BLUE LANTERN BROKER INQUIRY ON MICHAEL MITCHELL,

UNCLAS BRUSSELS 001383

SIPDIS

STATE FOR EUR/WE AND PM/DTCC: RJOUBERT-LIN

E.O. 12958: N/A
TAGS: ETTC KOMC BE
SUBJECT: BLUE LANTERN BROKER INQUIRY ON MICHAEL MITCHELL,
CASE NO. K-0673.

REF: SECSTATE 94215


1. (U) Summary: Pursuant to reftel request, Poloff and
polintern met with Michael Mitchell, President of Aero
Systems, SA, on October 5, 2009. Poloff and polintern
conducted requested inquiry of Mitchell's brokering
activities as well as a site visit to assess the business
operations of Aero Systems. Post confirms that Aero Systems
SA is in business at the location indicated reftel under its
own name. Aero Systems assists its clients in selling
military aircraft and associated equipment from American and
British companies to the Belgian government. Mitchell
considers himself a consultant rather than a broker and he
does not take title to items sold to the Belgian military.
Mitchell informed poloffs that the business originally
assisted with the buying and selling of aircraft and has
evolved over time to include both the sale of aircraft and
support services. Mitchell's U.S.-based clients provide both
aircraft and support services, while it United Kingdom-based
clients provide only support services. End Summary.


2. (U) Aero Systems possesses a standard business license
from the Belgian government. According to the Belgian
government, neither Mitchell nor Aero Systems is otherwise
licensed to sell or broker military items. Mitchell
explained that as a consultant he is not required to have
such a license. He said that he obtained registration with
the U.S. Department of State as an arms broker at the request
of the companies with which he works.


3. (U) Mitchell emphasized that Aero Systems does not store
products for clients. The company never takes title of the
products being sold. He insisted that Aero Systems is
primarily a consulting company. Mitchell said that the
companies he works with have the capability to store their
products.


4. (U) Aero Systems was established in 1969 by Mitchell's
father, a former serviceman in the Royal Air Force of the
United Kingdom. Aero Systems has remained a family run
business. Mr. Mitchell and his son are the company's
principals. The company runs a relatively small operation
consisting of four employees.


5. (U) Aero Systems is essentially a consultant to large
companies such as Raytheon, Derco Aerospace, Northrop
Grumman, and Lockheed Martin, who seek to sell aircraft and
services to the Belgian military. It assists its clients in
preparing proposals for offsets associated with sales of
aircraft. End users in Belgium are the Belgian military,
Sabena Technics, Sonaca, and Sabena World Airlines, all of
which are Belgium based.


6. (U) Mitchell said that he and his company understand the
restrictions on USML items, including those relating to
unauthorized re-transfers and re-exports. He did not request
any further clarification of the restrictions.

GUTMAN