SPAIN ANSWERS USG CONCERN ON IRANIAN ATTEMPTS TO

S E C R E T MADRID 000088 SIPDIS PASS TO ISN/MTR'S JOHN PAUL HERRMANN PASS TO EUR/WE'S ELAINE SAMSON AND STACIE ZERDECKI PASS TO EUR/PRA E.O. 12958: DECL: 01/26/2034 TAGS: MTCRE PARM PREL ETTC MNUC TSPA SP IR SUBJECT: SPAIN ANSWERS USG CONCERN ON IRANIAN ATTEMPTS TO BUY SPANISH MILLING MACHINE REF: A. 08 MADRID 979 ¶B. 08 SECSTATE 81940 Classified By: A/DCM William Duncan for reasons 1.4 (b),(c) and (d) ¶1. (S) On January 26 POLOFF and Deputy ECON Counselor met Carlos Torres, Counselor for Nuclear Non-Proliferation and Disarmament in the MFA,s DG for Strategic Affairs & Terrorism. Torres provided a GOS non-paper response to the REFTEL A non-paper that the Embassy had provided to the GOS - as directed in REFTEL B - to alert Madrid of an Iranian company's attempts to procure a computer numerically controlled milling machine from the Spanish firm Maquinaria CME, S.A.. Below is the Embassy's unofficial translation of the Spanish-language non-paper, in which the GOS essentially states Maquinaria has not undertaken any exports to Iran since 2006, with the implication that Maquinaria has not sent any materials to any Iranian company since that time. ¶2. (S) BEGIN UNOFFICIAL EMBASSY TRANSLATION OF GOS NON-PAPER: EXPORT OF MACHINE TOOLS BY THE COMPANY MAQUINARIA CME, S.A. TO IRAN On September 10, 2008 the U.S. Embassy provided a report alerting that in June 2008 an Iranian company known as MYP was interested in acquiring from Spanish company Maquinaria CME, S.A. a five-axis milling machine that is controlled by the Wassenaar Arrangement and the Nuclear Suppliers Group and whose export would be prohibited by UN Security Council Resolutions 1737 (2006) and 1803 (2008),and requested Spain's cooperation in order to stop its export and to let them know the results of the investigation. In accordance with the available information, Maquinaria CME, S.A., since the application on March 2, 2006 of the "catch-all" clause to its export of machine tools to Iran, has not exported any machine-tools to Iran, having annulled and not supplied two FS series milling machines intended for that country. Maquinaria CME, S.A. advises that as of June 7, 2006, it sent to Iranian company TSP (Talash Sanat Pishtaz Co) price quotes for two FS series milling machines equipped with TNC530 controls with a combination of limited axes, in which it indicated that in the event of accepting the offer, the sale of the machines was contingent on obtaining permission to export from Spanish authorities. On November 28, 2006, Maquinaria CME, S.A. applied for a license to export an FS series milling machine to Iran - which was denied by Spanish authorities on January 30, 2007 - and has not sought another export license to Iran. END UNOFFICIAL EMBASSY TRANSLATION OF GOS NON-PAPER. ¶3. (U) Post remains available for further follow-up. CHACON