2009-11-06 22:07:00
09STATE115194
Secretary of State
SECRET
08BERN514|08BERN594|08STATE101519|08STATE122304|08STATE132055|09BERN118|09BERN59
VZCZCXYZ0006
PP RUEHWEB
DE RUEHC #5194 3102211
ZNY SSSSS ZZH
P R 062207Z NOV 09
FM SECSTATE WASHDC
TO RUEHSW/AMEMBASSY BERN PRIORITY 0000
INFO MISSILE TECHNOLOGY CONTROL REGIME COLLECTIVE
RUEHDM/AMEMBASSY DAMASCUS 0000
S E C R E T STATE 115194
SIPDIS
E.O. 12958: DECL: 11/06/2034
TAGS: MTCRE, PARM, PREL, MNUC, ETTC, KSCA, SZ, SY
SUBJECT: SWISS FIRM PREVIOUSLY CONDUCTING BUSINESS WITH IRANIAN FRONT COMPANIES NOW ENGAGED WITH SYRIAN ENTITY OF PROLIFERATION CONCERN (S)
REF: A. 08 STATE 101519
B. 08 BERN 000514
C. 08 STATE 122304
D. 08 BERN 000594
E. 08 STATE 132055
F. BERN 000059
G. BERN 000118
Classified By: ISN/MTR DIRECTOR PAM DURHAM FOR REASON 1.4 (C).
1. (U) This is an action request. Embassy Bern, please see paragraph 4.
2. (S) Background: On several occasions in 2008 and 2009, wediscussed with Swiss officials efforts directed by the Iranianprocurement entity FEDCO to procure crystal oscillators fromthe Swiss firm Quartzcom (Refs). These efforts included theuse of FEDCO front companies in Malaysia and the UAE, and alsoinvolved discussions between Quartzcom and FEDCO aimed atevading Swiss export laws. In response to our concerns, Swissofficials investigated the information we provided and metwith Quartzcom’s management, who pledged to abandon all of thefirm’s Iran-related activities.
3. (S) Objectives: We now want to advise the GOS of newinformation indicating that as of September 2009, Quartzcomhad received an order for quartz oscillators from the Syrianfirm Business Lab. We have concerns that any items Quartzcomships to Business Lab may be diverted to Syria’s ScientificStudies and Research Center (SSRC), the agency responsible foroverseeing Syria’s WMD and missile programs. We want to sharethis information with Swiss officials and urge them toinvestigate and take measures to ensure that Quartzcom is notacting as a supplier to Syrian entities of proliferationconcern.
4. (S) Action Request: Request Embassy Bern approachappropriate host government officials to deliver talkingpoints/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 alert you to information of proliferationconcern and request your assistance in investigating thisactivity.
— On several occasions in 2008 and 2009, we discussed withyou Iranian efforts to procure crystal oscillators from theSwiss firm Quartzcom.
— These efforts were directed by the Iranian procurement firmFarazeh Equipment Distributor Company (FEDCO) and involved theuse of the Malaysia-based front company Evertop Services andthe UAE-based front company Alkaen Equipment and IndustrialSupplies LLC.
— We also advised you that it appeared that Quartzcom andFEDCO were exploring ways of getting around Swiss export laws.
— In March 2009, we were pleased to learn that you had metwith Quartzcom’s management, who said that Quartzcom wouldabandon all of its Iran-related activities.
— We now have additional information we would like to sharewith you related to Quartzcom’s trading activities.
— Specifically, we understand that as of late September 2009,the Syrian firm Business Lab had ordered quartz oscillatorsfrom Quartzcom.
— While these items are not controlled by the MissileTechnology Control Regime (MTCR), Quartzcom’s trade withBusiness Lab is of concern to us.
— We are concerned that these items may be diverted toSyria’s Scientific Studies and Research Center (SSRC).
— As you will recall from MTCR Information Exchange meetings,SSRC is the agency responsible for overseeing Syria’s WMD andmissile programs.
— We urge you to investigate this latest information and totake all appropriate measures to ensure that Quartzcom is notacting as a supplier to entities affiliated with Syria’s WMDor ballistic missile programs
— We look forward to continuing our excellent cooperation onnonproliferation matters and to hearing of any updates on theprogress of your investigation of this case.
End talking points/non-paper
6. (U) U) Washington POC is ISN/MTR John Paul Herrmann(Phone: 202-647-1430). Please slug any reporting on thisissue for ISN/MTR and EUR/CE.
7. (U) A word version of this document will be posted atwww.state.sgov.gov/demarche.
CLINTON