[<<“It is imperative and obligatory for Dassault Aviation to accept this
[trade-off/counterpart] to obtain the export contract (for?) Rafale India,”
declared the number 2 of the group, according to a report prepared by staff
personnel.>>

Instead of Indian media houses, It's a French one that has taken up the
onus of investigative journalism.
Shame on Indian mainstream media!

Would it roil also the French parliament in the coming days!?
It's an interconnected world.

Hence:
I. 'Reliance pact was ‘imperative’ and ‘mandatory’ for Dassault: Report' at
<
https://www.hindustantimes.com/india-news/french-mediapart-reports-on-dassault-document-on-rafale-joint-venture/story-nOWeMNaaNo6DfAnA4KrEJM.html
>.
II. 'Dassault had no option but to tie up with Ambani company: Website' at <
https://timesofindia.indiatimes.com/india/dassault-document-says-anil-ambani-firm-as-rafale-partner-was-imperative-and-mandatory-report/articleshow/66154846.cms
>.
III. 'Papers Show Reliance Joint Venture 'Mandatory' For Rafale Deal:
Report' at <
https://www.ndtv.com/india-news/dassault-document-shows-reliance-joint-venture-was-mandatory-to-get-rafale-jet-deal-says-french-jour-1930056
>.

Quite worth noting:
<<Another reason why the Rafale controversy may not have caught the public
imagination could be that the volume of reporting which could turn public
opinion into outrage is missing. The Bofors scam was broken by the Swedish
Radio in April 1987. This was followed by a series of investigative reports
by  two national newspapers, Indian Express and The Hindu, who took up the
issue with dogged determination.
...
Although the first major breakthrough in the Rafale deal has also come from
a foreign source — French website “mediapart.fr” —Indian media houses have
failed to follow up with their own investigations. They have neither sent
their reporters to France nor commissioned French journaists to carry out
investigations or look for whistleblowers from Dassault Aviation to take
the story forward.
That critical mass of reportage that could enrage the public on the issue
is unlikely to be generated by the Indian media, which has become fairly
obsequious. There is also no ground to assume that the French media will
step in to make up for the moral shortfall in India.>>
(Ref.: <
http://www.asianage.com/opinion/columnists/101018/opposition-lacks-potent-strategy-on-rafale-deal.html
>.)

For a comprehensive account of the sequences of events leading to Anil
Ambani bagging the "deal", orchestrated by the "Chowkidar" and the related
debates: '"Gali Gali Shor Hai …!" How A PSU, with Decades of Experience,
Got Brusquely Displaced by a Private Newborn, with NIL Experience, in The
Rafale "Deal", Steered by the "Chowkidar" Himself!' at <
https://groups.google.com/forum/#!msg/greenyouth/Brw6i5mnQ1I/Ox31U6EkGgAJ;context-place=forum/greenyouth
>.

For additional inputs: ''Reliance Defence Had Neither Land nor an
Industrial License at Time of Rafale Deal'' at <<
https://thewire.in/political-economy/reliance-defence-land-industrial-license-rafale-deal-cbi-complaint
>>.]

https://thewire.in/government/internal-dassault-document-says-partnering-reliance-was-mandatory-for-rafale-deal-french-news-report

Internal Dassault Document Says Reliance JV was a 'Trade-off' for Bagging
Rafale Deal: French Report
According to a report published in Mediapart, Dassault's partnership with
Anil Ambani's Reliance was "mandatory" and "imperative" to securing the
Rafale sales contract.

Internal Dassault Document Says Reliance JV was a 'Trade-off' for Bagging
Rafale Deal: French Report
Credit: Reuters/Charles Platiau

The Wire Staff

10/OCT/2018

New Delhi: Dassault Aviation agreed to enter into a  joint venture with
Anil Ambani’s Reliance Defence as it was presented as “mandatory” and a
“trade-off” if the defence major were to bag the 36 Rafale jet deal,
according to a new report published in French investigative website
Mediapart.

According to the Mediapart story, which cites an internal Dassault
document, the agreement with Reliance was presented as a “trade-off” to
obtain the Rafale sales contract.

This revelation, if true, will likely further weaken the Narendra Modi
government’s claims that it had nothing to do with the selection of
Reliance Defence as an offset partner for the Rafale deal.

Mediapart quotes a presentation made by Dassault’s deputy chief executive
officer Loik Segalen to the company’s staff representatives in Nagpur in
May 2017 where he describes the Reliance partnership as “imperative and
mandatory” to get the Rafale export contract to India.

The two key paragraphs from the Mediapart story are reproduced below, both
in French and translated English.

“C’était une vraie fausse inauguration. Une « première pierre » symbolique
posée sur du gazon prédécoupé, sous un chapiteau de circonstance, à Nagpur
(centre de l’Inde), mais qui annonçait le début de la construction de la «
future usine » Dassault-Reliance. Selon un document interne à Dassault
obtenu par Mediapart, un haut cadre du groupe d’aviation avait expliqué aux
représentants du personnel que la joint-venture était une « contrepartie »,
« impérative et obligatoire » pour décrocher le marché du Rafale.”

“It was truly a false inauguration. A symbolic ‘first stone’ was placed on
pre-cut turf, under a [tent/capital] of circumstance, in Nagpur (central
India), but it announced the beginning of construction of the ‘future
factory’ of Dassault-Reliance. According to an internal Dassault document
obtained by Mediapart, a senior executive of the aviation group had
explained to the staff representatives that the joint venture was a
“trade-off” , “imperative and mandatory” to [obtain/take off] the market
for Rafale.” [Emphasis added by The Wire].

The second paragraph, shown below, quotes the presentation made by Segalen.

Chez Dassault Aviation, selon un document obtenu par Mediapart, l’alliance
avec Ambani a effectivement été présentée comme une « contrepartie » du
contrat de vente des Rafale. Le directeur général délégué de Dassault
Aviation, Loïk Segalen, l’a dit clairement le 11 mai 2017 lors d’une
présentation de la joint-venture « Dassault Reliance Aerospace » de Nagpur
aux élus du personnel : « Il était impératif et obligatoire pour Dassault
Aviation, d’accepter cette contrepartie, afin d’obtenir le contrat export
Rafale Inde », a déclaré le no 2 du groupe, selon un compte-rendu établi
par les élus du person

At Dassault Aviation, according to a document obtained by Mediapart, the
alliance with Ambani was indeed presented as a ‘trade-off’ for the Rafale
contract of sales. Dassault Aviation’s deputy chief executive officer  Loïk
Segalen said this clearly on May 11, 2017 during a presentation of the
joint venture ‘Dassault Reliance Aerospace’ to staff representatives: “It
is imperative and obligatory for Dassault Aviation to accept this
[trade-off/counterpart] to obtain the export contract (for?) Rafale India,”
declared the number 2 of the group, according to a report prepared by staff
personnel.

Over the last six months, the Rafale deal has been a source of political
controversy, with opposition parties and civil society stakeholders levying
allegations of crony capitalism against the Modi government.

These accusations were given greater teeth in the last week of September
2018 when former French president Francois Hollande told Mediapart that
India had proposed Reliance’s name as part of the new negotiations
surrounding the down-sized Rafale deal.

Hollande’s remarks came as a surprise as it directly contradicted claims
made by the Modi government. After the first Mediapart report, the Indian
defence ministry reiterated its stance that it had nothing to do with the
selection of Reliance as an offset partner.

Freely chose Reliance says Dassault

Dassault Aviation on Thursday reiterated that its partnership with Anil
Ambani’s Reliance Defence as an an offset partner with the Rafale jet deal
was born out of free choice.

“In order to deliver some of these offsets, Dassault Aviation has decided
to create a joint-venture. Dassault Aviation has freely chosen to make a
partnership with India’s Reliance Group. This joint-venture, Dassault
Reliance Aerospace Ltd (DRAL), was created February 10, 2017,” the Dassault
press release stated.

In response to Segalen’s presentation to company staff,  in its press
release, Dassault notes that “in compliance with French regulations”, the
company executive informed the Central Works Council of the creation of the
Dassault-Reliance JV “in order to fulfil some of the offsets commitments”.

“In compliance with French regulations, Chief Operating Officer Loïk
Segalen informed, May 11, 2017, the Central Works Council of the creation
of the DRAL joint-venture in order to fulfil some of the offsets
commitment,” the company said.

While Dassault has not clarified what its executive meant by a “trade off”,
a defence industry observer, who declined to be identified, told The Wire
that Dassault would likely argue that Segalen’s presentation was meant to
convey was that offsets in general were “mandatory” or a “trade-off” for
the Rafale deal and not the Reliance partnership in specific.

French journalist Julien Bouissou, the South Asia correspondent for Le
Monde, has said on Twitter that the Mediapart report does not, in fact,
contain any new information. “In May 2017, Dassault Informed French trade
unions about the construction of a plant in Nagpur, and explained to them
why that plant could not be built in France. (because of the offset),” he
said. “Please note that in France, the top management of a company has to
inform the Central Works Councils (trade unions) about their
strategy/important decisions. And in that case, the important decision
conveyed to the Central Work Council, was the construction of a plant in
India that will not create jobs for French workers. It’s about French
labour laws, not so much about Anil Ambani.”

The Wire has written to both Reliance and India’s defence ministry asking
for their comments on the matter and this story will be updated if and when
a response is received.

Note: This story was updated at 9:40 AM on Thursday to add Dassault’s
response and statement.

Note: This story was updated at 11:30 AM on Thursday to add Julien
Bouissou’s perspective.
-- 
Peace Is Doable

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