ITALY IMPOUNDS LIBYA-BOUND CARGO OF MORPHOLINE

S E C R E T ROME 000226 SIPDIS E.O. 12958: DECL: 01/17/2013 TAGS: PARM PREL IT BE LY GM IR MT UN SUBJECT: ITALY IMPOUNDS LIBYA-BOUND CARGO OF MORPHOLINE REF: A. FBIS EUP20030116000096 SECRET PAGE 02 ROME 00226 171900Z ¶B. FBIS EUP20030117000024 CLASSIFIED BY: POLITICAL-MINISTER COUNSELOR TOM COUNTRYMAN FOR REASONS 1.5 (B) AND (D) PLEASE SEE ACTION REQUEST IN PARA 6. ¶1. (S) THIS MESSAGE SUPPLEMENTS OFFICIAL GOI INFORMATION IN JANUARY 16-17 PRESS REPORTS THAT, IN DECEMBER, 2002, THE ITALIAN FINANCE POLICE (GUARDIA DI FINANZA/GDF) SEIZED IN THE PORT OF GENOA CONTAINERS CONTAINING THE CHEMICAL SUBSTANCE MORPHOLINE. ¶2. (S) EMBASSY LEGATT ON JANUARY 17 WAS TOLD BY THE ITALIAN NATIONAL POLICE (STRICTLY PROTECT) THAT ON DECEMBER 9, 2002 THE GDF STOPPED A SHIP IN THE PORT OF GENOA BECAUSE OF ITS SUSPICIOUS CARGO. THE SHIP, THE NORTH STAR, WAS OPERATING UNDER A MALTESE FLAG AND HAD BEEN RENTED BY THE ISLAMIC REPUBLIC OF IRAN SHIPPING LINES. THE NORTH STAR HAD MADE A STOP IN NAPLES, PRIOR TO TRAVELING TO GENOA WHERE IT WAS SCHEDULED TO OFFLOAD ITS CARGO. ¶3. (S) THE CARGO IN QUESTION WAS IDENTIFIED BY THE GDF AS MORPHOLINE AND WAS SHIPPED IN THREE LARGE CONTAINERS IDENTIFIED WITH THE FOLLOWING NUMBERS: IRSU-2197890, IRSU-2203837, AND IRSU-2261427. THE SUBSTANCE WAS PRODUCED IN GERMANY BY BASF AND SUBSEQUENTLY DISTRIBUTED BY A BELGIAN COMPANY THAT WAS IDENTIFIED AS SOLOMONT NV, BASED IN ANTWERP. SOLOMONT SOLD THE MORPHOLINE TO A LIBYAN ENTITY, IDENTIFIED AS JOWFE COMPANY, WHICH REPORTEDLY SPECIALIZES IN PETROLEUM SECRET PAGE 03 ROME 00226 171900Z TECHNOLOGY AND IS BASED IN BENGHAZI. ACCORDING TO THE NATIONAL POLICE, JOWFE IS INVOLVED IN THE MANUFACTURE OF CHEMICAL WEAPONS AND ITS DIRECTOR IS THE HEAD OF THE LIBYAN INTELLIGENCE SERVICE. ¶4. (C) ALSO ON JANUARY 17, POL-MIN COUNSELOR RAISED THE MORPHOLINE MATTER WITH MFA DEPUTY DIRECTOR-GENERAL FOR MIDDLE EAST AFFAIRS, FRANCESCO CERULLI. CERULLI SAID THAT HIS DG, ANTONIO BADINI, WAS KEENLY CONCERNED ABOUT SUCH SHIPMENTS AND ON JANUARY 16 HAD ALREADY RAISED THE GENOA SEIZURE WITH THE LIBYAN AMBASSADOR TO ITALY, ABDUL ATI AL-OBEIDI. AL-OBEIDI HAD NO SPECIFIC REACTION. ¶5. (S) COMMENT. CUSTOMS ROME IS FOLLOWING UP WITH THE GDF, THE LEAD ITALIAN AGENCY ON THIS CASE, IN AN ATTEMPT TO ACQUIRE FURTHER INFORMATION, WHICH EMBASSY WILL REPORT SEPTEL. THE INFORMATION CONTAINED IN THIS MESSAGE WAS OBTAINED FROM THE ITALIAN POLICE WITHOUT THE KNOWLEDGE OF GENOA-BASED PROSECUTORS WHO ARE INVESTIGATING THE CASE, AND THEREFORE SHOULD BE STRICTLY PROTECTED. END COMMENT. ¶6. (C) ACTION REQUEST: EMBASSY WOULD APPRECIATE WASHINGTON'S ANALYSIS FOR SHARING WITH THE GOI OF HOW MORPHOLINE MIGHT BE APPLICABLE TO WHAT WE KNOW ABOUT LIBYA'S CHEMICAL WEAPONS PROGRAM. SEMBLER SECRET > 2003ROME00226 - Classification: SECRET