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


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