2008-12-23 14:20:00
08STATE133865
Secretary of State
SECRET
08STATE132055
VZCZCXRO3573
PP RUEHDE
DE RUEHC #3865/01 3581427
ZNY SSSSS ZZH
P R 231420Z DEC 08
FM SECSTATE WASHDC
TO RUEHAD/AMEMBASSY ABU DHABI PRIORITY 2944
INFO MISSILE TECHNOLOGY CONTROL REGIME COLLECTIVE
RUEHDE/AMCONSUL DUBAI 8236
S E C R E T SECTION 01 OF 02 STATE 133865
SIPDIS
E.O. 12958: DECL: 12/23/2033
TAGS: PARM, MTCRE, PREL, MNUC, ETTC, SZ, IR, AE
SUBJECT: UAE INTERMEDIARY USED TO DISGUISE IDENTITY OF IRANIAN END-USER FROM SWISS EXPORT OFFICIALS (S)
REF: STATE 132055
Classified By: ISN/MTR DIRECTOR PAM DURHAM FOR REASONS 1.4 (B), (C),
AND (D).
1. (U) This is an action request. Embassy Abu Dhabi, please see paragraph 4.
2. (S) Background: We have information indicating that as of early November 2008, the UAE-based firm Alkaen Equipment and Industrial Supplies LLC was working to provide Iran’s Farazeh Equipment Distributor Company (FEDCO) with a large quantity of products supplied by the Swiss firm Quartzcom Ltd. The equipment was flown from Switzerland to the UAE in late October/early November, and then transshipped by Alkaen to FEDCO in Iran. We believe that Alkaen was used in order to disguise from Swiss export control officials the fact that the goods were actually destined for an Iranian end-user. Although the items supplied to FEDCO are not controlled by any of the multilateral export control regimes and are widely used in commercial applications, they can also be used in ballistic missile and unmanned aerial vehicle (UAV) programs. FEDCO has acted as a supplier to entities affiliated with both Iran’s ballistic missile and UAV programs.
3. (S) Objectives: We want to advise UAE officials of Alkaen’s role in providing FEDCO with Swiss-origin items and request that they investigate and take measures to ensure that Alkaen ceases its activity on behalf of Iranian entities of proliferation concern.
4. (S) Action Request: Request Embassy Abu Dhabi approach appropriate UAE authorities to deliver talking points/non-paper in paragraph 5 below and report response. Talking points also may be provided as a non-paper. We are also sharing this information with Swiss officials (Ref).
5. (S) Begin talking points/non-paper: (SECRET//REL UAE)
— 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 as of early November 2008, the UAE-based firm Alkaen Equipment and Industrial Supplies LLC was working to provide Iran’s Farazeh Equipment Distributor Company (FEDCO) with approximately $150,000 worth of products – including crystal oscillators – supplied by the Swiss firm Quartzcom Ltd.
— This equipment was delivered by air from Switzerland to Alkaen in the UAE in late October/early November.
— Alkaen, in turn, transshipped the goods to FEDCO in Iran.
— We believe that Alkaen, the UAE intermediary, was used in order to disguise from Swiss export control officials the fact that the goods were actually destined for an Iranian end-user.
— Crystal oscillators are common in telecommunications, navigation, avionics, and precise measurement industries. They are not controlled and are widely used in many commercial applications.
— However, they can also be used in ballistic missile and unmanned aerial vehicle applications.
— FEDCO has supplied sensitive goods to entities affiliated with Iran’s ballistic missile and unmanned aerial vehicle program.
— We urge you to investigate this activity and take measures to ensure that Alkaen ceases its activity on behalf of Iranian entities of proliferation concern.
— We appreciate your support and look forward to hearing of any actions your government takes in response to this information.
— We are also discussing this matter with Swiss officials.
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