VZCZCXRO6141
RR RUEHAG RUEHBC RUEHDE RUEHDF RUEHDIR RUEHIK RUEHKUK RUEHLZ RUEHROV
RUEHSR
DE RUEHTC #0087 0401043
ZNR UUUUU ZZH
R 091043Z FEB 09
FM AMEMBASSY THE HAGUE
TO RUEHC/SECSTATE WASHDC 2495
INFO RUEHAT/AMCONSUL AMSTERDAM 4124
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUCNIRA/IRAN COLLECTIVE

UNCLAS THE HAGUE 000087 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ENRG EPET ETTC ETRD PREL NL IR
SUBJECT: NETHERLANDS/IRAN: PHILIPS NOT ACTIVE IN IRAN'S ENERGY 
SECTOR 
 
Ref: (A) 08 STATE 125579, (B) THE HAGUE 2, (C) 
GRAY-NEPHEW-COULTER-GROEN EMAILS 02/02/09 
 
¶1. (U) This cable contains proprietary company information.  Please 
protect accordingly. 
 
¶2. (SBU) Summary:  In response to questions regarding its possible 
licensing of LNG technology to Iran, Royal Philips Electronics 
emphasized that it has no activities whatsoever in the LNG field, 
especially not in Iran.  Philips does export some lighting, consumer 
electronics, and medical equipment to Iran, but always in accordance 
with international export control laws.  End summary. 
 
¶3. (SBU) Econoff met January 28 with Mr. Guy Kerpen, Director of 
Government Relations, and Mr. Wolter Boerman, Vice President of 
Corporate Export Controls and Supply Chain Security, at Royal 
Philips Electronics.  Per Ref A request, Econoff sought information 
about Philips' possible provision to Iran of licensing for LNG 
projects.  The Philips representatives said the company had no 
activities whatsoever in LNG or energy production in general, "let 
alone" with Iran.  Boerman said he had reviewed Philips' historical 
records to confirm the company had never been involved in 
researching, developing, producing, or marketing any type of LNG 
technology.  He also contacted Philips' office in Dubai to confirm 
that it had never discussed conducting LNG-related activities with 
Iran. 
 
¶4. (SBU) Unlike Royal Dutch Shell, which does maintain investments 
in Iran's energy sector (ref B), Philips manufactures lighting, 
healthcare products, and consumer electronics.  Its only business 
with Iran, according to Kerpen and Boerman, is the sale of products 
such as coffee makers, electric razors, lamps, and light bulbs. 
Philips also sells some medical equipment to Iran; these are the 
only products for which Philips routinely applies for U.S. licenses. 
 Boerman explained that over 55 percent of Philips' assets are based 
in the United States, and the company therefore takes compliance 
with U.S. export regulations regarding Iran very seriously. 
Although the U.S. government requires exporters to acquire a license 
if more than 10 percent of the medical equipment's content is 
produced in the United States, Philips acquires a license for any of 
its products with more than 2 percent of U.S. content - "just to be 
safe." 
 
¶5. (SBU) Kerpen and Boerman expressed "dismay" at the U.S. 
government's suggestion that Philips had any involvement in Iran's 
energy sector and asked where we had obtained such information. 
They stressed Philips' interest in correcting any misinformation in 
the "national measures" campaign of the E4+1 governments (ref A). 
Philips takes its international reputation extremely seriously and 
carefully follows all UN, EU, U.S., and other international 
obligations related to doing business in restricted countries.  The 
company recognizes the public relations damage that accusations of 
improper dealings can cause; hence its dismay at the USG's 
questions. 
 
¶6. (SBU) Per Department guidance (ref C), Econoff explained that 
during the course of discussions with our E4+1 partners, one of them 
had advised that Philips might be involved in licensing LNG 
technology to Iran.  Econoff assured Philips that the USG would 
relay its response to our partners in order to correct the error. 
 
 
GALLAGHER