FRENCH GUARDED ON RUMORS OF SUBMARINE SALES TO

S E C R E T SECTION 01 OF 02 PARIS 008460

SIPDIS

E.O. 12958: DECL: 12/13/2015
TAGS: MARR MASS PARM FR VE
SUBJECT: FRENCH GUARDED ON RUMORS OF SUBMARINE SALES TO
VENEZUELA

REF: A. USDAO PARIS IIR 6 832 0097 06


B. PARIS 7885

Classified By: Deputy Chief of Mission Karl Hofmann, reasons 1.4 (b) an
d (d).


1. (S) Summary: In response to information indicating
French-Venezuelan contacts to discuss potential arms sales,
in particular the Scorpene submarine, DCM followed up on
December 13 with the SGDN Deputy head Edouard Scott de
Martinville, POL/MC with MFA A/S-equivalent Daniel Parfait,
U/S Joseph with MFA Political Director Stanislas de
Laboulaye, and Polmiloff with MOD Cabinet staffer Camille
Grand. Scott de Martinville was unwilling to indicate where
-- if at all -- in the two-tiered interministerial evaluation
process any potential Scorpene deal with Venezuela might be.
Parfait downplayed any "speculation" about a pending
submarine deal. Laboulaye was not aware of the situation and
had no substantive response to the points raised, but
indicated he would look into the matter. Grand said the GoF
was reviewing its general policy on arms sales to Venezuela,
and that USG concerns would be factored in. Reporting in
other channels (ref A) suggests that a proposal from the
defense industry has been submitted to the SGDN, but that it
has not yet been tasked out for evaluation by the relevant
ministries. End Summary.


2. (S) In a December 13 conversation with the DCM, Vice
Admiral Edouard Scott de Martinville explained the process by
which any potential military sale would be evaluated by the
GoF. According to Scott de Martinville, the interministerial
process for a sale of high-level technology is headed by the
General Secretariat for National Defense (SGDN),of which he
is the deputy, and consists of two rounds. The first round
discusses whether to allow a potential supplier to begin
talks with a foreign government regarding a possible sale,
while the second round evaluates the specifics of a potential
deal and decides whether or not to allow the sale (ref A).
Scott de Martinville noted that, throughout the process,
prospective purchasers are unaware if their approach is even
being considered. Pressed by the DCM on reports of a
Scorpene deal, Scott de Martinville declined to say if a sale
to Venezuela had yet been taken up by the SGDN, noting that
such deliberations were "secret." He did note that 500-1000
such proposals may be floated in any given month.


3. (S) When questioned by POL/MC, A/S equivalent Parfait
also refused to be pinned down on the issue, and was not even
prepared to state whether the possibility of a submarine sale
to Venezuela was being entertained. He dismissed any reports
that may have come to U.S. attention as "speculation," saying
they derived from routine discussions between countries and
French suppliers about possible arms purchases. In response
to POL/MC's expression of strong USG opposition to any
submarine sales to Venezuela, Parfait raised his
long-standing desire for a U.S.-France dialogue, specifically
with A/S Shannon, to discuss inter alia our contradictory
analyses of the nature of the Chavez regime and its
destabilizing potential for the region. Parfait indicated
that he would like to hear from A/S Shannon a detailed case
laying out our view of Chavez' destabilizing capacity and
intentions, and have the opportunity to present the very
different French perspective. Parfait said he would provide
us shortly proposed dates for a visit to Washington.


4. (S) T U/S Joseph, who was in Paris on December 13 for
unrelated MFA meetings, similarly raised USG concerns about
submarine sales in a meeting with MFA Political Director
Stanislas de Laboulaye. Laboulaye said he was not aware of
the issue, but took note of U/S Joseph's points and indicated
that he would look into the matter.


5. (S) In a December 14 conversation with Polmiloff, Deputy
Diplomatic Advisor in the Cabinet of the Defense Minister
Camille Grand indicated that the GoF was aware that the U.S.
and France do not share the same perspective politically on
arms sales to Venezuela. Grand emphasized that France
recognizes USG concerns and has no reason to provide
Venezuela with arms that could represent a threat to U.S.
forces or to the stability of the region. He revealed that
there is a 2-3 month policy review under way between MOD and
MFA on what arms in general could be sold to Venezuela. He
added that the interagency review would factor U.S. concerns.
Although Grand expected that French policy will eventually be
more "flexible" than the U.S.'s arms transfer policy, he said
potential sales would have to comply with ITAR regulations .
Grand also sought to provide context to any sales by noting
France's historical role as an arms supplier to Venezuela
dating to the 1980's, adding that Venezuela has French tanks,
planes, and other arms. Venezuela has been buying parts and
is generally seeking to modernize its existing French stock,
he said. Grand observed that total arms sales have been
relatively small -- between one and two million euros. Grand
indicated it was possible that arms industry reps may be
discussing submarine sales with Venezuela, but that he wasn't
aware of any such discussions.


6. (S) Comment: GoF interlocutors have been careful to avoid
indicating the exact status of any discussions within the GoF
of Scorpene submarine sales to Venezuela, but have stopped
well short of denying that the subject is on the table.
Reporting in other channels (ref A) suggests that a proposal
on Scorpene sales to Venezuela (and at least one other
country) has recently been submitted to the SGDN, but that
the relevant ministries have not yet been tasked with
providing input into a decision, indicating the process could
be in the very early first stage. Ref A also notes that,
even if a proposal were to be taken up by the GoF and a deal
signed, the delivery of any submarines would likely be no
earlier than 2011 or 2012. Post will follow up with
Laboulaye and continue to press at all levels for
clarification. End Comment.

Please visit Paris' Classified Website at:
http://www.state.sgov.gov/p/eur/paris/index.c fm

Stapleton