(S) MALAYSIAN-BASED SUPPLIER TO IRAN SEEKS CRYSTAL

S E C R E T BERN 000514


DEPT FOR ISN/MTR (J.P.HERRMANN),NEA/IR, EUR/PRA, AND
EUR/AGS (Y.SAINT-ANDRE)

E.O. 12958: DECL: 10/06/2033
TAGS: PARM MTCRE MNUC ETTC MY IR SZ

SUBJECT: (S) MALAYSIAN-BASED SUPPLIER TO IRAN SEEKS CRYSTAL
OSCILLATORS FROM SWISS FIRM: SWISS RESPONSE

REF: STATE 101519

Classified By: POL/E Counselor Richard A. Rorvig; reasons 1.4(b),(c),
and (d).


1. (U) Poloff delivered the nonpaper in reftel on September
25 to Rolf Stadler, Acting Head of the Export Controls and
Sanctions Policy Division at the State Secretariat for
Economic Affairs (SECO). Pierre-Andre Farine, Acting Head of
the SECO Export Control Licensing Division, joined Stadler in
the meeting.


2. (S) On October 1, Juergen Boehler, Head of SECO's Export
Control Licensing Division, provided poloff interim results
of the Swiss government's investigation in response to the
USG's information (reftel) that the Iranian-run,
Malaysian-based procurement firm Evertop Services was working
to acquire crystal oscillators from Swiss company Quartzcom
AG, and that Evertop has a history of procurement on behalf
of Iranian end-users of proliferation concern. Boehler said
that the Swiss government is still investigating the case,
but that SECO has temporarily halted a shipment of 3,000
crystal oscillators by Quartzcom AG, pending completion of
the investigation. He said that SECO also has imposed a
catchall license requirement on Quartzcom AG for any exports
to Malaysia, and requested a list of all end-users for the
crystal oscillators sought by Evertop. Boehler confirmed
that Evertop is not the intended end-user for the
oscillators. He added that the Swiss manufacturer has
informed SECO that the crystal oscillators in question are
not suitable for use in missiles.


3. (S) Boehler further reported that Quartzcom, with SECO
approval, has been exporting to an end-user in the
telecommunications field in Iran. He added that, while the
Iranian end-user thus far appeared to be a "reliable"
company, SECO was reviewing the matter. More generally,
Boehler remarked informally that he is becoming increasingly
concerned about Malaysia as a trans-shipment venue for items
of proliferation concern.
CARTER


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