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