CONTINUED COOPERATION BETWEEN SOUTH KOREAN FIRM

S E C R E T STATE 123791

SIPDIS

E.O. 12958: DECL: 11/21/2033
TAGS: PARM MTCRE PREL PK KS
SUBJECT: CONTINUED COOPERATION BETWEEN SOUTH KOREAN FIRM
AND ENTITIES ASSOCIATED WITH PAKISTAN'S MISSILE PROGRAM (S)

REF: A. 06 STATE 185849

B. 06 SEOUL 4041

C. 06 SEOUL 4225

D. 06 STATE 201428

E. 06 SEOUL 4364

F. 06 STATE 202354

G. 06 SEOUL 4404

H. 07 STATE 6640

I. 07 SEOUL 1170

J. STATE 26305

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


1. This is an action request. Embassy Seoul, please
see paragraph 4.


2. (S) Background: On several occasions since
November 2006, we have raised with South Korean
officials efforts by the Pakistan-based company
United Engineering to procure machine tools from the
South Korean firm Sambu Korea Tek Co. Ltd (Reftels).
We brought this information to the attention of the
ROKG because United Engineering was seeking these
machine tools on behalf of Pakistan's Project
Management Organization (PMO),the entity responsible
for the development and deployment of Pakistan's
HATF-III missile, a Missile Technology Control Regime
(MTCR) Category I system. Because the machine tools
sought by United Engineering from Sambu Korea Tek are
capable of being used to produce a variety of
structural components for missiles, we have pressed
ROK authorities to investigate this activity and
urged them to prevent exports of South Korean-origin
machine tools that could be used to support
Pakistan's missile development programs. We most
recently raised Sambu Korea Tek's business dealings
with United Engineering in March 2008, but have not
received a response to this demarche from the ROKG
(Ref J).


3. (S) We now have new information indicating that
Sambu Korea Tek has continued to engage in business
dealings with entities affiliated with Pakistan's
missile program. Specifically, as of mid-June 2008,
Sambu Korea Tek was working with a Pakistan-based
intermediary named Intralink to procure machine tools
on behalf of United Engineering. Like past machine
tools sales by Sambu Korea Tek to United Engineering,
these machine tools are capable of producing
ballistic missile components. In light of our past
discussions of this case and our ongoing concerns
regarding United Engineering's association with
Pakistan's missile program, we want to ask South
Korean authorities to investigate this activity and
use all appropriate measures to prevent firms in
South Korea from acting as a source of supply to
missile-related end-users in Pakistan. We also want
to request an update on actions taken in this case
since our last discussion in March 2008.


4. (S) Action Request: Request Embassy Seoul
approach appropriate host government 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 SOUTH KOREA)

-- On several occasions since November 2006 - most
recently in March 2008 - the U.S. alerted your
government to efforts by the Pakistan-based company
United Engineering to procure vertical and horizontal
machine machining centers from the South Korea firm
Sambu Korea Tek Co. Ltd.

-- You will recall that we brought this information
to your attention based on our concerns that United
Engineering was purchasing these machine tools on
behalf of Pakistan's Project Management Organization
(PMO).

-- We believe that any goods consigned to United
Engineering are very likely destined for Pakistan's
ballistic missile program.

--As we have noted before, PMO is a governmental
entity involved in the development and deployment of
Pakistan's HATF-III missile, which is a Missile
Technology Control Regime (MTCR) Category I system.

-- In our discussions of this case, we emphasized
that the machine tools sought by United Engineering
from Sambu Korea Tek were extremely versatile
machines and are capable of being used to produce a
variety of structural components for missiles.

-- We now want to share with you recent information
indicating that Sambu Korea Tek is continuing to
engage in business dealings with United Engineering.

-- Specifically, we understand that as of mid-June
2008, Sambu Korea Tek offered two Hwacheon MEGA 100 x
5000 computer numerical controlled (CNC) lathes and
one Hwacheon MEGA 100 x 3000 CNC lathe to the
Pakistani entity Intralink, which was acting as an
intermediary on behalf of United Engineering.

-- Although not controlled by any of the
multilateral control regimes, these lathes are
capable of being used to produce large structural
ballistic missile components such as bulkheads and
frames.

-- Given United Engineering's association with PMO
and the utility of such machines to the manufacture
of missile components, we continue to be concerned
that machine tools supplied by Sambu Korea Tek to
Intralink Incorporated and United Engineering will be
used to support Pakistan's missile development
efforts.

-- We therefore urge you to investigate this activity
and use all appropriate measures to prevent firms in
South Korea from acting as a source of supply to
missile-related end-users in Pakistan.

-- We also would appreciate any update on actions you
have taken in the case since our last discussions in
March 2008.

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

End talking points/non-paper


6. (U) Washington POC is ISN/MTR Dave Weinstein
(Phone: 202-647-4019). 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