Randall 
Gazel of El Hispano gunshop in San Jose, and established the 
bona fides of the company.  As a result of this check, we 
consider El Hispano a legitimate recipient of United States 
Munition List (USML) items.  Gazel is familiar with the 
regulations governing the import of U.S.-origin defense 
articles as well as the International Traffic in Arms 
Regulation, regarding restrictions on re-transfer or 
re-export.  According to Gazel, the last inspection by Post's 
political office for a Blue Lantern check was in 2000, 
although in 2007 Post's Foreign Commercial Service conducted 
a routine inspection. 
 
¶2. El Hispano has been in business for over 60 years and has 
no negative comments/infractions from the Ministry of Public 
Security (MPS), the GOCR's official government body with 
oversight authority on gun dealerships.  MPS certified to us 
that El Hispano has met all of their requirements for 
importing firearms.  MPS renews their license annually. 
 
¶3. Other than firearms and ammunition, El Hispano also sells 
outdoors equipment as well as self-defense products such as 
Tazers and pepper spray.  Their regular customers are mostly 
private citizens residing in Costa Rica.  Purchasers must 
comply with the following in order to buy firearms: 
 
 -- Criminal background check; 
 
 -- Undergo psychological testing; 
 
 -- Certificate of approval of safe gun handling; and 
 
 -- Registration of the firearm's serial number with the 
Office of Arms and Explosives of MPS. 
 
Around 10 percent of their sales are to private security 
companies or government institutions.  The government 
institutions normally purchase .40 and .45 caliber pistols as 
well as .357 magnum. 
 
¶4. El Hispano does not import weapons for any other local 
gunshops, however, they do distribute their products to 
subsidiary shops located throughout the country.  These shops 
are in Liberia (Coyote Liberiano), Alajuela (Deportes 
Huracan), and Perez Zeledon (Armeria Chacon).  The weapons 
purchased from the licenses listed in the subject line will 
be available for purchase to both private Costa Rican 
citizens and government institutions. 
 
¶5. Gazel provided us with sales records from 2007-2009 (Ref 
B), which includes sales for license 050134369.  None of 
these firearms were re-exported to end-users outside of Costa 
Rica.  El Hispano has never re-exported U.S.-origin firearms 
or other U.S.-origin defense articles to end-users outside of 
Costa Rica.  Gazel estimated that El Hispano's annual sales 
of U.S.-origin firearms is $300,000 to $400,000. 
 
------- 
COMMENT 
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¶6. Gazel was very familiar with the firearms business and 
clearly wanted to cooperate with us.  They are aware of 
problems that other gunshops in Costa Rica have had with U.S. 
licenses, particularly Armeria Rex (a gunshop that has been 
found to be an unreliable user of USML in the past).  Their 
paperwork seemed to be organized and accurate.  Security at 
the San Jose store seemed good; armored vaults are used to 
store weapons and they have a camera and alarm system in 
place. 
BRENNAN