RESPONSE TO LICENSING AUTHORITY OF SWEDEN ABOUT

S E C R E T STATE 047099 SIPDIS E.O. 12958: DECL: 04/07/2034 TAGS: ETTC KSTC PARM PREL PTER SW SUBJECT: RESPONSE TO LICENSING AUTHORITY OF SWEDEN ABOUT US WASSENAAR DENIAL NOTIFICATION Classified By: ISN/CATR Acting Director William Malzahn for reasons 1.4(b) and 1.4(d) -------------- Action Request -------------- ¶1. (U) This is an action message. The Department requests that the Embassy at the earliest opportunity approach the appropriate official in Sweden's Inspectorate of Strategic Products, as per paragraph 4 below, to relate our response regarding Wassenaar Arrangement notification US2008-0DT2WR002. This cable contains SECRET information; please protect accordingly. -------------- Background -------------- ¶2. (SBU) In an email dated February 12, 2009, Mr. Magnus Danielsson, an official from Sweden's export control/licensing authority, the Inspectorate of Strategic Products (ISP), contacted the US Department of Commerce, Bureau of Industry and Security (USDOC/BIS) requesting more information about a Wassenaar Arrangement (WA) license denial notification previously issued by the United States - US2008-0DT2WR002. The rejected Department of Commerce license in question, D392886, sought to export of one DRS Technologies Ultra 8 High Speed Camera System, classified under ECCN 6A003A.4, for use by Nanjing University of Science and Technology for scientific research of laser technology in a variety of applications. ¶3. (SBU) WA notifications involve export controls on certain dual- use items. Accordingly, WA Participating States have agreed to report on transfers and denials of specified controlled items to destinations outside of the Arrangement. Magnus Danielsson requested further details of the US denial presented in notification US2008-0DT2WR002. The response to this request is provided in the approved language below. ¶4. (U) Please make contact and relay the following approved language to: Magnus Danielsson Swedish Inspectorate of Strategic Products Director Dual Use Controls Klarabergsviadukten 90 P.O. Box 70250 SE-107 22 Stockholm Sweden Tel: 46 8 4063104 -------------- -------------- BEGIN APPROVED LANGUAGE SECRET//REL SWEDEN -------------- -------------- -- We appreciate your desire to consult with the United States as part of your review of a license application for Nanjing University of Science and Technology ("NUST"). -- We offer the following information that served as the basis of the US Wassenaar-notified denial (US2008-0DT2WR002) in 2008 and encourage you to take similar action. -- NUST, as of 2004, continued to research image processing with potential applications in military imaging and weapons products, including night vision, surveillance, infrared, and electro-optical systems. In 2000, for example, NUST researched and developed an Inverse Synthetic Aperture Radar (ISAR) system that recognizes images at long range in all weather conditions, and is specifically suited for Chinese military systems. -- We have information that NUST, in 2002, bought a software simulation package for advanced multi-physics. The simulation package, which was purchased from a western supplier, has commercial applications, but has been used as a modeling tool in nuclear weapons design. -- Researchers at NUST investigated polymer and ammonium nitrate composite propellants for use in rocket motors. -- Dependable information from 2000 indicates that NUST purchased hypervelocity launcher technology from Russia. Credible information from 1998 indicates that NUST's ballistic research laboratory was working on regenerative liquid propellant gun technology, and was interested in Russian technology and components for a hypervelocity electrothermal gun. -- In addition, Chinese press reporting indicates that a missile brigade of the Nanjing Military Region invited experts and professors from NUST to analyze achievements in missile-technology reform, and to formulate future high-tech military training. -------------- END APPROVED LANGUAGE -------------- ¶5. Department of State's POC is Margaret Mitchell, mitchellMT2@state.gov, in the Bureau of International Security and Nonproliferation (ISN),and the Department of Commerce's POC is Patricia Muldonian, PMULDONI@bis.doc.gov, in the Bureau of Industry and Security (BIS). Please report response and slug all replies to ISN. The Department sincerely thanks Post for its assistance in this matter. CLINTON