(S) CHINA URGED TO INVESTIGATE AND CEASE LIMMT'S

S E C R E T BEIJING 005269


E.O. 12958: DECL: 08/10/2027
TAGS: PARM PREL ETTC IR CH KSCA MTCR

SUBJECT: (S) CHINA URGED TO INVESTIGATE AND CEASE LIMMT'S
SALES OF DUAL-USE MATERIALS TO IRAN

REF: A. STATE 111099

B. BEIJING 5237

Classified By: Political Minister Counselor Aubrey Carlson.
Reasons 1.4 (B) and (D).


1. (S) Following up on the Ambassador's August 9 demarche to
Assistant Foreign Minister Cui Tiankai in which the
Ambassador specifically noted the proliferation activities of
the Chinese company LIMMT/Sunny Dalian (ref B),Poloff met
with MFA Arms Control Missile Division Deputy Director Yu
Dunhai August 10 to urge China to investigate and prevent
LIMMT's transfers to Iran of dual-use materials, particularly
a shipment of MTCR-controlled graphite cylinders scheduled
for transfer as early as mid-August. In addition to
delivering ref A talking points, Poloff stressed the exacting
detail and prodigious volume of LIMMT-related information we
had passed to the MFA in the last eighteen months. Poloff
noted that LIMMT's prolific sales of dual-use materials to a
UNSCR 1737-listed entity are well documented and urged the
PRC to share with us the results of its investigation as soon
as possible.


2. (S) China's investigation into the LIMMT matter is
ongoing, Yu said. Yu claimed that not only has LIMMT already
been punished for its illegal activities, but LIMMT's
"license has been revoked," and temporary regulations have
been "promoted" to improve monitoring of graphite exports in
general. Pressed for details on what license was revoked and
what kind of punishment LIMMT had received, Yu declined
further comment, saying he does not know any of those
details. Yu recommended we address these questions to our
regular nonproliferation interlocutor, Missile Division
Deputy Director Wang Daxue, the following week. Yu told us
Wang is preparing for the August 13 Nonproliferation Dialogue
and was unavailable to meet.
RANDT


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