Identifier
Created
Classification
Origin
07BERLIN1792
2007-09-21 14:57:00
CONFIDENTIAL
Embassy Berlin
Cable title:  

GERMANY ISSUES NEW REGULATIONS REGARDING THE

Tags:  KNNP MNUC KSAC PARM PREL KH GM 
pdf how-to read a cable
VZCZCXYZ0000
OO RUEHWEB

DE RUEHRL #1792 2641457
ZNY CCCCC ZZH
O 211457Z SEP 07
FM AMEMBASSY BERLIN
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9348
RUEATRS/DEPT OF TREASURY WASHINGTON DC IMMEDIATE
INFO RUEHTC/AMEMBASSY THE HAGUE PRIORITY 1131
C O N F I D E N T I A L BERLIN 001792 

SIPDIS

SIPDIS
STATE FOR ISN, EAP, AND EUR
TREASURY FOR TFI

E.O. 12958: DECL: 09/20/2017
TAGS: KNNP MNUC KSAC PARM PREL KH GM
SUBJECT: GERMANY ISSUES NEW REGULATIONS REGARDING THE
EXPORT OF CURRENCY PRODUCTION EQUIPMENT TO NORTH KOREA

REF: A. BERLIN 963

B. STATE 61051

C. BERLIN 484

D. BERLIN 354

E. BERLIN 318

F. STATE 18308

G. 2006 BERLIN 2224

H. 2006 STATE 118598

I. 2006 BERLIN 1876

J. RUGGIERO/CONWAY EMAIL JUNE 21 2006

Classified By: Global Affairs Counselor Donald R. Shemanski
for reasons 1.4 (b) and (d).

C O N F I D E N T I A L BERLIN 001792

SIPDIS

SIPDIS
STATE FOR ISN, EAP, AND EUR
TREASURY FOR TFI

E.O. 12958: DECL: 09/20/2017
TAGS: KNNP MNUC KSAC PARM PREL KH GM
SUBJECT: GERMANY ISSUES NEW REGULATIONS REGARDING THE
EXPORT OF CURRENCY PRODUCTION EQUIPMENT TO NORTH KOREA

REF: A. BERLIN 963

B. STATE 61051

C. BERLIN 484

D. BERLIN 354

E. BERLIN 318

F. STATE 18308

G. 2006 BERLIN 2224

H. 2006 STATE 118598

I. 2006 BERLIN 1876

J. RUGGIERO/CONWAY EMAIL JUNE 21 2006

Classified By: Global Affairs Counselor Donald R. Shemanski
for reasons 1.4 (b) and (d).


1. (C) Global Affairs Counselor received a letter September
17 from German MFA Export Control Division Director Cyril
Nunn reporting the German Government has issued new export
control regulations regarding the export of currency
production equipment to North Korea. The new regulations,
which went into effect July 25, 2007, require companies to
apply for a license to export any currency production
equipment to North Korea. In a follow-up discussion with
Global Affairs officer September 21, Export Control Division
Desk Officer Ulrike Wolf said the new regulations provide a
"comprehensive tool" that permits German authorities to block
the export of any currency production equipment to North
Korea if there is a significant risk that the equipment will
be used to counterfeit foreign currency.


2. (C) According to Wolf, the legal basis for denying an
export license in such cases is a clause in the German
Foreign Trade and Payments Act (FTPA) that allows the German
Government to restrict legal transactions and acts in foreign
trade in order to "guarantee the vital security interests of
the Federal Republic of Germany." (FTPA, Section 7 -- see
ref A) Nunn's letter states -- and Wolf confirmed -- that
Drent Goebel, a German manufacturer of intaglio printing
presses, has been notified of the new regulation. Para 3
contains an informal Embassy translation of the new
regulation. Para 4 contains an informal Embassy translation
of Nunn's letter.


3. (U) The July 25 revisions add a subsection (Subsection 6)
to Paragraph 69(n) of the FTPA Implementing Regulation, which
states (informal Embassy translation): "The export of
equipment for the production of banknotes, stamps, and
special paper for banknotes and stamps requires the
permission of the German Federal Office of Economics and
Export Controls (BAFA),when the end user is located in North
Korea or the country of destination is North Korea."


4. (SBU) Begin text of informal Embassy translation of MFA
letter:

Your government expressed concern about the possible export
of a banknote printing press by the firm Drent Goebel to
North Korea.

I would like to inform you that on July 25, 2007 the 80th
regulatory revision of the Regulation Implementing the
(German) Foreign Trade and Payments Act went into effect.
Henceforth the export of equipment for the production of
banknotes, stamps, and special paper for banknotes and stamps
requires the permission of the German Federal Office of
Economics and Export Controls (BAFA) when the end user is
located in North Korea or the country of destination is North
Korea. The firm Drent Goebel has been informed of this
regulatory change.

The new Paragraph 69(n) of the above mentioned regulation
represents an effective and comprehensive export control
regulation for currency production machinery to North Korea.
Therefore, German authorities can and will stop the export of
this type of equipment if a significant risk of
counterfeiting foreign currency by North Korea exists.

End text of informal Embassy translation of MFA letter.
TIMKEN JR