MTAG: RESPONSE TO OFFER OF HELP ON DANIEL FROSCH

S E C R E T VIENNA 000269

SIPDIS

FOR ISN/MTR, EUR/AGS AND EUR/PRA

E.O. 12958: DECL: 01/27/2016
TAGS: PARM PREL MNUC ETTC IR AU MTCRE
SUBJECT: MTAG: RESPONSE TO OFFER OF HELP ON DANIEL FROSCH
PROLIFERATION CASE (S)

REF: STATE 13506

Classified By: ACTING ECONPOLCOUNS MICHAEL DETAR
REASONS: 1.4 (B)(D)(H).


1. (U) This message contains a request for guidance. (See
para 5.)


2. (S) Econ Chief and PolOff delivered reftel talking points
January 27 to Helmut Krehlik, head of the export and import
control division at the Ministry of Economy. Krehlik
responded enthusiastically to our offer of assistance to
review the transaction files of Daniel Frosch Export (DFE)
Industrial Spare Parts. He promised to discuss the matter
with his GoA colleagues. He expected the GoA would accept
the USG offer, particularly in verifying a list of
transactions that the Austrians have not been able to
determine are of dual-use concern. Krehlik noted that the
close similarity of the dual-use lists maintained by the EU
and United States will facilitate a productive working
relationship on this matter. Krehlik promised to get back to
us after consulting with his colleagues.


3. (S) Krehlik mentioned that he had just come from a
meeting with the Office for Protection of the Constitution
and Counterterrorism (BVT) on DFE, pointing to a binder of
DFE transaction information that the BVT had obtained from
CEO Daniel Frosch. Krehlik noted that a cursory examination
revealed several transactions of dual-use concern. Krehlik
said that the BVT's initial impression was that DFE had not
fully opened its files to the GoA.

INTENSIFYING DUAL-USE COOPERATION
--------------

4. (SBU) Krehlik thanked the USG for appreciation of his
close cooperation with the USG (reftel). He added that U.S.
and Austrian officials had previously held annual meetings to
discuss dual-use and non-proliferation concerns. However,
these meetings had stopped recently. Krehlik praised the
current high-level of cooperation between the GoA and the
Embassy, but suggested that reviving these meetings would be
useful.


5. (C) COMMENT AND GUIDANCE REQUEST: Krehlik has been an
excellent contact of various Embassy offices. As Krehlik
approaches retirement, it may be in our interest to increase
contacts between Krehlik's office and USG agencies, which
would promote continued collaboration with others in his
office. Post appreciates Department's guidance to respond to
Krehlik's inquiry.
McCaw