1. (S/NF) On March 9, Acting Econ-Pol Counselor met with
Helmut Krehlik, Head of the Ministry of Economy's Export and
Import Controls Division to receive an update on the Daniel
Frosch Export (DFE) case and to convey ref A information.
Krehlik said that an appeals court had indeed released Erich
Frosch on bail and dropped the more controversial
proliferation charge. However, Erich Frosch is still charged
with fraud and with violating the Austrian Foreign Trade Act.
Krehlik promised to inquire with his
Justice Ministry contacts for more information on a
prospective trial date.



2. (S/NF) Efforts to Bring Daniel Frosch Back to Austria:
Krehlik admitted that he is not involved in the operational
aspects of trying to bring Frosch back to Austria (ref B), so
he would have to inquire discretely with his contacts in the
Austrian domestic security service (BVT). He opined that it
would be difficult for Austria to convince the UAE to
extradite Frosch because of the byzantine political scene in
the UAE. He suggested that the USG should bring this up
directly with UAE officials.



3. (S/NF) Daniel Frosch's Brother and U.S.-origin
Potentiometers: Krehlik had no additional information on this
subject, to which he had earlier alerted us (ref B).
According to Embassy's DHS/ICE office, the U.S. supplier
shipped two sample potentiometers to DFE in December 2006,
but there was no follow-up order.



4. (S/NF) Comment: Embassy's DHS/ICE office continues to
work very closely with the Austrian police on the Erich
Frosch and Daniel Frosch cases. A team of DHS experts
visited Vienna in January 2007 to assist the Austrian
authorities in analyzing electronic data from the DFE (ref
B). This work and other operations are on-going and
therefore post continues to ask the understanding of
Washington agencies regarding the sensitive nature of the
case.
McCaw