VZCZCXYZ0003
RR RUEHWEB

DE RUEHFR #1325/01 1931139
ZNR UUUUU ZZH
R 111139Z JUL 08
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC 3727
INFO RHMCSUU/FBI WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/USDOC WASHDC
RUEPINS/HQ BICE INTEL WASHINGTON DC

UNCLAS PARIS 001325 
 
SENSITIVE 
SIPDIS 
 
STATE FOR PM/DTCC - BLUE LANTERN COORDINATOR 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC FR
SUBJECT: THALES PRELIMINARY RESPONSE TO BLUE LANTERN END USE CHECK 
ON SATELLITE COMPONENTS 
 
REF: SECSTATE 049721 
 
¶1. (SBU) On July 10, Thales Alenia Space President/CEO Reynald 
Seznec and Thales Group Senior VP for EU and NATO cooperation met 
with Econ Mincouns and Econoff in response to Embassy's letter 
relaying DTCC request for information (reftel).  They previewed 
their pending written response, leaving a summary memorandum of 
their key points(para 2).  They stated that Thales Alenia Space is 
assembling a report on the disposition of previously licensed 
satellite components and technology that will be ready in "a few 
weeks."  They will also provide "a broad description" of the three 
commercial telecommunications satellites sold to Chinese and Hong 
Kong companies but say they are constrained by both French law and 
commercial secrecy considerations from providing the detailed 
specifications and parts/components list, requested reftel.  They 
will also provide the USG with the findings of a recent outside 
audit of Thales's export control compliance practices, including for 
its "ITAR-free" operations.  They indicated that Thales Alenia Space 
executives and technical experts are prepared to travel to 
Washington to discuss this matter at DTTC's convenience. 
 
¶2. (SBU) Text of Memorandum left by CEO Seznec: 
 
Thales Alenia Space compliance with ITAR 
---------------------------------------- 
 
Thales Alenia Space (TAS) received, on 16 June 2009, a letter dated 
3 June from the US Embassy in Paris requesting information about 
items licensed under ITAR for use in the Spacebus 4000 programme and 
further details concerning three "ITAR-free" telecommunications 
satellites launched in China (Apstar 6, Chinasat 6B and Chinasat 9). 
TAS has been advised that this letter constitutes a "Blue Lantern" 
post-shipment check carried out in accordance with section 40A of 
the US Arms Control Export Act. Specifically, the letter asks for: 
 
-- a detailed report on the use and whereabouts of ITAR-controlled 
components supplied for the Spacebus 4000 programme; 
-- the specifications of Apstar 6, Chinasat 6B and Chinasat 9; and 
-- a detailed list of the component parts of these satellites. 
 
The letter warns that TAS's response will have a bearing on its 
future licence applications. 
 
TAS is gathering the information requested in respect of 
ITAR-controlled components supplied for the Spacebus 4000 programme. 
It has an extensive export compliance process, backed by strong 
management commitment, to ensure that such items are properly 
tracked and safeguarded. The requested information is being collated 
and will be communicated as soon as the work is complete. 
 
As regards the specifications of the satellites concerned and lists 
of their components, there are difficulties in providing this 
information, related to commercial confidentiality and French law: 
 
-- commercial confidentiality exists on account of customer/supplier 
rights and the strong competition in the market for 
telecommunications satellites. 
 
-- French law n0 80-538 of July 16, 1980 concerning communication of 
economical, commercial or technical documents and information to 
foreign individuals or legal entities forbids persons to request, to 
look for or to communicate, in writing or orally, or in any other 
form, economical, commercial, industrial, financial or technical 
documents or information which could constitute evidence in foreign 
judicial or administrative proceedings or within the framework of 
such proceedings. It requires companies and individuals receiving 
requests for information of this nature to immediately inform the 
appropriate Minister. 
 
Following consultation with the French authorities, TAS will not 
include in its reply to your letter the information requested 
concerning the specifications of the satellites and their 
components. TAS will however provide a broad description of the 
three satellites, which it is hoped will be sufficient to satisfy 
the US authorities that these are normal commercial products. 
 
TAS will also communicate to State Department the results of an 
external review of the processes and procedures used in TAS to 
ensure that its ITAR-free satellites are compliant with respect to 
US ITAR. This review, carried out by an eminent US law firm, has 
just recently been completed. While confirming that TAS has a 
detailed and well-implemented export compliance programme, that the 
process for tracking parts and equipment appears strong, and that 
there is a high level of confidence that ITAR controlled parts are 
stored and selected for use properly, it also identifies some issues 
which need to be addressed and makes a number of recommendations for 
 
improvement. TAS will implement these recommendations. Full details 
of the findings and recommendations of the review will be made 
available to State Department. 
 
Based on the results of the external review and the steps which TAS 
will immediately put in place to implement its recommendations, TAS 
hopes that the US authorities will accept that it is a responsible 
custodian of US ITAR-controlled items and that accordingly its 
future licence applications will be dealt with normally. 
 
Thales Alenia Space 
9 July 2009 
 
Attachment: Courtesy Translation of French Law 80-538 
 
Act n0 80-538 dated July 16, 1980 concerning the communication of 
economical, commercial or technical documents and information to 
foreign individuals or legal entities. 
 
The French National Assembly and Senate have adopted, 
The President of the French Republic promulgates the following act: 
 
 
Art. 1. The title of act n0 68-678 dated July 26, 1968 concerning 
the communication of documents and information to foreign 
authorities in the field of maritime commerce is modified as 
follows: 
 
"Act concerning the communication of economical, commercial, 
industrial, financial or technical documents and information to 
foreign individuals or legal entities." 
 
Art. 2. 
 
¶I. - Article 1 of act n0 68-678 dated July 26, 1968 referred to 
above reads as follows: 
 
"Art. 1. - Subject to international treaties or agreements, it is 
forbidden for all physical persons of French nationality, or who 
usually reside on the French territory, as well as all executives, 
representatives, agents or employees of legal persons having their 
head office, or an establishment, in France, to communicate to 
foreign public authorities, in writing, orally or under any other 
form, in any place, economical, commercial, industrial, financial or 
technical documents or information, the communication of which would 
cause prejudice to the sovereignty, to the security, to the 
essential economic interests of France or to public order as 
specified by the administrative authority where necessary." 
 
II Article 1 bis has been inserted after article 1 of act n0 68-67 8 
of July 26, 1968 referred to above, and reads as follows: 
"Art. 1. bis. Subject to international treaties or agreements and 
laws and regulations in force, it is forbidden for any person to 
request, to look for or to communicate, in writing or orally, or in 
any other form, economical, commercial, industrial, financial or 
technical documents or information which could constitute evidence 
in foreign judicial or administrative proceedings or within the 
framework of such proceedings." 
 
Art. 3. Article 2 of the above mentioned act n0 68-678 dated July 
26, 1968 is modified as follows: 
 
"Art. 2. The persons mentioned in articles 1 and 1 bis must 
immediately inform the appropriate minister f they receive a demand 
concerning such communication." 
 
STAPLETON