SWISS FIRM CONTINUES EFFORTS TO PROVIDE CRYSTAL OSCILLATORS TO MALAYSIAN-BASED SUPPLIER TO IRANIAN ENTITIES OF PROLIFERATION CONCERN

2008-11-17 17:05:00

08STATE121841

Secretary of State

SECRET

08BERN514|08STATE101519

VZCZCXYZ0006
PP RUEHWEB

DE RUEHC #1841 3221715
ZNY SSSSS ZZH
P R 171705Z NOV 08
FM SECSTATE WASHDC
TO RUEHRL/AMEMBASSY BERLIN PRIORITY 8116
INFO MISSILE TECHNOLOGY CONTROL REGIME COLLECTIVE
RUEHKL/AMEMBASSY KUALA LUMPUR 0190

S E C R E T STATE 121841

SIPDIS

E.O. 12958: DECL: 11/17/2033
TAGS: PARM, MTCRE, PREL, MNUC, ETTC, SZ, MY, IR

SUBJECT: SWISS FIRM CONTINUES EFFORTS TO PROVIDE CRYSTAL OSCILLATORS TO MALAYSIAN-BASED SUPPLIER TO IRANIAN ENTITIES OF PROLIFERATION CONCERN (S)

REF: A. STATE 101519
B. BERN 514

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 4.

2. (S) Background: In late September, we informed the Swiss government that 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. (Ref A). In response, Swiss authorities advised us that they had temporarily halted a shipment of 3,000 crystal oscillators that Quartzcom was preparing for shipment to Evertop, and that an investigation was underway (Ref B). 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.

3. (S) We now want to share with GOS officials additional information indicating that in mid-late 2008, Quartzcom and Evertop were considering the use of another Asian intermediary or shipping address in Malaysia in order to circumvent Swiss export controls. We believe Quartzcom and Evertop were reacting to restrictions the Swiss government recently put in place on sales to Evertop.

4. (S) Action Request: Request Embassy Bern approach appropriate Swiss authorities to deliver talking points/non-paper in paragraph 5 below and report response. Talking points also may be provided as a non-paper.

5. (S) Begin talking points/non-paper:  (SECRET//REL SWITZERLAND)

— We would like to raise with you a matter of proliferation concern and request your government’s assistance in investigating this activity.

— We recently discussed with you information indicating that the Malaysian-based, Iranian-run procurement firm Evertop Services Sdn Bhd had sought a large quantity of crystal oscillators from the Swiss firm Quartzcom AG on behalf of the Iranian firm Farezeh Tajhiz Gostar Co. Ltd.

— In response, you advised us that you had temporarily halted a shipment of crystal oscillators that Quartzcom AG was preparing for shipment to Evertop, and that an investigation was underway.

— We now want to share with you additional information related to this case.

— We understand that in mid-late 2008, Quartzcom and Evertop were exploring the use of another Asian intermediary or shipping address in Malaysia to circumvent Swiss export controls – probably as a result of restrictions the Swiss government recently put in place on sales to Evertop.

— We greatly appreciate your continued support and look forward to hearing of any actions your government takes in response to this information.
End talking points/non-paper.

6. (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.

7. (U) A word version file of this document will be posted at www.state.sgov.gov/demarche.

RICE

http://www.letemps.ch/cables?id=08STATE121841

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