(S) LIMMT INVESTIGATION

S E C R E T BEIJING 005039


E.O. 12958: DECL: 08/02/2027
TAGS: ETTC PARM PREL MTCR KSCA IR CH

SUBJECT: (S) LIMMT INVESTIGATION

REF: BEIJING 1625

Classified By: Deputy Chief of Mission Daniel Piccuta.
Reasons 1.4 (b/d).


1. (S) On July 25, in his capacity as Charge d'Affaires
a.i., Dan Piccuta met with MFA Department of Arms Control and
Disarmament Director General Zhang Yan to urge him to share
the results of China's investigations into the LIMMT (Dalian
FTZ) Economic and Trade Organization's commercial activity
and any action the PRC government has taken to prevent
transfer of controlled or dual-use products and materiel to
Iran.


2. (S) Zhang claimed that his office has tried to improve
cooperation in this area through regular briefings on Chinese
actions taken to follow-up on U.S. information. "Maybe you
are not happy about the speed or the results of our
investigations, but we are serious and sincere. We look
forward to feedback on our efforts," he said. Charge
reviewed the information Embassy Beijing shared with Zhang's
office in February 06, March 06, July 06, October 06, and
March 07 (reftel),with specific reference to MTCR-controlled
materials such as graphite cylinders and tungsten powder
shipments to Iran's Omid Research and Industrial Company.
Charge specifically noted that although Embassy Beijing asked
Zhang for an update on the LIMMT investigation in May 2007,
we have still not received any information.


3. (S) DG Zhang reiterated that China strictly follows all
international and Chinese domestic laws regarding exports of
controlled or dual-use products. He said the United States
should not attempt to expand the UNSCR limits beyond the
letter of the UN resolutions nor attempt to apply U.S.
domestic laws in foreign countries.


4. (S) Charge stressed the importance of sharing the results
of their LIMMT investigation. The United States has been
providing specific and reliable information regarding LIMMT's
record of violations and proliferation for over a year and a
half, and we need to see the investigation results as soon as
possible, he said.

Another Issue: Arms Sales to Iran and Non-State Actors
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5. (S) Zhang used the opportunity to request that the United
States stop making statements that state or imply that China
is supplying arms to insurgents, terrorists or other
non-state actors. China, he claimed, only sells arms to
foreign governments, and always in compliance with
international and Chinese law. UNSCR 1747 has exclusion
clauses, he claims, allowing China to complete delivery to
Iran of previously contracted items. The Charge countered
that these weapons are as much a threat to China as any other
country and that it is in everyone's interest to stop their
spread to nations that have proven track records of
transferring the weapons to other countries and non-state
actors. "We would of course like to see compliance beyond
the letter of the UNSCR," Charge said.
RANDT


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