(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


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End Cable Text