(S) IRANIAN FAST BOATS, BATSERVICE UPDATE

S E C R E T OSLO 000698

SIPDIS

SIPDIS

STATE FOR EUR/NB (RDALLAND)

E.O. 12958: DECL: 06/20/2017
TAGS: PARM PREL ETTC IR NO
SUBJECT: (S) IRANIAN FAST BOATS, BATSERVICE UPDATE

REF: A. USDAO OSLO IIR 6872012207 (UPDATE ON NORWEGIAN

BATSERVICE ASA)

B. 2006 OSLO 897

C. 2006 OSLO 559

Classified By: DCM Kevin M. Johnson, Reasons 1.4(b) and (d)


1. (S) Summary. The GON continues to investigate the
Norwegian company Batservice's sale of vessels to Iran.
Batservice has not tripped any Norwegian export control laws,
and the GON believes that previous boat shipments are
destined for civilian use. MFA Export Control officials
remain concerned of the dual use possibilities of the boats,
and request any additional USG intelligence which can be
offered concerning the already-delivered vessels . MFA
officials strongly advocate U.S. acceptance of a joint
U.K.-Norway Wassenaar proposal concerning Militarily
Significant Vessels (MSV),which will be raised in the
forthcoming September meeting of the Wassenaar Arrangement on
Export Controls for Conventional Arms and Dual-Use Goods and
Technologies. End Summary.


2. (S) On June 20 Pol/Off and DATT met with MFA Export
Control Section Deputy Director General Siren Gjerme Eriksen
and Senior Adviser Ole Morten Parelius. Both emphasized the
need to continue our close cooperation on all export control
matters. Parelius requested that if USG intelligence services
received any information that the GOI is using
Batservice-fabricated vessels for non-civilian purposes, the
GON would "strongly wish" to receive such information.
Parelius emphasized that the GON does not want "any room to
doubt" that the ships were to be used for civilian purposes.


3. (S) The MFA concluded that Batservice's Iran contracts
(outlined in reftels B and C) do not violate Norwegian export
control laws, and determined in its review of Batservice's
export applications that the vessels will have a civilian
use. Batservice will fill another Iranian contract for crew
transport vessels, consisting of pilot launches. According
to Parelius, Batservice has indicated that the vessels will
be delivered to the oil industry, and not the GOI. No other
details were provided regarding this contract.


4. (S) With respect to amending existing laws, Eriksen
stated that the GON will likely not make any amendments to
its export control regime unless a new international law is
adopted. At that point, Norway would likely adopt new legal
measures conforming with an international export control
agreements or amendments. According to Eriksen, Norway must
always balance the commercial interests of its companies,
which "need some certainty" when export control decisions are
at stake. In short, Norwegian law would be changed in
Eriksen's view only "if something triggered it."


5. (S) With respect to amending existing Norwegian export
control laws, Parelius noted that Norway strongly supports a
UK proposal concerning the Wassenaar Arrangement. The
proposal, outlined in reftel A, advocates modifications to
existing MSV criteria, taking into consideration certain
speed and maneuverability factors. Parelius strongly urges
U.S. support for the measure, which will be introduced in the
Arrangement's September technical meeting. Parelius overtly
hinted that if the UK-Norwegian MSV proposal was adopted in
the Arrangement's December session, Norway would enact
similar legislation six months later.


6. (S) Comment. The MFA remains concerned that Batservice's
boats will not be used by Iran for military purposes, and
seeks any USG intelligence which indicates that previous
Batservice boat shipments are used for non-civilian purposes.
MFA members, strongly advocating the current UK-Norwegian
Wassenaar proposal, see the measure as a way to modify amend
Norwegian export control laws concerning MSVs, creating a
more stringent Norwegian export control regime. End Comment.
Whitney