MTAG 05-96: IMMINENT MISSILE-RELATED TRANSFER

S E C R E T ROME 001502 SIPDIS FOR NP/CBM E.O. 12958: DECL: 04/08/2013 TAGS: KSCA PARM PREL ETTC IT IR UK EXPORT CONTROLS SUBJECT: MTAG 05-96: IMMINENT MISSILE-RELATED TRANSFER BETWEEN ITALIAN FIRM AND IRAN (S) REF: SECSTATE 88280 CLASSIFIED BY: ECONOMIC COUNSELOR KAREN MILLIKEN REASONS 1.5 (B) AND (D ) ¶1. (S) ECONOFF AND UK EMBASSY POLITICAL OFFICER NICK HOPTON DELIVERED REFTEL MESSAGE TO MFA EXPORT CONTROL COORDINATOR UGO DE MOHR ON APRIL 8. OUR MEETING FOLLOWED THE APRIL 7 MEETING BETWEEN UK EMBASSY DCM SCOTT WIGHTMAN WITH THE PM'S DEPUTY DIPLOMATIC ADVISOR GIANPAOLO SCARANTE ON THE SAME ISSUE (WIGHTMAN TOLD US HE ACTED AT HMG INSTRUCTIONS, BEFORE WE ALERTED HIM TO OUR INTEREST IN PRESENTING THE DEMARCHE JOINTLY). DE MOHR HAD ALREADY SPOKEN WITH SCARANTE ABOUT THE CASE, AND HE TOLD US THAT HE HAS BEEN IN TOUCH WITH THE MINISTRY OF PRODUCTIVE ACTIVITIES (WHICH ISSUES ALL EXPORT LICENSES) TO CONVEY OUR CONCERNS, TO SEEK A STATUS REPORT ON THE LICENSE APPLICATION (HE WAS NOT CERTAIN THE LICENSE HAD BEEN ISSUED YET),AND, IF A LICENSE HAD BEEN ISSUED, THE STATUS OF THE SHIPMENT FROM ITALIAN CUSTOMS OFFICIALS. DE MOHR STRESSED THAT THE GOI WOULD DO WHAT IT COULD TO IMPEDE THE SHIPMENT, THOUGH HE NOTED THAT DOING SO COULD BE DIFFICULT LEGALLY IF THE LICENSE HAD ALREADY BEEN ISSUED. ¶2. (S) DE MOHR FURTHER TOLD US THAT THE PROPOSED EXPORT FIRST CAME TO THE MFA'S ATTENTION APPROXIMATELY THREE MONTHS AGO, WHEN THE MINISTRY OF DEFENSE SUBMITTED IT FOR REVIEW BY THE GOI INTERAGENCY EXPORT CONTROL ADVISORY COMMITTEE CHAIRED BY DE MOHR. ALTHOUGH THE CLIMATIC TEST CHAMBERS ARE NOT INCLUDED ON THE MTCR CONTROLLED LIST, THE MOD BELIEVED THAT SUCH A SHIPMENT TO IRAN WARRANTED ADDITIONAL SCRUTINY UNDER THE CATCH-ALL PROVISION OF THE EU'S EXPORT CONTROL LAW. THE EXPORT CONTROL COMMITTEE'S CONSIDERATION OF THE PROPOSED EXPORT TURNED UP NO COMPELLING INFORMATION TO DENY A REQUEST, SAID DE MOHR, WHO ADDED THAT THE COMMITTEE WAS UNAWARE OF ANY PREVIOUS DENIALS BY ITALY'S MTCR PARTNERS TO THE IRANIAN ENTITY SAFETY EQUIPMENT PROCUREMENT (SEP) INCORPORATED. DE MOHR ADDED THAT HE DID NOT RECALL THE U.S. PAPER PRESENTED AT THE 2002 MTCR PLENARY THAT IDENTIFIED SEP AS A FRONT COMPANY FOR THE IRANIAN MISSILE PROGRAM. ¶3. (S) ECONOFF ALSO LEFT COPIES OF REFTEL MESSAGE WITH THE MFA'S IRAN DESK OFFICER FEDERICA FERRARI BRAVO AND WITH NONPROLIFERATION AND ARMS CONTROL OFFICE DIRECTOR ALESSANDRO CEVESE. SEMBLER NNNN 2003ROME01502 - Classification: SECRET