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