Identifier
Created
Classification
Origin
08SINGAPORE1137
2008-10-23 07:39:00
SECRET
Embassy Singapore
Cable title:  

(S) GOS AWARE OF DESIGNATION OF LOCAL FIRMS,

Tags:  ECON EFIN ETRD ETTC KNNP PREL SN 
pdf how-to read a cable
VZCZCXYZ0000
RR RUEHWEB

DE RUEHGP #1137/01 2970739
ZNY SSSSS ZZH
R 230739Z OCT 08
FM AMEMBASSY SINGAPORE
TO RUEHC/SECSTATE WASHDC 5918
INFO RUEHIL/AMEMBASSY ISLAMABAD 0849
RUEHKL/AMEMBASSY KUALA LUMPUR 4842
RUCPDOC/DEPT OF COMMERCE WASHDC
S E C R E T SINGAPORE 001137 

SIPDIS

ISN, T, TREASURY, NEA/IR

E.O. 12958: DECL: 10/23/2018
TAGS: ECON EFIN ETRD ETTC KNNP PREL SN
SUBJECT: (S) GOS AWARE OF DESIGNATION OF LOCAL FIRMS,
REQUESTS MORE EVIDENCE OF TRANSACTIONS

REF: A. STATE 104496

B. STATE 109141

C. STATE 59289

D. STATE 90838

E. SINGAPORE 1021

Classified By: Ambassador Patricia Herbold reasons 1.4 (b) (d)

S E C R E T SINGAPORE 001137

SIPDIS

ISN, T, TREASURY, NEA/IR

E.O. 12958: DECL: 10/23/2018
TAGS: ECON EFIN ETRD ETTC KNNP PREL SN
SUBJECT: (S) GOS AWARE OF DESIGNATION OF LOCAL FIRMS,
REQUESTS MORE EVIDENCE OF TRANSACTIONS

REF: A. STATE 104496

B. STATE 109141

C. STATE 59289

D. STATE 90838

E. SINGAPORE 1021

Classified By: Ambassador Patricia Herbold reasons 1.4 (b) (d)


1. (S) SUMMARY: Econoff delivered to MFA
counterproliferation officials October 16 demarches
regarding: the designation of the Islamic Republic of Iran
Shipping Lines (IRISL) and Singapore firm Asia Marine Network
PTE Ltd. (Ref A); and changes to the Department of Commerce
Entity List, including the addition of three Singapore-based
firms believed to be connected to Mayrow General Trading (Ref
B). Sharon Seah, MFA Assistant Director for Counter
Proliferation and International Security, responded that
Singapore has not yet taken specific enforcement action
against Asia Marine Network. She requested specific and
actionable intelligence regarding actual transactions with
IRISL. Seah said MFA would inform appropriate agencies of
the additions to the Entity List and that enforcement
agencies would monitor the companies' activities. During the
same meeting, Seah provided a non-paper update on ongoing
cases involving Ace Pressureweld (Ref C) and Satair PTE Ltd.
(Ref D). Seah said GOS authorities had met with both Ace
Pressureweld and Satair to ensure the firms understood their
export control obligations but had found no evidence that
either company exported the items as described in Ref C and

D. End Summary.

Designation of IRISL and Asia Marine Network
--------------

2. (S) Econoff delivered Ref A demarche to Sharon Seah, MFA
Assistant Director for Counterproliferation and
International Security on October 16, after providing MFA the
public information regarding the designation of IRISL and
related entities by email on October 7. Seah said that prior
to the designation, the GOS had not monitored Asia Marine
Network PTE Ltd., the Singapore-based firm designated as
among those entities acting, or purporting to act, on behalf
of IRISL. GOS authorities are now conducting due diligence

on the company, she told us. The GOS has not frozen the
assets of Asia Marine Network, or approached national
companies about ceasing operations with IRISL or related
entities, and Seah was unaware of any inspections of
IRISL-related cargo.


3. (S) Seah said GOS authorities are quietly watching Asia
Marine Network so they do not alert it to GOS monitoring,
which might cause the company to change its business
practices or tactics. Seah said there is no standard
procedure for dealing with local firms publicly designated
for possible involvement in proliferation-related activities.
The GOS prefers to handle them on a case-by-case basis.
Seah emphasized the need for more actionable intelligence on
such companies, noting that having information regarding
actual transactions between Asia Marine Network and IRISL
would speed up the GOS investigation.

Addition of Mayrow and Others to Commerce Entity List
-------------- --------------


4. (S) MFA will inform appropriate GOS agencies regarding
the changes to the Department of Commerce Entity List and the
addition of three Singapore-based firms, Seah said. The
companies are "on our radar," she said, reiterating the need
for more evidence of actual transactions among the three
firms and Mayrow General Trading. The GOS does not intend to
make any immediate changes to its legislation restricting the
sale or export of dual-use items. However, the MFA indicated
in a previous meeting (Ref E) that the GOS plans to embark on
a year-long review of Singapore's export control regime and
that review could lead to additional changes and enhancements
to Singapore laws.

Ace Pressureweld
--------------


5. (S) GOS enforcement agencies met with Ace Pressureweld
twice in 2007, and to date have found no evidence of exports
related to the items in Ref C, Seah explained. She provided
a brief non-paper describing GOS findings on the Ace
Pressureweld and Satair cases (see full text below). Seah
would not say which agencies met with Ace Pressureweld, but
said the GOS advised the company's management to exercise due
diligence and avoid involvement in illicit transactions such
as the supply of goods to WMD-related entities in Pakistan or

other countries of proliferation concern. GOS authorities
remain vigilant and will continue to monitor Ace
Pressureweld, Seah said.

Satair PTE Ltd.
--------------


6. (S) According to Seah and the non-paper she provided (see
full text below) Singapore authorities also met with Satair
PTE Ltd., a company headquartered in Denmark that imports and
re-exports aircraft components for commercial aircraft.
There has been no export to Malaysia of the items described
in Ref D. Seah indicated that the GOS will continue to
monitor the company, which according to the non-paper, is
aware of its obligations under Singapore's export control
regime.

Text of Non-Paper from MFA on Ace Pressureweld and Satair
-------------- --------------

7. (S) Below is the text of the non-paper we received from
the MFA regarding Ace Pressurweld and Satair PTE Ltd.

(S) Begin Non-Paper text:

We thank the US for the information shared with Singapore
through the US Embassy, between June and September 2008, on
the activities of two Singapore-based companies. The
findings of the Singapore authorities are given below.

Ace Pressureweld
--------------

2 In 2007, enforcement agencies met Ace Pressureweld
twice. To date, there has been no evidence of any exports
relating specifically to the items highlighted in the
non-paper provided. During the meetings, Ace Pressureweld,s
management was advised to exercise due diligence and not to
be involved in any illicit transactions particularly in the
supply of goods to WMD-related entities in Pakistan or other
proliferating countries.

3 The relevant authorities will continue to remain
vigilant and monitor the activities of Ace Pressureweld and
ascertain if they had been involved in any such exports via a
front or associated company.

Satair Pte Ltd
--------------

4 Satair Pte Ltd is a trading company headquartered in
Denmark which deals in aircraft parts and accessories. The
company imports and re-exports aircraft components to be used
in commercial aircrafts. There has been no export of the
items described in the US non-paper, to Malaysia. Satair had
also not made any direct exports to Iran. Authorities met
with the company who is aware of the strategic goods control
regime in Singapore. Authorities will continue to monitor
and meet up with the company again, to reiterate to them to
exercise due diligence and any possible diversion of
controlled goods from Malaysia to Iran. Authorities will
continue to monitor the company for possible violation under
the Strategic Goods (Control) Act and highlight to them about
the US re-export controls.

Conclusion
--------------

5 Industry has been alerted to the respective UN Security
Council Resolutions on Iran and the attendant sanctions lists
of individuals and entities believed to be engaged in
WMD-related activities. We welcome timely information and
actionable intelligence and evidence that the US may have on
these companies regarding their alleged links with Iran and
Pakistan.

End text of Non-Paper.

Visit Embassy Singapore's Classified website:
http://www.state.sgov.gov/p/eap/singapore/ind ex.cfm
HERBOLD