Identifier
Created
Classification
Origin
08PRETORIA1900
2008-08-26 13:28:00
SECRET
Embassy Pretoria
Cable title:
IRANIAN EFFORTS TO PROCURE STEEL: SOUTH AFRICAN
how-toO 261328Z AUG 08 FM AMEMBASSY PRETORIA TO SECSTATE WASHDC IMMEDIATE 5517 INFO USMISSION GENEVA IMMEDIATE USMISSION UNVIE VIENNA IMMEDIATE SECDEF WASHDC IMMEDIATE CIA WASHINGTON DC IMMEDIATE DIA WASHINGTON DC IMMEDIATE
S E C R E T PRETORIA 001900
DEPT FOR AF/C, ISN/MTR
E.O. 12958: DECL: 08/26/2018
TAGS: IR MTCRE PARM PREL SF
SUBJECT: IRANIAN EFFORTS TO PROCURE STEEL: SOUTH AFRICAN
FIRM WITHDRAWS FROM TRANSACTION
REF: A. STATE 067405
B. PRETORIA 1618
Classified By: CLASSIFIED BY CDA RAYMOND L. BROWN FOR REASONS 1.4 B AND
D
S E C R E T PRETORIA 001900
DEPT FOR AF/C, ISN/MTR
E.O. 12958: DECL: 08/26/2018
TAGS: IR MTCRE PARM PREL SF
SUBJECT: IRANIAN EFFORTS TO PROCURE STEEL: SOUTH AFRICAN
FIRM WITHDRAWS FROM TRANSACTION
REF: A. STATE 067405
B. PRETORIA 1618
Classified By: CLASSIFIED BY CDA RAYMOND L. BROWN FOR REASONS 1.4 B AND
D
1. (S) Summary: South African authorities notified us that,
based on reftel advisory, South African firm Columbus
Stainless (pty) Ltd. had withdrawn from an agent-arranged
transaction with Iran's Shahid Hemmat Industrial Group.
Columbus also assured the SAG that it would take additional
measures to verify the end-users of non-control list products
procured through agents. End summary.
2. (S) South African Department of Foreign Affairs (DFA)
Deputy Director for Nonproliferation Michiel Combrink met
with PolCouns and his deputy on August 25 to provide a
follow-up response to our July 9 demarche (Ref B) on Iran's
Shahid Hemmat Industrial Group's purchase of steel produced
by the South African firm Columbus Stainless (Pty) Ltd.
Combrink and South African Department of Trade and Industry
Director DJ Van Beek reviewed SAG standard procedures for
responding to USG alerts (Ref B),stressing SAG discretion in
handling advisories that are not linked to UNSC or other
international control regimes.
3. (S) Noting that our Ref A request does not pertain to an
international control regime, Combrink said that the SAG had
nonetheless advised Columbus that its product was likely to
be used to support Iran's ballistic missile development.
Combrink said Columbus had argued that its steel has a wide
range of possible uses, but admitted it had been selling to
agents, rather than to other companies, and could not
positively confirm what the end-use of its product would be.
As a result of the SAG intervention, Columbus reportedly
withdrew from the transaction in question and assured South
African authorities that it would take additional measures to
ensure that its products are not linked to proliferation
activities.
4. (S) Comment: Combrink did not specify what additional
measures Columbus planned to implement to ensure that
non-control list items procured through agents are not
misused. Regulating the activities of agents and
intermediaries will be a challenge for already-stretched SAG
regulators. End comment.
BROWN
NNNN
End Cable Text
DEPT FOR AF/C, ISN/MTR
E.O. 12958: DECL: 08/26/2018
TAGS: IR MTCRE PARM PREL SF
SUBJECT: IRANIAN EFFORTS TO PROCURE STEEL: SOUTH AFRICAN
FIRM WITHDRAWS FROM TRANSACTION
REF: A. STATE 067405
B. PRETORIA 1618
Classified By: CLASSIFIED BY CDA RAYMOND L. BROWN FOR REASONS 1.4 B AND
D
1. (S) Summary: South African authorities notified us that,
based on reftel advisory, South African firm Columbus
Stainless (pty) Ltd. had withdrawn from an agent-arranged
transaction with Iran's Shahid Hemmat Industrial Group.
Columbus also assured the SAG that it would take additional
measures to verify the end-users of non-control list products
procured through agents. End summary.
2. (S) South African Department of Foreign Affairs (DFA)
Deputy Director for Nonproliferation Michiel Combrink met
with PolCouns and his deputy on August 25 to provide a
follow-up response to our July 9 demarche (Ref B) on Iran's
Shahid Hemmat Industrial Group's purchase of steel produced
by the South African firm Columbus Stainless (Pty) Ltd.
Combrink and South African Department of Trade and Industry
Director DJ Van Beek reviewed SAG standard procedures for
responding to USG alerts (Ref B),stressing SAG discretion in
handling advisories that are not linked to UNSC or other
international control regimes.
3. (S) Noting that our Ref A request does not pertain to an
international control regime, Combrink said that the SAG had
nonetheless advised Columbus that its product was likely to
be used to support Iran's ballistic missile development.
Combrink said Columbus had argued that its steel has a wide
range of possible uses, but admitted it had been selling to
agents, rather than to other companies, and could not
positively confirm what the end-use of its product would be.
As a result of the SAG intervention, Columbus reportedly
withdrew from the transaction in question and assured South
African authorities that it would take additional measures to
ensure that its products are not linked to proliferation
activities.
4. (S) Comment: Combrink did not specify what additional
measures Columbus planned to implement to ensure that
non-control list items procured through agents are not
misused. Regulating the activities of agents and
intermediaries will be a challenge for already-stretched SAG
regulators. End comment.
BROWN
NNNN
End Cable Text