ADDITION OF IRANIAN-AFFIILIATED MAYROW TRADING

UNCLAS STATE 109141 SENSITIVE C O R R E C T E D C O P Y (ADDED CAPTION) SIPDIS E.O. 12958: N/A TAGS: KNNP MNUC IR GM PREL PARM EFIN SUBJECT: ADDITION OF IRANIAN-AFFIILIATED MAYROW TRADING CO. AND ITS ASSOCIATED ENTITIES AND INDIVIDUALS TO GENERAL ORDER 3 ¶1. (U) This is an action request. Please see paragraph 5. -------------- SUMMARY -------------- ¶2. (SBU) On September 17, 2008, the U.S. took a number of actions to help protect Coalition Forces operating in Iraq and Afghanistan by implementing regulatory steps to disrupt the flow of U.S.-origin commodities that have been, and may continue to be, employed in Improved Explosive Devices (IEDs) or other explosive devices used against Coalition Forces. The Department of Commerce's Bureau of Industry and Security (BIS) announced that a significant number of new entities arising out of the Mayrow investigation have been added to the Entities List. Concurrently, the Treasury Department designated six Iranian entities under Executive Order (E.O.) 13382 ("Blocking the Property of Weapons of Mass Destruction Proliferators and their Supporters") for being owned or controlled by the Ministry of Defense and Armed Forces Logistics (MODAFL) or the Defense Industries Organization (DIO). The Department of Justice also indicted 16 foreign-based nationals in connection with their participation in conspiracies to export U.S.-manufactured commodities to prohibited entities and to Iran. ¶3. In addition to the actions listed above, Commerce's BIS transferred the parties on General Order #3 to the newly expanded Entity List. This transfer will improve the ability of exporters to screen potential recipients of items subject to the Export Administration Regulations (EAR) and simplify the EAR by reducing the need to issue general orders that impose license requirements on specific parties. This cable serves as notification for each respective government of the addition of entities and/or individuals under their jurisdiction to the Entity List. ¶4. Finally, the United States designated six Iranian entities under E.O. 13382 ("Blocking the Property of Weapons of Mass Destruction Proliferators and their Supporters") on September 17, 2008 for being owned or controlled by the Ministry of Defense and Armed Forces Logistics (MODAFL) or the Defense Industries Organization (DIO). -------------- OBJECTIVES/ACTION REQUEST -------------- ¶5. (SBU) Washington requests Posts deliver the talking points and non-paper in paragraph 5 and appropriate parts of paragraphs 6 and 7 to appropriate host government officials in the foreign affairs and finance ministries, and other appropriate government agencies, such as the Commerce and Justice Departments or equivalent. Please note that some countries were notified via phone by Washington on September 17th. Please also note that additional activities are already taking place in Canada, Hong Kong, South Korea and the UAE related to these actions by the USG. For Posts in these jurisdictions, this cable is for Embassy information only. Post should pursue the following objectives: -- Inform host government officials of the Commerce Department's additions to the Entity List, the indictments by the Department of Justice, and the Department of the Treasury's designations under E.O. 13382. -- Urge host governments, in accordance with obligations under UNSCRs 1737, 1747 and 1803, to freeze the assets of these entities if they have not already done so, as well as the assets of persons or entities acting on their behalf or at their direction, or by entities owned or controlled by them. -- Note that firms and individuals in the jurisdiction of host governments risk designation under E.O. 13382 if they are found to be owned or controlled by, act or purport to act for or on behalf of, directly or indirectly, entities or individuals designated under E.O. 13382, and/or if they provide, or attempt to provide, financial, material, technological, or other support for, or goods or services in support of any designated entity. -- Stress the point that this action is being taken to protect all Coalition forces in Iraq and Afghanistan and will have a significant positive effect on the security of these two countries in particular, and the Middle East and Central Asia in general. -- Request host government assistance where needed in completing this action. -- Urge host governments to use enhanced vigilance when examining these firms and to enforce any pertinent laws that these entities and individuals have broken. -- Urge host governments to enact stronger legislation restricting the sale or export of dual-use items outside their jurisdiction. -- Inform host governments that the U.S. is willing to provide assistance where requested. -------------- BACKGROUND AND NONPAPER -------------- ¶6. (U) Begin text of non-paper for all Posts: To help protect Coalition Forces operating in Iraq and Afghanistan, the United States took certain regulatory steps to disrupt the flow of U.S.-origin commodities that have been, and may continue to be, employed in Improvised Explosive Devices (IEDs) or other explosive devices used against Coalition Forces in Iraq and Afghanistan. On September 17, 2008, the Department of Commerce's Bureau of Industry and Security (BIS) published a new rule in the Federal Register that expanded the grounds for placing a party on the Entity List. The Entity List is a list of parties whose presence in a transaction triggers a license requirement under the Export Administration Regulations. Under the new rule, a party could be placed on the Entity List if there is reasonable cause to believe that the entity has been involved, is involved, or poses a significant risk of becoming involved in activities that are contrary to the national security or foreign policy interests of the United States. Those acting on behalf of such entities may also be added to the Entity List. Also on September 17, 2008, BIS transferred the parties on General Order #3 to the newly expanded Entity List. This transfer will improve the ability of exporters to screen potential recipients of items subject to the EAR and simplify the EAR by reducing the need to issue general orders that impose license requirements on specific parties. In addition to transferring the existing General Order #3 parties to the Entity List, BIS announced that a significant number of new entities arising out of the Mayrow investigation have been added to the Entity List. Some of these entities and individuals are located in your jurisdiction and their names are listed in paragraph 7. The complete Entity List can be found at: http://www.bis.doc.gov/entities/default.htm. The Department of Justice also indicted 16 foreign-based nationals in connection with their participation in conspiracies to export U.S.-manufactured commodities to prohibited entities and to Iran. More information about these indictments can be found in a press release at: http://justice.gov/opa/pr/2008/September/08-n sd-828.html. Finally, the Treasury Department designated six Iranian entities under Executive Order (E.O.) 13382 for being owned or controlled by the Ministry of Defense and Armed Forces Logistics (MODAFL) or the Defense Industries Organization (DIO). These six entities are Iran Electronics Industries and two of its subsidiary organizations, Shiraz Electronics Industries, and Iran Communications Industries; Iran Aircraft Manufacturing Industrial Company (HESA),Armament Industries Group, and its subsidiary, Farasakht Industries. More details on these designations can be found in Treasury's press release at http://treasury.gov/press/releases/hp1145.htm . An overview of all of these actions can be found at: http://www.state.gov/r/pa/prs/2008/sept/10982 2.htm. These actions by BIS, the Department of Justice, and the Department of the Treasury are a continuation of the U.S. Government's efforts to halt Iranian proliferation, counter Iran's use of deceptive practices in international commerce, and prevent Iran's use of the international commercial system for nefarious purposes. These deceptive practices undermine confidence in international commerce, in addition to threatening Coalition forces and security in Iraq and Afghanistan. These combined actions by the U.S. Government illustrate the global reach of Iranian procurement networks and underscore the importance of keeping sensitive U.S. technology out of Iran's grasp. They also provide evidence of the importance of strong export and dual-use controls. The U.S. urges you to use enhanced vigilance when examining these firms and to enforce any pertinent laws that these entities and individuals have broken. The U.S. also urges you to enact stronger legislation restricting the sale or export of dual-use items outside your jurisdiction. The U.S. is willing to provide assistance where requested on legal and procedural issues regarding export controls. End text of non-paper for all Posts. ¶7. (SBU) The entities that were added to BIS' Entity List are: POINTS FOR CANADA ONLY: The following entities and individuals from your country have been added to General Order #3 due to their involvement with Mayrow General Trading and related entities. Entities ¶1. Kitro Corporation: Toronto, Canada. Individuals ¶1. Ali Bakhshien: Toronto, Canada. POINTS FOR CHINA ONLY: The following entities and individuals from your country have been added to General Order #3 due to their involvement with Mayrow General Trading and related entities. Entities ¶1. A.C. International: Guangzhou, China. ¶2. Asia International Trading Company Guangzhou, China Individuals ¶1. Tracy Little: Guangzhou, China POINTS FOR EGYPT ONLY: The following entities and individuals from your country have been added to General Order #3 due to their involvement with Mayrow General Trading and related entities. Entities ¶1. H Logic: Alexandria, Egypt. Individuals ¶1. Hesham Yehia: Alexandria, Egypt. ¶2. Najeeb Al Awadhi: Alexandria, Egypt. POINTS FOR GERMANY ONLY: The following entities and individuals from your country have been added to General Order #3 due to their involvement with Mayrow General Trading and related entities. Entities ¶1. Nezhad Enterprise Company: Kiel, Germany. Individuals ¶1. Djamshid Nezhad: Kiel, Germany POINTS FOR HONG KONG AND CHINA ONLY: The following entities and individuals from your jurisdiction have been added to General Order #3 due to their involvement with Mayrow General Trading and related entities. Entities ¶1. Asia Link: Hong Kong ¶2. Britestone Limited: Hong Kong ¶3. Creative Electronics: Hong Kong ¶4. Green Channel Electronics Company Tong: Kowloon, Hong Kong ¶5. Kong Fat Electronic Trading Limited: Kowloon, Hong Kong. ¶6. Pelorus Enterprises Limited: Hong Kong. ¶7. Polar Star International Co. Ltd.: Hong Kong ¶8. Techlink Electronics: Kowloon, Hong Kong. ¶9. TLG Electronics: Hong Kong. ¶10. Unite Chance Technology Company: Hong Kong. ¶11. Wing Shing Computer Components Company (H.K.) Ltd.: Hong Kong. Individuals ¶1. Amy So: Hong Kong. ¶2. Raz El Mayan: Hong Kong ¶3. Gary Chan: Hong Kong. ¶4. Bruce Lam: Hong Kong ¶5. Antony Emmanuel: Dubai, UAE and Hong Kong. POINTS FOR KUWAIT ONLY The following individual from your country has been added to General Order #3 due to his involvement with Mayrow General Trading and related entities Entities ¶1. Advanced Technology General Trading Company Individuals ¶1. Abubakr Abuelazm: Kuwait POINTS FOR MALAYSIA ONLY: The following entities and individuals from your country have been added to General Order #3 due to their involvement with Mayrow General Trading and related entities. Entities ¶1. Ace Hub System: Selangor, Malaysia. ¶2. Analytical Solutions: Kuala Lumpur, Malaysia East Tech: Malaysia ¶3. Antcorp System: Penang, Malaysia ¶4. East Tech: Malaysia ¶5. Eco Biochem SDN BHD: Selangor D.E., Malaysia. ¶6. Fetsco Marketing SDN BHD: Malaysia. ¶7. VTE Industrial Automation SDN BHD: Selangor, Malaysia. ¶8. Nexus Empire: Selangor, Malaysia. Individuals ¶1. Ann Teck Tong: Peresekkutuan, Malaysia. ¶2. Mohd Ansari: Kuala Lumpur, Malaysia. ¶3. Brian Kaam: Selangor, Malaysia. POINTS FOR SINGAPORE ONLY: The following entities and individuals from your country have been added to General Order #3 due to their involvement with Mayrow General Trading and related entities. Entities ¶1. Cyberinn PTE LTD: Singapore ¶2. Strive Components: Singapore. ¶3. Synoptics Imaging Systems Pte Ltd: Singapore. POINTS FOR SOUTH KOREA ONLY: The following entity from your country has been added to General Order #3 due to its involvement with Mayrow General Trading and related entities. Entities ¶1. WASTEC, Inc. / With Advanced Systemic Technology: Seoul, South Korea POINTS FOR THE UAE ONLY: The following entities and individuals from your country have been added to General Order #3 due to their involvement with Mayrow General Trading and related entities. Entities ¶1. Advanced Technology General Trading Company: Kuwait and Dubai, UAE ¶2. Danoush Trading Company: Dubai ¶3. Divanizadeh General Trading Company: Dubai, UAE ¶4. Hamed Al Fahid Trading Company: Dubai, UAE. ¶5. Telectron: Abu Dhabi, UAE. Individuals ¶1. Abubakr Abuelazm: Dubai, UAE ¶2. Ali Reza Divanizadeh: Dubai, UAE ¶3. Mehdi Rafie: Dubai, UAE. ¶4. Mehran Kamalinia: Dubai, UAE. ¶5. Mohsen Saghafi: Dubai, UAE. ¶6. Feroz Jafar: Abu Dhabi, UAE. ¶7. Neda Kargar: Dubai, UAE. ¶8. Baktash Fattahi (UAE): ¶9. Mostafa Salehi: Dubai, UAE. ¶10. Shaji Muhammed Basheer: Dubai, UAE ¶11. Antony Emmanuel: Dubai, UAE and Hong Kong. -------------- REPORTING DEADLINE -------------- ¶8. (U) Please report delivery of the U.S. non-paper and any response within seven days of receipt of this cable. Please slug replies for ISN, T, TREASURY, NEA/IR, and appropriate regional bureaus. Please use SIPDIS caption on all responses. -------------- POINT OF CONTACT -------------- ¶9. (U) Washington point of contact for follow-up information is Kevin McGeehan, ISN/CPI, (202) 647-5408, McGeehanKJ@state.sgov.gov. ¶10. (U) Department thanks Post for its assistance. RICE