ACTION REQUEST: GUIDANCE ON INFORMATION SHARING ON

C O N F I D E N T I A L STOCKHOLM 000599 SIPDIS E.O. 12958: DECL: 08/29/2018 TAGS: KNNP PARM PREL SW SP IR SUBJECT: ACTION REQUEST: GUIDANCE ON INFORMATION SHARING ON MAHACO--SUPPLIER OF DUAL USE MATERIALS TO IRAN REF: A. STATE 47118 ¶B. STOCKHOLM 342 Classified By: DCM ROBERT SILVERMAN FOR REASONS 1.4 (B & D) ¶1. (U) This is an action request. See paragraph 4. ¶2. (C) On August 14, CDA and Poloff met with the director general of the Inspectorate of Strategic Products (ISP), Andreas Ekman, to discuss the ongoing proliferation activities of Mahaco, a Swedish-registered company owned by a Swedish citizen of Iranian origin, that exports dual use materials to Iran through secondary countries (reftels). Ekman told CDA that the EU legislative framework on dual usage material does not include restrictions on brokering or transit. As Mahaco is taking advantage of this loophole, Ekman said the Swedes are pushing the EU to adopt corrective legislation, though the process is slow. ¶3. (C) Ekman stated, however, that he would like to explore domestic Swedish legal actions that could be taken against Mahaco. ISP would need U.S.-supplied information and "intelligence" to build a legal case against the firm, he said. CDA replied that he would seek guidance from Washington. CDA also suggested ISP should be in direct contact with its counterparts in Spain since Mahaco is currently operating primarily from its Spanish office. ¶4. (C) Action request: Post requests guidance on providing information to ISP that it might be able to use to pursue a legal case against Mahaco. Post also requests information on exchanges between USG entities and Spanish authorities on Mahaco's activities. WOOD