GERMANY SOLICITS US VIEWS ON AUSTRALIA GROUP

C O N F I D E N T I A L BERLIN 000140

SIPDIS
STATE FOR EUR/CE PETER SCHROEDER
STATE FOR ISN/CB MARK HARTELL AND KRISTEN GASS

E.O. 12958: DECL: 02/01/2035
TAGS: PARM ECON ETTC PREL GM
SUBJECT: GERMANY SOLICITS US VIEWS ON AUSTRALIA GROUP
EXPORT CONTROL POLICY TO DISTRIBUTORS

REF: BERLIN 1588

Classified By: Global Affairs Unit Chief Don L. Brown for
reasons 1.4 (b).


1. (U) THIS IS AN ACTION REQUEST. PLEASE SEE PARA 5.


2. (C) SUMMARY: Germany is in the process of defining its
export control policy for highly-sensitive Australia Group
(AG)-controlled items to foreign distributors and is seeking
advice from US export control authorities. Specifically,
Germany would like to know what the U.S. policy is regarding
the export of AG-controlled items to specific foreign
distributors that have an accompanying, pre-determined list
of potential end-users. END SUMMARY


3. (C) On January 25, MFA Deputy Director of Export Control,
Markus Klinger told Econoff that Germany recently received
multiple requests for the export of highly lethal,
AG-controlled virus sequencing technology to a US-based
distributor with 70 listed potential end-users. Klinger
said, normally, given the sensitivity of the items in
question, Germany would deny the export to a distributor and
would only issue export permits to individual end-users on a
case-by-case basis. However, given Germany's robust
cooperation with the USG on AG matters, it is investigating
to see if a policy change would be appropriate for
distributors in select countries. In addition to getting the
USG policy on this type of export situation, Germany would
like to solicit USG thoughts on the outcome if the situation
were reversed; if there were a U.S. AG-controlled export to a
distributor located in Germany with a pre-defined end-user
list.


4. (C) Klinger referenced the AG "Common Approach to
Controls of Exports to Distributors" (AG/May06/ExC/D/28) as
the code of conduct that Germany is using for guidance, but
said this "non-exhaustive" document alone is not sufficient
for this complex, atypical case. In the document's "optional
elements" section, Klinger highlighted the clause: "Exclusion
of licenses to distributors for certain goods" as a potential
reason to deny the export, but given the special case of a
US-based distributor, there may be some room for further
policy development. (COMMENT: &Optional elements8 in this
document refers to measures AG members may take beyond the
document,s &core elements8 guidelines. This was put in
place to allow for increased flexibility; to handle AG
exports to distributors on a case-by-case basis. END
COMMENT)


5. (SBU) ACTION REQUEST: Post requests Department guidance
in responding to the request posed in paragraph 3.
Murphy