SWISS-DPRK TRADE VERY LIMITED

S E C R E T BERN 002060

SIPDIS

SIPDIS

E.O. 12958: DECL: 11/08/2016
TAGS: ETTC KNNP PARM TRGY MNUC IAEA SZ
SUBJECT: SWISS-DPRK TRADE VERY LIMITED

REF: A. SECSTATE 178917

B. STATE 180512

Classified By: A/DCM Stan Otto, E.O. 12958, Reasons 1.4 (b) and (d)


1. (S) Summary: In response to REFTELS A and B, on November
7 Emboffs spoke with Swiss State Secretariat for Economic
Affairs, Bilateral Economic Relations Division, Export
Controls and Sanctions Chief Othmar Wyss about Swiss-DPRK
trade relations. According to Wyss, Swiss trade with North
Korea is very limited. No weaponry can be exported to North
Korea, and the last sale of any "dual-use" mining or drilling
equipment was in 2001. The majority of Swiss exports to
North Korea are pharmaceutical products. Luxury watch sales
have fallen off considerably, probably because Swiss watches
are being retailed in China rather than directly from
Switzerland. Other exports include old model auto parts and
lubricants. End summary.


2. (S) In response to subject matter in REF A, Wyss said that
Swiss companies had not exported any mining or drilling
equipment or parts to the DPRK since 2001. In 2001, SECO
approved the sale and export of a small boring machine
(company not disclosed),valued at 380 thousand Swiss Francs
(approximately $300 thousand). Since that sale, Swiss firms
have sold no replacement parts to the DPRK for this machine.
Wyss stated that mining and drilling equipment are dual-use
items and require SECO export licenses.


3. (S) Wyss also discussed Swiss-DPRK trade, REF B, with
Emboffs. He noted that Swiss trade figures with such
countries as North Korea, Iran and Cuba are not public
information, though he provided Emboffs with figures. SECO
figures for Swiss exports to the DPRK are:

2006 - CHf 5.5 million (end of third quarter)
2005 - CHf 4.5 million
2004 - CHf 6.1 million


4. (S) Wyss also described the composition of the Swiss
exports, telling Emboffs that the majority of exports to the
DPRK are pharmaceutical products. The other "major" exports
are old model auto parts, watches and lubricants. Given
UNSCR 1718's focus on stopping certain categories of trade
with the DPRK, Wyss provided more specific data on Swiss
watch exports to North Korea. He noted that the Swiss
government does not keep track of "high-value" watch and
"low-value" watch exports, but rather limits itself to "total
exports." However, the government does have a definition for
"high-value" watches: any watch valued at over one thousand
Swiss Francs. SECO's figures for Swiss watch exports to the
DPRK are as follows:

2006 - CHf 12,000 in exports
2005 - CHf 300,000 in exports
2004 - CHf 2.5 million in exports
2003 - CHf 5.1 million in exports
2002 - CHf 6.2 million in exports
2001 - CHf 5.2 million in exports


5. (S) Wyss hypothesized that watch exports from Switzerland
to the DPRK were falling because North Koreans can purchase
these time pieces more easily in Beijing now that China is a
WTO member and has its own retailers dealing in watches.


6. (S) Embassy Bern will continue to seek additional
information to report to Washington on issues of interest
from REFTELS A and B.
CONEWAY