(S) DEMARCHE DELIVERED: IRANIAN FIRM SEEKS GERMAN

S E C R E T BERLIN 000039 SIPDIS STATE FOR EUR/CE PETER SCHROEDER STATE FOR ISN/MTR JOHN PAUL HERRMANN E.O. 12958: DECL: 01/13/2034 TAGS: PARM PREL ETTC MTCRE KSCA IR GM SUBJECT: (S) DEMARCHE DELIVERED: IRANIAN FIRM SEEKS GERMAN CONTROLLERS FOR FILAMENT WINDING MACHINE REF: A. STATE 2430 ¶B. 08 BERLIN 0014 Classified By: Global Affairs Unit Chief Don L. Brown for reasons 1.4 (b) and (d). ¶1. (S) Germany appreciates Ref A information regarding Iranian efforts to procure German origin computer numeric control (CNC) controllers for use with a six-axis filament winding machine, but may not feel confident about their legal case to deny such an export. On January 13, we delivered reftel demarche to MFA Export Control Division Desk Officer Nancy Reck. Reck thanked us for Ref A information and agreed to share the nonpaper with German export control authorities. ¶2. (S) After reading through the nonpaper, Reck commented that she is extremely doubtful that the Iranian firm Texofin could have indigenously produced a six-axis filament winding machine as the second bullet in the nonpaper suggests. In addition, she expressed frustration with the various nonproliferation cases involving Siemens computer numerical control (CNC) controllers and remarked that these controllers are "readily available worldwide." COMMENT -------------- ¶3. (S) Reck had a similar reaction involving Siemens CNC controllers with another case involving Pakistan in early 2008 (Ref B). It is possible that Germany has encountered difficulties in the past approaching Siemens about restricting exports on their CNC controllers and does not feel confident about the strength of their legal position. There is no question that Germany has deep concerns regarding Iran,s use of a six-axis filament winding machine. However, given the apparent worldwide availability of Siemens CNC controllers, Germany may question the effectiveness of export controls on these goods. Post will report any substantive German response septel. Koenig