US embassy cable - 05VIENNA611

UNCLAS SECTION 01 OF 02 VIENNA 000611 
 
SIPDIS 
 
STATE FOR PM/DTCC - BLUE LANTERN COORDINATOR -- PETER 
MAXWELL AND PETER SABATINI 
 
E.O. 12958: N/A 
TAGS: ETTC, KOMC, AU, TC 
SUBJECT: BLUE LANTERN END-USE CHECKS:  LICENSES 05-91445, 
05-908239 AND 05-900036 FOR SCHIEBEL ELEKTRONISCHE GERAETE, 
VIENNA, AUSTRIA 
 
REF: A. (A) STATE 35570 
     B. (B) STATE 28053 
     C. (C) ABU DHABI 880 
     D. (D) 04 STATE 268472 
     E. (E) 04 STATE 210819 
     F. (F) 04 STATE 210780 
 
1.  EconPolCouns and DATT met on March 2 with Hans G. 
Schiebel, President and CEO of the Schiebel Group and 
Schiebel Elektronische Geraete GmbH, and Evelyne Pallanich, a 
Marketing Assistant, at Schiebel's headquarters at 
Margaretenstrasse 112, A-1050 Vienna.  During the meeting, 
James Rolig, Schiebel's Manager for Camcopter Service and 
Support, joined the discussion.  (Per ref c, Rolig, an Amcit, 
had particpated in Embassy Abu Dhabi's end-use check.) 
Schiebel provided the following information in response to 
ref (a) and (b) questions. 
 
2.  DTC case 05-914445:  5 Inertial Measurement Units 
 
--  How is Schiebel using the IMUs?  The IMUs will go into 
the flight control systems of Camcopter S-100 prototypes 
(actually, Dr. Schiebel explained, these are pre-production 
models, almost identical to what will emerge from full-scale 
production).  Schiebel will install two IMUs per aircraft, 
for purposes of redundancy.  Dr. Schiebel explained that his 
plan was to use one U.S.-origin (i.e., Honeywell) IMU and one 
from another source in each aircraft.  Dr. Schiebel said he 
hoped to sign a production contract with the United Arab 
Emirates which would permit him to order 100 more IMUs from 
Honeywell. 
 
--  Have all 5 IMUs been installed on the Camcopter prototype 
UAV?  No.  In the course of testing the pre-production models 
which Schiebel has built, the company is in the process of 
determining which of the IMU models (of the three Honeywell 
types they have) they will use in production.  Therefore, the 
company is still in a process of installing, using, and 
removing the IMUs for various test purposes. 
 
--  To what kind of applications will the prototypes be used? 
 Schiebel is using the aircraft for flight testing, 
development, and flight demonstrations to potential 
customers.  The aircraft are physically present in Vienna, 
and undergo flight testing at a military airfield in nearby 
Wiener Neustadt, Austria.  Dr. Schiebel noted that his 
company has applied for another export license for IMUs to 
install in the two prototypes which Schiebel will deliver to 
the United Arab Emirates. 
 
3.  DTC case 05-908239:  10 actuators 
 
--  Have all 10 actuators been incorporated into the 
Camcopter VTOL UAV system?  No.  Dr. Schieble explained that 
there had been a mixup with Kearfott Guidance and Navigation 
by which Schiebel received some analogue actuators instead of 
the digital actuators Schiebel required.  Some of the 
actuators are in Vienna and some are in the UAE, he said, but 
all were still the property of Schiebel. 
 
--  Into how many UAV systems were they incorporated?  None 
on a permanent basis.  Dr. Schiebel explained that the 
company is constantly installing and uninstalling the 
actuators for test purposes.  In the end, the materials will 
go into two complete airframes, each of which will have one 
IMU and 5 actuators. 
 
--  Were all these systems sent to the UAE armed forces?  Not 
yet.  Delivery of those two aircraft will take place "by 
midyear to the end of the year," with potential delays due to 
bureaucratic requirements. 
 
--  When were the systems sent by Schiebel to the UAE? 
September 2004, when flight testing began in the UAE. 
However, the systems remain the property of Schiebel until 
delivery later this year. 
 
4.  DTC case 05-900036:  4 quartz rate sensors 
 
--  Schiebel received the quartz rate sensors as planned. 
The quartz rate sensors are currently in Schiebel's warehouse 
in Vienna, and Schiebel no longer intends to use them.  Dr. 
Schiebel said the company had acquired the equipment when it 
planned to build its own Inertial Measurement Units (IMU). 
However, the company determined that it was cheaper and more 
efficient to buy complete IMUs from Honeywell.  Dr. Schiebel 
noted that it was unlikely that he would ever use the 4 
quartz rate sensors, because better and cheaper technology 
was now available.  He expressed some doubt as to how to 
eliminate them from his inventory, and said he would 
appreciate any guidance we could offer. 
 
---------------- 
No Sales to Iran 
---------------- 
 
5.  We took advantage of the meeting to enquire about 
internet allegations that Schiebel had sold units of its 
first generation Camcopter to Iran.  (Entries at 
www.keypublishing.co.uk and www.vectorsite.net include the 
line, "It was purchased by the Iranians, officially to help 
clear minefields, but has apparently also been used for 
patrolling Iran's border with Afghanistan.")  Dr. Schiebel 
said these reports were false, and Schiebel has not/not sold 
any aircraft to Iran.  Dr. Schiebel explained that Iran had 
enquired about Schiebel's prodcuts about two years ago, but 
"nothing came of it." 
Brown