US embassy cable - 05VIENNA1942

S E C R E T VIENNA 001942 
 
SIPDIS 
 
STATE FOR EUR/AGS, EUR/PRA, NEA/ARPI, NP/ECNP AND INR/SPM 
 
E.O. 12958: DECL: 06/15/2005 
TAGS: ETTC, PARM, PREL, IR, AU 
SUBJECT: AUSTRIA REJECTS LICENSE FOR ASSAULT RIFLE EXPORT 
TO IRAN; MFA REQUESTS INFORMATION TO FIGHT COURT CASE 
 
REF: A) VIENNA 406 B) VIENNA 331 C) VIENNA 165 D) 
 
     STATE 9770 E) VIENNA 37 F) 04 STATE 272249 
     G) 04 VIENNA 4393 H) 04 VIENNA 4354 
 
Classified By: ACTING DEPUTY CHIEF OF MISSION GREGORY E. PHILLIPS 
REASONS: 1.4 (B) AND (D) 
 
1.  (S) On June 7, Austrian MFA A/S-equivalent for  Western 
European Affairs Herbert Krauss (strictly protect) asked to 
meet with us to follow up on a May 18 briefing for Austrian 
officials on nonproliferation issues.  Pol Unit Chief met 
Krauss (whose bureau also currently handles military transit 
and arms export issues) and Export Control Director Margit 
Bruck-Friedrich on June 8.  Krauss explained that pursuant to 
our previous demarches on sensitive exports to Iran, the 
Austrian Interior Ministry, after consulting with the 
Economics and Foreign Ministries, had rejected a license 
application for export of five Steyr-Mannlicher AUG-3 assault 
rifles to Iran. 
 
2.  (S) According to Krauss, the consignee was J.S. 
Industries, which Krauss said was a centralized procurement 
agency for Iranian security services (and the same entity 
which had purchased Steyr-Mannlicher .50-caliber sniper 
rifles).  According to the end-user certificate furnished by 
J.S. Industries, the AUG-3s were for "regular Iranian police 
and anti-narcotics" units. 
 
3.  (S) Krauss noted that it was very probable that this 
initial test order, if successful, would result in much 
larger orders for the AUG-3s.  The Ministry of Interior had 
now received a formal protest of the denial from a prominent 
Vienna law firm representing Steyr-Mannlicher  This was a 
preliminary step toward legal action to force the Austrian 
government to grant a license.  Krauss said it would help 
immensely if the USG could provide evidence showing that 
these weapons might be destined for the insurgents in Iraq, 
or that other military goods previously provided to the 
Iranian government had found its way into the hands of 
terrorist organizations, especially those operating in Iraq. 
Brown