VZCZCXYZ0005
PP RUEHWEB

DE RUEHRL #1312/01 1841555
ZNY SSSSS ZZH
P 031555Z JUL 07
FM AMEMBASSY BERLIN
TO RUEHC/SECSTATE WASHDC PRIORITY 8699
INFO RUEHTC/AMEMBASSY THE HAGUE PRIORITY 1118
RUEHIN/AIT TAIPEI PRIORITY 0099

S E C R E T BERLIN 001312 
 
SIPDIS 
 
STATE FOR ISN/MTR AND EUR/AGS 
SIPDIS 
 
E.O. 12958: DECL: 07/03/2032 
TAGS: PARM MTCRE PREL ETTC GM TW LN IR
SUBJECT: GERMAN PROSECUTORS INVESTIGATING DELIVERY OF 
GERMAN ENGINES TO IRANIAN UAV PROGRAM 
 
REF: A. STATE 21966 
     ¶B. 06 BERLIN 3380 
     ¶C. 06 STATE 190812 
 
Classified By: Global Affairs Counselor Donald R. Shemanski, for reason 
s 1.4 (b), (c), and (d). 
 
¶1. (S) German MFA Export Control Division Desk Officer 
Andreas Kauke passed the following German-language non-paper 
in response to the USG non-paper contained in ref A to Global 
Affairs officer June 19.  Kauke said this case was difficult 
because the German firm Limbach Flugmotoren GmbH & Co shipped 
the engines to the Dutch firm Aviation Services International 
(ASI) in the Netherlands, from where they were then shipped 
to Iran.  The German firm claimed it did not need a license 
to export the engines because the export was to a firm (ASI) 
in another EU country.  Kauke said German Customs authorities 
notified Limbach that because these engines could be diverted 
to military programs in Iran, Limbach needed to apply for an 
export license, even if shipped to another EU country. 
Limbach representatives said they had no knowledge that Iran 
was the true end user, according to Kauke.  Nevertheless, 
German authorities, after beginning an investigation of 
Limbach's shipment of 34 engines to Iran between March 2005 
and October 2006, believed that Limbach was aware that Iran 
was the true end user and therefore initiated legal 
proceedings against the firm for violating the Foreign Trade 
and Payments Act.  The violation in this case is that Limbach 
harmed Germany's external foreign relations by shipping 
controlled technology to an end user that could use it for 
military or WMD-related purposes.  The German federal 
investigation is still continuing, Kauke noted. 
 
¶2. (S) Kauke also said the German Federal Economic and Export 
Licensing Agency (BAFA) checked on the role that the Taiwan 
firm, Prime Kit Enterprises, may have played in the delivery 
of Limbach engines to end users in Iran or other parts of 
Asia.  BAFA could find no links between Prime Kit and the 
delivery of Limbach engines to Iran; however, the Dutch firm 
ASI did ship four Limbach-produced engines to Taiwan firms 
between March 2005 and October 2006.  ASI also shipped a 
Limbach-produced engine to China Aerospace Science and 
Technology Corporation (CASC) in September 2006.  BAFA is 
still investigating a connection between Prime Kit and ASI's 
shipment of Limbach engines to the Taiwan firms and CASC, but 
has found none so far.  German Customs has been alerted to 
intercept any shipments of dual-use technology to Prime Kit, 
Kauke said.  The German Government will inform the USG of 
additional results of its investigations, according to Kauke. 
 
 
¶3. (S) Begin unofficial embassy translation of text of 
German-language non-paper: 
 
Concerning the non-papers from November 22, 2006, (ref C) 
given to us November 27, 2006, and from February 22, 2007, 
(ref A) given to us February 23, 2007, and my oral response 
to the Embassy on December 4, 2006, and February 23, 2007, 
about Iranian procurement attempts of engines from the firm 
Limbach Flugmotoren GmbH & Co., Koenigswinter, for the 
installation into UAV's, we take the liberty to bring the 
following information to the attention of U.S. authorities: 
 
-- We thank you for the evidence related to the Iranian 
procurement attempt of engines from the German firm Limbach 
Flugmotoren GmbH & Co. 
 
--  The investigations into the matter thus far have resulted 
in sufficient grounds for the Federal General Prosecutor to 
initiate proceedings on May 7, 2007, against the firm Limbach 
Flugmotoren for its yet undetermined responsibility in the 
suspected violation of the Foreign Trade and Payments Act, 
and the Federal Office of Customs Investigation is tasked 
with carrying out the criminal investigation. 
 
-- The subject of the investigation is the unauthorized 
delivery of 34 engines of the L550E type to Iran through a 
transfer from the Dutch firm Aviation Services International 
(ASI) in the period from March 2005 to October 2006, in which 
it is presumed that the firm Limbach was aware that the 
motors would be installed for military usage and in UAV's or 
drones. 
 
-- After the conclusion of the investigation, we will inform 
you of the results that we find.  Be advised, however, that 
the investigation may last for some months. 
 
We look forward to continued outstanding cooperation in the 
area of export controls. 
 
End text of German-language non-paper. 
 
¶4. (U) Post will report additional German response septel. 
TIMKEN JR