AUSTRIA: STEYR-MANNLICHER CONTINUES BUSINESS WITH

S E C R E T VIENNA 003737 SIPDIS FOR EUR/PRA, EUR/AGS, NP/ECNP, AND INR/SPM E.O. 12958: DECL: 11/25/2015 TAGS: ETTC PARM PREL AU SUBJECT: AUSTRIA: STEYR-MANNLICHER CONTINUES BUSINESS WITH IRAN REF: A) STATE 195350 B) VIENNA 3679 C) VIENNA 2932 Classified By: Economic-Political Counselor Gregory E. Phillips for reasons 1.5 (b) and (d) ¶1. (S) Econ Unit Chief delivered ref A points November 25 to Helmut Krehlik, Head of the Ministry of Economy's Export and Import Control Division. Krehlik said he was not surprised that Steyr-Mannlicher President Wolfgang Fuerlinger wanted to sell weapons production technology to Iran. Krehlik opined that Fuerlinger wanted to sell the technology to the highest bidder (ref C). In this connection, Krehlik said he had heard several months ago that Fuerlinger was on the verge of transferring the Malaysian production, including technology, to the Indian defense firm Mahindra Defense Systems, part of the Mahindra Group. Moreover, Krehlik added that in private conversations over the last several months, Fuerlinger had asked Krehlik obtusely and in general terms if Austrian law would permit technology transfers outside of Austria. ¶2. (S) According to Krehlik, the GoA could investigate and charge Steyr-Mannlicher with "arms brokering" under the amended Foreign Trade Act, if the firm does transfer weapons technology outside of Austria from from one non-EU state to another non-EU country. Krehlik promised to pass our information to relevant GoA entities and to keep post informed of developments. VAN VOORST