Identifier
Created
Classification
Origin
04MADRID4197
2004-11-02 15:13:00
SECRET
Embassy Madrid
Cable title:  

SPAIN: BRIEFING ON IRAN PROCUREMENT ATTEMPTS IN

Tags:  PARM PREL MASS MOPS PINR IR SP 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
S E C R E T SECTION 01 OF 02 MADRID 004197 

SIPDIS

FOR EUR/PRA, EUR/WE

E.O. 12958: DECL: 11/25/2014
TAGS: PARM PREL MASS MOPS PINR IR SP
SUBJECT: SPAIN: BRIEFING ON IRAN PROCUREMENT ATTEMPTS IN
EUROPE

REF: A. MADRID 03446

B. MADRID 02800

Classified By: Kathleen Fitzpatrick, Political Counselor,
Reasons 1.4. (B) & (D)

S E C R E T SECTION 01 OF 02 MADRID 004197

SIPDIS

FOR EUR/PRA, EUR/WE

E.O. 12958: DECL: 11/25/2014
TAGS: PARM PREL MASS MOPS PINR IR SP
SUBJECT: SPAIN: BRIEFING ON IRAN PROCUREMENT ATTEMPTS IN
EUROPE

REF: A. MADRID 03446

B. MADRID 02800

Classified By: Kathleen Fitzpatrick, Political Counselor,
Reasons 1.4. (B) & (D)


1. (S) SUMMARY: Dr. Thomas Zarzecki of INR/SPM, accompanied
by poloff, provided an intelligence briefing to an
interagency GOS audience on October 25 on arms procurement
attempts in European countries by state sponsors of
terrorism, especially Iran. The well-received briefing
sparked discussion about joint US-Spanish non-proliferation
efforts and the problems posed by brokers using Spain as a
transshipment point. In side meetings, GOS officials raised
specific questions about the Spanish entity Telstar, and we
stressed the need to further investigate the activities of
Izar Construcciones in providing military equipment to Iran.
END SUMMARY.


2. (C) Poloff and Dr. Zarzecki met with an interagency GOS
delegation composed of MFA Deputy Director General of
International Disarmament Affairs Marcos Rodriguez Cantero
and his assistant Luis Gomez Nogueira; Director General of
International Economic Relations Javier Hergueta Garcia;
Ministry of Interior Commissioner General for Information
Jesus Lira Calvo; Ministry of Defense officials Maria Jose
Mateo, Raphael Lopez, and Jose Quevedo Ruiz; and Ministry of
Industry, Tourism, and Trade Deputy Director General of
Nuclear Energy Ana Belen Manzano Negro.


3. (S) Poloff began by noting that the briefing followed a
discussion of the issue by Secretary Powell and Foreign
Minister Moratinos earlier this year, and underlined USG's
desire to frame specific recent proliferation cases that the
USG had raised with the GOS within the context of our
understanding of Iran's overall European arms procurement
efforts. The briefing covered the consistent efforts by Iran
and other state sponsors of terrorism to acquire military and
dual-use equipment in Spain and other European countries
(NOTE: This was a slightly modified version of the briefing
that Zarzecki provided to Italian government officials in

March 2004. END NOTE.)


4. (S) The briefing was well received by GOS officials.
Deputy DG Rodriguez stated that Spain's existing control
regime for military goods was sufficiently strong to prevent
any such Iranian purchase efforts. He noted that controlling
dual-use items was more problematic. The GOS had recently
approved a catchall regulation in Spain's new export control
laws that would assist GOS efforts in this area. MOD
official Lopez reiterated Rodriguez, sentiment, and he and
Quevedo noted that some of the military goods under
discussion were US-origin items transshipped through Spain to
Iran and other destinations. Poloff and Dr. Zarzecki agreed
that the GOS and USG needed to work together to stem the flow
of US-origin items transshipped through Spain (as in the case
of the Spanish firm Winter Aircraft Products, which has
brokered US-origin fighter aircraft spare parts to Iran in
the past),but that most of the items mentioned in the
briefing and in past demarches were of Spanish-origin and not
sourced in the US. While the overall issue of Spain as a
transshipment country was undoubtedly important, the focus of
the current briefing was on the activities of firms,
particularly Izar, that were conducting business on Spanish
soil.


5. (S) Before and after the briefing, Zarzecki had two
pull-asides with GOS officials. DG Hergueta raised the issue
of USG sanctions recently imposed on the Spanish firm Telstar
under the Iran Non-Proliferation Act, asking the USG to
identify the specific equipment exported by Telstar that
triggered the sanctions. He said the GOS was eager to
resolve this issue, noting that Telstar had a good reputation
in the GOS for obeying export control regulations and was
happy to cooperate in the further investigation of this case.
He also noted that Telstar's business in the US would be
hurt by the sanctions and that any violations of export
controls by Telstar were likely inadvertent. We agreed to
work with GOS on the case and provide the requested
information as soon as possible.


6. (S) In a side meeting, Zarzecki also underlined to MOD
official Lopez USG concerns regarding Izar's activities with
Iran. Zarzecki noted that the previously-shared information
on the travel of an Izar delegation to Iran in January 2004
to negotiate military sales indicated serious intent on the
part of the firm, and required further investigation (ref A
and B)--a request which Lopez took seriously.


7. (S) COMMENT: The intelligence briefing seemed to open the
door to further exchanges with GOS officials on specific
non-proliferation matters, and underlined USG interest in
preventing Iranian military and dual-use procurements.
Embassy plans to follow-up on several specific cases:
providing GOS with releasable information when received from
Washington on Telstar information; receiving a GOS update on
the status of their investigation into Winter Aircraft
Products (ref A); and, as necessary, continued engagement on
Izar's relationship with Iran. END COMMENT


8. (C) Zarzecki has cleared on this cable.
ARGYROS