US embassy cable - 05ATHENS459

S E C R E T ATHENS 000459 
 
SIPDIS 
 
STATE FOR NP/CBM/HARDIMAN, EUR/PRA, EUR/SE, EUR/SCE 
 
E.O. 12958: DECL: 02/15/2115 
TAGS: PREL, PARM, MCAP, ETTC, MK, GR 
SUBJECT: MTAG 03-03:  GOG CONSIDERING REEXPORT OF MILLING 
MACHINE TO MACEDONIA 
 
REF: A. 04 STATE 106221 
 
     B. 04 ATHENS 552 
     C. 04 ATHENS 2150 
 
Classified By: ECONCOUNS JSTEPANCHUK; REASONS 1.4 (B) (D) 
 
1. (S) On February 9, Econcouns was summoned by the head of 
MoD's Wassenar Expert Group, Col. Ioannis Anastasakis, to 
discuss possible return of a Mikrosam CNC milling machine 
(reftels) to Macedonia.  (Per reftels, the Greek company, 
Baksevanidis, acquired two milling machines from the 
Macedonian-based firm, Mikrosam, in 2004: one was purchased 
and is being held in Athens; the other - which Mikrosam sent 
free of charge - was intended for exhibit at a Thessaloniki 
trade fair).  Anastasakis assured Econcouns that both 
machines are under surveillance by Greek Customs authorities, 
who have to date prohibited the physical transfer or reexport 
of the machines. 
 
2. (S) Greek firm Baksevanidis is now applying to the GoG for 
a special license to reexport to Macedonia the machine that 
was intended for exhibit in Thessaloniki.  Anastasakis 
pointed out that if Baksevanidis seeks legal recourse, it is 
possible that the Greek courts could order the return of the 
machine to Macedonia on the grounds that it is not contolled 
by the MTCR or included in EU Regulation 1334/2000. 
 
3. (S) Anastasakis said that the MoD (as part of the GoG 
interagency export control process) had not decided on 
whether or not to recommend the return of the machine to 
Macedonia.  He said that nothing would be done without 
consulting with the USG and that even if a reexport license 
were granted, Greek Customs would take charge of the machine 
and transfer it directly to the appropriate Macedonian 
authorities. 
 
4. (S)  Econcouns reiterated USG concern (per ref a) that 
while the machine in question is not on the MTCR list, it is 
well suited to manufacture small parts or components with 
missile-related end uses.  Econcouns also recalled the well 
documented efforts of Mikrosam to divert such machines to 
third countries. (Anastasakis was well aware of Mikrosam's 
reputation.)  The chief concern of the USG was to prevent the 
diversion of the milling machine to third countries, a 
likelihood that would be enhanced if it had ever returned to 
Mikrosam. 
 
5. (S) We will continue our periodic consulting with Greek 
export control authorities on the disposition of the milling 
machines and appreciate any additional information the 
Department would have us convey to the GoG. 
 
RIES