08STATE101519
Secretary of State
SECRET
P 231627Z SEP 08
FM SECSTATE WASHDC
TO AMEMBASSY BERN PRIORITY
INFO MISSILE TECHNOLOGY CONTROL REGIME COLLECTIVE PRIORITY
S E C R E T STATE 101519
E.O. 12958: DECL: 09/22/2033
TAGS: PARM, MTCRE, PREL, MNUC, ETTC, SZ, MY, IR
SUBJECT: (S) MALAYSIAN-BASED SUPPLIER TO IRAN SEEKS CRYSTAL OSCILLATORS FROM SWISS FIRM
Classified By: ISN/MTR DIRECTOR PAM DURHAM
FOR REASONS 1.4 (B), (C), and (D).
1. (U) This is an action request. Embassy Bern, please see paragraph 3.
2. (S) Background/Objectives: The United States Government has information indicating that in April and again in mid-August 2008, the Malaysian-based procurement firm Evertop Services was working to acquire crystal oscillators from Switzerland’s Quartzcom AG on behalf of the Iranian firm Farezeh Tajhiz Gostar Co. Ltd. Evertop Services, although located in Malaysia, is an Iranian-run firm that has facilitated many transactions on behalf of Iranian end-users of proliferation concern, including entities affiliated with Iran’s ballistic missile and unmanned aerial vehicle programs. We want to share this information with Swiss officials in order to make them aware of Evertop’s history of procurement for Iranian end-users, and urge them to take action to prevent Quartzcom and other Swiss firms from acting as suppliers to Iranian end-users of concern via Evertop.
3. (S) Action Request: Request Embassy Bern approach appropriate Swiss authorities to deliver talking points/non-paper in paragraph 4 below and report response. Talking points also may be provided as a non-paper.
4. (S) Begin talking points/non-paper:
(SECRET//SWITZERLAND)
— We would like to raise with you a matter of proliferation concern and request your government’s assistance in investigating this activity.
— We have information indicating that in April 2008, the Malaysian-based firm Evertop Services ordered a large quantity of crystal oscillators from the Swiss firm Quartzcom AG on behalf of the Iranian firm Farezeh Tajhiz Gostar Co. Ltd.
— We understand that the complete order was valued at 62,000 euros, and that as of late June, it was ready for shipment to Iran.
— Although Evertop is based in Malaysia, it is an Iranian-run procurement firm, and has facilitated many transactions on behalf of Iranian end-users of concern, including entities affiliated with Iran’s unmanned aerial vehicle program and the Shahid Hemmat Industrial Group (SHIG – Iran’s primary liquid-propellant ballistic missile developer and an entity designated in the annex to UN Security Council Resolution 1737 for its involvement in Iran’s ballistic missile program).
— Farezeh Tajhiz Gostar Co. Ltd. is likely associated with Farezeh Equipment Distributor Company (FEDCO), the Iran-based parent company of Evertop.
— In addition to the order placed by Evertop in April, Quartzcom also provided Evertop with an offer for 3000 units of HC-49US-50H crystal oscillators in mid August.
— Crystal oscillators are common in the telecommunications, navigation, avionics, and precise measurement industries. While they have uses in ballistic missile and UAV programs, they are not controlled and are widely used in many commercial applications.
— We are bringing this information to your attention to alert you to Evertop’s history of procurement for Iranian end-users, and urge you to take all appropriate measures to ensure that Quartzcom and other Swiss firms are not working – even unwittingly – as suppliers for Iranian end-users of concern via Evertop.
— We look forward to hearing of any actions your government takes in response to this information.
End talking points/non-paper.
5. (U) Please contact ISN/MTR’s John Paul Herrmann with any questions or follow-up issues related to this case (202-647-1430 – herrmannjp@state.sgov.gov) and slug reporting on this issue for ISN/MTR.
6. (U) A word version file of this document will be posted at www.state.sgov.gov/demarche.
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