CHINESE FIRMS CONCLUDE CONTRACT TO SUPPLY A WIND

S E C R E T STATE 113768 SIPDIS E.O. 12958: DECL: 10/24/2033 TAGS: PARM PREL ETTC MTCRE KSCA CH PK SUBJECT: CHINESE FIRMS CONCLUDE CONTRACT TO SUPPLY A WIND TUNNEL TO PAKISTAN (S) Classified By: ISN/MTR ACTING DIRECTOR RALPH PALMIERO FOR REASONS 1.4 (B),(C),AND (D). ¶1. (U) This is an action request. Embassy Beijing please see paragraph 3. ¶2. (S) Background: The U.S. has information that in December 2007, the China Precision Machinery Import/Export Corporation (CPMIEC) and China Academy of Aerospace Aerodynamics (CAAA) concluded a contract to supply the Pakistani government with a trisonic wind tunnel. We believe Pakistan may intend to use this wind tunnel, which is controlled by the Missile Technology Control Regime (MTCR),to support missile- related research and development in Pakistan. Because transfers pursuant to this contract could potentially be inconsistent with China's export control restrictions on missile technology, we want to raise this activity with Chinese officials and ask whether China has licensed the transfer of this equipment to Pakistan. ¶3. (S) Action request: Request Embassy Beijing approach appropriate host government officials to deliver points in paragraph 4 and report response. Points also may be provided as a non-paper. ¶4. (S) Begin points/non-paper: (SECRET//REL CHINA) -- We would like to raise with you a matter of proliferation concern and request your assistance in investigating this activity. -- The U.S. has information that in December 2007, the China Precision Machinery Import/Export Corporation (CPMIEC) and China Academy of Aerospace Aerodynamics (CAAA) concluded a contract to supply the Pakistani government with a trisonic wind tunnel. -- We are bringing this information to your attention because we believe Pakistan may intend to use this wind tunnel, which is controlled by the Missile Technology Control Regime (MTCR),to support missile-related research and development in Pakistan. -- Because of this technology's suitability for missile testing applications, we would appreciate learning whether the transfer of this equipment to Pakistan has been licensed by your government, as this deal potentially could be inconsistent with your legal restrictions on missile technology exports. -- We look forward to continued cooperation on missile nonproliferation issues and would appreciate hearing the results of your inquiries into this matter at the earliest possible time. END TALKING POINTS. ¶5. (U) Washington POC is ISN/MTR James Mayes (PHONE: 202-647-3185). Please slug any reporting on this issue for ISN/MTR and EAP/CM. ¶6. (U) A word version of this document will be posted at www.state.sgov.gov/demarche. RICE