PROVIDING BELGIUM ADDITIONAL INFO ON MALAYSIAN

S E C R E T STATE 092637 SIPDIS E.O. 12958: DECL: 08/28/2033 TAGS: PARM MTCRE PREL ETTC BE IR MY SUBJECT: PROVIDING BELGIUM ADDITIONAL INFO ON MALAYSIAN FIRM'S EFFORTS TO PURCHASE DATA ACQUISITION SYSTEMS ON BEHALF OF IRANIAN END-USER (S) REF: A. STATE 77529 ¶B. BRUSSELS 1129 Classified By: ACTING ISN/MTR DIRECTOR RALPH PALMIERO FOR REASONS 1.5 (B),(C),AND (D). ¶1. (U) This is an action request. Embassy Brussels, please see paragraph 4. ¶2. (S) Background/Objective: In late July 2008, we advised Belgian officials of information indicating that as of June, the Malaysian-based firm Evertop Services Sdn Bhd sought A9910 advanced data acquisition systems for earth observation satellites from a Belgian-based office of Thales Alenia Space on behalf of an unknown Iranian end-user (Ref A). We also explained that while Evertop is located in Malaysia, it is an Iranian-run procurement firm that supplies Iranian entities of proliferation concern with sensitive dual-use goods. Belgian authorities responded by saying that they already consider firms or possible "front companies" based in Malaysia as high risk, and that Belgian customs officials have a standing alert to closely inspect any potential shipments of dual-use items to those companies (Ref B). ¶3. (S) We now have additional information related to this potential transaction. Specifically, we understand that in late July, Evertop submitted a purchase order to Thales for five A9910 ONMNISAT platforms and spare parts. Thales appears to have agreed to sell this equipment to Evertop for 435,688 euros, although we do not have any information identifying a shipping date. Nor do we have any knowledge that Thales is aware of Evertop's affiliation with Iranian entities of proliferation concern. We want to share this information with Belgian officials, and request that they take steps to prevent Thales from acting as a supplier to Evertop. ¶4. (U) Action Request: Request Embassy Brussels approach appropriate host government officials to deliver talking points/non-paper 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 BELGIUM) -- In the spirit of our nonproliferation cooperation, we would like to raise with you a matter of proliferation concern and request your government's assistance in investigating this activity. -- We recently provided you information indicating that as of June 2008, the Malaysian-based firm Evertop Services Sdn Bhd sought A9910 advanced data acquisition systems for earth observation satellites from a Belgian-based office of Thales Alenia Space on behalf of an unknown Iranian end-user. -- As we noted previously, the A9910 is used in ground stations for the acquisition of imagery data from satellites or potentially unmanned aerial vehicles. -- We also advised you that Evertop - although based in Malaysia - is an Iranian-run procurement firm that has facilitated many transactions on behalf of Iranian end- users of concern, including entities listed in the Annex to UNSCRs 1737 and 1747, such as the Shahid Hemmat Industrial Group (Iran's primary liquid-fueled ballistic missile developer) as well as entities affiliated with Iran's unmanned aerial vehicle program. -- We are pleased to know that Belgian authorities consider possible front companies based in Malaysia as high risk and that Belgian customs officials have a standing alert to closely inspect potential dual-use items bound for those companies. -- To assist your investigation of this matter, we now want to share additional information related to Evertop's efforts to procure the A9910 system from Thales. -- Specifically, we understand that in late July, Evertop submitted a purchase order to Thales for five A9910 OMNISAT platforms and spare parts. -- Evertop's purchase order was dated 22 July and was in the amount of 435,688 euros. -- Thales appears to have agreed to deliver the items to Evertop, although we are not aware of a scheduled shipping date. -- We do not have any information indicating that Thales is aware of Evertop's affiliation with Iranian end-users of concern. -- We appreciate your cooperation on this and other nonproliferation matters, and urge you to take all appropriate measures to ensure that Thales is not acting as a supplier to Evertop or other entities of proliferation concern. -- We look forward to hearing of any actions your government takes in response to this information. End talking points/non-paper ¶6. (U) Please contact ISN/MTR's John Paul Herrmann with any questions or follow-up issues related to this case (202-647-1430 - herrmannjp@state.sgov.gov) and slug reporting on this issue for ISN/MTR and EUR/PRA. ¶7. (U) A word version of this document will be posted at www.state.sgov.gov/demarche. RICE