Cablegate: France Blue Lantern Broker Inquiry of Registered Broker

VZCZCXYZ0000
PP RUEHWEB

DE RUEHFR #0175/01 0470945
ZNR UUUUU ZZH
P 160945Z FEB 10
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC PRIORITY 8312
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/USDOC WASHDC

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.

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

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