AUSTRIA REJECTS LICENSE FOR ASSAULT RIFLE EXPORT

S E C R E T VIENNA 001942 SIPDIS STATE FOR EUR/AGS, EUR/PRA, NEA/ARPI, NP/ECNP AND INR/SPM E.O. 12958: DECL: 06/15/2005 TAGS: ETTC PARM PREL IR AU SUBJECT: AUSTRIA REJECTS LICENSE FOR ASSAULT RIFLE EXPORT TO IRAN; MFA REQUESTS INFORMATION TO FIGHT COURT CASE REF: A) VIENNA 406 B) VIENNA 331 C) VIENNA 165 D) STATE 9770 E) VIENNA 37 F) 04 STATE 272249 G) 04 VIENNA 4393 H) 04 VIENNA 4354 Classified By: ACTING DEPUTY CHIEF OF MISSION GREGORY E. PHILLIPS REASONS: 1.4 (B) AND (D) ¶1. (S) On June 7, Austrian MFA A/S-equivalent for Western European Affairs Herbert Krauss (strictly protect) asked to meet with us to follow up on a May 18 briefing for Austrian officials on nonproliferation issues. Pol Unit Chief met Krauss (whose bureau also currently handles military transit and arms export issues) and Export Control Director Margit Bruck-Friedrich on June 8. Krauss explained that pursuant to our previous demarches on sensitive exports to Iran, the Austrian Interior Ministry, after consulting with the Economics and Foreign Ministries, had rejected a license application for export of five Steyr-Mannlicher AUG-3 assault rifles to Iran. ¶2. (S) According to Krauss, the consignee was J.S. Industries, which Krauss said was a centralized procurement agency for Iranian security services (and the same entity which had purchased Steyr-Mannlicher .50-caliber sniper rifles). According to the end-user certificate furnished by J.S. Industries, the AUG-3s were for "regular Iranian police and anti-narcotics" units. ¶3. (S) Krauss noted that it was very probable that this initial test order, if successful, would result in much larger orders for the AUG-3s. The Ministry of Interior had now received a formal protest of the denial from a prominent Vienna law firm representing Steyr-Mannlicher This was a preliminary step toward legal action to force the Austrian government to grant a license. Krauss said it would help immensely if the USG could provide evidence showing that these weapons might be destined for the insurgents in Iraq, or that other military goods previously provided to the Iranian government had found its way into the hands of terrorist organizations, especially those operating in Iraq. Brown