From: <a href="http://www.aftenposten.no/spesial/wikileaksdokumenter/article3969914.ece">Aftenposten</a><br>
Date: 3.9.2009

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C O N F I D E N T I A L SECTION 01 OF 02 BERLIN 001080 
SIPDIS
STATE FOR EUR/CE PETER SCHROEDER STATE FOR ISN/MDSP DICK BUENNEKE 
E.O. 12958:
DECL: 09/03/2033
TAGS: ETTC, PGOV, PINR, MCAP, PREL, TSPA, IT, RS, CH, GM 
SUBJECT: GERMANY TO FRANCE: STAY OUT OF OUR COMMERCIAL SATELLITE AFFAIRS
REF: A. BERLIN 1049 B. BERLIN 765 C. BERLIN 601 D. BERLIN 561
E. BERLIN 181 F. 08 BERLIN 1575 
Classified By: Global Affairs Unit Chief Don L. Brown
for reasons 1.4 (b) and (d). 

1. (C)
SUMMARY: The German Space Agency (DLR) is taking steps to
repel French interference in Germanys electro-optical (EO)
imagery satellite development by forming strategic
partnerships with satellite makers OHB-System AG and the
German portion of Astrium in Friedrichshafen. The DLR is
concerned that French influence in Astrium is steering
Astrium-Friedrichshafen in ways favoring the French commercial
space industry and not in DLRs best interest. As an example,
Astrium recently transferred management of its subsidiary
responsible for commercial satellite imagery
marketing/distribution, InfoTerra Ltd, away from
Astrium-Friedrichshafen to Astrium- SPOT Image S.A. in
Toulouse, France. To counter this trend, DLR plans to make
Astriums industry rival, OHB-System, the prime on some future
contracts, thereby minimizing French influence (and delighting
OHB-System shareholders). According to an Astrium employee,
DLRs CEO recently sent a letter to the President of EADS
Astrium Transportation, informing him of DLRs intentions to
not/not include French-Astrium on a future commercial
satellite bid in Kazakhstan. END SUMMARY

2. (C)
Astrium Friedrichshafen official and DLR consultant, Tom
Walati (please strictly protect) described Germanys plans for
a High Resolution Optical Satellite (HiROS) and efforts to
find US partners. (COMMENT: While Walatis information is
clearly intended to influence as well as inform, we have seen
no instances to date that his information was not credible.
END COMMENT)
Walati described French efforts to halt DLRs HiROS proposal as
"fierce and persistent due to its potential competition with
French industry." In addition to using OHB-System as a prime
on future contracts, Walati said DLR and Astrium
Friedrichshafen see a strategic partnership with US interests
as the key element to shield German satellite programs from
French influence.

DLR MESSAGE TO ASTRIUM: STAY OUT OF GERMAN SATELLITE AFFAIRS 
------------------------------------------------------------ 

3. (C)
Walati said that on August 11, DLR CEO Dr. Johann-Dietrich
Woerner sent a letter to Evert Dudok, President of EADS
Astrium Space Transportation, informing Astrium of DLRs
intention to bid on a project in Kazakhstan offering a HiROS
system, a hyper-spectral imagery satellite system, and
training. According to Walati, DLR made it clear in the letter
that the German firm OHB System would be listed as the prime
contractor, with Astrium Friedrichshafen listed as a
subcontractor. In addition, the letter reportedly conveyed
DLRs assertion that there would be absolutely no French
involvement in this project proposal. (COMMENT: We assess that
the DLR letter has more to do with Germany sending a message
to France to quit meddling its their satellite business than
it does with the Germans competing with France on a satellite
package bid to Kazakhstan. END COMMENT.)

FRANCE ALREADY MOVING GERMAN CHESS PIECES WITHIN ASTRIUM 
-------------------------------------------------------- 

4. (C)
According to Walati, InfoTerra GmbH, a German daughter company
of Astrium Satellites which is responsible for distributing
Astrium geospatial products and services, is a recent victim
of French-induced "restructuring." He said Astrium recently
transferred management of InfoTerra away from
Astrium-Friedrichshafen to Astrium- SPOT Image S.A. in
Toulouse, France. As part of this reorganization, Astrium
demoted InfoTerra Managing Director, Joerg Herrmann and
replaced him with Mr. Vark Helfritz. Walati said the reason
Astrium gave for the reorganization was dissatisfaction with

BERLIN 00001080 002 OF 002 

InfoTerras progress. 

5. (C)
When InfoTerra was spun-off from Astrium Services to be the
official distributor of Astrium geospatial data, Astrium
reportedly gave Herrmann about three years to generate enough
revenue selling data to fund research and development for
future satellite systems. He indicated Astrium management has
been seeking ways to wrestle InfoTerra away from
Astrium-Friedrichshafen and that the "dissatisfaction" with
InfoTerras progress is simply an excuse for something they had
already been planning. (COMMENT: Herrmann told EconOff earlier
this year his company turned a modest profit in 2008 and
expected this trend to continue in 2009. END COMMENT)

Murphy
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