Identifier
Created
Classification
Origin
07VIENNA243
2007-02-02 09:36:00
CONFIDENTIAL
Embassy Vienna
Cable title:
HALTING EXPORT CREDITS TO IRAN: AUSTRIAN MOF VIEWS
how-toVZCZCXYZ0003 OO RUEHWEB DE RUEHVI #0243 0330936 ZNY CCCCC ZZH O 020936Z FEB 07 FM AMEMBASSY VIENNA TO RUEHC/SECSTATE WASHDC IMMEDIATE 6149 INFO RUEHSS/OECD POSTS COLLECTIVE PRIORITY RUEHGG/UN SECURITY COUNCIL COLLECTIVE PRIORITY RUEHBJ/AMEMBASSY BEIJING PRIORITY 0302 RUEHJA/AMEMBASSY JAKARTA PRIORITY 0131 RUEHLJ/AMEMBASSY LJUBLJANA PRIORITY 1468 RUEHNE/AMEMBASSY NEW DELHI PRIORITY 0245 RUEHTN/AMCONSUL CAPE TOWN PRIORITY 0018 RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
C O N F I D E N T I A L VIENNA 000243
SIPDIS
SIPDIS
STATE FOR EB/IFD/ODF, EB/IFD/OMA, NEA/IR, IO/T, AND EUR/AGS
E.O. 12958: DECL: 02/02/2017
TAGS: PREL EFIN MNUC EXIM UNSC OECD IR AU
SUBJECT: HALTING EXPORT CREDITS TO IRAN: AUSTRIAN MOF VIEWS
REF: A) VIENNA 181 B) STATE 4760
Classified By: Deputy Chief of Mission Scott Kilner for reasons 1.4
(b) and (d)
C O N F I D E N T I A L VIENNA 000243
SIPDIS
SIPDIS
STATE FOR EB/IFD/ODF, EB/IFD/OMA, NEA/IR, IO/T, AND EUR/AGS
E.O. 12958: DECL: 02/02/2017
TAGS: PREL EFIN MNUC EXIM UNSC OECD IR AU
SUBJECT: HALTING EXPORT CREDITS TO IRAN: AUSTRIAN MOF VIEWS
REF: A) VIENNA 181 B) STATE 4760
Classified By: Deputy Chief of Mission Scott Kilner for reasons 1.4
(b) and (d)
1. (C) Following up Charge's meeting with the Austrian MFA
(ref A),DCM and Econ Unit Chief delivered ref B demarche on
January 31 to Thomas Wieser, Director General of the Ministry
of Finance's Economic Policy and Financial Markets
Directorate. Wieser noted that Austria's stock of medium-
and long-term export credits to Iran had declined by 30%
during the last half of 2006 from Euro 1.1 billion to Euro
770 million. Wieser added that it is not clear whether the
decline was due to a drop in Iranian demand or a reduction in
Austrian supply. New requests for export credits to Iran
"are one-tenth of what they used to be," he added. Wieser
opined that the worsening political atmosphere in Tehran,
U.S. pressure on Europeans to refrain from doing business in
Iran, and UNSCR 1737 have all had a significant impact.
2. (C) Wieser stressed that Austria would not act
unilaterally to take Iran off cover. While overall trade
with Iran is small, Iran represents an important market for
certain Austrian exporters. Wieser maintained that these
exports are closely scrutinized by Austrian authorities, and
authorized only in fields unrelated to Iran's nuclear or
ballistic missile programs. Wieser added that the Ministry
of Economy's export control regime made a special effort to
educate Austrian exporters on prohibited dual-use items.
Whatever restrictions were agreed at the EU level would be
"seriously enforced" by Austria, he stated.
3. (C) Wieser opined that, although Austria could not and
would not unilaterally eliminate export credits for Iran, in
practice the actual figures were converging towards the U.S.
goal of reduced trade. Wieser also promised (several times)
that the MoF, which oversees Austria's export-import
Kontrollbank, would not allow any "rush to approve Iranian
export credits" in anticipation of further tightening of EU
or international sanctions against Tehran.
4. (SBU) Comment: Austria's trade with Iran is minute, but
it is a significant market for a handful of Austrian firms.
Austrian exports to Iran in January-November 2006 were Euro
312.0 million, down 6% from the same period in 2005. Imports
from Iran also declined during this period to Euro 131.7
million, a 30% drop compared to 2005. Exports to Iran
represented only .32% of total exports from January-November
2006, while imports from Iran were only .09% of all imports.
MCCAW
SIPDIS
SIPDIS
STATE FOR EB/IFD/ODF, EB/IFD/OMA, NEA/IR, IO/T, AND EUR/AGS
E.O. 12958: DECL: 02/02/2017
TAGS: PREL EFIN MNUC EXIM UNSC OECD IR AU
SUBJECT: HALTING EXPORT CREDITS TO IRAN: AUSTRIAN MOF VIEWS
REF: A) VIENNA 181 B) STATE 4760
Classified By: Deputy Chief of Mission Scott Kilner for reasons 1.4
(b) and (d)
1. (C) Following up Charge's meeting with the Austrian MFA
(ref A),DCM and Econ Unit Chief delivered ref B demarche on
January 31 to Thomas Wieser, Director General of the Ministry
of Finance's Economic Policy and Financial Markets
Directorate. Wieser noted that Austria's stock of medium-
and long-term export credits to Iran had declined by 30%
during the last half of 2006 from Euro 1.1 billion to Euro
770 million. Wieser added that it is not clear whether the
decline was due to a drop in Iranian demand or a reduction in
Austrian supply. New requests for export credits to Iran
"are one-tenth of what they used to be," he added. Wieser
opined that the worsening political atmosphere in Tehran,
U.S. pressure on Europeans to refrain from doing business in
Iran, and UNSCR 1737 have all had a significant impact.
2. (C) Wieser stressed that Austria would not act
unilaterally to take Iran off cover. While overall trade
with Iran is small, Iran represents an important market for
certain Austrian exporters. Wieser maintained that these
exports are closely scrutinized by Austrian authorities, and
authorized only in fields unrelated to Iran's nuclear or
ballistic missile programs. Wieser added that the Ministry
of Economy's export control regime made a special effort to
educate Austrian exporters on prohibited dual-use items.
Whatever restrictions were agreed at the EU level would be
"seriously enforced" by Austria, he stated.
3. (C) Wieser opined that, although Austria could not and
would not unilaterally eliminate export credits for Iran, in
practice the actual figures were converging towards the U.S.
goal of reduced trade. Wieser also promised (several times)
that the MoF, which oversees Austria's export-import
Kontrollbank, would not allow any "rush to approve Iranian
export credits" in anticipation of further tightening of EU
or international sanctions against Tehran.
4. (SBU) Comment: Austria's trade with Iran is minute, but
it is a significant market for a handful of Austrian firms.
Austrian exports to Iran in January-November 2006 were Euro
312.0 million, down 6% from the same period in 2005. Imports
from Iran also declined during this period to Euro 131.7
million, a 30% drop compared to 2005. Exports to Iran
represented only .32% of total exports from January-November
2006, while imports from Iran were only .09% of all imports.
MCCAW