SWISS GOVERNMENT RESPONSE TO USG INFORMATION THAT

S E C R E T BERN 000131

SIPDIS


DEPT FOR ISN/MTR (J.P.HERRMANN) AND EUR/AGS (Y.SAINT-ANDRE)

E.O. 12958: DECL: 03/11/2033
TAGS: PARM MTCRE PREL MNUC ETTC IR SZ

SUBJECT: SWISS GOVERNMENT RESPONSE TO USG INFORMATION THAT
SWISS FIRM SCHAUBLIN MACHINES SA EXPORTED MACHINE TOOLS TO
IRAN IN 2006 (S)

REF: A. BERN 71

B. STATE 13055

Classified By: Poloff Chris Buck; reasons 1.4(b),(d),and (h).


1. (S) On March 5, Othmar Wyss, Director of the Export
Controls and Sanctions Division of the Swiss State
Secretariat for Economic Affairs (SECO),provided poloff the

SIPDIS
GOS response, in the form of a non-paper, to USG information
(reftels A and B) indicating that Swiss firm Schaublin
Machines SA exported machine tools to Iran in 2006.
According to the Swiss non-paper (copy provided in para 2
below),the shipments in question were all "examined and
approved by SECO", but, "at the time of the licensing
process, Switzerland had no information about any implication
of Hamid Die Manufacturing into Iran's ballistic missile
program." Per the non-paper, the GOS "would be grateful for
any additional information on the subject." In presenting
the non-paper, Wyss emphasized GOS scrutiny of Schaublin
machine tool exports, and reiterated Switzerland's
appreciation for USG information and cooperation on export
control issues.


2. (S) BEGIN TEXT OF GOS NON-PAPER (as provided in English by
SECO):

SCHAUBLIN MACHINES SA, an exporter of machine tools, works in
close cooperation with SECO. The company is required to
submit all planned exports to Iran and Pakistan, whether they
are subject to international export controls or not.

Since 1998, Switzerland denied the export of 8 SCHAUBLIN
turning machines and two planned shipments of spare parts to
critical end-users in Iran. Switzerland also refused the
exports of 6 turning machines to Syria and of 2 machine tools
to Pakistan.

All denials were notified to Partners through the Point of
Contact of NSG and MTCR.

The mentioned shipments of machine tools to HAMID DIE
MANUFACTURING CO. through the intermediary company of
SCHILLER NOVIN have all been examined and approved by SECO.
At the time of the licensing process, Switzerland had no
information about any implication of HAMID DIE MANUFACTURING
into Iran's ballistic missile program. We would be grateful
for any additional information on the subject.

We would like to stress that SECO has never granted an export
license to SCHILLER NOVIN without establishing the legitimacy
of the end-user of the goods to be shipped. Switzerland's
export controls are based on end-use and end-user
verification. Without a credible end-user, no license will
be granted to any country not member of the international
export control regimes.

We look forward to continued close cooperation on
non-proliferation matters with the United States of America.

END TEXT OF GOS NON-PAPER.
CONEWAY


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