Last checked at 
(Updates with conservatives backing 5G position paper)
By Andreas Rinke
BERLIN, Feb 11 (Reuters) - Lawmakers from German Chancellor
Angela Merkel's ruling conservatives have backed a position
paper on 5G mobile networks that recommends tougher rules on
foreign vendors while stopping short of banning China's Huawei
, sources said.
The document was drafted by Christian Democrat leaders to
address the concerns of party rebels who see Huawei as a threat
to national security. It is intended to lay the ground for
Merkel's coalition government to adopt a common position on 5G
after months of divisive debate.
The move rebuffs U.S. President Donald Trump's calls on
Washington's allies to bar the Chinese telecoms giant from
next-generation networks after Britain stopped short of an
outright ban and the European Union backed a rules-based
approach.
Several party sources said on Tuesday that Christian
Democrat lawmakers had supported the four-page paper that,
instead of imposing any individual bans, sets out the principles
of a risk-management approach.
"State actors with sufficient resources can infiltrate the
network of any equipment maker," it said. "Even with
comprehensive technical checks, security risks cannot be
eliminated completely - they can at best be minimised.
"At the same time, we are not defenceless against attempts
to eavesdrop on 5G networks. The use of strong cryptography and
end-to-end encryption can secure confidentiality in
communication and the exchange of data."
Ironing out differences with a bloc of pro-American
lawmakers led by Norbert Roettgen, head of parliament's foreign
affairs committee, marks an important step towards building a
broader consensus in Merkel's ruling alliance with the Social
Democrats and across party lines.
It will also be important for Germany to present a coherent
position at a security conference in Munich this weekend that
will be attended by U.S. Secretary of State Mike Pompeo and
Chinese foreign minister Wang Yi.
HUAWEI DEPENDENCY
It would be costly and potentially risky for Germany,
Europe's largest economy, to exclude Huawei. Its three network
operators are all customers of the Chinese vendor and Berlin is
concerned that such a move might provoke trade retaliation by
Beijing.
With that in mind, the paper makes a clear distinction
between access, transport and core networks that are especially
sensitive, thus allowing different handling of Huawei components
in the various parts of the 5G network.
The paper suggests using products from several companies to
avoid a "monoculture", and calls for the concept of
trustworthiness to be anchored in proposed tweaks to Germany's
telecoms and IT security laws.
"Equipment makers can only be trusted if they verifiably
fulfil a clearly defined security catalogue that rules out any
influence from a foreign state on our 5G infrastructure," the
document says.
The draft would also give operators until 2025 to swap out
equipment from existing 4G networks that was supplied by vendors
who fail certification checks, a position that would mitigate
the cost to operators of ripping and replacing it.
The position paper also calls for Germany to push for a
wider European industrial policy to ensure that its own
companies can build all elements of internationally competitive
and secure 5G networks.
It pushed back against hostile foreign takeovers, in an
apparent reference to U.S. Attorney General William Barr's
recent call to invest in Swedish equipment maker Ericsson
or Finland's Nokia to gain a 5G foothold.
Ericsson CEO Borje Ekholm and Nokia's Rajeev Suri are due to
meet Merkel on Thursday, according to officials from the German
government and the companies.
(Writing by Madeline Chambers and Douglas Busvine; Editing by
Angus MacSwan and Alexandra Hudson)
