Identifier
Created
Classification
Origin
08STATE105997
2008-10-03 15:55:00
SECRET
Secretary of State
Cable title:  

CHINESE ENTITY CONTINUES EFFORTS TO SUPPLY

Tags:  PARM PREL ETTC MTCRE KSCA CH PK 
pdf how-to read a cable
P 031555Z OCT 08
FM SECSTATE WASHDC
TO AMEMBASSY BEIJING PRIORITY
INFO MISSILE TECHNOLOGY CONTROL REGIME COLLECTIVE PRIORITY
AMEMBASSY ISLAMABAD PRIORITY
S E C R E T STATE 105997 


E.O. 12958: DECL: 10/03/2033
TAGS: PARM PREL ETTC MTCRE KSCA CH PK

SUBJECT: CHINESE ENTITY CONTINUES EFFORTS TO SUPPLY
PAKISTAN WITH MISSILE-RELATED PRODUCTION TECHNOLOGY (S)

REF: A. STATE 71613

B. BEIJING 2681

Classified By: ISN/MTR DIRECTOR PAM DURHAM FOR REASONS 1.4 (C)

S E C R E T STATE 105997


E.O. 12958: DECL: 10/03/2033
TAGS: PARM PREL ETTC MTCRE KSCA CH PK

SUBJECT: CHINESE ENTITY CONTINUES EFFORTS TO SUPPLY
PAKISTAN WITH MISSILE-RELATED PRODUCTION TECHNOLOGY (S)

REF: A. STATE 71613

B. BEIJING 2681

Classified By: ISN/MTR DIRECTOR PAM DURHAM FOR REASONS 1.4 (C)


1. (U) This is an action request. Embassy Beijing please
see paragraph 4.


2. (S) Background: In July 2008, the U.S. shared with China
information indicating that the Chinese firm Polytechnologies
Inc. had concluded contracts in February 2008 to supply a
fiber coil winding machine and integrated optical chips to
Pakistan's Advanced Engineering and Research Organization
(AERO) (Ref A). The items being supplied to AERO by
Polytechnologies are suitable for the production of fiber
optic gyroscopes used in missile inertial navigation systems.
Because such a transfer could be inconsistent with China's
missile-related export control restrictions, we asked Chinese
officials to investigate this activity and determine whether
optical chips and a fiber winding machine had been licensed
for export to Pakistan's AERO.


3. (S) Since our July discussions of this case, we have
learned that negotiations between AERO and Polytechnologies
continued into June 2008 as the two firms worked to finalize
details associated with this project. In addition, we
understand that false documentation was to be provided to
Chinese export control authorities. This false documentation
would identify this contract as related to a
telecommunications project in Pakistan. We think this
equipment will be used to support Pakistan's missile efforts.
We want to alert Chinese officials to this activity and urge
them to use this information to support their ongoing
investigation. We also would like to request an update on
the status of their efforts in this case.


4. (S) Action request: Request Embassy Beijing approach
appropriate host government officials to deliver points in
paragraph 5 and report response. Points also may be provided
as a non-paper.


5. (S) Begin points/non-paper:

(SECRET//REL CHINA)

-- You will recall that in July 2008, we shared with your
government information indicating that the Chinese firm
Polytechnologies Inc. had concluded contracts to supply a
fiber coil winding machine and integrated optical chips to
Pakistan's Advanced Engineering and Research Organization
(AERO).

-- We understood that the integrated optical chips and fiber
winding machine being supplied to AERO were suitable for the
production of fiber optic gyroscopes used in missile inertial
navigation systems.

-- Because such a transfer could be inconsistent with your
missile-related export control restrictions, we asked your
government to investigate this activity to determine whether
these optical chips and the fiber winding machine were
licensed for export to Pakistan.

-- We would appreciate any information you can share on your
investigation into this matter. We also would like to
provide you with additional details on this transaction,
which we hope will be useful to your continued review of this
case.

-- Specifically, we understand that negotiations between AERO
and Polytechnologies continued in June 2008 as they worked to
finalize details associated with this project.

-- Our information also indicates that, in order to
facilitate this transaction, false documentation may have
been or will be provided to Chinese export control
authorities. This false documentation may identify this
contract as related to producing fiber optic equipment
required for a telecommunications project in Pakistan.

-- We believe this equipment will likely be used by AERO to
support missile-related projects in Pakistan.

-- We hope this information is useful in supporting your
investigation into this matter and look forward to continued
cooperation on missile nonproliferation issues.

END TALKING POINTS.


6. (U) Washington POC is ISN/MTR James Mayes (PHONE:
202-647-3185). Please slug any reporting on this issue for
ISN/MTR and EAP/CM.


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


NNNN




End Cable Text