1. (U) THIS IS AN ACTION REQUEST. PLEASE SEE PARA 4.



2. (C) On October 17, MFA Export Control Division Desk
Officer Nancy Reck provided EconOff with the text of the
German "Proposal for an Export Control Seminar on Risk
Assessment in Licensing." Due to the rapidly approaching
MTCR Canberra Plenary in early November, Reck requested USG
feedback on the proposal at the earliest possible
opportunity. In particular, Reck would welcome feedback
regarding the proposed target audience of the seminar -
members of all regimes (MTCR, NSG, Wassenaar, and Australia
Group) and countries that have formally adhered to the
guidelines of the relevant regimes. As an example of
countries that fall in the category of having formally
adhered to the guidelines of the relevant regimes, Reck
mentioned India, China, and Israel. Reck stated that after
receiving all desired feedback on this proposal from Small
Group members, Germany would forward this proposal to Russia,
Brazil, and South Africa for review.



3. (C) Begin German nonpaper:

Proposal for an Export Control Seminar on
Risk Assessment in Licensing


--------------------------



The export control system faces increasing challenges in an
environment of globalization, technological progress and
continued threats posed by proliferation and terrorism.
UNSCR 1540 includes a broad catalogue of elements in order to
secure effective export controls beyond the member states of
the export control regimes. Aside from the need for an
up-to-date export control legislation, great importance must
be attached to the practical implementation of export control
rules and regulations. In our daily work of export controls
we always depend also on an exchange of views and experiences
on practical matters of export controls. Although we deal
with practical aspects already periodically in our export
groups, we believe it is useful to get together in order to
address some of the crucial elements of daily export control
practices in more detail.

Taking up the examples of MTCR-workshops in earlier years and
bearing in mind our good experience with the Berlin Export
Control Seminars in 2003, 2004, and 2006 on aspects and
challenges to export controls we propose to have a more
in-depth exchange of views and information on risk assessment
in licensing. An efficient risk assessment is a crucial
element in our licensing procedures and relevant for all
goods controlled by all export control regimes.

Germany is prepared to organize and host an "Export Control
Seminar on Risk Assessment in Licensing" in Berlin on 11 - 12
May 2009. The seminar should be open to members of all
export control regimes (MTCR, NSG, AG, WA) as well as to
countries which have formally adhered to the guidelines of
the relevant regimes. Due to the sensitivity of the topic we
would not invite other outreach partners. We invite partners
to comment on the outline of the envisaged seminar and
actively participate in the seminar. If this proposal were
to be adopted by the Canberra Plenary, we would circulate the
Seminar Outline also in the other export control regimes'
meetings (NSG CG Meeting in November 2008, Wassenaar Plenary
Meeting in December 2008; Australia Group members will be
informed via AGIS).

Seminar Outline


--------------------------


The 2009 Seminar on Risk Assessment in Licensing is supposed
to:
-- give a review of the risks in the licensing procedure and
of the license process itself,
-- review ideas on how to reduce the length of the licensing
process and how to solve legal problem,
-- give an opportunity to present best practices for industry
and governments.


1) Objective of the Seminar


--------------------------


The aim of the seminar is to show the importance of effective
risk assessment in the licensing process. Additionally, it
endeavors to present practical strategies in controlling good
and technology in global trade and to find solutions for
potential problems within this scope. The seminar intends to
give all participants a better understanding of the need for
an effective risk assessment systems in the face of new


threats.

A documentation on the seminar with all presentations and
summary of the results will be provided to all participants.

2) Seminar Structure


--------------------------


The seminar focuses on the key aspects of the licensing
process: the pre-license phase, the application procedure and
the post-license phase. In this scope the various entities
involved in the export environment and their roles within
these three phases as well as the relevant risks in the
licensing process should be worked out, e.g. the risk
followed from a false or incomplete information, from false
evaluation of plausible information of from a lack of
essential information. In this field the following topics
might be discussed:

-- Legal frame of the licensing procedure
This could give the prospect to present the global framework
that exerts influence on the national licensing procedure and
especially on the risk evaluation. Furthermore the effects
of globalization on world trade and requirements for the
licensing procedure as well as for the risk evaluation should
be considered.

-- Compliance
The two sides of the topic should be highlighted: on the one
hand the compliance work of the authorities and on the other
hand the opinion and contribution of the industry. Germany
would greatly appreciate topical contributions from partners.
The presentations should give government representatives the
opportunity to discuss ideas and present activities to
achieve an efficient risk assessment, such as compliance
management of the authorities.

-- Licensing Procedure
This topic will provide an opportunity to present national
export control practices and experiences relative to risk
assessment. Participants are welcome to give presentations
and case studies concerning their national systems with a
focus on their concepts of the licensing procedure (e.g.,
limitations to establish efficient systems for risk
assessment).

-- Technical Aspects
The attention of the seminar's participate should also be
tuned to technical features of the risk assessment. The
requirement of technical experts, limits from the practical
point of view concerning technical analysis and the
plausibility of the application in the frame of the technical
analysis could be dealt with under this topic. Again,
presentations by participants are most welcome in order to
deepen participants'' understanding of the technical issues
involved and their relevance and central role in the entire
export control licensing process.

-- End-use Controls
End-use controls are crucial to limit the risks of
proliferation of weapons of mass destruction by controlling
transfers that could contribute to delivery systems for such
weapons. It would be highly appreciated if speakers would
present practical features by means of case studies of Best
Practices, giving the audience a thorough insight into the
issues arising from this topic and the various approaches to
achieving the ultimate goal, namely the protection of
legitimate security concerns. Within this scope the issue
concerning End-use Controls Documentation should be dealt
with.

-- Improvement
Even if regime partners have elaborated an efficient export
control system, there is still enough room for improvement of
risk assessment. Given the global technical progress and
political developments, the requirement of efficient risk
evaluation is always relevant, e.g. monitoring of technical
efforts and of political developments in different countries
as well as interagency cooperation.

3) Host, participation, venue


--------------------------


The seminar is promoted by the Federal Ministry of Economics
and Technology and the German Federal Office of Economics and
Export Control (BAFA) in cooperation with the Federal Foreign
Office.

Participation in this seminar will be at expert level. The
seminar will give enough room for open and informal
discussions. Presentations by participants are most welcome.


The seminar will take place in Berlin on May 11 and 12, 2009
(back -to-back with the 2009 MTCR Reinforced Point of Contact
Meeting). Administrative details will be advised after
adoption of this proposal.

End text of German nonpaper.



4. (SBU) ACTION REQUEST: Post requests Department guidance
in responding to the feedback requested in paragraph 2.
TIMKEN JR