I would like to begin by thanking the Organization. It was an unexpected honor for me to be asked to lead this investigation. I especially want to express my appreciation to the Permanent Representatives of the three nations who entrusted me and my team with this very sensitive and difficult matter.

Colombia, Nicaragua and Panama displayed great courage and vision in asking the Organization to undertake this investigation. I would also like to assure the member states that we operated with absolutely no restrains, and throughout the investigation had the full cooperation of officials of all countries.

We were asked to complete four tasks:

1) To ascertain the facts and recommend further action.

2) To determine if there were possible violations of national laws.

3) To determine if there were possible violations of international laws.

4) To make recommendations to prevent a recurrence of these events in the future.

I am satisfied that we accomplished the tasks assigned. We have reported fully and in detail to the governments involved, and are here today to present the report to you. I will not dwell on the detailed results of the investigation, since these are in the document provided and can be studied at your leisure. Rather, I would like to take this opportunity, a rare and valuable opportunity for me, to make several broader points, which I emphasize are personal in nature.

I was startled at how easily some international arms merchants engaged in criminal actions were able to accomplish this diversion. The corruptive power of the money involved, widely varying national practices, in some cases ineffective national laws or lax enforcement of national laws, and an absence of close international cooperation, combined to produce a situation where this diversion was made possible. I would like to add that in a very real sense, the three countries, Colombia, Nicaragua, and Pamana, were all victimized by the criminal actions of unscrupulous arms merchants.

Having spent several months trying to unravel this particular event, I am convinced that what happened to these three countries can happen again to anyone, if member states do not take concrete and effective action to close whatever gaps exist in national legal regimes, and unless there is better cooperation among all countries.

I believe that the Inter-American Convention Against the Illicit Manufacturing of and Trafficking in Firearms, Ammunition, Explosives and Other Related Materials, (CIFTA), , is essentially sound, and should remain the primary instrument which member states use in this regard. I also believe that the model regulations developed by CICAD, if adopted by all member states would go a long way towards tightening the inter-American arms control regime.

During the course of our work I did notice that only about half of the member States have ratified the Convention. I personally believe that broader ratification, and especially implementation of the Convention's provisions would be a very good thing for this region.

In our report we have made several recommendations regarding the Convention. We have also included recommendations which fall outside the Convention. One of those is a recommendation that member states implement a licensing system to register private arms merchants. Such a system would ensure that member states have adequate information regarding those with whom they are doing business. I would note that the Government of Nicaragua has begun work on model regulations within the framework of CICAD.

We have also recommended that member states undertake a program for the destruction of excess weapons. This is a problem in a number of countries, beyond the three affected by this arms diversion. I would hope that member states would support such programs in other parts of the region, for instance in Haiti.

Finally, we have recommended that all countries agree upon, and utilize, standardized end-user certificates. If such a system had been in place, this diversion would have been prevented.

I would like to make a second broad point. Our investigation focused on a single event, but it became clear as we progressed that we were dealing with a much larger problem. We have made recommendations for further investigation by states affected. In this respect, I hope governments will recognize that our investigative team had no police powers and no access to the investigative tools available to sovereign nations. In that respect, our report is not the end, it is the beginning. What we have done is to point the way to further work which should include investigation and possible criminal prosecutions. I would also hope that in undertaking these tasks, member governments would focus not only on their own nationals, but also on others who were the actual authors of these acts. These people need to know, that in this region, at least, they cannot operate freely.

In closing, I want to express my sincere and heartfelt appreciation, to the members of the General Secretariat's team, that undertook the majority of the work. You are indeed fortunate to have such hard-working, professional, and dedicated individuals serving your organization.