AUSTRIAN GOVERNMENT PLANS TO CHARGE FIRM WITH

S E C R E T VIENNA 003745 SIPDIS FOR ISN/MTR, EUR/AGS, AND EUR/PRA E.O. 12958: DECL: 11/28/2015 TAGS: PARM PREL MNUC ETTC AU MTCRE SUBJECT: AUSTRIAN GOVERNMENT PLANS TO CHARGE FIRM WITH VIOLATING FOREIGN TRADE ACT VIOLATIONS FOR EXPORTS TO IRAN (S) REF: A) VIENNA 3464 B) VIENNA 3325 C) STATE 185786 Classified By: Economic-Political Counselor Gregory E. Phillips for reasons 1.5 (b) and (d). ¶1. (S/NF) During a November 25 discussion with Economic Unit Chief, Helmut Krehlik, Head of the Ministry of Economy's Import and Export Division, said that the GoA would almost certainly charge the Daniel Frosch Export (DFE) Industrial Spare Parts company with violating Austria's Foreign Trade Act and Article 4 of the EU's Dual-Use Regulation. The anticipated charges stem from DFE Industrial Spare Parts' export of twelve valves to the Iranian firm Mehr. Krehlik stated that the GoA has "a solid case" against DFE. He noted that, although the valves were technically not subject to dual-use provisions, the GoA had warned Daniel Frosch, the company's President, in January to report any exports to Mehr in advance. Krehlik said the GoA regarded Mehr as a company promoting Iran's missile programs. Krehlik promised to keep the USG informed of developments in the case. VAN VOORST