IRANIAN UAV PROGRAM SEEKING JAPANESE-ORIGIN ITEMS

S E C R E T STATE 109147 SIPDIS E.O. 12958: DECL: 10/10/2033 TAGS: MTCRE PARM PREL MNUC ETTC KSCA JA IR MY SUBJECT: IRANIAN UAV PROGRAM SEEKING JAPANESE-ORIGIN ITEMS VIA MALAYSIAN BROKER (S) REF: A. STATE 97993 ¶B. TOKYO 2554 ¶C. 07 STATE 113257 ¶D. 07 TOKYO 3805 ¶E. 07 TOKYO 4687 Classified By: ISN/MTR DIRECTOR PAM DURHAM FOR REASONS 1.4 (C). ¶1. (U) This is an action request. Embassy Tokyo, please see paragraph 6. ¶2. (S) Background: In mid September 2008, the U.S. shared with the GOJ information indicating that in June and July 2008, a procurement manager for the Iranian UAV entities Fan Pardazan and Qods Aviation (or Aeronautics) Industries sought SSPS105 and PS050 servo motors manufactured by the Japanese firm Tonegawa-Seiko from a representative of the Taiwan firm Prime Kit Enterprises (Refs A & B). The Prime Kit representative confirmed that he would be able to provide the servo motors for the Iranian UAV procurement manager, and indicated that he could deliver them within three weeks of payment. ¶3. (S) We now understand that in mid-August 2008, an individual associated with the Malaysian firm Evertop Services Sdn Bhd contacted Tonegawa-Seiko to request a quotation for 85 PS050 servo motors, and in mid- September, a representative of Iran's UAV program - likely the same individual that was seeking the servo motors from Prime Kit in June and July - requested information on a large quantity of PS050 and SSPS105 servo motors from Evertop. Evertop is based in Malaysia, but it is an Iranian-run firm that has facilitated many transactions on behalf of Iranian end- users of proliferation concern. This includes entities listed in the Annex to UNSCR 1737 such as the Shahid Hemmat Industrial Group (SHIG - Iran's primary liquid- fueled ballistic missile developer) and entities affiliated with Iran's UAV program (one of which, Qods Aeronautics Industries, is listed in the Annex to UNSCR 1747). We believe that the Iranian UAV program is working with both Prime Kit and Evertop to procure the servo motors, which are not controlled but could be used as UAV flight control systems. ¶4. (S) Iran's UAV program has previously attempted to procure servo motors from Tonegawa-Seiko with the assistance of Malaysian intermediaries. In August 2007, we advised the GOJ that Reza Amidi, an individual associated with both Fan Pardazan and Qods, attempted to procure unidentified equipment manufactured by Tonegawa-Seiko. The Malaysian firm Microset Services Sdn Bhd was acting as a broker in this procurement effort (Refs C & D). Japanese officials investigated this information, and determined that Microset had attempted to obtain 100 "high powered" servo motors from Tonegawa-Seiko. Tonegawa-Seiko refused the purchase request from Microset, but subsequently received similar requests from other companies, including the Malaysian firm Spektra Resources (Ref E). ¶5. (S) Objectives: We want to share this information with Japanese officials and urge them to take appropriate measures to prevent Japanese firms from acting - even unwittingly - as suppliers to Iranian entities of proliferation concern, including by engaging in business activities with Evertop and other suspect Malaysian firms. ¶6. (S) Action Request: Request Embassy Tokyo approach appropriate host government officials to deliver talking points/non-paper in paragraph 7 below and report response. Talking points also may be provided as a non-paper. ¶7. (S) Begin talking points/non-paper: (SECRET//REL JAPAN) -- In mid-September, we shared information with your government indicating that in June and July 2008, an Iranian procurement manager likely associated with Iran's unmanned aerial vehicle (UAV) program sought information on a variety of Japanese-origin items suitable for use in UAVs. -- Specifically, we told you that as of mid-July, a procurement manager with the Iranian firm Fan Pardazan sought prices for 40 SSPS105 servo motors and an unknown quantity of PS050 servo motors manufactured by the Japanese firm Tonegawa-Seiko Company Ltd. from Chen of the Taiwan firm Prime Kit Enterprises. -- Although these servo motors are uncontrolled, they are suitable for use in flight control systems in UAVs. -- We noted that the Iranian manager procures equipment and parts for both Fan Pardazan and Qods Aviation (or Aeronautics) Industries, and that the two entities share the same mailing address in Tehran. Qods is responsible for Iran's UAV development efforts and is an entity designated under United Nations Security Council Resolution 1747 for its association with the Iranian Revolutionary Guard. -- We now have new information indicating that in mid- August 2008, an individual associated with the Malaysian firm Evertop Services Sdn Bhd contacted a representative of Tonegawa-Seiko to request a quotation for 85 PS050 servo motors. -- We also understand that as of mid-September, a representative of Iran's UAV program - likely the same individual that was seeking the servo motors from Prime Kit - requested information on 350 PS050 servo motors and 40 SSPS105 servo motors from a representative of Evertop. -- While Evertop is based in Malaysia, it is an Iranian-run procurement firm that has facilitated many transactions on behalf of Iranian end-users of concern. -- This includes entities listed in the Annex to UNSCR 1737, such as the Shahid Hemmat Industrial Group (SHIG, Iran's primary liquid-fueled ballistic missile developer) and entities affiliated with Iran's UAV program (one of which, Qods Aeronautics Industries - is listed in the Annex to UNSCR 1747). -- We believe that the Iranian UAV program is working with both Prime Kit and Evertop to procure the servo motors, which could be used as flight control systems. -- We also note that we have previously discussed with you attempts by the Iranian UAV program to procure servo motors from Tonegawa-Seiko with the assistance of Malaysian intermediaries. -- Specifically, in August 2007, we advised your government that Reza Amidi, an individual associated with both Fan Pardazan and Qods, sought to acquire unidentified equipment manufactured by Tonegawa-Seiko, and that the Malaysian firm Microset Services Sdn Bhd was acting as a broker in this procurement effort. -- Japanese officials investigated this information, and determined that Microset had attempted to obtain 100 "high powered" servo motors from Tonegawa-Seiko. Tonegawa-Seiko refused the purchase request from Microset, but subsequently received similar requests from other companies, including the Malaysian firm Spektra Resources. -- We ask that you investigate this information and take all appropriate measures to ensure that Tonegawa- Seiko is not acting - even unwittingly - as a source of supply to Iranian entities of proliferation concern, including by engaging in business activities with Evertop. -- We look forward to continued cooperation with your government on nonproliferation and export control matters, and would appreciate hearing the results of any actions you take in response to this information. End talking points/non-paper ¶8. (U) Please contact ISN/MTR's John Paul Herrmann with any questions or follow-up issues related to this case (202-647-1430 - herrmannjp2@state.sgov.gov) and slug any reporting on this issue for ISN/MTR and EAP/J. ¶9. (U) A word version of this document will be posted at www.state.sgov.gov/demarche. RICE