POTENTIAL UAV/CRUISE MISSILE TECH TRANSFER TO IRAN

S E C R E T ROME 004021 SIPDIS STATE FOR ISN/CWTR AND ISN/MTR E.O. 12958: DECL: 12/8/2015 TAGS: ETTC PARM PREL IR NE IT MTCR EXPORT CONTROLS SUBJECT: POTENTIAL UAV/CRUISE MISSILE TECH TRANSFER TO IRAN MOVING FORWARD REF: A. ROME 3146 ¶B. STATE 164496 Classified By: A/ECMIN KATHLEEN REDDY FOR REASONS 1.4 (b) and (d) ¶1. (S) SUMMARY: Aldo Doria, Head of the Ministry of Productive Activities' Export Control Unit, told EconOff the export of unmanned aerial vehicle (UAV)/cruise missile components from Italy to the Netherlands for possible re-export to Iran is likely to occur by December 20. The Italian firm is cooperating with the GOI, but does not know the items in question are being purchased on behalf of the Iranian military. Dutch officials told him last week in Brussels that the export to Iran could be stopped using the Wassenaar Arrangement's "catch-all" clause. End summary. ¶2. (S) EconOff met December 5 with Aldo Doria, Head of the Productive Activities Ministry's Export Control Unit, to discuss the status of the export of engines manufactured by the Italian firm Zanzottera Technologies SRL to the Dutch firm Aviation Services International (ASI). Per Ref A, ASI is buying the engines for an Iranian military procurement entity. Doria explained that because the sale is occurring within the single European market, the GOI does not have the legal means to stop the shipment. He said that Zanzottera Technologies is apparently unaware the engines are being purchased on behalf of the Iranian military. Zanzottera has been cooperative with the GOI, and will inform Doria when the engines are shipped to ASI, probably before December 20. ¶3. (S) Doria had just returned from an EU export controls meeting in Brussels (likely a preparatory meeting for the Wassenaar Arrangement Plenary meeting in Vienna) at which he discussed this export with Dutch officials. They confirmed that they were aware of the export, because they had been "awakened" to it by USG demarches, and told Doria the re-export of the Italian engines could be stopped under the Wassenaar Arrangement's "catch-all" clause. ¶4. (S) Doria will attend the Wassenaar Plenary meeting next week in Vienna, and will be available to discuss this export with USG officials. He expressed hope that the USG, GOI, and GON could stop this export, and said it is important to demonstrate that multilateral regimes such as Wassenaar can prevent sensitive technology exports to states of concern. SPOGLI