GERMAN ASSURANCES REGARDING POTENTIAL SALE OF

S E C R E T BERLIN 000963

SIPDIS

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

E.O. 12958: DECL: 05/11/2017
TAGS: KNNP KSAC MNUC PARM PREL GM KH
SUBJECT: GERMAN ASSURANCES REGARDING POTENTIAL SALE OF
GERMAN PRINTING PRESS TO DPRK

REF: STATE 61051

Classified By: Minister-Counselor for Economic Affairs Robert F. Cekuta
, for reasons 1.4 (b) and (d).


1. (S) Global Affairs Counselor and Global Affairs Officer
delivered ref demarche to Michael Findeisen, the German
Finance Ministry's Director of the Money Laundering and
Terrorist Finance Division, May 11. Findeisen stated there
is no/no likelihood of Drent Goebel beginning production at
this point of the offset/intaglio press North Korea has
sought. He noted North Korea has not paid even the initial
deposit that would be necessary before the firm would start
production. Findeisen agreed with the importance of
continued vigilance against the possibility that the DPRK
might try to obtain the printing press through duplicitous
methods. He noted a legal agreement exists between the
German Government and Drent Goebel that the company will
inform the German Ministries of Economy and Foreign Affairs
if North Korea approaches it again to resume the order for
the printing press. Findeisen said the German Government has
the legal authority, using a provision of the Foreign Trade
and Payments Act, to prevent Drent Goebel from exporting the
printing press to North Korea. Responding to the Global
Affairs Counselor's query, Findeisen clarified that the
German Government has the authority to block the export
through an administrative order. The Foreign Trade and
Payments Act is flexible enough, he said, to allow the
government to restrict legal transactions and acts in foreign
trade to "guarantee the vital security interests of the
Federal Republic of Germany," Findeisen added.


2. (S) In answer to Global Affairs Counselor's question about
North Korea possibly using a middleman or false end user on a
new sales contract, Findeisen said that if Drent Goebel
begins manufacturing an offset/intaglio press, even for an
end user outside the DPRK, the German Government has the
authority to investigate the order.


3. (S) Findeisen asked whether the USG has considered the
possibility that the DPRK Government might use its assets
recently unfrozen in Banco Delta of Macao to pay for the
printing press, if not from Drent Goebel then from another
manufacturer. Findeisen added, however, that even if North
Korea were to try that route, Drent Goebel is required to
inform the German Government, which would then issue the
administrative order necessary to prevent the sale.
TIMKEN JR