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