(S) PROVIDING THE GOS INFORMATION ON SWISS FIRM

S E C R E T STATE 026066

SIPDIS


E.O. 12958: DECL: 03/12/2033
TAGS: PARM MTCRE PREL MNUC ETTC IR SZ

SUBJECT: (S) PROVIDING THE GOS INFORMATION ON SWISS FIRM
BBE'S PROLIFERANT ACTIVITY

REF: A. 06 BERN 2040 AND PREVIOUS

B. 06 STATE 184735

C. 07 STATE 66183 AND PREVIOUS

D. 07 STATE 80777

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


1. (U) This is an action request. Embassy Bern
please see paragraph 5.


2. (S) BACKGROUND: Per Refs C and D, since October
2005 the United States and Switzerland have been
engaged in a dialogue regarding the activities of the
Swiss-based entity BB Engineering - a firm that has
been procuring items on behalf of Iranian ballistic
missile and defense programs. We last discussed this
case with Switzerland in June 2007, when visiting
Swiss Secretariat of Economic Affairs (SECO) chief Dr.
Othmar Wyss met with ISN/MTR to discuss this case and
other nonproliferation-related issues (Ref C). During
this meeting, we shared information indicating that
BBE had offered to supply Iran's Sabalan Co. with a
variety of integrated circuits - most of U.S.-origin.
(Note: Sabalan is a front company for Iran's primary
liquid-fueled ballistic missile program. End note.)
Wyss informed us that BBE and its proprietor, Miroslav
Hertl, were being prosecuted in a criminal court, but
provided no details, saying the case was in the hands
of the federal prosecutor. Since this June 2007
meeting, we have not had the occasion to raise any
further proliferant activity by BBE with the GOS, nor
have we received any detailed information related to
the Swiss prosecution of BBE.


3. (S) However, we now have new information
indicating that BBE continues its work to supply
goods to Iranian missile entities. Specifically,
we understand that in mid-January 2008, BBE
shipped a consignment of unspecified items to
Iran's Technical Engineering Nikan (TEN) Group.
While the contents of the shipment are unknown to
us, our primary concern is that BBE appears to
have resumed its efforts to act as a supplier to
Iranian entities of concern. The TEN Group is
affiliated with the Sanam Industrial Group (SIG)
and the Samen al-A'emmeh Industries Group (SAIG -
also known as the Cruise Missile Industry Group -
CMIG). Both SIG and CMIG are sanctioned under
United Nations Security Council Resolution 1747
for their involvement in Iran's missile program.


4. (S) Objectives: We want to share this
information with Swiss authorities, and request
that they provide us with the latest information
on the status of the legal case against BBE, as
well as any updates they may have on a separate
ongoing prosecution of Opteco Trading GmbH,
another Swiss firm with a history of involvement
in proliferation to Iran (Refs A and B).


5. (U) ACTION REQUEST: Request Embassy Bern
provide the talking points in paragraph 6 below
to appropriate Swiss officials, and report
response. Talking points may also be left as a
non-paper.

END BACKGROUND


6. (S/REL SWITZERLAND) BEGIN TALKING POINTS

-- We would like to raise with you a matter of
proliferation concern and request your
government's assistance in investigating this
activity.

-- On many occasions since October 2005, we have
discussed cooperation between the Swiss-based
firm BB Engineering and entities affiliated with
Iran's defense, missile, and UAV programs.

-- We greatly appreciate your efforts to address
the proliferant activities of BBE and for
providing us with updates regarding your
investigation into this firm and its proprietor,
Miroslav Hertl.

-- When we last spoke with you about BBE's
activities, we learned that BBE and its
proprietor, Miroslav Hertl, were being prosecuted
in a criminal court.

-- We appreciate the efforts you have made in
this case, and it is in this spirit that we would
like to provide you with additional information
on this firm's assistance to Iran's missile
program.

-- The U.S. has information indicating that in
mid-January 2008, BBE shipped a consignment of
unspecified goods to Iran's Technical Engineering
Nikan (TEN) Group. The goods were shipped from
Dubai to Tehran on Emirates Airlines flight EK-

977.

-- While the contents of the shipment are not
known to us, we are concerned that BBE continues
its proliferant activities with Iranian entities
of concern.

-- TEN Group is affiliated with the Sanam
Industrial Group (SIG) and the Samen al-A'emmeh
Industries Group (SAIG - also known as the Cruise
Missile Industry Group - CMIG). Both SIG and
CMIG are named in UNSCR 1747 as being involved in
Iran's missile programs.

-- As you are aware, paragraph 12 of UNSCR 1737
states that States shall freeze all "funds, other
financial assets and economic resources which are
on their territories at the date of adoption of
this resolution or at any time thereafter that
are owned or controlled y the persons or entities
designated in the Annex..." Therefore, transfers
of any goods to UNSCR designated entities should
be frozen.

-- We hope this information is useful to you, and
would appreciate hearing the status of the legal
proceedings against BBE.

-- We would also be grateful for any information
you can provide related to Switzerland's
prosecution of Opteco Trading GmbH, another firm
we have discussed with you due to its involvement
in proliferation-related activities.

END TALKING POINTS.


7. (U) Please contact ISN/MTR's John Paul
Herrmann with any questions or follow-up issues
related to this case (202-647-1430 -
herrmannjp@state.sgov.gov) and slug reporting on
this issue for ISN/MTR.


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


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End Cable Text