IRANIAN PROCUREMENT ENTITIES NON-PAPER DELIVERED

S E C R E T ABU DHABI 000493 SIPDIS STATE FOR ISN FO (JROOD),ISN/CPI (TFOLEY, CRUSSELL, RPAN), ISN/MTR NSC FOR DSTEPHENS TREASURY FOR BHAMMERLE COMMERCE FOR MBORMAN E.O. 12958: DECL: 03/20/2017 TAGS: PREL PARM PGOV ETTC ETRD ECIN AE IR SUBJECT: IRANIAN PROCUREMENT ENTITIES NON-PAPER DELIVERED AT MARCH 1 U.S.-UAE COUNTERPROLIFERATION TASK FORCE REF: ABU DHABI 422 Classified By: AMBASSADOR MICHELE J. SISON FOR REASONS 1.4 B & D. 1.(C) At the March 1 U.S.-UAE Counterproliferation Task Force (reftel),the U.S. delegation provided the following additional interagency-cleared non-paper to the UAE delegation. 2.(S/Rel UAE) Begin text. --As you are aware, we have previously discussed with you our concerns regarding efforts by the Austrian firm Daniel Frosch Export (DFE) Industrial Spare Parts and the UAE-based entity Bazar Trading Co to supply Iranian defense- and missile-related organizations. --We now want to provide you with additional information about this case and request your government investigate this activity. --We now have information that in February 2007, the owner of DFE, Daniel Frosch, was working to resolve a number of payment problems with several of his customers in Iran, the Payam Trading Company, Tiz Pars Company, and the Electronic Equipment Company. --Each of these three companies has links to Iran,s military or its missile program. --Specifically, Payam Trading Company is a front company for Iran,s M. Babaie Industries, which is responsible for the development of surface-to-air missiles, while Electronics Equipment Company is a procurement cover for Ya Mahdi Industrial Group, which oversees production of anti-tank missiles. --The Tiz Pars Company is a front company for Iran,s liquid-fueled ballistic missile developer, the Shahid Hemmet Industrial Group (SHIG). All three of these entities are subordinate to Iran,s Aerospace Industries Organization (AIO). --We understand that these payment problems have led Daniel Frosch to sell his shares in Bazar Trading to its managing director, Mohammad Rohani. Our information indicates that Frosch plans to open a new business in his Dubai apartment to continue his business dealings with Iran. --You will recall that we have discussed with you Daniel Frosch, Bazar Trading, and Rohani,s business dealings with Payam Trading and Tiz Pars previously and requested you investigate their trading activities in the UAE. --We now request that you immediately investigate this information and take measures to shut down Bazar Trading, as well as curtail any further defense-related business conducted by Daniel Frosch in the UAE. --We look forward to continuing cooperation with your government on nonproliferation issues and would appreciate hearing the results of your efforts in this matter at the earliest possible time. End Text. SISON