Identifier
Created
Classification
Origin
08STATE118099
2008-11-05 21:00:00
SECRET
Secretary of State
Cable title:  

CHINA'S LIMMT PREPARING POSSIBLE IMMINENT DELIVERY OF GYROSCOPES AND ACCELEROMETERS TO BEIJING-BASED MODAFL REP FOR USE BY IRANIAN MISSILE ENTITY (S)

Tags:  PARM MTCRE PREL ETTC CH IR 
pdf how-to read a cable
VZCZCXYZ0008
OO RUEHWEB

DE RUEHC #8099 3102111
ZNY SSSSS ZZH
O R 052100Z NOV 08
FM SECSTATE WASHDC
TO AMEMBASSY BEIJING IMMEDIATE 0000
INFO MISSILE TECHNOLOGY CONTROL REGIME COLLECTIVE
S E C R E T STATE 118099 

SIPDIS

E.O. 12958: DECL: 11/04/2033
TAGS: PARM, MTCRE, PREL, ETTC, CH, IR
SUBJECT: CHINA'S LIMMT PREPARING POSSIBLE IMMINENT
DELIVERY OF GYROSCOPES AND ACCELEROMETERS TO BEIJING-BASED
MODAFL REP FOR USE BY IRANIAN MISSILE ENTITY (S)

REF: A. 06 BEIJING 2983
B. 06 STATE 38396
C. 06 BEIJING 4561
D. 06 BEIJING 4854
E. 06 STATE 118552
F. 06 STATE 167376
G. 06 BEIJING 21333
H. 07 STATE 28429
I. 07 BEIJING 1625
J. 07 BEIJING 5039
K. 07 STATE 111099
L. 07 BEIJING 5269
M. 07 BEIJING 5361
N. 07 BEIJING 7630
O. BEIJING 189
P. STATE 14066
Q. BEIJING 481
R. BEIJING 609
S. BEIJING 716
T. BEIJING 886
U. BEIJING 2322
V. STATE 64254
W. BEIJING 2391
X. BEIJING 2550
Y. STATE 111597
Z. BEIJING 4064

Classified By: ISN/MTR ACTING DIRECTOR JAMES MAYES FOR REASONS
1.4 (B),(C),AND (D).

S E C R E T STATE 118099

SIPDIS

E.O. 12958: DECL: 11/04/2033
TAGS: PARM, MTCRE, PREL, ETTC, CH, IR
SUBJECT: CHINA'S LIMMT PREPARING POSSIBLE IMMINENT
DELIVERY OF GYROSCOPES AND ACCELEROMETERS TO BEIJING-BASED
MODAFL REP FOR USE BY IRANIAN MISSILE ENTITY (S)

REF: A. 06 BEIJING 2983
B. 06 STATE 38396
C. 06 BEIJING 4561
D. 06 BEIJING 4854
E. 06 STATE 118552
F. 06 STATE 167376
G. 06 BEIJING 21333
H. 07 STATE 28429
I. 07 BEIJING 1625
J. 07 BEIJING 5039
K. 07 STATE 111099
L. 07 BEIJING 5269
M. 07 BEIJING 5361
N. 07 BEIJING 7630
O. BEIJING 189
P. STATE 14066
Q. BEIJING 481
R. BEIJING 609
S. BEIJING 716
T. BEIJING 886
U. BEIJING 2322
V. STATE 64254
W. BEIJING 2391
X. BEIJING 2550
Y. STATE 111597
Z. BEIJING 4064

Classified By: ISN/MTR ACTING DIRECTOR JAMES MAYES FOR REASONS
1.4 (B),(C),AND (D).

1. (U) This is an action request. See paragraph 6.

2. (S) Background: Since February 2006, we have
repeatedly discussed with China our concerns
regarding the proliferation-related trading
activities of the Chinese firm Dalian Sunny
Industries, which is also known as LIMMT (Refs A -
Z). LIMMT's activity has included supplying Iran's
solid-propellant ballistic missile developer Shahid
Bakeri Industrial Group (SBIG) with graphite
cylinders and tungsten powder likely controlled by
the Missile Technology Control Regime (MTCR) and
China's missile-related items export control list.
LIMMT has also supplied SBIG with tungsten copper
alloy ingots that could be used to produce missile
jet vanes. We have made clear to Chinese officials
on numerous occasions that LIMMT's activities could
result in the imposition of sanctions pursuant to
U.S. law, and have made frequent requests that they
provide us with detailed information on their
investigation or any actions they have taken against
LIMMT. Despite the PRC's investigation and Chinese
assurances that enforcement measures have been
imposed against LIMMT, the firm continues to engage
in procurement activity in support of Iranian
entities of proliferation concern.

3. (S) In late October, we advised PRC officials
that in May 2008, LIMMT provided SBIG with drawings
of accelerometers and dynamically tuned gyroscopes
man
ufactured by the Chinese firm God Arrow Sensor
(also known as Chongqing God Arrow Sensor) (Ref Y).
We now have additional information indicating that as
of September 2008, LIMMT had provided SBIG with
samples of gyroscopes and as of mid-October, Karl
Lee, LIMMT's commercial manager, had made
arrangements for a late October delivery of a
quantity of accelerometers and gyroscopes to the
Beijing representative of Iran's Ministry of Defense
and Armed Forces Logistics (MODAFL). We also
understand that a second consignment of gyroscopes
and accelerometers was being prepared for delivery to
MODAFL's Beijing representative, and that this
delivery could occur as early as November 8.
Additional monthly shipments are also being prepared
for delivery to MODAFL, which would then forward the
equipment to SBIG in Iran.

4. (S) We also understand that Karl Lee was
arranging additional shipments of tungsten copper,
graphite, and possibly aluminum to SBIG, and that he
may have planned to have future consignments of
tungsten copper blocks or plates machined to look
like mechanical parts, believing that this would
facilitate clearance by Chinese customs. SBIG also
provided specifications for a computer numerically
controlled (CNC) cold flow forming machine to Lee,
who agreed to seek a machine matching SBIG's
requirements from a Chinese supplier. (Note: Any
machine matching SBIG's requirements would be
controlled by the MTCR. End note.)

5. (S) Objectives: We want to share this information
with Chinese officials to make clear to them that,
despite the steps they have taken, LIMMT's
procurement activities on behalf of SBIG continue
unabated. We are especially concerned about the
potentially imminent delivery of the gyroscopes and
accelerometers to MODAFL's Beijing representative,
and want to urge Chinese authorities to take
appropriate action to prevent the supply of this and
follow-on consignments of these items. We also want
to advise Chinese officials of LIMMT's possible
supply to SBIG of the tungsten copper, graphite,
aluminum and CNC flow forming machine. Finally, we
want to follow up on our request that China provide a
written summary of actions it has taken against
LIMMT, as well as any written advisories it issues to
Karl Lee informing him that he will be subject to
applicable penalties if he continues his assistance
to Iranian entities of proliferation concern.

6. (U) Action Request: Request Embassy Beijing
approach appropriate host government officials to
deliver talking points in paragraph 7 and report
response. Talking points may also be left as a non-
paper.

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

(SECRET REL CHINA)

-- On many occasions since February 2006, we have
discussed with you our serious concerns regarding the
proliferation-related trading activities of the
Chinese firm Dalian Sunny Industry (which is also
known as LIMMT (Dalian) Metallurgy and Minerals Co.
Ltd. or LIMMT (Dalian FTZ) Economic and Trade
Organization).

-- This activity has included supplying Iran's solid-
propellant ballistic missile developer Shahid Bakeri
Industrial Group (SBIG) with graphite cylinders and
tungsten powder likely-controlled by the Missile
Technology Control Regime (MTCR),as well as tungsten
copper alloy ingots that could be used to produce
missile jet vanes. These transfers appear to be
contrary to China's export control laws and United
Nations Security Council Resolutions.

-- As you are aware, sanctions could be imposed
against LIMMT for its activities in support of Iran's
ballistic missile program.

-- We now want to share additional information
concerning LIMMT's proliferation-related activities.

-- We recently advised you that LIMMT and SBIG were
negotiating the sale of gyroscopes and accelerometers
probably manufactured by the Chongqing firm God Arrow
Sensor.

-- We now understand that as of September 2008, LIMMT
had provided SBIG with samples of gyroscopes and as
of mid-October, Karl Lee, LIMMT's commercial manager,
had made arrangements for a late October delivery of
accelerometers and gyroscopes to the Beijing
representative of Iran's Ministry of Defense and
Armed Forces Logistics (MODAFL).

-- While LIMMT may have already provided these items,
we also understand that a second consignment of
gyroscopes and accelerometers was being prepared for
delivery to MODAFL and that the delivery date could
be as early as November 8.

-- Additional monthly shipments would be prepared for
delivery to MODAFL, which would then forward the
equipment to SBIG in Iran.

-- We are concerned that SBIG intends to use these
gyroscopes and accelerometers in the guidance systems
of its solid-fueled ballistic missiles.

-- We strongly urge you to take immediate steps to
prevent LIMMT from supplying SBIG or MODAFL with the
accelerometers and gyroscopes it plans on providing
in early November, as well as any follow-on
deliveries of this equipment.

-- We also want to advise you of other procurement
activities by LIMMT on behalf of SBIG.

-- For example, in August and September 2008, Karl
Lee was arranging additional shipments of tungsten
copper, graphite, and possibly aluminum to SBIG.

-- LIMMT may machine future consignments of tungsten
copper blocks or plates to appear as mechanical
parts, believing that this will facilitate clearance
by Chinese customs.

-- We also have information indicating that SBIG
provided specifications for a computer numerically
controlled cold flow forming machine to LIMMT. Lee
agreed to seek a machine matching SBIG's requirements
from a Chinese manufacturer.

-- A machine with the characteristics required by
SBIG would be capable of producing rocket motor cases
for medium range ballistic missiles and would be
controlled by the MTCR.

-- We want to strongly encourage you to take steps to
curtail LIMMT's ability to supply gyroscopes,
accelerometers, tungsten copper, graphite, aluminum
and any other ballistic missile-relevant items
(including flow forming machines) to SBIG.

-- We wish to again ask for demonstrable action
against LIMMT by your government and remain
interested in receiving any further information you
can provide on your investigations or actions
concerning LIMMT.

-- As described in the non-paper our Ambassador
provided to VFM He on October 27, it will help to
facilitate our consideration of sanctions if we
receive a written summary of actions your government
has taken against LIMMT, as well as any current or
future written advisories your government issues to
Karl Lee informing him that he will be subject to any
applicable penalties under Chinese law if he
continues his assistance to Iranian entities of
proliferation concern.

-- We look forward to future cooperation on
nonproliferation issues and to hearing the actions
your government takes in response to this
information.

End talking points/non-paper.

8. (U) Department POC is ISN/MTR John Paul Herrmann
(Phone: 202-647-1430). Please slug any reporting on
this issue for ISN and EAP.

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