(S) AUSTRALIA GROUP - GERMANY REQUESTS INFORMATION

S E C R E T BERLIN 002106 SIPDIS SIPDIS, ISN, EAP, EUR E.O. 12958: DECL: 11/20/2017 TAGS: PARM PREL ETTC CBW CH GM SUBJECT: (S) AUSTRALIA GROUP - GERMANY REQUESTS INFORMATION ON U.S. EXPORT LICENSE DENIAL CONCERNING CHINESE ENTITY Classified By: Global Affairs Counselor Donald R. Shemanski for reasons 1.4 (b) and (d). ¶1. (U) This is an action request. Please see para 4. ¶2. (S) German MFA Export Control Division Desk Officer Volker Herzog passed Global Affairs Officer November 21 a German-language nonpaper (see para 3) requesting additional information on a U.S. Australia Group denial (AG/Jun03/Den/USA/57) concerning the export of an alloy construction model 3196 pump to the Chinese entity, "Cangzhou Dahua TDI, You Xian Ze Ren Gong Si." Herzog said Germany's interagency export control working group was requesting any relevant derogatory information by December 10. ¶3. (S) Begin text of Embassy-prepared informal translation of German nonpaper: In consideration of the Australia Group's No-Undercut policy, we take this opportunity to request information from the U.S. authorities in the following matter: -- German export control authorities are currently considering an application concerning the export of a magnetic coupling pump with fluorine polymer lining. The export license application describes the intended purpose of the subject goods as sulphate production for use in a polyurethane operation. The intended recipient is the Chinese firm, "Cangzhou Dahua TDI, You Xian Ze Ren Gong Si." -- The end user (Cangzhou Dahua TDI, You Xian Ze Ren Gong Si) is the subject of a U.S. Australia Group denial (AG/Jun03/Den/USA/57) from June 1, 2003. The subject of the U.S. denial is identical to the end user in this case. -- The U.S. denial concerns the delivery of an alloy construction model 3196 pump. The grounds for denial were given as unacceptable risk of diversion to a CBW program. -- The German authorities possess no negative / proliferation-relevant information against the end user (Cangzhou Dahua TDI, You Xian Ze Ren Gong Si). We would appreciate review of this matter and a response by December 10, 2007 on whether there is reliable proliferation-relevant information against this end user. We look forward to the continuation of our excellent cooperation in the field of export controls. End text of German nonpaper. ¶4. (SBU) ACTION REQUEST: Post seeks Department's assistance in responding to the German request by the December 10 deadline. TIMKEN JR