VZCZCXRO8029
OO RUEHGA RUEHHA RUEHQU RUEHVC
DE RUEHOT #3608 3521813
ZNR UUUUU ZZH
O 181813Z DEC 06
FM AMEMBASSY OTTAWA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4642
INFO RUCNCAN/ALL CANADIAN POSTS COLLECTIVE PRIORITY
RUEHBJ/AMEMBASSY BEIJING PRIORITY 2182

UNCLAS OTTAWA 003608 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR PM DAS SUCHAN 
 
E.O. 12958: N/A 
TAGS: PARM ETTC PREL KSTC CA
SUBJECT: CANADIAN RESPONSE TO DEMARCHE ON UNAUTHORIZED 
EXPORT OF U.S. ORIGIN CONTROLLED DATA TO PRC 
 
REF: STATE 196891 
 
¶1.  (SBU) We conveyed reftel demarche to Department of 
Foreign Affairs and International Trade (DFAIT) Export 
Controls Division (ECD) Director Michael Rooney on December 
¶11.  At a follow up meeting on December 14, Rooney expressed 
appreciation for our decision to raise the matter with ECD 
and read the following points from a prepared text: 
 
-- The fact is that there may have been serious potential 
violations of export law. 
 
-- Government of Canada (GOC) officials are now in touch with 
Pratt & Whitney Canada and have started an investigation that 
could result in the cancellation of the export license. 
 
-- The GOC would appreciate receiving any further information 
from the U.S. investigation of this case.  In particular, the 
GOC is interested in obtaining information regarding 
precisely what United Technologies Inc. disclosed with 
respect to a GOC permit. 
 
-- The GOC would also appreciate information on the very 
important matter of how and under what authority items were 
conveyed from Pratt & Whitney Canada to Hamilton-Sunstrand. 
 
-- The GOC requests that the Department of State keep 
DFAIT/ECD apprised of any developments with respect to 
actions the Department might take with respect to the case, 
particularly sanctions or fines the Department might consider 
levying on a Canadian company or companies. 
 
-- The GOC believes that the issue is in no way related to 
the ongoing and positive discussions our two governments are 
undertaking with respect to relief for dual nationals under 
ITAR. 
 
¶2.  (SBU) After reading the points, Rooney noted that ECD 
suspended Pratt & Whitney's export license on December 14 and 
emphasized that this action was based on the information 
presented in our demarche.  He said he had raised the matter 
with Pratt & Whitney this week and his impression at this 
time was that the company would respond to his queries in an 
open and forthcoming manner.  It would take some time, 
however, for ECD's investigation to run its course and for 
the GOC to make a final determination on the case.  Rooney 
ended by stressing that GOC actions in this case reflected 
the serious manner in which it approached our shared 
objective of securing ITAR controlled unclassified items. 
 
Visit Canada's Classified Web Site at 
http://www.state.sgov.gov/p/wha/ottawa 
 
WILKINS