SYRIAN TRADING ENTITY INTERESTED IN PURCHASING

S E C R E T STATE 131866


E.O. 12958: DECL: 12/16/2033
TAGS: PARM MTCRE PREL MNUC ETTC SZ SY

SUBJECT: SYRIAN TRADING ENTITY INTERESTED IN PURCHASING
MACHINE TOOLS FROM SWISS FIRM(S)

Classified By: ISN/MTR DIRECTOR PAM DURHAM FOR REASON 1.4 (D).


1. (U) This is an action request. Embassy Bern, please see
paragraph 3.


2. (S) Background/Objectives: The USG has information
indicating that in May and June 2008, the Syrian trading firm
Hamza Company expressed interest in purchasing computer
numerically controlled (CNC) milling machines from the Swiss
firm Maschinenfabrik Liechti and Company AG. Hamza requested
price quotations for 5-axis machining centers, and also
inquired about the possibility of visiting the firm to
discuss a potential purchase. After providing the requested
price information to Hamza, a Liechti representative advised
Hamza of the need to consult Swiss authorities before
scheduling a visit. We are concerned that these machines,
which are controlled by the Nuclear Suppliers Group (NSG) and
the Wassenaar Arrangement, could be destined for an entity
involved in Syria's ballistic missile program, and want to
share this information with Swiss officials in order to
assist in their export-control efforts.


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


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

(SECRET REL SWITZERLAND)

-- We would like to bring to your attention information that
will be of interest in supporting your export control
efforts.

-- We have information indicating that in May and June 2008,
the Syrian trading firm Hamza Company expressed interest in
purchasing computer numerically controlled (CNC) milling
machines from the Swiss firm Maschinenfabrik Liechti and Co.
AG.

-- Specifically, Hamza requested price quotations for CNC
g-mill 550 and Turbomill 1400-xl five-axis machining centers,
and also inquired about the possibility of visiting Liechti
in order to discuss a potential purchase of these machines.

-- A Liechti representative provided the requested price
information to Hamza, but advised that he would have to
consult with Swiss authorities about any potential sale to
Hamza before scheduling a visit.

-- The g-mill 550 is controlled by both the Nuclear Suppliers
Group (NSG) and the Wassenaar Arrangement, and could be used
in a missile program to produce parts with complex profiles
such as turbopump impellers.

-- The Turbomill 1400-xl is controlled by both regimes as
well, and can also produce complex missile components.

-- We do not know the identity of the intended end-user, but
given the machines' capabilities, are concerned that they
could be destined for an entity involved in Syria's ballistic
missile program.

(Additional talking point to be used if Post considers useful)

-- We also want to advise you that the sale by Liechti of
regime-controlled items to a Syrian entity could result in
the imposition of sanctions against Liechti pursuant to U.S.
law under the Iran, Syria and North Korea Nonproliferation
Act (INKSNA).

-- We greatly appreciate your cooperation on nonproliferation
issues and hope this information is useful in supporting your
export-control efforts.

End talking points/non-paper


5. (U) Washington POC is ISN/MTR John Paul Herrmann (Phone:
202-647-1430). 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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