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)

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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

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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.

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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