SWISS FIRM QUARTZCOM COLLUDING WITH IRANIAN FRONT

S E C R E T BERN 000021 E.O. 12958: DECL: 12/31/2025 TAGS: SZ IR KSCA PARM PREL MNUC ETTC SUBJECT: SWISS FIRM QUARTZCOM COLLUDING WITH IRANIAN FRONT COMPANY IN ATTEMPT TO SKIRT EXPORT CONTROLS (S): SWISS RESPONSE REF: STATE 996 Classified By: Pol-Econ couns. R. Rorvig for reasons 1.4(b) and (d). ¶1. Pol-Econ Couns. was called in by Swiss Economics Department Industrial Export Control chief Juergen Boehler on January 15 to discuss reftel case. (Reftel points were previously provided to the Economics Department.) Boehler stated that Swiss authorities are grateful for the U.S. information on Quartzcom and, after deliberation, now plan to follow up aggressively with the firm. Boehler said that he understands that Quartzcom is a one-man "mom and pop", import-export firm. The best of his knowledge, Quartzcom has no employees other than the principal, who may be assisted by one or two family members. Based on the U.S.-provided information, the Swiss Economics Department has requested that the Swiss federal police pay a call "in uniform" on Quartzcom's owner to notify him - on the record - of Swiss law and the criminal penalties for violating export control laws. Boehler said that such a visit usually is sufficient to frighten 99 percent of small operators away from such business. CARTER