VZCZCXYZ0000
RR RUEHWEB

DE RUEHSW #2060 3121620
ZNY SSSSS ZZH
R 081620Z NOV 06
FM AMEMBASSY BERN
TO RUEHC/SECSTATE WASHDC 3390
INFO RUEHBJ/AMEMBASSY BEIJING 0539
RUEHUL/AMEMBASSY SEOUL 0474
RUEHKO/AMEMBASSY TOKYO 0657
RUEHVI/AMEMBASSY VIENNA 0701
RUEHGV/USMISSION GENEVA 2626
RUCNDT/USMISSION USUN NEW YORK 0111

S E C R E T BERN 002060 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 11/08/2016 
TAGS: ETTC KNNP PARM TRGY MNUC IAEA SZ
SUBJECT: SWISS-DPRK TRADE VERY LIMITED 
 
REF: A. SECSTATE 178917 
     ¶B. STATE 180512 
 
Classified By: A/DCM Stan Otto, E.O. 12958, Reasons 1.4 (b) and (d) 
 
¶1. (S) Summary:  In response to REFTELS A and B, on November 
7 Emboffs spoke with Swiss State Secretariat for Economic 
Affairs, Bilateral Economic Relations Division, Export 
Controls and Sanctions Chief Othmar Wyss about Swiss-DPRK 
trade relations.  According to Wyss, Swiss trade with North 
Korea is very limited.  No weaponry can be exported to North 
Korea, and the last sale of any "dual-use" mining or drilling 
equipment was in 2001.  The majority of Swiss exports to 
North Korea are pharmaceutical products.  Luxury watch sales 
have fallen off considerably, probably because Swiss watches 
are being retailed in China rather than directly from 
Switzerland.  Other exports include old model auto parts and 
lubricants.  End summary. 
 
¶2. (S) In response to subject matter in REF A, Wyss said that 
Swiss companies had not exported any mining or drilling 
equipment or parts to the DPRK since 2001.  In 2001, SECO 
approved the sale and export of a small boring machine 
(company not disclosed), valued at 380 thousand Swiss Francs 
(approximately $300 thousand).  Since that sale, Swiss firms 
have sold no replacement parts to the DPRK for this machine. 
Wyss stated that mining and drilling equipment are dual-use 
items and require SECO export licenses. 
 
¶3. (S) Wyss also discussed Swiss-DPRK trade, REF B, with 
Emboffs.  He noted that Swiss trade figures with such 
countries as North Korea, Iran and Cuba are not public 
information, though he provided Emboffs with figures.  SECO 
figures for Swiss exports to the DPRK are: 
 
2006 - CHf 5.5 million (end of third quarter) 
2005 - CHf 4.5 million 
2004 - CHf 6.1 million 
 
¶4. (S) Wyss also described the composition of the Swiss 
exports, telling Emboffs that the majority of exports to the 
DPRK are pharmaceutical products.  The other "major" exports 
are old model auto parts, watches and lubricants.  Given 
UNSCR 1718's focus on stopping certain categories of trade 
with the DPRK, Wyss provided more specific data on Swiss 
watch exports to North Korea.  He noted that the Swiss 
government does not keep track of "high-value" watch and 
"low-value" watch exports, but rather limits itself to "total 
exports."  However, the government does have a definition for 
"high-value" watches: any watch valued at over one thousand 
Swiss Francs.  SECO's figures for Swiss watch exports to the 
DPRK are as follows: 
 
2006 - CHf 12,000 in exports 
2005 - CHf 300,000 in exports 
2004 - CHf 2.5 million in exports 
2003 - CHf 5.1 million in exports 
2002 - CHf 6.2 million in exports 
2001 - CHf 5.2 million in exports 
 
¶5. (S) Wyss hypothesized that watch exports from Switzerland 
to the DPRK were falling because North Koreans can purchase 
these time pieces more easily in Beijing now that China is a 
WTO member and has its own retailers dealing in watches. 
 
¶6. (S) Embassy Bern will continue to seek additional 
information to report to Washington on issues of interest 
from REFTELS A and B. 
CONEWAY