(S) SPAIN: SHIELD S59A-03: EMBASSY MEETING ON

S E C R E T MADRID 004374 SIPDIS FOR NP/CBM AND EUR/WE E.O. 12958: DECL: 11/10/2014 TAGS: PARM PREL ETTC SP CBW SUBJECT: (S) SPAIN: SHIELD S59A-03: EMBASSY MEETING ON TELSTAR WITH SPANISH FOREIGN MINISTRY REF: STATE 233405 Classified By: KATHLEEN M. FITZPATRICK, POLITICAL COUNSELOR. REASONS 1.4 (B) & (D) ¶1. (U) This is an action message. Please see paragraph 3. ¶2. (S) Poloffs delivered non-paper providing additional information on Telstar on November 10 to the Spanish Foreign Ministry's director general for international economic relations, Javier Hergueta. Hergueta said Telstar is willing to cooperate fully with the USG to have sanctions removed. He expressed concern, however, that the report was inaccurate. He explained that Telstar did sell the freeze dryer and spare parts to Iran. However, according to Hergueta, the transaction occurred in January 2003 (not January 2004 as stated in the non-paper) before the Iranian end-user was known as Exir Pharmaceuticals and before the EU passed legislation that defined the transferred equipment as dual use goods subject to export licensing restrictions. Hergueta reiterated Telstar's willingness to halt future transfers of its goods to Iran, and to otherwise cooperate as necessary to have the USG sanctions removed. He proposed to set up a meeting between Emboffs, MFA officials, and Telstar representatives to discuss this case in greater detail. ¶3. (S) Action request: Embassy understands this case is being discussed between NP and Spanish embassy officials in Washington for possible review by an interagency group. We seek Department's guidance as to whether a meeting in Madrid between Emboffs, MFA officials and Telstar is desirable. End comment. ARGYROS