FRANCE BLUE LANTERN BROKER INQUIRY OF REGISTERED BROKER

UNCLAS PARIS 000175 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 JENOPTEC - CASE NO. K-1120 REF: STATE 099490 SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION ¶1. (SBU) Econoff contacted French company JENOPTEC regarding JENOPTEC's bona fides and registered broker activities under Case NO. K-1120 (ref). JENOPTEC CEO Gerard Nobili and Stephane Hostyn, Chief of Production, confirmed that JENOPTEC employs 47 people, including company executives, administrators, manufacturers and engineers. Nobili said that he created and established JENOPTEC in October 1986 and began business transactions in January 1987. JENOPTEC's profit in 1987 was USD 1 million and has now risen to about seven million euros annually. ¶2. (SBU) Nobili and Hostyn described JENOPTEC as the official French representative of ITT Night Vision of Roanoke, Virginia. JENOPTEC's relationship with ITT Night Vision includes the purchasing of Gentry tubes and night vision goggles for use by French Ministry of Defense (MOD) military and special forces units heading to the war in Afghanistan. (Note: Gentry tubes are the image intensifier for the night vision goggles and make the goggles more effective at night. End note.) Hostyn said that JENOPTEC helps in the adaptation-design for modifying the night vision goggles for French use. French helmet specifications for helicopter pilots, fighter pilots, and military units differ from those in the United States. JENOPTEC will create an interface adapter that makes ITT night vision goggles usable in French helmets. JENOPTEC also buys Gentry tubes from ITT Night Vision and sells them to French MOD, SAGEM and THALES. JANOPTEC also helps with the maintenance of the Gentry tubes and the night vision goggles when they break or are operating poorly. SAGEM and THALES are responsible for putting the ITT night vision goggles and Gentry tubes into the French helmets. ¶3. (SBU) JANOPTEC also conducts business with Insight Technology of Londonderry, New Hampshire. JANOPTEC's business relationship includes French special weapons and tactics (SWAT) teams and the French Gendarmerie. JANOPTEC purchases "aiming systems" which include advanced laser illuminators and light bulbs for placement on French SWAT teams and French Gendarmerie weapons. JANOPTEC purchases the "aiming systems" and then they are provided to the various SWAT and Gendarmerie units around France. �A; ¶4. (SBU) JANOPTEC purchased two electronics companies, DIVILEC and RECALL SYSTEMS based in France, and has a manufacturing facility in Normandy, France which builds printed circuit boards, and fiber optic broadcast cable for High Definition (HD) conversion for television broadcasts. Nobili confirmed that this part of his business does not involve controlled, dual-use, military items that would be covered by U.S. export controls. ¶5. (SBU) JANOPTEC understands the restrictions on USML items and Hostyn indicated that all their export authorizations and end-user agreements have to be cleared with French MOD on French MOD letterhead. Hostyn described a close relationship existed between French MOD and U.S. Department of Defense (DOD) regarding the night vision googles and their exportation to France. Hostyn added that any problems or questions they have related to export authorization are worked directly through JANOPTEC's legal Department in conjunction with ITT's legal department in Roanoke. Subsequently, ITT legal will work with DOS and DOD personnel to ensure JANOPTEC's licenses are accurate, current, and working within the confines of the U.S. export licensing agreement. Hostyn said they are well known and respected in the industry because they deal with solid U.S. companies and import sound U.S. USML products safely. JANOPTEC indicated that all precautions have been implemented to ensure that JANOPTEC has the physical infrastructure in place to handle and store USML items. Econoff was able to see the safe and security system that JANOPTEC uses to store night vision goggles. JANOPTEC's facilities are well protected as evidenced by their installation of a security system monitored by French authorities. Hostyn stated that usually they only receive 30 night vision goggles per shipment. The aiming systems from Insight Technology and the Gentry tubes from ITT are normally sent directly to the French MOD. ¶6. (SBU) Post concludes that JANOPTEC is an active business operating at the location indicated under its authorization address (ref). JANOPTEC understands the laws and regulations governing the handling and sale of USML items between France and the United States. Econoff saw no indications that JANOPTEC misrepresents its export authority. JANOPTEC said it is respected in the industry for its transparency and does not conduct business with disreputable buyers in USML import/export transactions. Hostyn stressed that JANOPTEC often receives faxes from unknown businesses inquiring about possible business relationships which JANOPTEC disregards. Econoff saw no evidence or derogatory information that suggests BDSI has dealt or currently deals with disreputable businesses regarding USML import/export transactions. RIVKIN