FOLLOWING-UP WITH CHINA ON EFFORTS BY PAKISTAN'S

S E C R E T STATE 092568 SIPDIS E.O. 12958: DECL: 08/28/3033 TAGS: PARM PREL ETTC MTCRE KSCA CH PK SUBJECT: FOLLOWING-UP WITH CHINA ON EFFORTS BY PAKISTAN'S MISSILE PROGRAM TO PROCURE RING-ROLLING AND FLOW FORMING MACHINES (S) REF: A. BEIJING 001880 ¶B. STATE 050507 ¶C. 07 BEIJING 006156 ¶D. 07 STATE 130635 ¶E. 07 BEIJING 001101 ¶F. 07 STATE 018700 ¶G. 07 BEIJING 000531 ¶H. 07 STATE 008579 ¶I. 06 BEIJING 004671 ¶J. 06 STATE 039514 Classified By: ISN/MTR ACTING DIRECTOR RALPH PALMIERO FOR REASONS 1.4 (B),(D),AND (H). ¶1. (U) This is an action request. Embassy Beijing please see paragraph 4. ¶2. (S) Background and Purpose/Objective: On many occasions since March 2006, U.S. has provided Chinese officials with information regarding attempts by Pakistan's missile program to procure ring-rolling and flow forming machines from entities in China (Reftels). Flow forming machines are controlled by the Missile Technology Control Regime (MTCR) and China's missile technology control list and can be used to form materials into complex shapes required for the production of ballistic missiles. Ring rolling machines are not MTCR-controlled, but can be used to make stiffener rings for ballistic missile airframes. We believe Pakistan's missile program is seeking these machines so that they can be used together in the manufacture of solid rocket motor cases. ¶3. (S) We now want to alert Chinese officials to information indicating that Pakistan's National Development Complex (NDC) has been continuing its efforts to procure ring-rolling and flow forming machines from China. These latest attempts were being coordinated by the Pakistani firm Akhtar and Sons and the Chinese broker Li Chuanlu. We understand that Akhtar and Sons and Li may be working to circumvent China's export control restrictions and obtain an export license by limiting documentation associated with this transaction. We want to share this information with Chinese authorities in order to support their ongoing investigation into this activity and urge them to continue to use all available measures to prevent firms in China from supplying this equipment to Pakistan's missile program. ¶4. (S) Action request: Department requests Embassy Beijing approach appropriate host government officials to deliver talking points in paragraph 5 and report response. Talking points also may be provided as a non-paper. ¶5. (S) Begin talking points/non-paper: (Secret Rel China) -- On many occasions since March 2006, we have discussed with you our concerns regarding attempts by Pakistan's missile program to procure ring-rolling and flow forming machines from entities in China. -- Specifically, we have brought to your attention efforts by Pakistan's Heavy Mechanical Complex (HMC) to procure a ring-rolling machine from China's Jinan JFMMRI Metal Forming Machinery Engineering Company, Ltd. (JFMMRI) and a flow forming machine from the Chinese companies China National Nonferrous Metals Import Export Company (CNNMIEC),Beijing Machinery Import-Export Corporation (BMIEC),and Beijing Aeronautical Manufacturing Technology Research Institute (BAMTRI) Technology and Development Company. -- Flow forming machines are controlled by the Missile Technology Control Regime (MTCR) and China's missile technology control list and can be used to form materials into a variety of complex shapes required for the production of ballistic missiles. -- Ring rolling machines are not MTCR-controlled, but can be used to make stiffener rings for ballistic missile airframes. -- As we have noted previously, we believe these machines may ultimately be destined for Pakistan's National Development Complex (NDC),which is responsible for developing Pakistan's Shaheen series of ballistic missiles. -- We understand that NDC likely intends to use the ring-rolling machine in conjunction with the flow forming machine to manufacture solid rocket motor cases. -- Since our May 2008 discussions of this case, we have learned that NDC was continuing its efforts to procure the ring-rolling and flow forming machines from China. These attempts were being coordinated by the Pakistani firm Akhtar and Sons and the Chinese broker Li Chuanlu. -- You will recall that we informed you in September 2007 that Li Chuanlu was coordinating efforts by JFMMRI and BMIEC to provide these machines to Pakistan. -- Our information indicates that Akhtar and Sons and Li may be working to obtain an export licence by limiting documentation associated with this transaction in an apparent attempt to circumvent your government's export control restrictions. -- We hope this latest information is useful in supporting your investigation into this transaction. We also urge you to continue to use all available measures to prevent firms in China from supplying this equipment to Pakistan's missile program. -- We look forward to future cooperation on nonproliferation issues and would appreciate an update on the status of your investigation into this case at the earliest possible time. END TALKING POINTS. ¶6. (U) Washington POC is ISN/MTR James Mayes (Phone: 202-647-3185). Please slug reporting on this or other missile nonproliferation issues for ISN/MTR and EAP/CM. ¶7. (U) A word version of this document will be posted at www.state.sgov.gov/demarche in the "MTAG - EAP" folder. RICE