From: Aftenposten
Date: 20.5.2009:
C O N F I D E N T I A L SECTION 01 OF 03 BERLIN 000601
SIPDIS
STATE FOR EUR/CE PETER SCHROEDER STATE FOR ISN/MDSP DICK BUENNEKE
E.O. 12958:
DECL: 05/20/2034
TAGS: ETTC, PGOV, PINR, MCAP, PREL, TSPA, FR, KZ, AE, TU, GM
SUBJECT: GERMAN COMPANY MARKETING SATELLITE IMAGERY TO US DESPITE FRENCH
OPPOSITION
REF: A. BERLIN 181 B. BERLIN 561 C. 08 BERLIN 1575 D. 08 BERLIN 1537
Classified By: Global Affairs Unit Chief Don L. Brown
for reasons 1.4 (b) and (d).
1. (C)
SUMMARY: Germanys plans to develop a space-based High
Resolution Optical System (HiROS) capability by 2013 stand to
challenge Frances dominance of European space-based
electro-optical (EO) collection. The German portion of EADS
Astrium (Friedrichshafen), in a Public Private Partnership
(PPP) with the German Space Agency (DLR), is co-developing
HiROS and sees an opportunity to market HiROS, as well as
space-based Synthetic Aperture Radar (SAR) products, to the US
market. According to an Astrium-Friedrichshafen official, the
Government of France (GoF) will use its influence in Astrium
-- as the majority share holder -- to halt development of
HiROS in order to protect French commercial EO ambitions.
Astrium-Friedrichshafen/DLR are actively courting USG support
for HiROS as a potential counter to French HiROS opposition
and are proposing a June meeting in Washington with USG
officials for further discussion. END SUMMARY
GERMANY DEVELOPING HIROS DESPITE FRENCH OPPOSITION
--------------------------------------------- -----
2. (C)
On 28 January 2009, Dr. Andreas Eckardt, DLR Head of Optical
Sensors and Electronics, told EconOff that absolutely no
cooperation with France nor any other EU country is planned
for the HiROS project, but that he saw cooperation with the US
firm Digital Globe (DG) as a real possibility. According to
Eckardt, Germany has wanted to embark on European Space Agency
(ESA) projects in the past to help develop an indigenous
high-resolution EO competency, but were always outmaneuvered
by the French (Thales Alenia/Astrium-Toulouse) in the bidding
process, citing "financial subsidies from the French
government." In addition, Eckardt insinuated that
Astrium-Toulouse and Thales Alenia have taken pains to ensure
that sensitive EO technology stays in France. For these
reasons, as Eckardt explained, Germany has been pushed into a
corner by France and left little choice but to "go it alone
within the EU" if they wish to break from foreign dependence
on EO imagery - an apparent priority for the German
government.
3. (C)
Thomas Walati, Astrium-Friedrichshafen sales associate and DLR
consultant, echoed Eckardts sentiments in an Embassy meeting
on May 5, adding that Paris has directly instructed
Astrium-Friedrichshafen to stop the HiROS program. Walati said
that the French see HiROS as a direct competitor with
Pleiades, a French/Italian combination EO/radar commercial
satellite system scheduled for launch at the beginning of
2010. Walati said &the French are using all available
means8 to kill HiROS, speculating that their main weapon may
be an existing Memorandum of Understanding (MOU) between
France Thales and Astrium, establishing Thales as the prime
contractor for EO satellite payloads. In addition, Walati said
that the French-influenced Astrium firing/reassignment of
Astrium-Friedrichshafen employees is a common tactic the GoF
uses to ensure certain technologies stay within France.
FENDING OFF THE FRENCH
----------------------
4. (C)
Without going into details, Walati claimed that a German/US
cooperative agreement on HiROS would fend off the French
opposition. He stressed that the French seek to monopolize the
world market for commercial EO imagery and that a
German/American alliance on HiROS would be vital to ward off a
French EO commercial takeover.
FRANCE SWEETENS THE DEAL
------------------------
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5. (C)
Walati said Paris continues to "subsidize" French firms, bids
to sell French imagery and/or complete satellite systems and
are offering prospective customers "incentive packages." As an
example, Walati claimed that the French are poised to win a
bid to sell the United Arab Emirates (UAE) two 50-centimeter
resolution EO satellites, beating out a US contractor bid with
a complex "sweetened deal" that would involve deploying 1,000
French troops to the UAE. According to Walati, the French
troops would carry with them "defense equipment" that they
would simply "leave behind in the UAE" when they return to
France (NFI). Walati added that the French recently won a bid
to supply Kazakhstan firm, Kazakhstan Gharysh Sapary, with two
"earth-observation satellites" to be built by
Astrium-Toulouse/Thales) and are working on a similar deal
with the government of Turkey. He said the French are
targeting the US market next. Walati opined that Frances
recent re-engagement with NATO was part of a strategy to gain
increased market access for French satellite equipment and
derived data.
EFFECT ON THE EU DEFENSE SATELLITE CONSORTIUM "MUSIS"
-----------------------------------------------------
6. (C)
Germany,s development of an autonomous HiROS system could
reduce their need to participate in the Multinational
Space-Based Imaging System (MUSIS). In Walatis words, "if
HiROS goes though, the significance of MUSIS will vanish."
(COMMENT: MUSIS is an EU consortium including Germany, France,
Italy, Belgium, and Spain that is designed to share costs of
space assets and to combine space imagery competencies through
an imagery sharing agreement. END COMMENT) On the other hand,
Walati said that the French are huge supporters of MUSIS, as
it would further establish France as the primary supplier of
EO imagery to the EU. When asked how the French would view
HiROS development and its implications on MUSIS, Eckardt said
"As you know, the French already have a SAR system developed,
they just need to launch it."
DLR/ASTRIUM LOOKING TO THE US FOR POSSIBLE PARTNERSHIP
------------------------------------------------------
7. (C)
Eckardt and Dr. Cornelia Riess, DLR Head of International
Cooperation, said that DLR is pressing forward in Phase B of
the HiROS project and is looking toward US industry as a
potential partner. Eckardt and Walati said that the US is seen
as the only viable international partner for HiROS and
underscored their trust in the US, respect for Intellectual
Property Rights (IPR) as the deciding factor. According to a
DG official, DG is also interested in collaborative research
with DLR on HiROS product development, particularly in the
area of three-dimensional (3D) visualization. They envision
this as a way to augment DGs current and future generations of
EO constellations, WorldView-1 and WorldView-2. (COMMENT: 3D
visualization is a unique capability that DLR is developing,
processing three simultaneous look-angles from HiROS at the
same geographic location to create three dimensional images.
END COMMENT)
ASTRIUMS SALES PITCH TO THE U.S.
---------------------------------
8. (C)
If German/American cooperation can be worked out on HiROS,
Walati envisions that Astrium-Friedrichshafen/DLR would build
three satellites with a US company such as DG, purchasing an
additional three satellites with a price tag of about 100
million euro per satellite - to be delivered on orbit. Walati
then offered the possibility of combining these systems to
form a co-financed six-satellite constellation (to achieve
higher revisit rate), in which both countries would task their
own satellites but the imagery could be shared. Walati
extended this idea to include a similar German/American
collaboration procuring Infoterra (an Astrium-Friedrichshafen
subsidiary)- sourced SAR satellites. Walati said that any
satellite system the US would purchase from Germany would need
to be manufactured in Germany and emphasized that, unlike
France, Germany is open to using US
BERLIN 00000601 003 OF 003
components and not/not aiming for an International Traffic in
Arms Regulations (ITAR)-free design. Walati expressed a desire
to organize a meeting between DLR and USG officials in
Washington in June 2009 to discuss US equities/interest in: A)
Astrium SAR X- and L-band satellites, B) HiROS, and C) German
3D hardware/software products for use with EO and/or radar
data.
COMMENT
---------
9. (C)
Although HiROS is not yet a funded program,
Astrium-Friedrichshafen and DLR are aggressively marketing it
with the goal of a completed system by 2013 for two primary
reasons: to compete commercially with the French and to take
advantage of a one year overlap with Germanys TanDEM-X radar
mission (SEE REF A). Astrium and DLR realize that the 2013
schedule is ambitious and see a partnership with DG as a
logical, risk-mitigating step to speed development, control
cost, and secure financing. It is also notable that, although
many counties were considered for collaboration on HiROS, DLR
only felt comfortable reaching out to the US.
Koenig