Identifier
Created
Classification
Origin
08STATE35673
2008-04-07 14:06:00
SECRET
Secretary of State
Cable title:  

CHINESE FIRM SUPPLYING MISSILE-RELATED MATERIALS

Tags:  PARM MTCRE PREL ETTC CH KN 
pdf how-to read a cable
P 071406Z APR 08
FM SECSTATE WASHDC
TO AMEMBASSY BEIJING PRIORITY
INFO MISSILE TECHNOLOGY CONTROL REGIME COLLECTIVE PRIORITY
S E C R E T STATE 035673 

SIPDIS


E.O. 12958: DECL: 04/07/2033
TAGS: PARM MTCRE PREL ETTC CH KN

SUBJECT: CHINESE FIRM SUPPLYING MISSILE-RELATED MATERIALS
AND TECHNOLOGY TO NORTH KOREAN WEAPONS TRADING FIRM (S)

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

S E C R E T STATE 035673

SIPDIS


E.O. 12958: DECL: 04/07/2033
TAGS: PARM MTCRE PREL ETTC CH KN

SUBJECT: CHINESE FIRM SUPPLYING MISSILE-RELATED MATERIALS
AND TECHNOLOGY TO NORTH KOREAN WEAPONS TRADING FIRM (S)

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


1. This is an action request. Please see paragraph 4.


2. (S) Background: The USG has information indicating
that the China-based firm Shenyang Huali Economic Trading
Company recently supplied to Syria consignments of steel,
as well as vibration test equipment controlled by the
Missile Technology Control Regime (MTCR) and China's
export controls. In addition, a North Korean firm has
been purchasing these items from Shenyang Huali Economic
Trading Company to support ongoing projects with Syria's
Scientific Studies and Research Center (SSRC) - the agency
responsible for overseeing Syria's WMD and missile
program. As of mid-February 2008, Shenyang Huali Economic
Trading Company had worked to transfer steel to affiliates
of SSRC. Additionally, in January 2008, Shenyang Huali
shipped a variety of metals, including type W1.1191 CK45
steel. This is a dual-use item which has also been
associated with Iran's solid and liquid propellant
ballistic missile systems to Syria.


3. (S) Objective: Given that the items -- one of which is
controlled by the MTCR and China's export controls, as
well as prohibited for transfer to or from the DPRK under
UNSCR 1718 -- were recently supplied to a Syrian entity of
proliferation concern, the USG urges Chinese officials to
immediately investigate this activity and take measures to
prevent this firm from providing further assistance to
weapons programs in North Korea and/or Syria. Such action
would be consistent with United Nations Security Council
Resolution 1718, which requires UN Member States to
prevent the supply to or procurement from the DPRK of
certain missile-related items and technology (including
those that are MTCR-controlled).


4. (S) Action Request: Request Post approach appropriate
Chinese 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 CHINA)

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

-- The U.S. has information that in 2007 and 2008, the
China-based firm Shenyang Huali Economic Trading Company,
working through North Korean intermediaries, acted as a
key source of raw materials and technology to support a
ballistic missile development project in Syria.

-- Specifically, we understand that over the past year,
Shenyang Huali Economic Trading Company has worked to
supply to Syrian State companies vibration test equipment
controlled by the Missile Technology Control Regime
(MTCR),by China's export controls and paragraph 8(a)(ii)
of UNSCR 1718, and has shipped multiple consignments of
steel to Syria.

-- A North Korean firm has been purchasing these items
from Shenyang Huali Economic Trading Company to support
ongoing projects with Syria's Scientific Studies and
Research Center (SSRC),the agency responsible for
overseeing Syria's WMD and missile program.

-- Paragraph 8(a)(ii) of UNSCR 1718 prohibits the direct
or indirect supply, sale or transfer of items contained in
S/2006/815 to the DPRK, which includes MTCR-controlled
items.

-- In addition, as of mid-February 2008, we understand
that Shenyang Huali Economic Trading Company had worked to
transfer steel to affiliates of SSRC.

-- Similarly, in January 2008, Shenyang Huali shipped a
variety of metals to Syria, including type W1.1191 CK45
steel. This is a dual-use item that has also been
associated with Iran's solid and liquid propellant
ballistic missile systems.

-- In light of these recent activities of Shenyang Huali
Economic Trading Company, we ask that you immediately
investigate this activity and take measures to prevent
this firm from providing further assistance to weapons
programs in North Korea and/or Syria. We believe such
action would be consistent China's with UNSCR 1718
obligations.

-- We look forward to future cooperation on
nonproliferation issues and to hearing the results of your
inquiries into this matter at the earliest possible time.

End talking points/non-paper


6. (U) Washington POC is ISN/MTR April Jones (Phone: 202-
647-3176). 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


NNNN




End Cable Text