GERMANY EXPANDS REQUIREMENTS FOR EXPORT OF

S E C R E T BERLIN 000683

SIPDIS, ISN/MTR, NEA, EUR/PRA, EUR/AGS

E.O. 12958: DECL: 05/21/2033
TAGS: PARM MTCRE ETTC PREL KNNP IR SY IS GM
SUBJECT: GERMANY EXPANDS REQUIREMENTS FOR EXPORT OF
DUAL-USE TRUCKS TO IRAN/SYRIA

REF: A. BERLIN 617


B. BERLIN 378

C. STATE 30857

D. STATE 5439

E. 07 BERLIN 2164

F. 07 STATE 135366

G. 07 BERLIN 1770

H. 07 STATE 131559

Classified By: Acting EMIN Ingrid M Kollist for
reasons 1.4 (b),(c),and (d).


1. (S) On May 16, Germany expanded heavy truck export
restrictions to Iran and Syria by issuing an amendment
(16/9211) to the German Foreign Trade and Payment Regulations
(AWV) -- the implementing regulation of the German Foreign
Trade and Payments Act (FTPA) -- exercising its authority to
both preserve future foreign relations with Israel and uphold
the integrity of German export control laws. Specifically,
this amendment restricts the export of heavy trucks with
three axels or more and a maximum load carrying weight of
more than 20,000 kg if Iran or Syria is the procuring country
or the country of destination. This action follows a series
of demarches delivered to the German MFA (ref D and H),
alerting Germany to Syrian and Iranian efforts to procure
Mercedes Benz trucks that could be used to support those
countries' missile programs.

KEY HIGHLIGHTS OF THE GERMAN FOREIGN TRADE ACT AMENDMENT
-------------- --------------

2. (SBU) The AWV Export List Section 1 Paragraph 9A992 was
amended to include the following item:

"Heavy trucks with three axels or more and a load carrying
capacity of more than 20,000 kg, if the buying country or
country of destination is Iran or Syria."

Trucks meeting the above specifications are now officially
classified under German export control regulations as
"dual-use."


3. (SBU) This amendment requires German companies to obtain
an export license from the German Federal Office of Economics
and Export Controls (BAFA) before exporting trucks meeting
the above specifications to Iran or Syria. The Government's
formal justification for the amendment includes an Economic
Ministry determination that the new requirements will not
impose additional costs or result in adverse budgetary or
economic effects, given the low number of prior Syrian or
Iranian attempts to procure such items.


4. (SBU) The Government's justification also lays out
clearly the importance of related security concerns and
potential diplomatic repercussions in the government's
decision. The justification notes that Germany assesses
mobile missile launchers as a clear and present danger to the
politically instable regions in the Near and Middle East and
cites privileged information as evidence that Iran and Syria
use civilian truck chassis as mobile launch vehicles for
short and medium range missile systems. The justification
states that the delivery of heavy trucks that might be used
in connection with Syrian and Iranian missile programs, could
potentially harm partner countries' trust in Germany and its
engagement in the fight against proliferation in connection
with Syria and Iran. Additionally, the justification notes
that German relations with Israel could deteriorate sharply
as Israel faces threats by these missile systems.

COMMENT
--------------

5. (S) Germany has taken to heart the potential negative
impact that the export to Syria or Iran of German dual-use
trucks could potentially have both on the integrity of German
export controls and on Germany's foreign relations with
Israel. In this case, USG sharing of information that meets
Germany's high technical and legal standards while
simultaneously influencing a political imperative, has
prompted the German Government, on the basis of sound
economic and political logic, to put forward a more robust
interpretation of the Foreign Trade and Payments Act.
TIMKEN JR