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