IRANIAN BALLISTIC MISSILE PROGRAM'S CONTINUED INTEREST IN PROCURING VACUUM FURNACE FROM SOUTH AFRICA (S)

S E C R E T STATE 109819



SIPDIS



E.O. 12958: DECL: 10/14/2033

TAGS: PARM, MTCRE, PREL, SF, IR

SUBJECT: IRANIAN BALLISTIC MISSILE PROGRAM'S CONTINUED

INTEREST IN PROCURING VACUUM FURNACE FROM SOUTH AFRICA (S)



REF: A. STATE 53303

B. PRETORIA 1122



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

(B),(C),AND (D).



1. (U) This is an action request. Embassy Pretoria,

please see paragraph 5.



2. (S) Background: In May 2008, the USG shared with

the SAG information indicating that as of mid-

February 2008, a representative of the Iran-based

firm M.S. Company provided Iran's Sabalan Company

with technical specifications for a VGT-1200-1200

high temperature vacuum furnace manufactured by the

South African firm Prestige Thermal Equipment Pty.

Ltd. (Ref A). Sabalan is affiliated with the Shahid

Hemmat Industrial Group (SHIG),Iran's primary

developer of liquid-fueled ballistic missiles. South

African Deputy Director for Nuclear Disarmament and

Non-Proliferation Michiel Combrink agreed to act

"immediately" on the information we provided and to

provide informal feedback on this matter if at all

possible (Ref B). (Note: We have not yet received

any such update. End note.) While vacuum furnaces

are not controlled by the Missile Technology Control

Regime (MTCR) and are used in many commercial

applications, the VGT-1200-1200 would be very well-

suited to annealing and brazing processes in a

missile production facility. Paragraph 4 of UN

Security Council Resolution 1737 requires UN Member

States to take measures to prevent the transfer to

Iran of any item that the State determines would

contribute to the development of nuclear weapon

delivery systems. This transfer would be

inconsistent with this provision of UNSCR 1737.



3. (S) We now have information indicating that as of

July 2008, Iran's ballistic missile program continued

to seek a vacuum furnace from Prestige Thermal

Equipment Pty. Ltd. Specifically, the Iranian

intermediary Mehrfam Sepahan Company (likely the same

firm as the "M.S. Company" previously discussed with

the SAG in May) received a quotation for a horizontal

vacuum heat treating and brazing furnace (model HG

8812-2G) manufactured by Prestige. As in the case we

raised in May, the Mehrfam Sepahan Company sought

this equipment on behalf of SHIG. Like the VGT-1200-

1200, this vacuum furnace is not controlled by the

MTCR. However, it is well-suited to producing

combustion chambers for liquid rocket engines.



4. (S) Objective: We want to raise this matter with

South African authorities and urge them to

investigate this information with a view towards

ensuring that South African firms are not involved in

the supply of sensitive technologies to SHIG or other

Iranian ballistic missile entities, even

inadvertently.



5. (S) Action Request: Request Embassy Pretoria

approach appropriate host government officials to

deliver talking points in paragraph 6 below and

report response. Talking points also may be provided

as a non-paper.



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



(SECRET//REL SOUTH AFRICA)



-- In the spirit of our nonproliferation cooperation,

we would like to alert you to a matter of potential

proliferation concern and request your assistance in

investigating this activity.



-- In May 2008, we shared with your government

information indicating that as of mid-February 2008,

Dr. Shokrola Masihpour of Iran's M.S. Company

provided to the Sabalan Company technical

specifications for a VGT-1200-1200 high temperature

vacuum furnace.



-- As we noted then, the Sabalan Company is

affiliated with the Shahid Hemmat Industrial Group

(SHIG),Iran's primary developer of liquid-fueled

ballistic missiles and an entity designated as

subject to targeted sanctions under UN Security

Council Resolution 1737.



-- The M.S. Company advised Sabalan to establish a

letter of credit for the South African company

Prestige Thermal Equipment Pty Ltd. at the First

National Bank, Wadeville branch, South Africa.



-- We now have additional information indicating that

as of July 2008, Iran's ballistic missile program

continued to seek a vacuum furnace from Prestige

Thermal Equipment.



-- Specifically, we understand that the Iranian

intermediary Mehrfam Sepahan Company (likely the same

firm as the "M.S. Company" we discussed with you in

May) received a quotation for a horizontal vacuum

heat treating and brazing furnace (model HG 8812-2G)

manufactured by Prestige Thermal Equipment.



-- As in the case we raised with you in May, the

Mehrfam Sepahan Company sought this equipment on

behalf of SHIG.



-- While this vacuum furnace is not controlled by the

Missile Technology Control Regime (MTCR),it is well-

suited to producing combustion chambers for liquid

rocket engines.



-- As such, in our view, transfer of this vacuum

furnace to Iran would be inconsistent with UNSCR

1737, which requires UN Member States to take

measures to prevent the transfer to Iran of any items

that the State determines would contribute to the

development of nuclear weapon delivery systems.



-- We do not know if Prestige Thermal Equipment is

aware that the end-user in this potential sale is

affiliated with Iran's ballistic missile program.



-- We ask that you investigate this information and

take all appropriate measures to ensure that Prestige

Thermal Equipment is not acting - even unwittingly -

as a source of supply to SHIG (an entity designated

by UN Security Council Resolution 1737 for its

involvement in Iran's ballistic missile program) or

any other entity associated with Iran's ballistic

missile program.



-- 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



7. (U) Washington POC is ISN/MTR John Paul Herrmann

(Phone: 202-647-1430). Please slug any reporting on

this issue for ISN/MTR.



8. (U) A word version file of this document will be

posted at www.state.sgov.gov/demarche.

RICE