(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