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Cablegate: (S) Alerting China to Possible Missile-Related

VZCZCXYZ0026
PP RUEHWEB

DE RUEHC #9939 0321611
ZNY SSSSS ZZH
P 011605Z FEB 10
FM SECSTATE WASHDC
TO RUEHBJ/AMEMBASSY BEIJING PRIORITY 2747
INFO MISSILE TECHNOLOGY CONTROL REGIME COLLECTIVE PRIORITY
RUEHMO/AMEMBASSY MOSCOW PRIORITY 7036

S E C R E T STATE 009939

SIPDIS

E.O. 12958: DECL: 02/01/2035
TAGS: MTCRE PARM PREL MNUC ETTC KSCA IR CH
SUBJECT: (S) ALERTING CHINA TO POSSIBLE MISSILE-RELATED
EXPORT TO IRAN

Classified By: (U) CLASSIFIED BY EAP DAS DAVID B. SHEAR,
REASON: 1.4 (C).

1. (U) This is an action request. Embassy Beijing, please
see paragraph 3.

2. (S) Background/Objective: The U.S. has information
indicating that in December 2009, the Chinese company Hong
Kong 4 Star Electronics Ltd. offered to sell gyroscopes
produced by a Russian company to Iran's Isfahan Optics
Industries. Our information indicates that these gyroscopes
could be delivered to Iran in early February 2010 and that
Isfahan Optics Industries was coordinating this transaction
through an intermediary named Iran Business (IBco). Because
key missile development organizations in Iran previously have
attempted to procure similar gyroscopes, we are concerned
this equipment potentially could be diverted to
missile-related end-users. We therefore want to alert
Chinese officials to this information and ask that they
investigate this activity with a view to preventing Hong Kong
4 Star Electronics Ltd. from facilitating missile-related
exports to Iran.

3. (S) Action Request: Request Embassy Beijing 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 CHINA)

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

--The U.S. has information indicating that in December 2009,
Hong Kong 4 Star Electronics Ltd., a Chinese company based in
Futian, China, had offered to sell Iran's Isfahan Optics
Industries gyroscopes produced by a Russian company.

--Our information indicates that these gyroscopes could be
delivered to Iran in early February 2010 and that Isfahan
Optics Industries was coordinating this transaction through
an intermediary named Iran Business (IBco).

--We are bringing this matter to your attention to support
your export control efforts as we are concerned this
equipment potentially could be diverted to missile-related
end-users in Iran.

--We understand that the Aerospace Industries Organization
(AIO), which is responsible for overseeing all of Iran's
missile programs, has previously attempted to procure similar
gyroscopes.

--We hope you will use this information to investigate this
activity and take all appropriate measures to ensure that
Hong Kong 4 Star Electronics Ltd. is not facilitating
unauthorized exports of missile technology to Iran.

--We believe taking such action would be consistent with
United Nations Security Council Resolutions 1737 and 1803,
which require countries to prevent transfers of items to and
from Iran that could contribute to the development of nuclear
weapons delivery systems.

--We look forward to continued cooperation on missile
nonproliferation issues and to hearing of any actions your
government takes in response to this information.

End talking points/non-paper

5. (U) Washington POC is ISN/MTR James Mayes (Phone:
202-647-3185). Please slug any reporting on this issue for
ISN/MTR and EAP/CM.

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

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