Cablegate: France: Blue Lantern Level 3: Pre-License End Use

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Lucia A Keegan 11/08/2006 10:07:52 AM From DB/Inbox: Lucia A Keegan

Cable
Text:

UNCLAS SENSITIVE PARIS 07278

SIPDIS
cxparis:
ACTION: ECON
INFO: ECSO SCI LABO ENGO SCIO TRDO FCS POL ESCI ORA
AMB AGR DCM ECNO UNESCO

DISSEMINATION: ECONOUT /1
CHARGE: PROG

APPROVED: ECON:SDWYER
DRAFTED: ECON:HSULLIVAN
CLEARED: NONE

VZCZCFRI795
RR RUEHC RUEHOT
DE RUEHFR #7278 3111628
ZNR UUUUU ZZH
R 071628Z NOV 06
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC 2933
INFO RUEHOT/AMEMBASSY OTTAWA 1998

UNCLAS PARIS 007278

SIPDIS

SENSITIVE

STATE FOR PM/DTCC - BLUE LANTERN COORDINATOR
OTTOWA FOR ROBERT MERRIGAN

E.O. 12958: N/A
TAGS: ETTC KOMC FR CA
SUBJECT: FRANCE: BLUE LANTERN LEVEL 3: PRE-LICENSE END USE
CHECK ON LICENSE DA1023-06

REF: STATE 169012

1. (SBU) Per reftel, Post Blue Lantern Action Officer contacted
the French company CEO Jean-Marc Gardin regarding export license
DA1023-06, involving the export of components for flight
simulators to Canadian firm CAE. According to Garden, the
distribution agreement between Thales Electronics, BEI Sensors,
and CAE, Inc. conforms to the terms of export license DA1923-06.
Thales has also confirmed that all of its end-users under this
distribution agreement are not prohibited from receiving
U.S.-origin defense articles, as stipulated by the International
Traffic in Arms Regulations (ITAR) section 126.1. He said that
he realizes that the end users of this equipment must reside in
certain, specified countries and that this list evolves. Thales
takes care to ensure that it conforms to the evolving list.

2. (SBU) Gardin told us that Thales has done business with CAE
Canada since 1997. It has delivered five IESIs containing the
QRS-11 for use in flight simulators on the following dates:
July 29, 2005; November 30, 2005; January 3, 2006; March 1,
2006, and March 30, 2006. He said that for each transaction
Thales explicitly disclosed to CAE that the hardware contained
U.S. origin components. It also advised CAE regularly and at
various levels on the restrictions governing the unauthorized
re-transfer of IESI's equipped with U.S.-origin components.

STAPLETON

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