(S) IRAN TURNS TO CHINA TO PROCURE DUAL-USE

S E C R E T BERLIN 000616 SIPDIS, ISN, NEA, EUR E.O. 12958: DECL: 05/09/2033 TAGS: PARM PREL ETTC MTCRE KSCA IR GM SUBJECT: (S) IRAN TURNS TO CHINA TO PROCURE DUAL-USE ALUMINUM SHEET METAL REF: STATE 04172 Classified By: Global Affairs Unit Chief Don L. Brown for reasons 1.4 (b) and (d). ¶1. (S) MFA Export Control Division Desk Officer Wiebke Wacker provided Global Affairs Officer on May 5 with a German-language nonpaper response to reftel regarding the attempted Iranian procurement of dual-use aluminum sheet metal in support of their missile program from the German firm Lodec Metall GmbH. Wacker said the delivery of the aluminum sheet metal never took place due to the emergence of a Chinese offer for the same product at a lower price. Wacker added that Lodec Metall GmbH has since been sensitized to future procurement attempts by the Iranian Ecxir Trading Company and the Ward Commercial Company. ¶2. (S) Begin informal Embassy translation of German-language nonpaper: With reference to the Non-Paper from January 15, 2008, regarding the procurement of aluminum alloy 5056 sheet metal from the German company Lodec Metall GmbH to the Iranian Ecxir Trading Company via the Ward Commercial Company, we take this opportunity to bring the following information to the attention of U.S. authorities. -- We appreciate the information in connection with procurement efforts of the Iranian Ecxir Trading Company. -- The German export control authorities have since sensitized Lodec Metall GmbH via a written notice. -- The German company communicated, that a Victor Babayans in March 2007 made a request to the Lodec Metall GmbH concerning the delivery of 420 tons of 5056 H38 aluminum sheet metal. The end customer of the delivery was indicated as the SADRA-Group in Iran. -- The delivery from Lodec Metall GmbH never took place because a Chinese commercial firm offered the commodity for a lower price. At this point, the correspondence between the German firm and Victor Babayans ended. -- There exist likewise no business relations between Lodec Metall GmbH with the Ecxir Trading Company or the Ward Commercial Company. -- Lodec Metall GmbH at present has neither an order for the delivery of the named commodity nor for the delivery of a similar commodity to Iran. We look forward to continuing our excellent cooperation in the field of export controls. End text of informal Embassy translation. TIMKEN JR