SINGAPORE FIRM DISCUSSES SUPPLY OF MTCR-

S E C R E T STATE 090838 SIPDIS E.O. 12958: DECL: 08/21/2033 TAGS: PARM KTCRE PREL SN MY SUBJECT: SINGAPORE FIRM DISCUSSES SUPPLY OF MTCR- CONTROLLED GYROS, FALSE END-USER CERTIFICATES, WITH MALAYSIA-BASED IRANIAN PROCUREMENT FIRM (S) Classified By: ISN/MTR DIRECTOR PAM DURHAM AND EAP/MTS DIRECTOR KAMALA LAKHDHIR FOR REASONS 1.4 (B),(C) AND (D). ¶1. This is an action request. Embassy Singapore, please see paragraph 4. ¶2. (S) Background: The U.S. has acquired information indicating that the Singapore firm Satair Pte Ltd is working to supply U.S.-origin, export-controlled gyroscopes to the Malaysia-based entity Skylife Worldwide. Specifically, we understand that in mid- July, Satair and Skylife representatives may have met in Kuala Lumpur to discuss the sale to Skylife of VG- 34 gyroscopes - which are controlled under the Missile Technology Control Regime - as well as the possibility of using false end-user certificates in order to effect this sale. Although Skylife is located in Malaysia, it is an Iranian-run procurement firm that has facilitated many transactions on behalf of Iranian end-users of concern - including UNSCR- designated entities affiliated with Iran's ballistic missile and unmanned aerial vehicle programs. ¶3. (S) Objective: We want to provide GOS officials with this information and request that they investigate and take measures to ensure that Satair Pte Ltd. is not supplying controlled goods to Iranian end-users. ¶4. (S) Action Request: Request Embassy Singapore approach appropriate host government 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 SINGAPORE) -- In the spirit of our ongoing nonproliferation cooperation, we would like to alert you to a matter of proliferation concern and request your assistance in investigating this activity. -- We have information indicating that the Malaysian firm Skylife Worldwide is currently working with the Singapore-based Satair Pte Ltd., to obtain false end- user certification for export-controlled U.S.-origin defense-related items. -- Specifically, we understand that in mid-July 2008, a Skylife associate may have met with a Satair representative in Kuala Lumpur to discuss the possibility of acquiring U.S.-origin, Missile Technology Control Regime-controlled VG34 gyroscopes, as well as false end-user certificates. -- Although Skylife is based in Malaysia, it is an Iranian-run procurement firm, and has facilitated many transactions on behalf of Iranian end-users of concern, including entities listed in the Annexes to UNSCRs 1737 and 1747 such as the Shahid Hemmat Industrial Group (SHIG),which is Iran's primary liquid-fueled ballistic missile developer, and entities affiliated with Iran's unmanned aerial vehicle program. -- We request that Singapore authorities immediately investigate this information and take all appropriate measures to ensure that Satair PTE Limited is not acting as a supplier of controlled goods to Iranian end-users in contravention of UN Security Council Resolutions. -- Involvement of Satair in the sale to Iran of items controlled under the Missile Technology Control Regime could be a violation of Singapore's export control laws/regulations. It may also result in a number of sanctions determinations against Satair pursuant to the U.S. Iran, North Korea, and Syria Nonproliferation Act (INKSNA),as well as under other U.S. nonproliferation laws and Executive Orders. -- We look forward to hearing of any actions Singapore takes in response to this information. End talking points/non-paper ¶6. (U) Washington POCs are ISN/MTR's John Paul Herrmann (Phone: 202-647-1430) and EAP/MTS's Tim Forsyth (Phone: 202-647-4932). Please slug any reporting on this issue for ISN/MTR and EAP/MTS. ¶7. (U) A Word version file of this document will be posted at www.state.sgov.gov/demarche. RICE