Identifier
Created
Classification
Origin
06STATE95206
2006-06-12 21:59:00
SECRET//NOFORN
Secretary of State
Cable title:  

E.O. 13382 DESIGNATIONS OF FOUR CHINESE ENTITIES

Tags:  PARM PREL ETTC EFIN PGOV CH 
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O R 122159Z JUN 06
FM SECSTATE WASHDC
TO AMEMBASSY BEIJING IMMEDIATE
AMEMBASSY BUENOS AIRES PRIORITY
AMEMBASSY CANBERRA
AMEMBASSY OTTAWA
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INFO AMCONSUL HONG KONG
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AMCONSUL GUANGZHOU
S E C R E T STATE 095206 

SIPDIS


NOFORN

E.O. 12958: DECL: 06/09/16
TAGS: PARM PREL ETTC EFIN PGOV CH

SUBJECT: E.O. 13382 DESIGNATIONS OF FOUR CHINESE ENTITIES

REFS: A. 05 STATE 120771

B. 05 BEIJING 13326

C. 05 BEIJING 13327

D. 05 BEIJING 13328

E. 05 STATE 207039

F. 05 BEIJING 20109

G. 05 BEIJING 20110

H. 05 BEIJING 20008

CLASSIFIED BY EAP/CM DIRECTOR ROBERT GOLDBERG FOR REASONS
1.4 (B) AND (D).

S E C R E T STATE 095206

SIPDIS


NOFORN

E.O. 12958: DECL: 06/09/16
TAGS: PARM PREL ETTC EFIN PGOV CH

SUBJECT: E.O. 13382 DESIGNATIONS OF FOUR CHINESE ENTITIES

REFS: A. 05 STATE 120771

B. 05 BEIJING 13326

C. 05 BEIJING 13327

D. 05 BEIJING 13328

E. 05 STATE 207039

F. 05 BEIJING 20109

G. 05 BEIJING 20110

H. 05 BEIJING 20008

CLASSIFIED BY EAP/CM DIRECTOR ROBERT GOLDBERG FOR REASONS
1.4 (B) AND (D).


1. (U) This is an action request. Embassy Beijing,
please see paragraph 4. All other posts, please see
paragraph 5.


2. (U) Background: On June 28, 2005 the President issued
Executive Order (E.O.) 13382 authorizing the U.S. to block
or "freeze" the assets of weapons of mass destruction
(WMD) proliferators and their supporters (ref A). E.O.
13382 authorizes the Secretary of the Treasury, in
consultation with the Secretary of State, the Attorney

General, and other relevant agencies to designate
individuals or entities determined to be owned or
controlled by, or acting or purporting to act for or on
behalf of, directly or indirectly, those entities or
individuals designated in the Annex of E.O. 13382 or
subsequently designated pursuant to E.O. 13382. In
addition, E.O. 13382 authorizes the Secretary of the
Treasury, in consultation with the Secretary of State, the
Attorney General, and other relevant agencies to designate
individuals or entities determined to have provided, or
attempted to provide, financial, material, technological
or other support for, or goods and services in support of,
individuals or entities designated in the Annex to E.O.
13382 or subsequently designated pursuant to the Order.
Persons that are designated under the Order are denied
access to the U.S. financial and commercial systems, and
U.S. persons, wherever located, are prohibited from
engaging in transactions with them.


3. (S/NF) Background continued: During the summer of
2005, the USG initiated a diplomatic effort with China to
use the E.O. 13382 designation process to elicit broader
Chinese enforcement of its export controls. The effort
focused on ten entities deemed to be serial proliferators

and included three rounds of bilateral U.S.-China
consultations in August, November, and December 2005 (refs
B-H). The Chinese government, however, has not
demonstrated that it has taken effective, specific steps
to address U.S. concerns about the behavior of Chinese
serial proliferators. Most recently at the June 7 U.S.-
China Nonproliferation Dialogue in Washington, China did
not offer any information on measures it had taken with
regard to the ten entities. As a result, the Department
of the Treasury's Office of Foreign Assets Control (OFAC)
will publicly announce in Washington on 13 June 2006, 1030
EDT, the designation of four of the ten Chinese serial
proliferators that have been the subject of E.O. 13382
consultations -- Beijing Alite Technologies Company Ltd.
(ALCO),LIMMT Economic and Trade Company Ltd., China Great
Wall Industry Corporation (CGWIC),and China National
Precision Machinery Import-Export Corporation (CPMIEC).
The designations will be published on OFAC's List of
Specially Designated Nationals and Blocked Persons (SDN
List) found at www.treas.gov/ofac.


4. (U) Action Request for Embassy Beijing: Washington
requests Embassy Beijing to deliver the points in
paragraph 6 to appropriate Chinese interlocutors as close
as possible to 1800 hours on 13 June local time. Points
may be left as a non-paper.


5. (U) Action Request for all other posts: Washington
requests that after Washington's official announcement
(1030 EDT on 13 June) posts notify Proliferation Security
Initiative Operational Experts Group (PSI OEG) points of
contact that four Chinese entities -- Beijing Alite
Technologies Company Ltd. (ALCO),LIMMT Economic and Trade
Company Ltd., China Great Wall Industry Corporation
(CGWIC),and China National Precision Machinery Import-
Export Corporation (CPMIEC) -- have been designated
pursuant to E.O. 13382. Posts should also note that these
designations will be published on the Office of Foreign
Assets Control's (OFAC) consolidated List of Specially
Designated Nationals and Blocked Persons (SDN List). The
SDN List can be found at www.treas.gov/ofac. A
consolidated list of E.O. 13382 designees can be found at
www.treas.gov/offices/enforcement/ofac/progra ms/wmd/wmd.pd
f.


6. (S/Rel China)

Begin Talking Points/Non-paper for China.

-- In the spirit of our nonproliferation cooperation, we
are informing you that the U.S. Department of the Treasury
will be announcing the designation of four Chinese
entities pursuant to Executive Order 13382 (E.O. 13382),
thereby blocking their assets and property within the
possession or control of U.S. persons and prohibiting U.S.
persons from engaging in transactions with them. These
designations will be published on the Office of Foreign
Assets Control's (OFAC) consolidated List of Specially
Designated Nationals and Blocked Persons (SDN List) on
June 13, 2006. The SDN List can be found at
www.treas.gov/ofac.

-- While the United States has welcomed China's readiness
to engage in diplomatic talks on Executive Order 13382,
most recently on June 7 in Washington, our designation
process has proceeded in light of serious concerns we have
about continued evasion of China's export controls by

certain Chinese entities, and the support of these
entities for Iran's ballistic missile programs.

-- Accordingly, on June 13 we will designate the following
four Chinese entities pursuant to E.O. 13382:

1) Beijing Alite Technologies Company Ltd. (ALCO) - ALCO
has continued efforts to provide Iranian missile
organizations with missile-related and dual-use
components;

2) LIMMT Economic and Trade Company Ltd. - LIMMT has
continued to supply or attempt to supply Iran's military
and missile organizations with controlled items;

3) China Great Wall Industry Corporation (CGWIC) - has
continued to provide goods to Iran's missile program; and

4) China National Precision Machinery Import-Export
Corporation (CPMIEC) - within the last two years, CPMIEC
has sold the Shahid Bakeri Industrial Group goods which
are controlled under the Missile Technology Control
Regime.

-- The basis for the designation of these four companies
is the USG determination that they have provided, or
attempted to provide, financial, material, technological
or other support for, or goods or services in support of,
the Aerospace Industries Organization, the Shahid Hemmat
Industrial Group, and/or the Shahid Bakeri Industrial
Group.

-- The Aerospace Industries Organization, the Shahid
Hemmat Industrial Group, and the Shahid Bakeri Industrial
Group are Iranian entities identified by President Bush in
the Annex to E.O. 13382. E.O. 13382 authorizes the
Secretary of the Treasury, in consultation with the

SIPDIS
Secretary of State, the Attorney General, and other

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relevant U.S. agencies, to designate additional entities
and individuals providing support or services to the
entities designated pursuant to the Order.

-- The Executive Order and designations pursuant to the
Order are not targeted specifically at any state or
region, but at entities and individuals around the world

that are engaged in WMD proliferation and/or in providing
support or services for such proliferation activities.

-- While the United States acknowledges and appreciates
the progress that China has made in the area of export
controls, the USG encourages China to further augment its
export enforcement and to take more robust steps to
permanently stop the activities of serial proliferators.

-- For its part, the United States will continue to take
the actions necessary to disrupt and dismantle the
networks that support proliferation and expose
proliferators' activities to the international community
such that others can take similar action, pursuant to
their own legal authorities, to deny them access to their
financial and commercial systems.

-- We remain committed to working with you on ways to
prevent future such designations and will continue our
dialogue on entities and persons of proliferation concern.

-- We request that you not make public this action until
after its official USG release.

End Talking Points/Non-paper for China.
RICE


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