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


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