Identifier
Created
Classification
Origin
08STATE94499
2008-09-03 21:00:00
SECRET
Secretary of State
Cable title:  

(S) FOLLOWING-UP WITH SWEDEN ON DEALINGS BETWEEN

Tags:  PARM PREL ETTC MTCRE KSCA SW IR 
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VZCZCXYZ0020
PP RUEHWEB

DE RUEHC #4499 2472104
ZNY SSSSS ZZH
P 032100Z SEP 08
FM SECSTATE WASHDC
TO AMEMBASSY STOCKHOLM PRIORITY 0000
INFO MISSILE TECHNOLOGY CONTROL REGIME COLLECTIVE PRIORITY
S E C R E T STATE 094499 

SIPDIS

E.O. 12958: DECL: 09/03/2033
TAGS: PARM PREL ETTC MTCRE KSCA SW IR
SUBJECT: (S) FOLLOWING-UP WITH SWEDEN ON DEALINGS BETWEEN
THE FIRM MAHACO AND IRAN'S MISSILE AND MILITARY PROGRAMS

REF: A. STOCKHOLM 000431

B. STOCKHOLM 000342

C. STATE 047118

D. 07 STOCKHOLM 001474

E. 07 STATE 166329

F. 07 STOCKHOLM 001373

G. 07 STATE 151484

H. 07 STOCKHOLM 001099

I. 07 STATE 118420

J. 07 STOCKHOLM 000920

K. 07 STATE 096758

L. 07 STOCKHOLM 000618

M. 07 STATE 069572

N. 07 STOCKHOLM 382 AND PREVIOUS

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

S E C R E T STATE 094499

SIPDIS

E.O. 12958: DECL: 09/03/2033
TAGS: PARM PREL ETTC MTCRE KSCA SW IR
SUBJECT: (S) FOLLOWING-UP WITH SWEDEN ON DEALINGS BETWEEN
THE FIRM MAHACO AND IRAN'S MISSILE AND MILITARY PROGRAMS

REF: A. STOCKHOLM 000431

B. STOCKHOLM 000342

C. STATE 047118

D. 07 STOCKHOLM 001474

E. 07 STATE 166329

F. 07 STOCKHOLM 001373

G. 07 STATE 151484

H. 07 STOCKHOLM 001099

I. 07 STATE 118420

J. 07 STOCKHOLM 000920

K. 07 STATE 096758

L. 07 STOCKHOLM 000618

M. 07 STATE 069572

N. 07 STOCKHOLM 382 AND PREVIOUS

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


1. (U) This is an action request. Please see paragraph 4.


2. (S) Background: Since 2004, we have worked closely with
Swedish officials in an effort to curtail assistance to Iran
by the Swedish entity Mahaco. These efforts have resulted in
subjecting Mahaco's activities to increased scrutiny by the
GOS and in stopping some exports to Iran that posed clear
proliferation risks (Refs I and N). However, Mahaco
continues to cooperate with missile- and military-related
end-users in Iran, including entities designated under United
Nations Security Council Resolutions (UNSCRs) 1737 and 1747
(Ref C and previous).


3. (S) Since our May 2008 discussions, we also have learned
that between February and June 2008, Mahaco engaged in
business dealings with multiple entities that are procurement
covers for Iran's liquid propellant ballistic missile
developer Shahid Hemmat Industrial Group (SHIG).
Additionally, in order to facilitate transfers to entities
affiliated with SHIG, we understand that Mahaco planned to
re-use end-user information from previously approved export
licenses. We would like to provide this information to
Swedish officials and follow-up with them on the status of
their investigation into Mahaco, including by requesting any
new details uncovered based on the information we shared with
them in May 2008. We also want to emphasize that Mahaco's
resubmission of past end-user documentation would be appear
to be a false export declaration that would violate Sweden's
export control laws and be inconsistent with UNSCRs 1737,
1747, and 1803.


4. (S) Action Request: Department requests Embassy
Stockholm approach appropriate host government officials to
deliver the talking points in paragraph 5 and report
response. Talking points may be left as a non-paper.


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

(SECRET REL SWEDEN)

-- The U.S. greatly appreciates our ongoing dialogue
concerning the Swedish entity Mahaco's assistance to Iran's
missile program.

-- We last provided you information on this case in May 2008
indicating that Mahaco appeared to continue to engage in
efforts to circumvent Sweden's export control laws to assist
missile- and military-related end-users in Iran.

-- You will recall that some of Mahaco's business partners in
these transactions were acting on behalf of entities
designated under United Nations Security Council Resolutions
1737 and 1747, including Iran's liquid propellant ballistic
missile developer Shahid Hemmat Industrial Group (SHIG).

-- We now would like to share with you additional details on
Mahaco's continued interactions with missile-related entities
in Iran.

-- Specifically, we understand that between February and June
2008, Mahaco, in conjunction with the Iranian intermediary
Doostan International, was working to fill orders for
multiple Iranian entities affiliated with SHIG.

-- These entities included Iran's Tiz Pars, Ecxir Trading
Company, Ardalan Machines, Zar Metals, and Sabalan Company.
All of these companies operate as procurement covers for
SHIG.

-- We also understand that in some cases, Mahaco was planning
to re-use end-user information from previously approved
export licenses in order to facilitate transfers to entities
affiliated with SHIG.

-- We believe that such a resubmission of documentation by
Mahaco would be a false export declaration that violates
Sweden's export control laws and would be inconsistent with
UNSCRs 1737, 1747, and 1803.

-- We hope you will use this information in your continuing
investigation into Mahaco and would appreciate hearing of any
actions you take in response to this activity. We also are
interested in learning what you have uncovered concerning the
transactions we brought to your attention during our May 2008
discussions.

-- We look forward to continued cooperation on
nonproliferation issues.

End talking points/non-paper.


6. (U) Washington POC is ISN/MTR James Mayes (Phone:
202-647-3185). Please slug any reporting on this issue for
ISN/MTR, EUR/NB, and EUR/PRA.


7. (U) A word version of this document will be posted
at www.state.sgov.gov/demarche in the "MTAG - EUR"
folder.
RICE