Identifier
Created
Classification
Origin
08BEIJING2550
2008-06-27 12:27:00
SECRET
Embassy Beijing
Cable title:
(S) PRC SAYS NOTHING NEW TO REPORT ON LIMMT
how-toO 271227Z JUN 08 FM AMEMBASSY BEIJING TO SECSTATE WASHDC IMMEDIATE 8306
S E C R E T BEIJING 002550
DEPT FOR ISN AND EAP
E.O. 12958: DECL: 06/27/2033
TAGS: PARM MTCRE PREL ETTC CH IR
SUBJECT: (S) PRC SAYS NOTHING NEW TO REPORT ON LIMMT
DEADLINE; INVESTIGATION STILL ONGOING
REF: A. 06 STATE 38936 B. 06 BEIJING 04561 C. 06 BEIJING 04854 D. 07 STATE 111099 E. 07 BEIJING 05269 F. STATE 13756 G. BEIJING 00481 H. STATE 64254 I. BEIJING 02391
Classified By: Acting Political Minister Counselor Ben Moeling.
Reasons 1.4 (b),(c) and (d).
S E C R E T BEIJING 002550
DEPT FOR ISN AND EAP
E.O. 12958: DECL: 06/27/2033
TAGS: PARM MTCRE PREL ETTC CH IR
SUBJECT: (S) PRC SAYS NOTHING NEW TO REPORT ON LIMMT
DEADLINE; INVESTIGATION STILL ONGOING
REF: A. 06 STATE 38936 B. 06 BEIJING 04561 C. 06 BEIJING 04854 D. 07 STATE 111099 E. 07 BEIJING 05269 F. STATE 13756 G. BEIJING 00481 H. STATE 64254 I. BEIJING 02391
Classified By: Acting Political Minister Counselor Ben Moeling.
Reasons 1.4 (b),(c) and (d).
1. (S) Summary. MFA Arms Control and Disarmament Department
Missile Division Director Zhang Junan briefed Poloffs on June
27 regarding the PRC's investigation into LIMMT and eleven
other companies. Director Zhang provided no new information
on actions taken against LIMMT, stating only that
investigations are still "on-going" against LIMMT and Karl
Lee, the owner of the company. Zhang stated that as of June
2006 LIMMT no longer existed as a business entity, and thus
is unable to conduct export activities. Zhang also declared
that "Sunny Dalian Industries" does not exist according to
local PRC office records. Director Zhang reiterated that
possible U.S. sanctions against LIMMT would "do no help" on
PRC efforts on the LIMMT case and would instead "do harm to
our cooperation and bilateral relations." End Summary.
Results of Investigation on LIMMT
--------------
2. (S) Zhang stressed that the Chinese Government attaches
high importance to the LIMMT case and that many government
agencies are involved in the investigation. He added that
the Chinese General Administration of Customs, on several
occasions, confiscated goods to be exported by LIMMT. As of
June 2006, however, LIMMT no longer existed. Zhang said that
LIMMT had applied to renew its business license but the
application was denied by the Government. Zhang added that
"relevant" government authorities are still watching Karl
Lee, the former head of the company, for other possible
export control violations using other companies or names.
3. (S) Reviewing previous information provided by the Embassy
and U.S. officials, Zhang said that China was notified by the
U.S. in September 2007 (Note: We believe he was referring to
ref D demarche delivered in August 2007. End note.) and
February 2008 (ref F) regarding LIMMT's attempts to export
tungsten copper alloy plates and tungsten powder to Iran
under the name Dalian Sunny Industry. Zhang said that the
PRC, after conducting its investigations, found no evidence
to support these allegations against LIMMT by the United
States. In addition, the investigation uncovered that no
company operated under the name Dalian Sunny Industry
according to the records of local offices. Zhang stated that
the PRC believes that the Chinese Government has satisfied
its obligations with regard to the August/September 2007
demarche and the February 2008 demarche.
4. (S) Director Zhang also reviewed the U.S. demarche
charging that LIMMT had received an order for 100 tungsten
copper plates from Shahid Bakeri Industrial Group (SBIG),an
Iranian company currently subject to U.S. sanctions (Ref G).
According to Zhang, the non-paper claimed that LIMMT had
planned to ship 350 graphite rods to SBIG and to export
guidance and navigation equipment to Iran, and was likely
conducting negotiations to make these sales. Zhang stated
"this case is complicated" because there are many export
activities and the investigations are still ongoing. Zhang
claimed that the relevant PRC authorities are "carrying out
the necessary procedures," not only against LIMMT but against
Lee personally.
5. (S) Zhang emphasized that the PRC "cares more about these
activities and nature of the exports than the United States"
because the company and individual are Chinese, and it is the
Chinese Government's duty to punish any who violated the
laws. He also stressed that the PRC does not protect anyone
who violates its laws and regulations on export controls.
6. (S) Zhang reiterated Ref I statement that sanctioning
LIMMT would have "no effect" because the company ceased to
exist and said sanctions would only serve to "harm
cooperation and bilateral relations" between China and the
United States. Zhang urged the United States to "deal with
the issue in a cautious way."
7. (S) Details on the other eleven cases raised in the
meeting to follow septel.
RANDT
NNNN
End Cable Text
DEPT FOR ISN AND EAP
E.O. 12958: DECL: 06/27/2033
TAGS: PARM MTCRE PREL ETTC CH IR
SUBJECT: (S) PRC SAYS NOTHING NEW TO REPORT ON LIMMT
DEADLINE; INVESTIGATION STILL ONGOING
REF: A. 06 STATE 38936 B. 06 BEIJING 04561 C. 06 BEIJING 04854 D. 07 STATE 111099 E. 07 BEIJING 05269 F. STATE 13756 G. BEIJING 00481 H. STATE 64254 I. BEIJING 02391
Classified By: Acting Political Minister Counselor Ben Moeling.
Reasons 1.4 (b),(c) and (d).
1. (S) Summary. MFA Arms Control and Disarmament Department
Missile Division Director Zhang Junan briefed Poloffs on June
27 regarding the PRC's investigation into LIMMT and eleven
other companies. Director Zhang provided no new information
on actions taken against LIMMT, stating only that
investigations are still "on-going" against LIMMT and Karl
Lee, the owner of the company. Zhang stated that as of June
2006 LIMMT no longer existed as a business entity, and thus
is unable to conduct export activities. Zhang also declared
that "Sunny Dalian Industries" does not exist according to
local PRC office records. Director Zhang reiterated that
possible U.S. sanctions against LIMMT would "do no help" on
PRC efforts on the LIMMT case and would instead "do harm to
our cooperation and bilateral relations." End Summary.
Results of Investigation on LIMMT
--------------
2. (S) Zhang stressed that the Chinese Government attaches
high importance to the LIMMT case and that many government
agencies are involved in the investigation. He added that
the Chinese General Administration of Customs, on several
occasions, confiscated goods to be exported by LIMMT. As of
June 2006, however, LIMMT no longer existed. Zhang said that
LIMMT had applied to renew its business license but the
application was denied by the Government. Zhang added that
"relevant" government authorities are still watching Karl
Lee, the former head of the company, for other possible
export control violations using other companies or names.
3. (S) Reviewing previous information provided by the Embassy
and U.S. officials, Zhang said that China was notified by the
U.S. in September 2007 (Note: We believe he was referring to
ref D demarche delivered in August 2007. End note.) and
February 2008 (ref F) regarding LIMMT's attempts to export
tungsten copper alloy plates and tungsten powder to Iran
under the name Dalian Sunny Industry. Zhang said that the
PRC, after conducting its investigations, found no evidence
to support these allegations against LIMMT by the United
States. In addition, the investigation uncovered that no
company operated under the name Dalian Sunny Industry
according to the records of local offices. Zhang stated that
the PRC believes that the Chinese Government has satisfied
its obligations with regard to the August/September 2007
demarche and the February 2008 demarche.
4. (S) Director Zhang also reviewed the U.S. demarche
charging that LIMMT had received an order for 100 tungsten
copper plates from Shahid Bakeri Industrial Group (SBIG),an
Iranian company currently subject to U.S. sanctions (Ref G).
According to Zhang, the non-paper claimed that LIMMT had
planned to ship 350 graphite rods to SBIG and to export
guidance and navigation equipment to Iran, and was likely
conducting negotiations to make these sales. Zhang stated
"this case is complicated" because there are many export
activities and the investigations are still ongoing. Zhang
claimed that the relevant PRC authorities are "carrying out
the necessary procedures," not only against LIMMT but against
Lee personally.
5. (S) Zhang emphasized that the PRC "cares more about these
activities and nature of the exports than the United States"
because the company and individual are Chinese, and it is the
Chinese Government's duty to punish any who violated the
laws. He also stressed that the PRC does not protect anyone
who violates its laws and regulations on export controls.
6. (S) Zhang reiterated Ref I statement that sanctioning
LIMMT would have "no effect" because the company ceased to
exist and said sanctions would only serve to "harm
cooperation and bilateral relations" between China and the
United States. Zhang urged the United States to "deal with
the issue in a cautious way."
7. (S) Details on the other eleven cases raised in the
meeting to follow septel.
RANDT
NNNN
End Cable Text