GERMANY REQUESTS IMMEDIATE GUIDANCE ON AUSTRALIA

S E C R E T BERLIN 000973

SIPDIS
STATE FOR ISN/CB, EUR/AGS

E.O. 12958: DECL: 07/21/2033
TAGS: PARM ETTC CBW PINR IN GM
SUBJECT: GERMANY REQUESTS IMMEDIATE GUIDANCE ON AUSTRALIA
GROUP LISTED GOODS EXPORT REQUEST

REF: HARTELL-PETERSEN EMAIL - 7/18/2008

Classified By: Global Affairs Unit Chief Don L. Brown for
reasons 1.4 (b) and (d).


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


2. (S) MFA Export Control Division Desk Officer Nancy Reck
provided Global Affairs Officer July 18 with a nonpaper
requesting further information and guidance regarding a
German export license request concerning Australia Group
(AG)-listed goods to the Indian company United Phosphorus
Ltd. Reck stated, based on a comprehensive interagency
investigation into the bona fides of United Phosphorus Ltd,
German intelligence authorities have concluded that there is
no proliferation concern in connection with this export
license request. Reck said the GoG is interested in any
information the USG could share regarding United Phosphorus
Ltd. proliferation concerns, specifically in connection with
a USG export denial in 2007. Reck emphasized that a prompt
response (July 31) to this information request is paramount
and in the absence of further information BAFA is inclined to
approve this export request.


3. (S) Begin German nonpaper:

In accordance with the "no undercut policy" of the Australia
Group (AG),we would like to consult with the US government
in the following matter:

A German company has applied for an export permit for the
delivery of one pump and four valves which are controlled by
the Australia Group (listed under C2B350i and C2B350g of the
EG Dual Use Regulation). The stated end-user is the Indian
company United Phosphorus Ltd., Plot No. 750, P.B. No. 9,
Unit No. 6, GIDC Estate, Jhagadia, Bharuch (Gujarat),stated
end-use is POC13 service (extraction and regulation of
phosphorus oxychloride). The quantity and the use of the
goods quoted in the application are plausible from a
technical point of view.

The USG has issued denials which are relevant both with
regard to the goods (pump) and the end-user (AG-US 07-076 and
AG-US 03-061). As far as we know, there is no information
other than the USG denials relating the end-user to
proliferation activities.

We have already consulted the USG regarding denial AG-US
03-061 in 2003 and 2005. On the basis of information already
provided from your side and in view of the current
application, we would be grateful for background information
on your 2007 denial as follows:

-- Is denial AG-US 07-076 based on new information or on
current proliferation activities of United Phosphorus, other
than activities you stated in the 1980s and 1990s?

-- Do you still see a current proliferation relevant
connection between United Phosphorus and Syria or other
countries of concern?

A reply by July 31, 2008 would be much appreciated.


4. (SBU) ACTION REQUEST: Post requests Department guidance
in responding to the questions posed in the German nonpaper.
TIMKEN JR