Swiss War Materiel and Arms Exports

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Artillery parts for Khamenei’s Iran

Goods category: War materiel

Ali Khamenei, Nowruz address, 20.03.2017 according to the file page.

CC BY 4.0

In February 1997, Dieter Bührle’s Zurich company T&T Technology Trading organised the delivery of 42.2 tonnes of hydraulic and other spare parts for 155 mm GH N-45 howitzers to Iran’s Ministry of Defence. The 35 crates were loaded in Bratislava and flown to Tehran; the transaction was valued at around ten million Swiss francs. It was handled through companies in Slovakia and Bührle’s company ITF in St Vincent, which had acquired rights to the weapon in 1993. Bührle confirmed the deal in 2000 but denied that it was illegal. Investigations took place in Austria; no final outcome of the proceedings is documented. Austrian authorities had already seized artillery parts intended for Iran at the port of Krems on 3 February 1997 and at Vienna-Schwechat Airport on 8 February. In 1998, T&T Technology Trading negotiated the sale of 36 GH N-45 howitzers to Pakistan. A company representative met Pakistani military officers in Nottingham; the talks took place after Pakistan’s nuclear tests in May 1998. A price of US$620’000 to US$650’000 per gun was under discussion. After acquiring the rights to the GHN-45, Dieter Bührle’s company ITF had 54 guns of this type in 155 mm calibre assembled in Liezen, Austria, and sold to the Thai army. An Austrian export licence had been issued. The transaction became public in 2000 in connection with investigations into later GHN-45 parts deliveries to Iran.

Effect of the proposed War Materiel Act revision

Under the new Article 22b, the Federal Council could depart from all the licensing criteria in Article 22a under vaguely defined ‘exceptional circumstances’. The public would not have to be informed. The Federal Council could add Iran, Thailand and Pakistan to Annex 2 by amending the War Materiel Ordinance. This would remove the exclusion criterion based on participation in an armed conflict and make approval the rule. The Federal Council could refuse a licence only in exceptional cases. Article 18 paragraph 1 would abolish non-re-export declarations in the vast majority of cases. Weapons for Iran, Thailand and Pakistan could thus easily be supplied through a subsidiary or intermediary in a third country. For example, the following states could serve as third countries, having supplied substantial quantities of war materiel in recent years according to SIPRI: Thailand: United States (476 million TIV); Pakistan: United States (2’134 million TIV).

Countries

Companies

Time period

Rights acquired in 1993/1994; Thailand delivery before 1997; Iran in 1997; Pakistan talks in 1998; investigations reported until 2000

Sources