From: Aftenposten
Date: 12.2.2009:
08 BERLIN 1575 
S E C R E T BERLIN 000181 
NOFORN SIPDIS
STATE FOR ISN/MDSP DICK BUENNEKE
STATE FOR EUR/CE PETER SCHROEDER 
C O R R E C T E D COPY CAPTION
E.O. 12958:
DECL: 02/12/2034
TAGS: ETTC, PGOV, PINR, MCAP, PREL, TSPA, FR, GM
SUBJECT: GERMANY SEEKS U.S. PARTNER TO DEVELOP OPTICAL SPACE IMAGERY
CAPABILITIES 
REF: A. 08 BERLIN 1537 B. 08 BERLIN 1575 
Classified By: Global Affairs Unit Chief Don L. Brown
for reasons 1.4 (b) and (d). 

1. (C)
SUMMARY: The German element of EADS Astrium GmbH and the
German Space Agency (DLR) are in the advanced stages of
programmatic development of a High-Resolution Optical System
(HiROS) satellite constellation. They are also in discussions
with the U.S. firm DigitalGlobe (DG) about partnering to share
costs, speed up program development, and enter the U.S.
market. Germany believes that HiROS is a logical, low-risk,
next step to expand its national space reconnaissance
architecture. Germany already flies space-based Synthetic
Aperture Radar (SAR) and multi-spectral systems, soon
expanding its suite to include a hyper-spectral platform. We
note that Germany,s plan exclude any reliance on other EU
members (i.e. France) and reflects Germanys desire to build
this competency independent of EU interest.

2. (C)
Since 2007, Germany has been producing, processing, and
analyzing high quality space-based SAR data from its Ministry
of Defense (MOD)-run SAR Lupe program (a 5-satellite
constellation that is built and operated by OHB Systems AG)
and the Astrium/DLR-run commercial TerraSAR-X program. During
this interval, Germany has made impressive strides in its
abilities to collect, process, and analyze SAR data, but
concluded that, Electro-Optical (EO) data supplementing SAR
data makes interpretation and analysis much easier. Presently,
Germany is wholly dependent upon foreign sources of high
resolution EO imagery. Germany would very much like to remedy
this and DLR believes it now has the knowledge, skill, and
ability to field an operating 0.5 meter resolution HiROS
constellation within three years (2012) at a price tag of
about 200 million euro. END SUMMARY

GERMANY,S HiROS DEVELOPMENT PLAN 
--------------------------------

3. (C)
On January 23, Dr. Cornelia Riess, DLR Head of International
Cooperation, and Dr. Andreas Eckardt, DLR Head of Optical
Sensors and Electronics, told us that DLR and Astrium are
ready to "deliver the technical components and ground segment
competence" and are only waiting for financing to be finalized
to "start bending metal." Both Eckardt and Riess expressed
confidence that DLR/Astrium could achieve this aggressive
3-year plan by leveraging available German instrument
technology and past Public Private Partnership (PPP)
experiences successfully building, launching, and operating
satellite systems. Eckardt said that DLR would use a similar,
but improved, version of the instrument technology they built
for the KOMPSAT 3 program - a German partnership with the
South Korean Aerospace Institute (KARI), scheduled for launch
in 2010. Astrium would likely build the satellite buses and
assemble the instruments. DLR stated that they plan on using
Russian launchers for access to orbit.

DLR MOTIVATION: COMPLEMENTING SAR WITH EO 
-----------------------------------------

4. (S//NF)
DLR cooperates with the German MOD to create algorithms for
SAR data image processing and DLR researchers are clearly
aware of the significant benefit of fusing EO and SAR imagery
for analysis. Specifically, DLR said that the German
government has realized that it needed an EO satellite
reconnaissance capability "to make maximum use" of their radar
capabilities. Eckardt said the DLRs latest techniques are
sufficiently advanced to permit the generation of fused radar
and EO product. He said that while these techniques currently
require "hours" of processing, DLR is working on technology to
make this processing "near real-time" or in "milliseconds."

5. (C)
In addition, DLR indicated that the aggressive schedule on
their HiROS program was also driven in part by a desire to
incorporate HiROS data within the operational lifetimes of
their TerraSAR-X and TanDEM-X programs. (COMMENT: The
TanDEM-X mission is scheduled to launch in 2009 to perform SAR
imaging of the entire earth in "tandem" with TerraSAR-X. END
COMMENT) With the end of life for the TerraSAR-X mission
anticipated in late 2012 and the HiROS potentially available
at the beginning of 2012, DLR realizes there is a unique, if
limited, opportunity to simultaneously collect data from the
HiROS, TerraSAR-X, and TanDEM-X missions.

ASTRIUMS MOTIVATION: SAR COMPETITIVENESS 
----------------------------------------- 

6. (C)
Astrium representatives suggested that the HiROS would
represent the type of technology they would propose as part of
a future SAR-Lupe follow-on proposal and have already begun
working on the communications architecture. In 2005, Astrium
was apparently blind-sided when they lost the MODs SAR-Lupe
contract to OHB Systems. Since then, Astrium has continued
advancing its SAR technology for the commercial sector with
DLR and, as Infoterra (a subsidiary of Astrium
Friedrichshafen) CEO Joerg Herrmann explained, "Infoterra will
not lose out to OHB again" on the next SAR-Lupe contract.
Although confident of their SAR technology, Infoterra realizes
that the ability to incorporate HiROS into their SAR-Lupe
proposal could give them the decisive technical edge over OHB.

DLR/ASTRIUMS INTEREST IN DG 
---------------------------- 

7. (C)
DLR is interested in partnering with DG to accelerate the
HiROS development cycle, share costs, and establish inside
access to the U.S. market. In addition, Astrium views DG as a
potential customer for two or more HiROS-type satellites.
Representatives from DLR have already engaged DG in
consultations and, according to a DG representative, his
company is preparing a Technical Assistance Agreement (TAA)
application to enable them to discuss and share regulated
technical data with DLR. Eckardt said that DLR explored
various scenarios for international partnerships, but in the
end came to the conclusion that a U.S. partnership (DG) made
the most "business sense."

GERMANY CAUTIOUSLY LOOKING FOR BILATERAL COOPERATION 
---------------------------------------------------- 

8. (C)
Although Germany is very eager to partner with the U.S. on the
HiROS project, they anticipate legal hurdles with intellectual
property rights (IPR) issues and view the associated exchange
of sensitive technologies with the USG as potentially
problematic. Dr. Riess confided that with the new U.S.
Administration in place, DLR is very motivated to step up
scientific cooperation with the USG, and see the HiROS program
as an excellent prospective opportunity for future bilateral
cooperation.

9. (C)
HiROS implementation appears a sensible next step for Germany,
both from a national security standpoint and with associated
business opportunities. Germany has created a niche in the
international Earth observation arena by carefully controlling
system costs while maintaining focus on core/unique technical
capabilities. This approach has yielded sophisticated and
reliable satellite systems that provide an extraordinary
amount of product for their investment, while also creating an
opportunity for significant commercial exploitation. Should
DLRs partnership with DG materialize, DLR indicated that the
National Geospatial Intelligence Agency (NGA) would be the
"prime customer identified", with DG serving as the U.S.
market entry point.

Koenig