SHIELD S13A-05: FOLLOW-UP INFORMATION ON

S E C R E T VIENNA 003920

SIPDIS

FOR ISN/CB, ISN/CPI, EUR/AGS, AND EUR/PRA

E.O. 12958: DECL: 12/19/2015
TAGS: PARM PREL ETTC IR AU CBW
SUBJECT: SHIELD S13A-05: FOLLOW-UP INFORMATION ON
VOGELBUSCH AND KIMIA GHARB GOSTAR INDUSTRIES (S)

REF: A) VIENNA 3774 B) STATE 214028

Classified By: Economic-Political Counselor Gregory E. Phillips for
reasons 1.4 (b),(d),and (h).


1. (S) On January 19, Econ Unit Chief met with Helmut
Krehlik, Head of the Ministry of Economy's Export Control
Division to discuss the Austrian firm Vogelbusch's possible
sale of technology and equipment for a citric acid production
line to the Iranian firm Kimia Gharb Gostar Industries.
Krehlik said he and an official from the Austrian security
services (BVT) had raised concerns with Vogelbusch's
Executive Vice President Josef Modl. Modl told Krehlik that
Vogelbusch owned 25% plus 1 share of Kimia Gharb Gostar's
citric acid production facility, as well as providing service
and maintenance for the entire facility. According to Modl,
the Iranians "could not modify any of the equipment without
Vogelbusch's knowledge."


2. (S) Previously a part of the state-run conglomerate Voest
Alpine, Vogelbusch, in Krehlik's opinion, was "clean."
Krehlik added that Vogelbusch routinely referred questionable
biotech projects to a reputable chemist, Professor Zehtner at
the Technical University. Krehlik recalled that in 2003,
Vogelbusch had waited six months to address concerns raised
by the USG regarding a project in Iran. According to
Krehlik, by the time Vogelbusch had addressed these concerns,
a UK firm had already received the contract.
MCCAW