PSI: CANADIAN FOLLOW-UP ON ATTEMPT TO SHIP

UNCLAS OTTAWA 000266

SIPDIS

SIPDIS

STATE FOR PM/ISN - MFELIPE

E.O. 12958: N/A
TAGS: PARM KNNP MNUC ETTC PREL SY CA
SUBJECT: PSI: CANADIAN FOLLOW-UP ON ATTEMPT TO SHIP
U.S.-ORIGIN TEST EQUIPMENT TO SYRIA VIA THE UAE

REF: A. STATE 13872


B. ABU DHABI 168

C. OTTAWA 220


1. Action request: See para 3.


2. (SBU) Responding to refs A and C, on February 9
Department of Foreign Affairs and International Trade (DFAIT)
Export Controls Division Deputy Director Steven Goodinson
conveyed to us the points below regarding the attempted
shipment of U.S.-origin test equipment to Syria by Polytech
for International Supplies and Consultation (PISC):

-- We have determined that neither the exporter, Polytech for
International Supplies and Consultation (PISC),nor the
agent, Integral Transportation Networks Inc., have individual
export permits for the goods in question. The firms applied
jointly in the past for the export of US-origin goods (a
commercial vehicle) to Syria but withdrew the application
once they were informed that US re-export authorization was
necessary for such a transaction.

-- Based on the information available to us, we have assessed
the control status of the products exported by PISC to UAB.
One of the product types exported, the vibration system
(model BRVD-24) may be controlled by Canada's Export Control
List under Items 6-15.B (MTCR) and 4-1.B (NSG) if the units
are equipped with the 109 option, which is available for this
model, and the unit is therefore capable of imparting forces
greater than 50 kN measured bare table. However, the
information available to us does not allow us to determine if
this type of product was shipped.

-- If not otherwise controlled, this product would be
controlled by Canada's Export Control List under Item 5400 as
a good of US origin. For an export of Item 5400 goods (not
otherwise included in the Export Control List),the exporter
could declare General Export Permit #12 to ship this product
to the UAE but not to Syria. Export of this product to Syria
would require an individual export permit.

-- The other product type, the environmental humidity chamber
(model TR20RC-3),is controlled under Item 5400 of the Export
Control List. The exporter could declare General Export
Permit #12 to ship this product to the UAE but not to Syria.
Export of this product to Syria would require an individual
export permit.

-- We have reviewed the documents provided to us and have
concluded that there is some evidence that the goods were
exported to the UAE from Canada with the intent to divert to
Syria, in violation of the Export and Import Permits Act. We
have therefore referred this matter to the Investigations
Branch of the Canada Border Services Agency for further
action.

-- We have also been informed that US officials have
solicited the assistance of UAE authorities to interdict the
shipment in question and return it to the United States. We
have instructed the Embassy of Canada to the UAE to contact
appropriate UAE customs authorities to confirm our support
for such action, and to offer any other assistance which may
be appropriate.

-- We would be grateful if you would keep us fully informed
as this matter proceeds in order to support our own
investigation into the Canadian parties to this transaction.


3. (SBU) After delivering the points, Goodinson asked that
we advise his office soonest whether the items in the second
bullet point were shipped with the "109 option."


4. (SBU) Goodinson said Hamsho International (HI) was one of
over 80 companies that shared the same address as PISC, and
Qover 80 companies that shared the same address as PISC, and
added that the Syrian Embassy in Ottawa's website identified
HI Managing Director Ahmad Hamsho as a member of the Syrian
Parliament and an "associate" of the Syrian Embassy.
Goodlinson then noted that the Canadian Embassy to the UAE
would soon receive an instruction to intensify its
non-proliferation and related law enforcement outreach to UAE
authorities, and to deepen cooperation with allies and other
like-minded nations these area.

Visit Canada's Classified Web Site at
http://www.state.sgov.gov/p/wha/ottawa

WILKINS