RESPONSE TO REQUEST FOR INFORMATION ABOUT ITALIAN

S E C R E T STATE 075132

SIPDIS

E.O. 12958: DECL: 07/03/2033
TAGS: PARM MTCRE PREL IT IR
SUBJECT: RESPONSE TO REQUEST FOR INFORMATION ABOUT ITALIAN
MACHINE TOOLS SOLD TO IRANIAN CLIENTS VIA TURKISH BASED
DISTRIBUTOR (S)

REF: A. STATE 055407

B. ROME 000683

C. WHITING-JONES E-MAIL 11 JUNE 08

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


1. (U) This is an action request. Embassy Rome, please see
paragraph 3.


2. (S) Background/Objective: In May 2008, the U.S. provided
information to the GOI that the Italian machine tool
manufacturer, CMS Industries, sold computer numerical
controlled (CNC) processing machines to clients in Iran via
Art Makina, a Turkish based intermediary (Ref A).
Specifically, these items were 5-axis CNC processing machines
designed to work with advanced materials such as aluminum and
composite materials, and are controlled by the Nuclear
Suppliers Group (NSG) and Wassenaar Arrangement (WA). After
the initial delivery of the demarches (Refs A, B),Italian
authorities notified Embassy Rome that several Italian firms
were known as CMS and requested additional information in
order to clarify the specific identity of the firm with of
concern (Ref C). We now want to provide Italian officials
with further information to specify which CMS Industries we
are concerned with in order to facilitate the GOI's
investigation.


3. (S) Action Request: Request Embassy Rome approach
appropriate host government officials to deliver talking
points/non-paper in paragraph 4 below and report response.
Talking points also may be provided as a non-paper.


4. (S) Begin talking points/non-paper:

(SECRET/REL ITALY)

-- We previously shared information with you indicating that
as of March 2008, the Italian machine tool manufacturer CMS
Industries sold 5-axis computer numerical controlled (CNC)
processing machines to clients in Iran via a Turkish-based
machine tool distributor, Art-Makina.

-- In response, you advised that there were several Italian
firms known as CMS, and requested that we provide additional
information in order to clarify the specific identity of the
firm.

-- We have the following information to share: CMS
Industries' website is www.cms.it. This website also
contains additional data, including address and phone
information.

-- 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


5. (U) Washington POC is ISN/MTR Sarah Beane (Phone:
202-647-4019 - beanesa@state.sgov.gov). Please slug any
reporting on this issue for ISN/MTR, EUR/PRA, and EUR/WE.


6. (U) A word version file of this document will be posted
at www.state.sgov.gov/demarche.
RICE