IRAN NONPROLIFERATION ACT OF 2000: AUSTRIAN

S E C R E T VIENNA 003973

SIPDIS

STATE FOR ISN/CWTR, EUR/PRA AND EUR/AGS

E.O. 12958: DECL: 12/30/2015
TAGS: PARM PREL MNUC ETTC AU MTCRE
SUBJECT: IRAN NONPROLIFERATION ACT OF 2000: AUSTRIAN
GOVERNMENT UNDERSTANDING OF STEYR-MANNLICHER SANCTIONS

REF: A. VIENNA 3912


B. VIENNA 331

C. STATE 226158 AND PREVIOUS

Classified By: Charge d'Affaires Scott Kilner. Reason: 1.4 (b) and (d
).


1. (SBU) The public announcement of sanctions against
Austrian arms manufacturer Steyr-Mannlicher on December 27
gave rise to headlines in the Austrian media. Most reporting
identified the sale and shipment of 800 high-powered,
50-caliber sniper rifles to Iran as the reason for the U.S.
action. The political opposition has tried to use the U.S.
action against the Austrian government. In response, an
Interior Ministry spokesman has said the government's
decision to authorize the shipment was "legal." However, the
spokesman also said that, especially in view of Iran's
continuing conflict with the international community on
nuclear issues, Austrian authorities would be "unlikely" to
approve such a sale in the future. Steyr-Mannlicher
president Wolfgang Fuerlinger disingenuously told the press
that he was "shocked" by the news of sanctions. He said the
U.S. accounted for 30 to 40 percent of his business, meaning
that the U.S. action would be a "massive blow."


2. (S) Comment: As reported ref (b),Fuerlinger was well
aware of U.S. law, and especially of the provisions of the
Iran Non-Proliferation Act, when we spoke to him in February

2005. At that time, he told us that the Iran market was "ten
times" as large as his U.S. business, and that, on balance,
he would choose his business with Iran over his business with
the U.S. End comment.


3. (S) On December 28, Chancellery Diplomatic Advisor
Hans-Peter Manz reiterated to EconPolCouns his assurances to
the Ambassador last February that the Austrian government had
decided to block further shipments of Steyr-Mannlicher sniper
rifles to Iran, and that this would not change. He also said
the government had no complaints about U.S. sanctions against
Steyr-Mannlicher. He dismissed the notion that Fuerlinger
could call upon the government for support, saying,
"Fuerlinger has no standing" at the Chancellery.
KILNER