(S) ALERTING CZECH REPUBLIC TO IRANIAN PROCUREMENT OF MACHINE TOOLS VIA TURKISH INTERMEDIARY

S E C R E T STATE 113762

SIPDIS

E.O. 12958: DECL: 11/04/2034
TAGS: PARM, MTCRE, PREL, IR, TU, CZ
SUBJECT: (S) ALERTING CZECH REPUBLIC TO IRANIAN
PROCUREMENT OF MACHINE TOOLS VIA TURKISH INTERMEDIARY

Classified By: ISN/MTR ACTING DIRECTOR RALPH PALMIERO;
REASONS 1.4 (B),(C) AND (D).

1. (U) This is an action request. Embassy Prague, please
see paragraph 4.

2. (S) Background/Purpose/Objective: We want to alert Czech
Republic officials to a possible effort by the Turkish firm
Ak Makina to circumvent the Czech Republic's export control
laws. Ak Makina has previously worked to procure machine
tools on behalf of entities affiliated with Iran's liquid
propellant ballistic missile developer and we are concerned
that any export of machine tools to Ak Makina poses potential
missile proliferation risks.

3. (S) Specifically, the United States has information that
in September 2009, Ak Makina was working to procure
a five-axis computer numerically controlled (CNC) machine
tool manufactured by the Czech Republic-based firm Kovosit
MAS and controlled by the Wassenaar Arrangement and the
Nuclear Suppliers Group. Our information indicates that Ak
Makina may be trying to conceal from Kovosit MAS that the
end-user for this equipment is Iran's Kara Gostar Engineering
Company. In light of Ak Makina's previous cooperation with
ballistic missile-related entities in Iran, we want to ask
Czech Republic authorities to investigate this activity and
urge them to use all available measures to prevent Ak Makina
from evading the Czech Republic's export controls to supply
machine tools to Iran.

4. (S) Action Request: Request Embassy Prague approach
appropriate host government authorities to deliver talking
points/non-paper in paragraph 5 below and report response.
Talking points also may be provided as a non-paper.

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

(SECRET/REL CZECH REPUBLIC)

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

--The United States has information that in September 2009,
the Turkish company Ak Makina was working to procure a
computer numerically controlled (CNC) machine tool
manufactured by the Czech Republic-based firm Kovosit MAS.

-- Ak Makina has previously worked to procure machine tools
on behalf of entities affiliated with Iran's liquid
propellant ballistic missile developer Shahid Hemmat
Industrial Group (SHIG),and we are concerned that any export
of machine tools to Ak Makina poses potential missile
proliferation risks.

-- We understand that the machine sought by Ak Makina from
Kovosit MAS is likely a five-axis CNC milling machine
controlled by the Wassenaar Arrangement and the Nuclear
Suppliers Group.

-- Our information indicates that Ak Makina may be trying to
conceal from Kovosit MAS that the end-user for this equipment
is Iran's Kara Gostar Engineering Company.

-- We hope you will use this information to investigate this
activity and take all available measures to prevent Ak Makina
from evading the Czech Republic's export controls to supply
machine tools to Iran.

-- We have also brought this information to the attention of
Turkish authorities.

-- We look forward to continued cooperation on export control
and nonproliferation issues and to hearing of any actions you
take in response to this information at the earliest possible
time.

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.

7. (U) A word version file of this document will be posted
at www.state.sgov.gov/demarche.
CLINTON