MTAG: RESPONSE TO DEMARCHE REGARDING IRAN'S

S E C R E T VIENNA 000268 SIPDIS FOR ISN, EUR, EUR/AGS, EUR/PRA E.O. 12958: DECL: 01/27/2016 TAGS: PARM PREL MNUC ETTC IR AU SUBJECT: MTAG: RESPONSE TO DEMARCHE REGARDING IRAN'S MISSILE PROGRAM SEEKING CRANES FROM AUSTRIA (S) REF: A. STATE 13527 ¶B. STATE 13506 Classified By: ACTING ECONPOLCOUNS MICHAEL DETAR REASONS: 1.4 (B)(D(H). ¶1. (S) Econ Chief and PolOff delived ref A talking points January 27 to Helmut Krehlik, head of the export and import control division at the Ministry of Economics and Labor. Krehlik promised to look into the matter and contact us with a response. He was familiar with Palfinger, although he did not know of any previous dual-use concerns with the company. He was also aware that the reported purchaser of the cranes, Mehr Engineering and Industrial Group, was connected to Iran's missile program. (Note: Krehlik mentioned that Mehr was also a customer of Daniel Frosch Export (DFE) Industrial Spare Parts (ref B) End Note.) ¶2. (S) Krehlik cautioned, however that the GoA will only be able to act, under Article 4 of the European Union's Dual-Use Regulation, if there is a "technical connection" between the cranes and Iran's WMD program. He added that the recently passed Austrian Foreign Trade Act includes an emergency provision to halt exports, but that he was not certain if that would apply in this case. We will check back with Krehlik next week and monitor the situation closely. ¶3. (S) COMMENT: Krehlik has been very cooperative on USG non-proliferation concerns, so we anticipate he will do his utmost to assist us, within GoA and EU legal frameworks. McCaw