FRANCE: BLUE LANTERN LEVEL 3: PRE-LICENSE END USE

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