E.O. 13382 ENTITIES -- EXAMPLES OF PROLIFERATION

S E C R E T STATE 152914 SIPDIS E.O. 12958: DECL: UPON KOREAN REUNIFICATION TAGS: PARM KNNP PREL PGOV KN CH SUBJECT: E.O. 13382 ENTITIES -- EXAMPLES OF PROLIFERATION REF: A. STATE 136495 ¶B. TOKYO 005042 ¶C. TOKYO 004802 ¶D. STATE 149071 ¶E. TOKYO 5211 ¶F. TOKYO 5212 Classified By: CLASSIFIED BY ACTING ISN A/S FRANK RECORD, REASONS: 1.4(B/D) ¶1. (U) Action request: Department requests that Post deliver the text in paragraph 3 to appropriate host-country officials. The text in paragraph 3 should be left as a non-paper. End action request. ¶2. (U) Background: The GOJ is planning to take additional measures to implement UNSCR 1695 on September 19, 2006. Japan will apply sanctions against the 12 entities and one individual designated under E.O. 13382. Australia is considering taking the same action soon thereafter. Japan and Australia requested further information about the 13 entities designated in E.O. 13382. ISN/CPI provided the Japanese Embassy in Washington the non-paper in ref D on September 8. Japan then requested more detailed information be downgraded from classified material to provide legal justification for its sanctions measures. Australia requested the same information in meetings here in Washington, which is provided below. End background. ¶3. (S/REL JAPAN and AUSTRALIA) Begin points/non-paper for Japan and Australia: E.O. 13382 ENTITIES: EXAMPLES OF INVOLVEMENT IN PROLIFERATION KOMID -- KOMID has dealt in the past with Iran's Shahid Hemmat Industrial Group (SHIG),an entity also designated under E.O. 13382, which is responsible for Iran's liquid-fueled missile development. -- KOMID is a North Korean arms dealer involved in the sale of missiles, advanced conventional weapons. HESONG TRADING CORPORATION -- North Korea's Hesong Trading Corporation is associated with KOMID and maintained a bank account at Tanchon Commercial Bank in late June 2005. -- In early January 2004, Iran's P.C. Company, an Iranian government controlled entity, directed that a payment of approximately $9.5 million be made to North Korea's Hesong Trading Corporation. The funds were deposited in an account held by Tanchon and were probably related to North Korean weapons sales to Iran. TOSONG TECHNOLOGY TRADING CORPORATION -- The North Korean weapons trading firm Changgwang Sinyong Corporation ("KOMID"),using the name Tosong Technology Trading Corp., contracted with a Taiwan firm in March 2000 for likely dual-use precision machine tools. Tosong and the Taiwan firm have worked together since June 1999 to provide precision machine tools to North Korea. -- Pyongyang's Changgwang Credit Bank (another name for Tanchon Commercial Bank) instructed Sanaa's Yemen Commercial Bank (YCB) in late January 2003 to make several payments to KOMID representatives in Yemen. These payments are almost certainly related to a string of possibly missile-related payments from Yemen to North Korea occurring around the same time frame. All three payments were made by Tanchon on behalf of Korea Tosong Technology Corporation, another name for the former 3rd Bureau of KOMID. TANCHON COMMERCIAL BANK -- Tanchon Commercial Bank provides financial services for KOMID and other entities designated under E.O. 13382. Please refer to the examples provided in this non-paper for Hesong Trading Corporation, Tosong Technology Trading Corporation, and Korea Complex Equipment Import Corporation for specific transactions. KOREA RYONBONG GENERAL CORPORATION -- North Korea's Hyoksin Trading Corporation urgently sought carboxyl-terminated polybutadiene (CTPB),a solid propellant-related chemical, from North Korea's Korea Ryonbong General Corporation office in Russia. The CTPB requested is of sufficient quality and quantity to test as a solid rocket propellant. According to the Missile Technology Control Regime (MTCR) Annex, CTPB has applications as a binder in solid propellants and is restricted under Category II, Item 4(e). CTPB also has applications in the production of smaller solid rocket motors used to launch unmanned aerial vehicles (UAVs) and cruise missiles. -- Also in mid-March and early April, North Korea's Hyoksin Trading Corp urgently sought "butyral film (bonding agent)" from North Korea's Ryonbong office in Russia. According to the MTCR Annex, bonding agents are used to polymerize propellants (bond the oxidizer) for solid rocket motors. Also some bonding agents can be used as curing agents or crosslinkers with CTPB. -- Korea Hyoksin Trading Corporation is a subsidiary of the Ryonbong General Corporation. Ryonbong is the trading arm of the External Economic General Bureau of the Second Economic Committee, the Party organization that operates North Korea's military supplies industry. KOREA COMPLEX EQUIPMENT IMPORT CORPORATION -- North Korea's Changgwang Credit Bank (another name for Tanchon Commercial Bank) opened a letter of credit on behalf of Korea Complex Equipment Import Corporation (KCEIC) on 12 April 2001, for the benefit of Rosoboronexport, Russia's primary arms exporter. KCEIC is a subsidiary of Ryonbong General Trading Corporation, which is subordinate to the External Economic General Bureau of the Second Economic Committee, which oversees all aspects of North Korea's defense industry. The letter of credit was opened for the North Korean purchase of probably military aviation-related equipment dealing with North Korean production of the 9-13L, a variant of the MIG-29, and the supply of tooling for production. KOREA KWANGSONG TRADING CORPORATION -- The Korea Kwangsong Trading Corporation purchased dual-use Australia Group-controlled chemical sodium fluoride (NaF) in April 2003 from a Chinese import and export company. In addition to its commercial uses, sodium fluoride can be used to form G-series nerve agents and in the purification of uranium fluoride (UF6). Korea Kwangsong was also interested in acquiring magnesium fluoride, aluminum fluoride, carbon block, powdered cryolite, anode material, and wire rope. -- Korea Kwangsong Trading Corporation is a subsidiary of Korea Ryonbong General Corporation, which is the trading arm of the External Economic General Bureau. The General Bureau, in turn, is subordinate to the Second Economic Committee of the Central Committee (SEC) of the Workers' Party of Korea (KWPCC) that operates North Korea's military supplies industry. Ryongbong and Kwangsong share the same address at Pulgu'ngo'ri-2 Dong, Pot'onggang District, Pyongyang. KOREA PUGANG TRADING CORPORATION ("PUGANG") -- Pyongyang's Koryo Commercial Bank paid approximately $570,000 to Korea Pugang Trading Corporation via the Pof Wah Cantt branch of Habib Bank Ltd in late December 2001. Pugang is subordinate to Korea Ryonbong Corporation. Ryonbong is subordinate to the External Economic General Bureau of the Second Economic Committee, which oversees North Korea's military supplies industries. The payment was to be made to Koryo's account with Banco Delta Asia, Macau. KOREA RYONGWANG TRADING CORPORATION (a.k.a. KOREA RYENGWANG TRADING CORPORATION) and KOREA RYONHA MACHINERY JOINT VENTURE CORPORATION -- The North Korean-flagged cargo vessel "Dae Song 126" loaded machine tools and accessories in Taiwan for delivery to North Korea's Ryonha Machinery Joint Venture Corporation in mid-May 2004. Ryonha is a subsidiary of the Korea Ryengwang Trading Corporation, which is a subsidiary of the Korea Ryonbong General Corporation. Ryonbong is the trading arm of the External Economic General Bureau of the Second Economic Committee, which oversees North Korea's military supplies industries. KOREA INTERNATIONAL CHEMICAL JOINT VENTURE COMPANY -- This entity was designated because it is a subsidiary company of Korea Ryonbong General Corporation, named in the annex of E.O. 13382. Please see the Nuclear Threat Initiative's Profile of North Korea's nuclear facilities at www.nti.org/e research/profiles/NK/45 522.html for information linking this entity to North Korea's nuclear program. KOHAS AG and JAKOB STEIGER -- Kohas AG is an industrial supply wholesaler located in Switzerland, Kohas and Jakob Steiger, the president of Kohas, were designated under E.O. 13382 as a result of Kohas's ties to Korea Ryonbong General Corporation. We refer back to the examples of Ryonbong's activities. End points for Japan and Australia. ¶5. (U) ISN appreciates Posts' assistance. Please slug responses for EAP/K and ISN/CPI. RICE NNNN