IRANIAN BALLISTIC MISSILE PROGRAM RECEIVES

S E C R E T STATE 109924


E.O. 12958: DECL: 10/14/2033
TAGS: PARM MTCRE PREL TW IR

SUBJECT: IRANIAN BALLISTIC MISSILE PROGRAM RECEIVES
TESTING EQUIPMENT FROM A TAIWAN FIRM (S)

REF: STATE 70009

Classified By: ISN/MTR DIRECTOR PAM DURHAM, REASON 1.4 (C).


1. (U) This is an action request. AIT Taipei, please see
paragraph 4.


2. (S) Background: In June 2008, the U.S. shared with Taiwan
authorities information that the Taiwan-based company Gotech
Testing Machine Incorporated was working to sell testing
equipment to Iran's liquid propellant missile developer,
Shahid Hemmat Industrial Group (SHIG),an entity designated
under United Nations Security Council Resolution (UNSCR) 1737
(Reftel). This transaction was being facilitated by Gotech's
representative in Iran, Farvardin Tech Company, which may
have been working with Gotech to route this sale through
intermediaries in third countries to circumvent Taiwan's
export controls.


3. (S) Since our June 2008 discussions, we have learned that
Gotech transferred a temperature and humidity tester to SHIG
in March 2008. Although not controlled by the Missile
Technology Control Regime (MTCR),the temperature and
humidity tester exported to SHIG could be used to support
environmental testing of missile components. We want to
provide this information to Taiwan authorities to support
their ongoing investigation into Gotech's assistance to Iran
and to help prevent Gotech from providing further assistance
to UNSCR-designated entities in Iran. In light of Gotech's
apparent efforts to evade Taiwan's export controls, we also
want to urge Taiwan to consider initiating enforcement
actions against this firm.


4. (S) Action Request: Request AIT Taipei approach
appropriate officials to deliver talking points/non-paper in
paragraph 5 below and report response. Talking points also
may be provided as a non-paper.


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

(SECRET REL TAIWAN)

-- In June 2008, the U.S. alerted you that Taiwan's Gotech
Testing Machine Incorporated was working to sell testing
equipment to Iran's liquid propellant missile developer,
Shahid Hemmat Industrial Group (SHIG),an entity designated
under United Nations Security Council Resolution (UNSCR)

1737.

-- You will recall that this transaction was being
facilitated by Gotech's representative in Iran, Farvardin
Tech Company, and that we understood that Gotech and
Farvardin Tech Company may have been working to route this
sale through intermediaries in third countries to circumvent
your export controls.

-- Since we brought this case to your attention in June, we
have learned that SHIG, working through the Iranian cover
company Sabalan Company, received a temperature and humidity
tester from Gotech in March 2008.

-- Although not controlled by the Missile Technology Control
Regime (MTCR),the temperature and humidity tester exported
to SHIG could be used to support environmental testing of
missile components.

-- We hope this information is useful in your ongoing
investigation into this transaction and we would appreciate
an update on the status of this case at the earliest possible
time.

-- Given that these firms appear to have taken measures to
evade your export control restrictions on sales to Iran, we
urge you to consider initiating enforcement actions against
Gotech.

-- We look forward to future cooperation on export control
and nonproliferation issues.

End talking points/non-paper


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


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


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