GERMANY REQUESTS GUIDANCE ON EXPORT WITH MTCR "NO

C O N F I D E N T I A L BERLIN 001362

SIPDIS
STATE FOR EUR/CE PETER SCHROEDER
STATE FOR ISN/MTR

E.O. 12958: DECL: 10/29/2034
TAGS: ETTC MTCRE PGOV PREL PINR TSPA KSCA IN GM
SUBJECT: GERMANY REQUESTS GUIDANCE ON EXPORT WITH MTCR "NO
UNDERCUT" POLICY IMPLICATIONS

Classified By: Global Affairs Officer David L. Fisher for
reasons 1.4 (b) and (d).


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


2. (C) MFA Export Control Division Officer Dirk Haupt
provided Global Affairs Officer on October 28 with non-paper
requesting U.S. guidance by November 17 on a pending German
export of extruded aluminum plates to India that may have
been previously denied by the U.S. per 2005 information
notifications MI-US-05-005 and MI-US-05-006. Specifically,
Germany is requesting more detailed information on the
denials to ascertain whether the goods in the pending German
application are the same. In addition, Germany requests
additional information on the reason for the U.S. denials and
the proliferation activities of the end-user, Vikram Sarabhai
Space Center, Department of Space of the Government of India.


3. (C) Begin German non-paper:

In accordance with the MTCR "no undercut" policy, we would
like to consult with the United States Government on the
following matter:

A German company has applied for a so-called "zero notice"
(Nullbescheid, i.e., a certificate that a certain good does
not require an export authorization) for delivery of 14,280
kilograms of extruded aluminum plates to the Vikram Sarabhai
Space Center, Department of Space of the Government of India,
in Thiruvananthapura, India. The stated end-use is for
structural parts to be used in geosynchronous satellite
launch vehicles. The plates, sized 18 by 1600 by 2500
millimeters, have the alloy denomination AA 2014-T651/AMS 402
and are capable of an ultimate tensile strength of 370 MPa at
293 K (200 C). The plates are not in the form of tubes or
cylindrical solid forms; thus, are not listed in Annex I to
Council Regulation (EC) No. 1334/2000 of June 22, 2000, which
establishes a (European) Community regime for the control of
exports of dual-use items and technology (Annex I items
lC002.a.2.d.2 and lC202.a e contrario). The stated civil
end-use is plausible from a technical point of view.

In connection with this end-user, the United States has
submitted information notifications MI-US-05-005 and
MI-US-05-006 (notices for export denials). Due to the lack
of detail on the goods in these notifications, we are not at
present in a position to assess whether the goods referred to
in the above mentioned notifications are the same as the
goods denoted in our "zero notice" application in question.
Before making a final decision on the application, we would
be grateful for detailed information on the reasons behind
the information notifications (denials),and in particular,
whether the United States has information pertaining to
proliferation activities of the end-user, the Vikram Sarabhai
Space Center, Department of Space of the Government of India,
in Thiruvananthapura, India.

A reply before November 17, 2009, would be much appreciated.
The reference no. is 1040302. We look forward to continuing
our excellent export control cooperation.


4. (SBU) ACTION REQUEST: Post requests Department guidance
in responding to the questions posed in the German non-paper.
Murphy