COOPERATION BETWEEN SOUTH KOREAN FIRM AND

S E C R E T STATE 026305 SIPDIS E.O. 12958: DECL: 02/28/2033 TAGS: PARM MTCRE PREL PK KS SUBJECT: 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 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 5. ¶2. (S) Background: On several occasions since November 2006 (REFTELS),we shared information with South Korea regarding efforts by the Pakistan-based company United Engineering, to procure vertical and horizontal machine machining centers from the South Korean firm Sambu Korea Tek Co. Ltd. United Engineering was purchasing 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 these machine tools were extremely versatile machines and capable of being used to produce a variety of structural components for missiles, we asked ROK authorities to investigate this activity in order to prevent the machine tools from contributing to Pakistan's missile development programs (REF A). However, ROK authorities ultimately allowed the shipment to go forward, due to a lack of concrete evidence of association between United Engineering and Pakistan,s PMO (REF I). ¶3. (S) We now have information to share, indicating that Sambu Korea Tek is continuing to engage in business dealings with entities affiliated with Pakistan's missile program. Specifically, in mid- October 2007, Sambu Korea Tek was working with the Pakistani intermediary Intralink Incorporated to supply machine tools to United Engineering -- some of which are produced by the South Korean company Hwacheon Machine Works and may be controlled by the Wassenaar Arrangement and Nuclear Suppliers Group. ¶4. (S) Objective: In light of United Engineering,s association with Pakistan's missile program, and the capabilities of the machine tools which are being sought from South Korea, 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 any update on actions taken in this case since early 2007 discussions. ¶5. (S) Action Request: Request Embassy Seoul approach appropriate host government officials to deliver talking points/non-paper in paragraph 6 below and report response. Talking points also may be provided as a non-paper. ¶6. (S) Begin talking points/non-paper: (SECRET REL SOUTH KOREA) -- On several occasions since November 2006, 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 Korean 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). -- 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 entities affiliated with Pakistan's missile program. -- Specifically, we understand that in mid-October 2007, Sambu Korea Tek was working with the Pakistani intermediary Intralink Incorporated to supply machine tools to United Engineering. -- Some of the machine tools that Sambu Korea Tek is attempting to supply Intralink Incorporated are produced by the South Korean company Hwacheon Machine Works, and may be controlled by the Wassenaar Arrangement and Nuclear Suppliers Group. -- 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 early 2007. -- 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 ¶7. (U) Washington POC is ISN/MTR April Jones (Phone: 202-647-3176). Please slug any reporting on this issue for ISN/MTR. ¶8. (U) A word version file of this document will be posted at www.state.sgov.gov/demarche. RICE NNNN End Cable Text