US embassy cable - 05VIENNA2932

S E C R E T VIENNA 002932 
 
SIPDIS 
 
FOR EUR/AGS, EUR/PRA, NP/ECNP AND INR/SPM 
 
E.O. 12958: DECL: 09/01/2015 
 
TAGS: ETTC, PARM, PREL, AU, IR 
SUBJECT: SNIPER RIFLES TO IRAN 
 
REF: A) STATE 154383 B) VIENNA 1942 C) VIENNA 406 D) 
 
     VIENNA 331 E) VIENNA 165 F) STATE 9770 G) 
 
     VIENNA 37 H) 04 STATE 272249 I) 04 VIENNA 
 
     4393 J) 04 STATE 263141 K) 04 VIENNA 4354 
 
Classified By: Economic-Political Counselor Gregory E. Phillips 
 
for reasons 1.5 (b) and (d) 
 
1.  (S/NF) On August 30, EconPolCouns and Econ Unit Chief 
 
delivered ref A nonpaper to Helmut Krehlik, Head of the 
 
Ministry of Economy's Export and Import Control Division, and 
 
to Dorothea Auer, Head of the Foreign Ministry's 
 
Non-Proliferation and Arms Control Division.  Auer and 
 
Krehlik thanked the USG for the points and for the 
 
information contained in a June DIA paper (S-37, 
 
424-05/MEA-5).  Krehlik said the DIA information was 
 
particularly useful because it documented that Iran had a 
 
proven track record of delivering weapons to terrorist 
 
organizations. 
 
2.  (S/NF) Krehlik explained that the GoA, in the course of 
 
probable legal action initiated by Steyr-Manlicher (ref B), 
 
could exclude classified material, both content and source. 
 
The GoA would simply need to demonstrate how it reached 
 
certain conclusions without divulging specifics.  However, 
 
Krehlik said that various GoA legal experts had told him that 
 
if Steyr-Manlicher appealed to the Supreme Court, the Court 
 
could order the GoA to release the complete dossier to the 
 
plaintiff.  Krehlik opined that the Court would not force the 
 
government to divulge classified documents to the plaintiff, 
 
but he admitted that this would be a risk.  Krehlik noted 
 
that the most conclusive evidence of Iranian weapons entering 
 
Iraq was in the non-releasable ref B talking points and DIA 
 
paper.  In a possible Supreme Court challenge, 
 
Steyr-Manlicher would inevitably request the source of ref B 
 
releasable points. 
 
3.  (S/NF) Krehlik said Steyr-Manlicher would probably 
 
prevail in a legal challenge to the GoA's refusal to issue a 
 
license to export AUG-3 rifles to Iran.  However, Krehlik 
 
maintained that the court proceedings would most likely last 
 
two years.  In Krehlik's view, much could change in Iran and 
 
within Steyr-Manlicher in a two-year period.  For instance, 
 
Krehlik said he has heard rumors that Steyr-Manlicher 
 
President Wolfgang Fuerlinger ultimately wanted to sell off 
 
and/or off-shore most of the company's assets, maintaining 
 
only production of hunting rifles in Austria.  Given these 
 
uncertainties, Krehlik said he has argued within the GoA to 
 
"drag out" any legal action pertaining to the sale of the 
 
AUG-3s. 
 
Brown