MTAG 03-03: GOG CONSIDERING REEXPORT OF MILLING

S E C R E T ATHENS 000459

SIPDIS

STATE FOR NP/CBM/HARDIMAN, EUR/PRA, EUR/SE, EUR/SCE

E.O. 12958: DECL: 02/15/2115
TAGS: PREL PARM MCAP ETTC MK GR
SUBJECT: MTAG 03-03: GOG CONSIDERING REEXPORT OF MILLING
MACHINE TO MACEDONIA

REF: A. 04 STATE 106221


B. 04 ATHENS 552

C. 04 ATHENS 2150

Classified By: ECONCOUNS JSTEPANCHUK; REASONS 1.4 (B) (D)


1. (S) On February 9, Econcouns was summoned by the head of
MoD's Wassenar Expert Group, Col. Ioannis Anastasakis, to
discuss possible return of a Mikrosam CNC milling machine
(reftels) to Macedonia. (Per reftels, the Greek company,
Baksevanidis, acquired two milling machines from the
Macedonian-based firm, Mikrosam, in 2004: one was purchased
and is being held in Athens; the other - which Mikrosam sent
free of charge - was intended for exhibit at a Thessaloniki
trade fair). Anastasakis assured Econcouns that both
machines are under surveillance by Greek Customs authorities,
who have to date prohibited the physical transfer or reexport
of the machines.


2. (S) Greek firm Baksevanidis is now applying to the GoG for
a special license to reexport to Macedonia the machine that
was intended for exhibit in Thessaloniki. Anastasakis
pointed out that if Baksevanidis seeks legal recourse, it is
possible that the Greek courts could order the return of the
machine to Macedonia on the grounds that it is not contolled
by the MTCR or included in EU Regulation 1334/2000.


3. (S) Anastasakis said that the MoD (as part of the GoG
interagency export control process) had not decided on
whether or not to recommend the return of the machine to
Macedonia. He said that nothing would be done without
consulting with the USG and that even if a reexport license
were granted, Greek Customs would take charge of the machine
and transfer it directly to the appropriate Macedonian
authorities.


4. (S) Econcouns reiterated USG concern (per ref a) that
while the machine in question is not on the MTCR list, it is
well suited to manufacture small parts or components with
missile-related end uses. Econcouns also recalled the well
documented efforts of Mikrosam to divert such machines to
third countries. (Anastasakis was well aware of Mikrosam's
reputation.) The chief concern of the USG was to prevent the
diversion of the milling machine to third countries, a
likelihood that would be enhanced if it had ever returned to
Mikrosam.


5. (S) We will continue our periodic consulting with Greek
export control authorities on the disposition of the milling
machines and appreciate any additional information the
Department would have us convey to the GoG.

RIES