S59-05: FOLLOW-UP INFORMATION REGARDING IRANIAN

S E C R E T VIENNA 000541 SIPDIS FOR ISN, EUR/AGS, AND EUR/PRA E.O. 12958: DECL: 02/22/2016 TAGS: PARM PREL ETTC IR AU CBW SUBJECT: S59-05: FOLLOW-UP INFORMATION REGARDING IRANIAN PROCUREMENT ENTITY SAMAMICRO (S) REF: A) VIENNA 264 B) STATE 10911 Classified By: Economic-Political Counselor Gregory E. Phillips for reasons 1.5 (b) and (d) ¶1. (S) On February 21, EconUnit Chief met with Helmut Krehlik, Head of the Ministry of Economy's (MoE) Export and Import Control Division, to follow-up on the initial meeting (ref A) regarding concerns (ref B) about the procurement activities of the Iranian firm Samamicro. Krehlik said he and an official from the Austrian security services (BVT) visited the Austrian firm Anton Par on February 20 to discuss its commercial relations with Samamicro. Krehlik met with Anton Par's co-owner, Friedrich Santner, who Krehlik described as very cooperative. Santner signed an acknowledgment that he must inform the MoE in advance of any exports to Samamicro, which "could contribute to WMD proliferation." According to Krehlik, this is a "catch-all" clause under article 4 of the EU's Dual-Use Regulation and paragraph 11 of the Austrian Foreign Trade Act, which includes a wider spectrum of exports than those covered under the various controlled lists. ¶2. (S) Krehlik said that 95% of Anton Par's exports come from three products: an open-system microwave that performs spectro-analysis of gassified solid materials; a simple density tester; and a viscosity tester. Krehlik said MoE chemists are analyzing these products for any possible WMD application. Krehlik opined that, while he is not an expert, he believes it is most unlikely that any of these products could contribute to a WMD program. Chemical testing on the open-system microwave, for example, would be lethal for any worker in its proximity. ¶3. (S) In Krehlik's opinion, Anton Par is a reputable, traditional exporter that would not want to become involved, even inadvertently, with WMD proliferation. Santner told Krehlik that if MoE tests reveal any WMD applications for its exports, Anton Par will not sell any products to Samamicro. In any case, Santner claimed that exports to Samamicro represent only 0.1% of Anton Par's total exports in 2005. McCaw