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Cablegate: Iran's Shig Using Intermediaries in Effort To

VZCZCXYZ0012
PP RUEHWEB

DE RUEHC #2950 3351728
ZNY SSSSS ZZH
P R 011724Z DEC 09
FM SECSTATE WASHDC
TO AMEMBASSY BERLIN PRIORITY 0000
INFO MISSILE TECHNOLOGY CONTROL REGIME COLLECTIVE

S E C R E T STATE 122950

SIPDIS

E.O. 12958: DECL: 12/01/2034
TAGS: MTCRE PARM PREL MNUC ETTC KSCA GE IR
SUBJECT: IRAN'S SHIG USING INTERMEDIARIES IN EFFORT TO
PROCURE TEST EQUIPMENT FROM GERMAN FIRMS (S)

REF: A. 2008 STATE 029412 AND PREVIOUS
B. 2008 BERLIN 000372
C. 2008 BERLIN 000637
D. STATE 019370 AND PREVIOUS
E. BERLIN 000263
F. BERLIN 000542

Classified By: ISN/MTR DIRECTOR PAM DURHAM FOR REASON 1.4 (C).

1. (U) This is an action request. Embassy Berlin, please see
paragraph 4.

2. (S) Background and Objective: We want to advise German
officials of information indicating that as of June 2009, two
Iranian intermediary firms offered test equipment manufactured
by the German firms Rohde & Schwarz and Hottinger Baldwin
Messtechnik (HBM) to Iran's primary developer of liquid-fueled
ballistic missiles, the Shahid Hemmat Industrial Group
(SHIG).
While this equipment is not controlled by the Missile
Technology Control Regime (MTCR), it could be used in
ballistic missile testing applications. Moreover, SHIG made
specific requests for items manufactured by Rohde & Schwarz
and HBM, and goods produced by the two firms were the targets
of previous, long-running procurement efforts by SHIG and the
Iranian procurement network Farazeh Equipment Distributor
Company (FEDCO, which may have been acting on behalf of SHIG)
(Refs). In both cases, German officials investigated the
information we provided and sensitized the firms to their
concerns. (Note: In the HBM case, the company reported that
it did receive a request from Evertop Services (a FEDCO
affiliate), but that the request was rejected. End note.) We
want to share this new information with German officials and
encourage them to continue their efforts to prevent SHIG or
other Iranian entities of proliferation concern from procuring
sensitive items from Rohde & Schwarz and HBM.

3. Action Request: Request Embassy Berlin approach
appropriate host government officials 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//REL GERMANY)

-- We would like to alert you to information of proliferation
concern and request your assistance in investigating this
activity.

-- Between 2007 and 2009, we discussed with you on numerous
occasions information indicating that Iranian entities of
proliferation concern were seeking equipment manufactured by
the German firms Rohde & Schwarz and Hottinger Baldwin
Messtechnik (HBM).

-- Specifically, we advised you that the Shahid Hemmat
Industrial Group (SHIG, Iran's primary developer of liquid
fueled ballistic missiles) and entities affiliated with the
Farazeh Equipment Distributor Company (FEDCO) were engaged in
efforts to procure Rohde & Schwarz and HBM equipment.

-- We were pleased to subsequently hear that German officials
had sensitized representatives of both firms to proliferation
concerns related to SHIG and FEDCO, and that HBM had rejected
a request from Evertop Services, an entity affiliated with
FEDCO.

-- We now want to share with you related information
indicating that as of June 2009, SHIG was seeking test
equipment via Iranian intermediaries from both Rohde & Schwarz
and HBM.

-- Specifically, we understand that the Tehran-based Heydari
Ofogh Sanat Anvar Company offered SHIG an ESIB model
electromagnetic interference test receiver and spectrum
analyzer manufactured by Rohde & Schwarz.

-- We also understand that the Iranian company Hamim
Commercial offered SHIG pressure transducers and other
equipment produced by HBM.

-- While this equipment is not controlled by the Missile
Technology Control Regime (MTCR), it could be used in
ballistic missile testing applications.

-- We do not know if the Iranian intermediaries are already in
possession of the Rohde & Schwarz and HBM equipment, but
wanted to make you aware of the fact that Iran's missile
program made specific requests for items manufactured by these
German firms.

-- We also want to reiterate that SHIG often conducts its
business through front companies and middlemen posing as end
users.

-- Given SHIG's interest in this equipment and the previous
Iranian efforts to acquire Rohde & Schwarz and HBM equipment,
we wanted to share this latest information with you, and urge
you to continue your work to prevent these firms from acting,
even unwittingly, as suppliers to SHIG and other Iranian
entities of proliferation concern.

-- We look forward to continuing our excellent cooperation on
nonproliferation matters and to hearing of any updates related
to this case.

5. (U) Washington POC is ISN/MTR John Paul Herrmann (Phone:
202-647-1430). Please slug any reporting on this issue for
ISN/MTR, EUR/CE, and EUR/PRA.

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

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