EFFORTS BY IRAN TO ACQUIRE TAIWAN-ORIGIN MACHINE

S E C R E T STATE 109927

SIPDIS

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

SUBJECT: EFFORTS BY IRAN TO ACQUIRE TAIWAN-ORIGIN MACHINE
TOOLS THROUGH TURKISH INTERMEDIARIES

REF: A. 06 STATE 079175

B. 07 STATE 110325

C. 07 STATE 116891

D. 07 STATE 149633

Classified By: ISN/MTR DIRECTOR PAM DURHAM
REASONS 1.4 (B),(C) AND (D).


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


2. (S) Background: The U.S. has information that in June
2008, Iran's Machine Sazi Tabriz was seeking to procure
Taiwan-origin machine tools through two Turkish companies.
We have previously discussed with Taiwan our concerns
regarding exports of Taiwan-origin machinery to Machine Sazi
Tabriz, which has been associated with proliferation-related
procurement in Iran (Reftels). Machine Sazi Tabriz appears
to be working with these two Turkish companies to procure
machine tools it is unable to acquire directly from Taiwan
due to its export control restrictions. We therefore want to
ask Taiwan authorities to investigate this activity and
determine whether any licenses were submitted for these
machines to be exported to Iran. We also urge them to use
all available measures to prevent Iran from acquiring
unauthorized exports from Taiwan via third country
intermediaries.


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


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

(SECRET REL TAIWAN)

-- In the spirit of our close cooperation on export control
issues, we would like to alert you to information involving
efforts by an entity in Iran to procure Taiwan-origin
machinery, and request your assistance in investigating this
activity.

-- Specifically, we understand that in June 2008, Iran's
Machine Sazi Tabriz was seeking to procure a model VF-3000
double column bridge mill produced by the Taiwan-based
company Vision Wide Tech Co. and a model KAN-50 computer
numerically controlled (CNC) flat-bed lathe manufactured by
Taiwan's Proking Machinery.

-- Machine Sazi Tabriz is seeking these machines through two
Turkish companies, Ak Makina Sanayi ve Ticaret Limited
Sirketi and Ak Makina Uluslar Arasi Tic. Ltd.

-- We believe Machine Sazi Tabriz may be working with these
two Turkish companies to procure machine tools it is unable
to acquire directly from Taiwan due to export control
restrictions regarding Iran.

-- Machine Sazi Tabriz has been associated with
proliferation-related procurement in Iran and it maintains a
strong working relationship with Iran's Defense Industries
Organization (DIO),an entity designated by the United
Nations Security Council Resolution 1737.

-- You will recall that we have previously raised with you
our concerns regarding exports of Taiwan-origin machinery to
Machine Sazi Tabriz and also have recommended denial of
several export applications pursuant to the Gameplan that
listed Machine Sazi Tabriz as the end-user.

-- We therefore urge you to investigate this activity and
determine whether any licenses were submitted for these
machines to be exported to Iran. We also ask that you use
all available measures to prevent Iran from acquiring
unauthorized exports from Taiwan via third country
intermediaries.

-- We look forward to continued cooperation on
nonproliferation issues.

End talking points/non-paper


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


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


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