IRANIAN COMPANY INTEREST IN PROCURING VACUUM

S E C R E T STATE 053303 E.O. 12958: DECL: 05/19/2033 TAGS: PARM MTCRE PREL SF IR SUBJECT: IRANIAN COMPANY INTEREST IN PROCURING VACUUM FURNACE FROM POSSIBLE SOUTH AFRICAN PROVIDER (S) Classified By: ISN/MTR DIRECTOR PAM DURHAM REASONS 1.4 (B),(C) AND (D). ¶1. This is an action request. Embassy Pretoria, please see paragraph 4. ¶2. (S) Background: The USG has information that as of mid-February 2008, Iran-based Sabalan Company was provided with technical specifications for a possible South African-origin VGT-1200-1200 high temperature vacuum furnace from a representative of the Iran-based firm M.S. Company. The Sabalan Company is affiliated with the Shahid Hemmat Industrial Group (SHIG),which is Iran's primary developer of liquid-fueled ballistic missiles. Although vacuum furnaces are not controlled by the Missile Technology Control Regime (MTCR),the specific unit being sought would be useful to a missile production facility. ¶3. (S) Objective: Given the Sabalan Company's affiliation with Iran's missile program, we want to raise this matter with South African authorities and urge that they investigate this information with a view to ensure that South African firms are not involved in the supply of missile-sensitive technologies to Iran. ¶4. (S) Action Request: Request Embassy Pretoria approach appropriate host government officials to deliver talking points 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 PRETORIA) -- In the spirit of our nonproliferation cooperation, we would like to alert you to a matter of potential proliferation concern and request your assistance in investigating this activity. -- We have information indicating that as of mid- February 2008, Iran's ballistic missile program was seeking a high temperature vacuum furnace - possibly from a South African company. -- Specifically, we understand that Dr. Shokrola Masihpour of Iran's M.S. Company - possibly acting as an intermediary - provided technical specifications for a VGT-1200-1200 high temperature vacuum furnace to the Sabalan Company. -- The Sabalan Company is affiliated with the Shahid Hemmat Industrial Group (SHIG),Iran's primary developer of liquid-fueled ballistic missiles and an entity designated under UN Security Council Resolution ¶1737. -- The M.S. Company advised Sabalan to establish a letter of credit for the South African company Prestige Thermal Equipment Pty Ltd. at the First National Bank, Wadeville branch, South Africa. -- We understand that the vacuum furnace with accessories would cost approximately $1.7 million. -- While vacuum furnaces are not controlled by the Missile Technology Control Regime (MTCR) and are used in many commercial applications, the unit sought by Sabalan would be very well-suited to annealing and brazing processes in a missile production facility. -- Given Sabalan's affiliation with Iran's missile program, we request that you investigate this information and take measures to ensure that South African firms are not involved in the supply of missile-sensitive items and technologies to Iranian end-users of proliferation concern. -- We look forward to hearing the results of your investigation. 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