MALAYSIAN-BASED FRONT COMPANY FOR IRANIAN

S E C R E T STATE 104467

SIPDIS

E.O. 12958: DECL: 10/07/2034
TAGS: ETTC PARM PREL MTCRE MNUC KS MY IR
SUBJECT: MALAYSIAN-BASED FRONT COMPANY FOR IRANIAN
PROCUREMENT AGENT SEEKS U.S.-ORIGIN EQUIPMENT FROM SOUTH
KOREAN FIRM (S)

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


1. (U) This is an action request. Embassy Seoul please
see para 3.


2. (S) Background and objective: The United States has
information that in June 2009, the Malaysia-based
procurement entity Skylife Worldwide Sdn Bhd expressed
interest in purchasing U.S.-origin measuring equipment
from the South Korean firm Far Eastern Trading Company
Limited. The equipment (instruments for center of
gravity and moment of inertia measurement) is not
controlled by the Missile Technology Control Regime
(MTCR),but can be used in the production and testing of
ballistic missile components, including warheads.
Although Skylife is located in Malaysia, it is actually
a front company for the Iranian procurement agent
Mohammad Mahdavi, who has previously procured sensitive
goods on behalf of Iranian entities of proliferation
concern. We want to share this information with ROK
officials and urge them to take measures to prevent Far
Eastern Trading Company from supplying this equipment to
Skylife or other entities affiliated with Mohammad
Mahdavi.


3. (U) Action Request: Request Embassy Seoul approach
appropriate ROK government officials to deliver talking
points in paragraph 4 below and report response.
Talking points also may be provided as a non-paper.


4. (SECRET//REL SOUTH KOREA) BEGIN TALKING POINTS/NON
PAPER:

-- We would like to raise with you a matter of
proliferation concern and request your government's
assistance in investigating this activity.

-- The United States has information indicating that in
June 2009, the Malaysian-based firm Skylife Worldwide
Sdn Bhd expressed interest in purchasing U.S.-origin
measuring equipment from South Korea's Far Eastern
Trading Company Limited.

-- Specifically, Skylife requested price quotations for
a model POI-300 instrument for center of gravity and
moment of inertia measurement for light components, as
well as a model POI-3500 instrument for center of
gravity and moment of inertia measurement for heavy
components.

-- Both of these pieces of equipment are manufactured by
the U.S. firm Space Electronics, Inc.

-- Although not controlled by the Missile Technology
Control Regime (MTCR),this equipment can be used in the
production and testing of warheads and other ballistic
missile components.

-- Moreover, although Skylife Worldwide is located in
Malaysia, it is actually a front company for the
Iranian-based procurement agent Mohammed Mahdavi.

-- Mahdavi has procured sensitive goods on behalf of a
number of Iranian entities of proliferation concern,
including: the Shahid Hemmat Industrial Group (SHIG),
Iran's primary developer of liquid-fueled ballistic
missiles; and Heavy Metal Industries, a front company
for Ya Mahdi Industries, an Iranian developer of
tactical missile systems.

-- Mahdavi also uses the Malaysian-based front company
Electronics Component Limited (ECL) in his procurement
efforts.

-- Both SHIG and Ya Mahdi are designated by United
Nations Security Council Resolutions for their
involvement in Iran's missile programs.

-- We therefore urge you to take all appropriate
measures to prevent Far Eastern Trading Company from
supplying this equipment to Skylife, ECL, or other firms
affiliated with Mohammed Mahdavi.

-- We appreciate your cooperation on nonproliferation
matters and look forward to hearing the results of your
investigation.


5. (U) Please contact ISN/MTR's John Paul Herrmann with
any questions or follow-up related to this case (202-647
1430 - herrmannjp2@state.gov or
herrmannjp@state.sgov.gov) and slug reporting on this
issue for ISN/MTR and EAP/K.
CLINTON