(S) UAE-BASED INTERMEDIARY WORKING TO SUPPLY

S E C R E T STATE 050301 E.O. 12958: DECL: 05/12/2033 TAGS: PARM MTCRE PREL ETTC GM TW IR AE SUBJECT: (S) UAE-BASED INTERMEDIARY WORKING TO SUPPLY IRANIAN ENTITY WITH GERMAN-ORIGIN UAV ENGINES REF: A. 06 STATE 190812 ¶B. 06 BERLIN 3380 ¶C. 07 STATE 21966 ¶D. 07 BERLIN 1312 ¶E. STATE 32956 ¶F. ABU DHABI 448 Classified By: ISN/MTR DIRECTOR PAM DURHAM FOR REASONS 1.4 (B), (C) AND (D). ¶1. This is an Action Request. Embassy Berlin, please see paragraph 6. ¶2. (S) Background: In November 2006, we provided German officials information indicating that Iran was in possession of L550E engines manufactured by the German firm Limbach Flugmotoren GmbH & Co. - likely supplied by the Dutch firm Aviation Services International (ASI) (Ref B). We also advised the FRG that the Taiwanese firm Prime Kit Enterprises Inc. was working as a middleman for an additional shipment of Limbach engines to Iran. ¶3. (S) In July 2007, German authorities advised us that their investigation confirmed that Limbach shipped 34 engines to Iran via ASI, and that Limbach was likely aware of the fact that the end-user was Iranian (Ref D). Our German interlocutors also advised us that the Federal General Prosecutor had initiated legal proceedings against the firm for violating the Foreign Trade and Payments Act. As of July 2007, the German Federal Economic and Export Licensing Agency (BAFA) was still investigating the possible connection between Limbach and Prime Kit, though BAFA did confirm that ASI had shipped four Limbach-produced engines to Taiwan firms between March 2005 and October 2006. German officials advised that they would inform us of the results of their investigation, though it might be "some months" before they could update us on this case. ¶4. (S) We now have new information indicating that between July 2007 and January 2008, the UAE-based firm Noor Aerospace Technologies was working to supply Iran Aircraft Manufacturing Technologies with several types of engines, including Limbach L-550E engines. In an effort to facilitate this transaction, Noor intended to falsify export licensing documents by labeling the engines as "pneumatic pumps" and to make it appear as though the end-user is not in Iran, but in another country in the region. While we have no information suggesting that Limbach is aware of Noor's document falsification schemes, given what German officials told us about Limbach's previous involvement in supplying 
engines to Iran, we cannot discount this possibility. (Note: On April 3, we discussed this matter with UAE officials, who agreed to investigate (Refs E & F). End note.) End background. ¶5. (S) Objectives: We want to provide FRG officials with this new information and urge them to investigate and take all appropriate actions to prevent the transfer by Noor Aerospace Technologies of Limbach engines to HESA. We also want to ensure that they have any available information that might assist them in the ongoing legal case against Limbach. ¶6. (S) Action Request: Request Embassy Berlin approach appropriate German officials to deliver points in paragraph 7 and report response. Points also may be provided as a non-paper. ¶7. (S) Begin points/non-paper: (SECRET//REL GERMANY) -- We would like to raise with you a matter of proliferation concern and request your assistance in investigating this activity. -- In November 2006, we advised you that Iran was probably in possession of L550E engines produced by the German firm Limbach Flugmotoren GmbH & Co. -- We also shared information indicating that the Taiwan firm Prime Kit Enterprises was working to ship to Iran additional engines manufactured by Limbach. -- We believe the engines may be used in Iran's UAV program. -- In July 2007, you advised us that German authorities had initiated an investigation of Limbach for the unauthorized export of 34 engines to Iran - via the Netherlands-based firm Aviation Services International. -- You also indicated that Limbach was likely aware that Iran was the true end-user of the engines. -- We now have new information to share with you related to a UAE firm's efforts to procure Limbach L550-E engines on behalf of an Iranian entity for use in UAVs. -- Specifically, we understand that between July 2007 and January 2008, the UAE-based aerospace firm Noor Aerospace Technologies was working to supply the Iran Aircraft Manufacturing Industries (HESA) with several types of jet and possibly piston engines. -- Among the engines being sought by Noor Aerospace Technologies for HESA are possibly German-origin Limbach 550-E engines. -- Although not controlled by the Missile Technology Control Regime (MTCR),our information indicates that HESA intends to use these possible Limbach 550-E engines in unmanned aerial vehicle (UAV) applications. -- We further understand that to facilitate this transaction, Noor Aerospace Technologies LLC intended to falsify export licensing documents by labeling the engines as "pneumatic pumps" and to make it appear that the end-user for these goods is not in Iran, but in another country in the region such as Bahrain, Qatar, or Kuwait. -- We do not know if Limbach is aware that the ultimate end-user is Iran's HESA. However, given your ongoing investigation of Limbach, we wanted to share this information with you. -- We ask that you investigate this activity and take all appropriate measures to prevent these entities from violating your export control laws to supply Iran's UAV program. -- We also would appreciate hearing any updates on the status of the legal proceedings against Limbach. End talking points/non-paper. ¶8. (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 any reporting on this issue for ISN/MTR and EUR/AGS. ¶9. (U) A word version of this document will be posted at www.state.sgov.gov/demarche. RICE NNNN End Cable Text