Identifier
Created
Classification
Origin
10BERLIN117
2010-01-27 17:01:00
SECRET
Embassy Berlin
Cable title:
(S) IRAN-BOUND SIEMENS COMPUTERS REMAIN STUCK IN DUBAI
how-toVZCZCXYZ0001 PP RUEHWEB DE RUEHRL #0117/01 0271701 ZNY SSSSS ZZH P 271701Z JAN 10 FM AMEMBASSY BERLIN TO RUEHC/SECSTATE WASHDC PRIORITY 6391 INFO RUCNFRG/FRG COLLECTIVE RUCNIRA/IRAN COLLECTIVE RUEHAD/AMEMBASSY ABU DHABI 0003 RUEHBJ/AMEMBASSY BEIJING 1049 RUEHLO/AMEMBASSY LONDON 0688 RUEHDE/AMCONSUL DUBAI 0001 RUCNDT/USMISSION USUN NEW YORK 0918 RUCXONI/ONI WASHINGTON DC RUETIAA/NSACSS FORT GEORGE G MEADE MD RUEHDIR/IRAN RPO DUBAI
S E C R E T BERLIN 000117
SIPDIS
STATE FOR EUR/CE PETER SCHROEDER
STATE FOR EUR/PRA MATT HARDIMAN
STATE FOR EUR/CE, EUR/PRA, ISN/CPI, AND T
E.O. 12958: DECL: 01/27/2035
TAGS: PARM, PREL, MNUC, IR, AE, UK, CH, GM
SUBJECT: (S) IRAN-BOUND SIEMENS COMPUTERS REMAIN STUCK IN
DUBAI
REF: A. 09 STATE 31434
B. 09 BERLIN 406
C. 09 BERLIN 487
D. 09 BERLIN 1443
E. 09 BERLIN 1615
F. ABU DHABI 003
Classified By: Global Affairs Unit Chief Don L. Brown for
reasons 1.4 (b) and (d).
S E C R E T BERLIN 000117
SIPDIS
STATE FOR EUR/CE PETER SCHROEDER
STATE FOR EUR/PRA MATT HARDIMAN
STATE FOR EUR/CE, EUR/PRA, ISN/CPI, AND T
E.O. 12958: DECL: 01/27/2035
TAGS: PARM, PREL, MNUC, IR, AE, UK, CH, GM
SUBJECT: (S) IRAN-BOUND SIEMENS COMPUTERS REMAIN STUCK IN
DUBAI
REF: A. 09 STATE 31434
B. 09 BERLIN 406
C. 09 BERLIN 487
D. 09 BERLIN 1443
E. 09 BERLIN 1615
F. ABU DHABI 003
Classified By: Global Affairs Unit Chief Don L. Brown for
reasons 1.4 (b) and (d).
1. (S) SUMMARY: Germany remains undecided about what to do
with the crate of interdicted Siemens computers currently
stored in the UAE that were originally bound for Iran. In a
positive development, after nearly a year a German official
finally--albeit reluctantly-- admitted that the computers
are, in fact, of German-origin. Despite this revelation of
origin, MFA officials are still wrangling over the question
of legal ownership -- whether German or Chinese. Germany's
latest notion is that a mystery buyer could appear, to whom
the computers could be sold and that would not pose a threat
of the computers being circumvented to Iran. In the
meantime, the computers will continue to collect dust in
Dubai. END SUMMARY
FINALLY, THE ORIGIN QUESTION IS ANSWERED
--------------
2. (S) On January 25, MFA Deputy Office Director of Export
Control, Markus Klinger, told Econoff "the presumably German
origin" Siemens computers are still safely stored in the UAE
as negotiations continue on the next steps. Upon hearing
this, Econoff pressed Klinger and asked "are the computers of
German origin, yes or no?" After 20 seconds of mumbled
back-pedaling, Klinger spat out "yes, they are." However,
Germany feels this still does not resolve the question of
ownership, given that the computers were "legally"
transferred to the Chinese customer. (COMMENT: Klinger's
admission contradicts a statement made by a UAE official in
ref F, para 6 "the computers were produced under the Siemens
label in China." In addition to a German admission of product
origin, we believe that if the computers had a Chinese
manufacturing origin, Germany would have washed its hands of
this case long ago. END COMMENT)
<br />
GERMANY CALLS UAE DEADLINE BLUFF
--------------
3. (S) On December 10, Berlin British Embassy First
Secretary, Alex McKenzie, told Econoffs that the UAE had
imposed a deadline on Germany that expired in mid-December to
make a definitive decision on what it plans to do with the
Siemens computers. Econoff mentioned this deadline to
Klinger and he responded with a grin, saying "the deadline
came, there was no decision from Germany, and the Emiratis
did not issue a new deadline." Klinger rhetorically
questioned the Emiratis, expectations by setting such a
deadline and appeared to gloat that Germany had called its
bluff.
SIEMENS CONCERNED ABOUT ITS REPUTATION AND BEING SUED
-------------- --------------
4. (S) Klinger said that although it may appear that Siemens
is not being very helpful in this case, it is simply handling
this issue extraordinarily carefully in order to avoid
potential damage to its reputation and opening itself up to
legal liability. He explained that, while Siemens could
simply facilitate the return of the computers to the Chinese
seller, it does not want to risk the embarrassment if the
computers find a path back to Iran. On the other hand,
Klinger said Siemens fears that if it were to simply assume
ownership and have the computers returned to Germany, the
Chinese seller may challenge this action legally. (COMMENT:
From Klinger's tone, it sounded like the German concern of
legal action from the Chinese entity involved is real. In a
related matter, on January 26, Siemens CEO Peter Loescher was
quoted by the media that, starting mid-2010, his company
would not initiate new business deals with Iran. END COMMENT)
OK, SO WHAT NEXT? EBAY?
--------------
5. (S) Klinger admitted that Germany has not made progress
on this case for months. (COMMENT: Over the past nine
months, we have heard a range of possible outcome scenarios,
from shipping the computers back to Germany, shipping them
back to China, or destroying them. END COMMENT) Klinger
offered the idea that a mystery buyer could appear, to whom
the computers could be sold without concern, and that they
would not find their way to Iran. Klinger did not elaborate
on this idea and appeared to be reaching for an end to this
headache. Klinger stressed that Germany is not comfortable
with any solution in which the items would be sent back to
China.
Murphy
SIPDIS
STATE FOR EUR/CE PETER SCHROEDER
STATE FOR EUR/PRA MATT HARDIMAN
STATE FOR EUR/CE, EUR/PRA, ISN/CPI, AND T
E.O. 12958: DECL: 01/27/2035
TAGS: PARM, PREL, MNUC, IR, AE, UK, CH, GM
SUBJECT: (S) IRAN-BOUND SIEMENS COMPUTERS REMAIN STUCK IN
DUBAI
REF: A. 09 STATE 31434
B. 09 BERLIN 406
C. 09 BERLIN 487
D. 09 BERLIN 1443
E. 09 BERLIN 1615
F. ABU DHABI 003
Classified By: Global Affairs Unit Chief Don L. Brown for
reasons 1.4 (b) and (d).
1. (S) SUMMARY: Germany remains undecided about what to do
with the crate of interdicted Siemens computers currently
stored in the UAE that were originally bound for Iran. In a
positive development, after nearly a year a German official
finally--albeit reluctantly-- admitted that the computers
are, in fact, of German-origin. Despite this revelation of
origin, MFA officials are still wrangling over the question
of legal ownership -- whether German or Chinese. Germany's
latest notion is that a mystery buyer could appear, to whom
the computers could be sold and that would not pose a threat
of the computers being circumvented to Iran. In the
meantime, the computers will continue to collect dust in
Dubai. END SUMMARY
FINALLY, THE ORIGIN QUESTION IS ANSWERED
--------------
2. (S) On January 25, MFA Deputy Office Director of Export
Control, Markus Klinger, told Econoff "the presumably German
origin" Siemens computers are still safely stored in the UAE
as negotiations continue on the next steps. Upon hearing
this, Econoff pressed Klinger and asked "are the computers of
German origin, yes or no?" After 20 seconds of mumbled
back-pedaling, Klinger spat out "yes, they are." However,
Germany feels this still does not resolve the question of
ownership, given that the computers were "legally"
transferred to the Chinese customer. (COMMENT: Klinger's
admission contradicts a statement made by a UAE official in
ref F, para 6 "the computers were produced under the Siemens
label in China." In addition to a German admission of product
origin, we believe that if the computers had a Chinese
manufacturing origin, Germany would have washed its hands of
this case long ago. END COMMENT)
<br />
GERMANY CALLS UAE DEADLINE BLUFF
--------------
3. (S) On December 10, Berlin British Embassy First
Secretary, Alex McKenzie, told Econoffs that the UAE had
imposed a deadline on Germany that expired in mid-December to
make a definitive decision on what it plans to do with the
Siemens computers. Econoff mentioned this deadline to
Klinger and he responded with a grin, saying "the deadline
came, there was no decision from Germany, and the Emiratis
did not issue a new deadline." Klinger rhetorically
questioned the Emiratis, expectations by setting such a
deadline and appeared to gloat that Germany had called its
bluff.
SIEMENS CONCERNED ABOUT ITS REPUTATION AND BEING SUED
-------------- --------------
4. (S) Klinger said that although it may appear that Siemens
is not being very helpful in this case, it is simply handling
this issue extraordinarily carefully in order to avoid
potential damage to its reputation and opening itself up to
legal liability. He explained that, while Siemens could
simply facilitate the return of the computers to the Chinese
seller, it does not want to risk the embarrassment if the
computers find a path back to Iran. On the other hand,
Klinger said Siemens fears that if it were to simply assume
ownership and have the computers returned to Germany, the
Chinese seller may challenge this action legally. (COMMENT:
From Klinger's tone, it sounded like the German concern of
legal action from the Chinese entity involved is real. In a
related matter, on January 26, Siemens CEO Peter Loescher was
quoted by the media that, starting mid-2010, his company
would not initiate new business deals with Iran. END COMMENT)
OK, SO WHAT NEXT? EBAY?
--------------
5. (S) Klinger admitted that Germany has not made progress
on this case for months. (COMMENT: Over the past nine
months, we have heard a range of possible outcome scenarios,
from shipping the computers back to Germany, shipping them
back to China, or destroying them. END COMMENT) Klinger
offered the idea that a mystery buyer could appear, to whom
the computers could be sold without concern, and that they
would not find their way to Iran. Klinger did not elaborate
on this idea and appeared to be reaching for an end to this
headache. Klinger stressed that Germany is not comfortable
with any solution in which the items would be sent back to
China.
Murphy