MTAG: AUSTRIAN RESPONSE ON FIRM'S OFFER OF CNC

S E C R E T VIENNA 003358 SIPDIS DEPT FOR NP/CBM, EAP/CM, EUR/AGS, AND EUR/PRA E.O. 12958: DECL: 10/14/2015 TAGS: PARM PREL MNUC ETTC AU CH MTCRE SUBJECT: MTAG: AUSTRIAN RESPONSE ON FIRM'S OFFER OF CNC MACHINE TOOL PARTS TO CHINESE CRUISE MISSILE ENTITY (S) REF: A) VIENNA 3135 B) STATE 166625 Classified By: Economic-Political Counselor Gregory E. Phillips for reasons 1.5 (b) and (d) ¶1. (S) On October 12, Econ Unit Chief followed up on ref A with Gerhard Erdpresser, Head of the Ministry of Economy's Anti-Dumping, Dual-Use and Wassenaar Arrangement Division. Erdpresser thanked the USG for the information in ref B and said the MoE had carefully checked the spare parts shipment from WFL Millturn Technologies GmbH to the Beijing Power Machine Institute. WFL Millturn had produced an end-user certificate, claiming the end-use for the spare parts was strictly civil. Erdpresser showed Econ Unit Chief the invoice, which included items such as "rotorshaft for cross-scavenging fans, crankshaft for hovercraft, and crankshaft for automotive use." According to Erdpresser, technical officials with the MoE and Austrian internal security agency were satisfied the spare parts were for civilian use. ¶2. (S) Econ Unit Chief pointed out that the Beijing Power Machine Institute was responsible for the development of cruise missile propulsion systems and that these items might also have military purposes. Erdpresser admitted that the MoE had advised WFL Millturn that, based on the USG information, it would be impossible for the company to obtain further licenses to export dual-use goods to the Beijing Power Machine Institute. van Voorst