Cablegate: France Blue Lantern Broker Inquiry of Registered Broker

VZCZCXYZ0002
PP RUEHWEB

DE RUEHFR #0176 0470945
ZNR UUUUU ZZH
P 160945Z FEB 10
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC PRIORITY 8314
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS PARIS 000176

SIPDIS

SENSITIVE

STATE FOR PM/DTCC - BLUE LANTERN COORDINATOR RACHEAL-THERESE S.
JOUBERT-LIN

E.O. 12958: N/A
TAGS: ETTC FR
SUBJECT: FRANCE BLUE LANTERN BROKER INQUIRY OF REGISTERED BROKER
AVRAM ALBERTO BUENO - CASE NO. K-2277

REF: STATE 099505

SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION

1. (SBU) Econoff contacted Avram Alberto Bueno, CEO and General
Manager of of the French company Business Developmental Security
Industries (BDSI) regarding BDSI's bona fides and registered broker
activities under Case NO. K-2277 (ref). Bueno said the company
consisted of himself and his wife Sophie Verbauwhede, Operations
Manager. Bueno and his wife established BDSI in 2005 and have been
operating in Brezolles, France since 2006 after moving their
operations from Paris to Brezolles due to cost concerns. BDSI is a
small two person outfit located in a 15th century farmhouse in rural
France. Bueno and his wife decided to incorporate BDSI, after having
been involved in the aerospace and air defense industry for decades
in the United States. Bueno owned and operated three small companies
in California during the 1980s and 90s and eventually sold them to
L3. Bueno said they want to keep their business small for overhead
and tax purposes and do not want to grow beyond their current
structure.

2. (SBU) Bueno described BDSI as a representative and facilitator for
small and large U.S. and France-based companies involved in the
aerospace and air defense industry. Bueno said that BDSI is a conduit
for introducing French and U.S. companies to each other. BDSI fosters
business relationships between French and U.S. companies where
eventual business transactions with USML items are conducted, and
takes commissions from the resulting sales.

3. (SBU) BDSI primarily brokers controlled product sales consisting
of accelerometers, receivers, antennas, and transmitters. BDSI's U.S.
suppliers of USML items usually include Herley Industries,
Haigh-Farr, Honeywell and L3 and French customers include Airbus,
EADS, MBDA, Eurocopter, Thales, Dassault, and the Delegation Generale
pour L'Armement (DGA) of the French Ministry of Defense (MOD).
According to Bueno, BDSI will sometimes broker transactions with
other companies in the European Union or NATO, like Spain and
Germany, but the majority of their transactions are for French
companies in France.

4. (SBU) Bueno said he understands the restrictions on USML items and
the prohibition against unauthorized re-transfer and re-export of
USML items from his business days in California. Bueno indicated that
he was aware that the physical infrastructure of his location is not
authorized to handle or store USML items and that he can't physically
store items on the premises. Bueno said BDSI is simply a broker, does
not store products on premises, and the company has no tangible
influence or interest on the development of the potential end
product, the installation of the USML item purchased, modification of
products, or the physical transfer of the USML items. All
transactions, according to Bueno, originate with a French/U.S.
company and get shipped directly to the buyer and end-user.

5. (SBU) Post Blue Lantern Action Officer concludes that BDSI is an
active business operating at the location indicated under its
authorization address (per ref information). CEO Avram Albert Bueno
says he understands the laws and regulations regarding handling and
selling USML items. Embassy uncovered no evidence or derogatory
information that would suggest that BDSI has dealt or currently deals
with disreputable businesses regarding USML import/export items.
Bueno stated he avoids those companies or business transactions that
might engage in such activity.

RIVKIN

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