SWISS-ORIGIN DIGITAL MAGNETIC COMPASSES SOUGHT BY

S E C R E T BERN 000222


E.O. 12958: DECL: 12/31/2020
TAGS: IR SZ PARM PREL ETTC MNUC TSPA
SUBJECT: SWISS-ORIGIN DIGITAL MAGNETIC COMPASSES SOUGHT BY
IRANIAN MODAFL AFFILIATE VIA GERMAN FIRM (S)

REF: STATE 50120

Classified By: Pol. Couns. R. Rorvig fro reasons 1.4 (b) and (d).


1. (S) Embassy passed reftel points to Swiss Economics
Department dual use office head Juergen Boehler on May 19.
Boehler thanked us for the information and said that the
Swiss Government would immediately look into the matter.
Boehler noted that Swiss Customs had instituted recently a
policy of checking all direct flights from Switzerland to
Tehran very carefully for unauthorized exports. As a result,
Switzerland had noticed an increase in Iranian attempts to
circumvent Swiss export controls by placing orders from firms
in nearby countries, especially Germany and Italy. It was
particularly difficult for Switzerland to check export orders
from Italy, where there are tens of thousands of small family
firms. With the current difficult economic times, the Swiss
authorities worry that Swiss companies which would normally
not risk doing business with dodgy locations are now under
more financial stress and thus less likely to look too
closely at buyers. Nonetheless, Boelher said that the Swiss
authorities still have a pretty good idea of what is
happening within Switzerland. They have more trouble when
third country entities are involved, and so are particularly
grateful for the type of information that the US can provide.

CARTER