(S) MALAYSIAN-BASED SUPPLIER TO IRAN SEEKS

S E C R E T STATE 101519


E.O. 12958: DECL: 09/22/2033
TAGS: PARM MTCRE PREL MNUC ETTC SZ MY IR

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

Classified By: ISN/MTR DIRECTOR PAM DURHAM
FOR REASONS 1.4 (B),(C),and (D).


1. (U) This is an action request. Embassy Bern, please see
paragraph 3.


2. (S) Background/Objectives: The United States Government
has information indicating that in April and again in
mid-August 2008, the Malaysian-based procurement firm Evertop
Services was working to acquire crystal oscillators from
Switzerland's Quartzcom AG on behalf of the Iranian firm
Farezeh Tajhiz Gostar Co. Ltd. Evertop Services, although
located in Malaysia, is an Iranian-run firm that has
facilitated many transactions on behalf of Iranian end-users
of proliferation concern, including entities affiliated with
Iran's ballistic missile and unmanned aerial vehicle
programs. We want to share this information with Swiss
officials in order to make them aware of Evertop's history of
procurement for Iranian end-users, and urge them to take
action to prevent Quartzcom and other Swiss firms from acting
as suppliers to Iranian end-users of concern via Evertop.


3. (S) Action Request: Request Embassy Bern approach
appropriate Swiss authorities to deliver talking
points/non-paper in paragraph 4 below and report response.
Talking points also may be provided as a non-paper.


4. (S) Begin talking points/non-paper:

(SECRET//SWITZERLAND)

-- We would like to raise with you a matter of proliferation
concern and request your government's assistance in
investigating this activity.

-- We have information indicating that in April 2008, the
Malaysian-based firm Evertop Services ordered a large
quantity of crystal oscillators from the Swiss firm Quartzcom
AG on behalf of the Iranian firm Farezeh Tajhiz Gostar Co.
Ltd.

-- We understand that the complete order was valued at 62,000
euros, and that as of late June, it was ready for shipment to
Iran.

-- Although Evertop is based in Malaysia, it is an
Iranian-run procurement firm, and has facilitated many
transactions on behalf of Iranian end-users of concern,
including entities affiliated with Iran's unmanned aerial
vehicle program and the Shahid Hemmat Industrial Group (SHIG
- Iran's primary liquid-propellant ballistic missile
developer and an entity designated in the annex to UN
Security Council Resolution 1737 for its involvement in
Iran's ballistic missile program).

-- Farezeh Tajhiz Gostar Co. Ltd. is likely associated with
Farezeh Equipment Distributor Company (FEDCO),the Iran-based
parent company of Evertop.

-- In addition to the order placed by Evertop in April,
Quartzcom also provided Evertop with an offer for 3000 units
of HC-49US-50H crystal oscillators in mid August.

-- Crystal oscillators are common in the telecommunications,
navigation, avionics, and precise measurement industries.
While they have uses in ballistic missile and UAV programs,
they are not controlled and are widely used in many
commercial applications.

-- We are bringing this information to your attention to
alert you to Evertop's history of procurement for Iranian
end-users, and urge you to take all appropriate measures to
ensure that Quartzcom and other Swiss firms are not working -
even unwittingly - as suppliers for Iranian end-users of
concern via Evertop.

-- We look forward to hearing of any actions your government
takes in response to this information.

End talking points/non-paper.


5. (U) Please contact ISN/MTR's John Paul Herrmann with any
questions or follow-up issues related to this case
(202-647-1430 - herrmannjp@state.sgov.gov) and slug reporting
on this issue for ISN/MTR.


6. (U) A word version file of this document will be posted
at www.state.sgov.gov/demarche.
RICE


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End Cable Text