CHINA URGED TO INVESTIGATE AND HALT SHIPMENT

S E C R E T BEIJING 002674 SIPDIS DEPT FOR ISN, T, EAP AND EUR E.O. 12958: DECL: 07/09/2033 TAGS: PARM MTCRE PREL ETTC CH IR SUBJECT: CHINA URGED TO INVESTIGATE AND HALT SHIPMENT DESTINED FOR IRAN'S DIO (S) REF: STATE 72026 Classified By: Acting Political Minister Counselor Ben Moeling. Reason s 1.4 (b),(c) and (d). ¶1. (S) PolOff delivered reftel message urging China to investigate and prevent the shipment of Chinese-origin diphenylamine to Iran's Defense Industries Organization (DIO) to MFA Arms Control and Disarmament Department Missile Division Deputy Director Wang Daxue on July 9. ¶2. (S) Wang promised to report our information to Chinese "enforcement agencies," but said action would depend on whether diphenylamine is included in the annex of controlled items in UN Security Council Resolution 1737. PolOff noted that whether diphenylamine is included in the Resolution's annex or not, the end-user in question (Iran's DIO) is clearly included and that should provide sufficient basis to halt the shipment. Wang responded that with regard to nonproliferation China shares the "same primary goals" of the United States, and that "taking into account U.S. concerns," China may be able to "persuade the exporter to cancel the deal" if the shipment has not left port. Wang stressed that if the item is not controlled China is not in a position to punish the Chinese firm. Wang asked if the United States knows the shipping date of the diphenylamine from Tianjin. RANDT