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