CHINESE FIRM SUPPLYING MTCR-CONTROLLED GYROSCOPES

S E C R E T STATE 118993 SIPDIS E.O. 12958: DECL: 11/18/2034 TAGS: MTCRE PARM PREL MNUC ETTC KSCA IR CH SUBJECT: CHINESE FIRM SUPPLYING MTCR-CONTROLLED GYROSCOPES TO IRAN'S BALLISTIC MISSILE PROGRAM (S) Classified By: ISN/MTR DIRECTOR PAM DURHAM FOR REASON 1.4 (C). ¶1. (U) This is an action request. Embassy Beijing, please see paragraph 3. ¶2. (S) Background/Objective: The United States has information indicating that since at least 2008, the Chinese firm Xian Junyun Electronic and Mechanical Company Ltd (Xianco) has been supplying ballistic missile-capable gyroscopes to Iran's Alborz manufacturing and Trading Company (AMT). Alborz is affiliated with Iran's primary liquid-fueled ballistic missile developer, the Shahid Hemmat Industrial Group, an entity designated under United Nations Security Council Resolution 1737. These gyroscopes can be used in the guidance systems of ballistic missiles and are probably controlled by the Missile Technology Control Regime as well as by China's missile-relevant export controls. We want to alert Chinese officials to this information and encourage them to take measures to halt Xianco's transfers of this equipment to Iran. We also want to advise Chinese officials that Xianco could be sanctioned pursuant to U.S. law for the transfer of MTCR-controlled items - such as these gyroscopes - to Iran. ¶3. (S) Action Request: Request Embassy Beijing approach appropriate host government officials to deliver talking points/non-paper in paragraph 4 below and report response. Talking points also may be provided as a non-paper. ¶4. (S) Begin talking points/non-paper: (SECRET//REL CHINA) --We would like to alert you to information of proliferation concern and request your government's assistance in investigating this activity. --We have information indicating that the Chinese firm Xian Junyun Electronic and Mechanical Company Ltd (Xianco) has been providing gyroscopes to the Iranian entity Alborz Manufacturing and Trading Company (AMT). --AMT is affiliated with the Shahid Hemmat Industrial Group (SHIG),Iran's primary developer of liquid-fueled ballistic missile and an entity designated under United Nations Security Council Resolution 1737. --We understand that since at least 2008, Xianco has delivered numerous shipments of XT-6A gyroscopes to AMT. --XT-6A gyroscopes can be used in the guidance systems of ballistic missiles and are probably controlled by the Missile Technology Control Regime (MTCR) as well as by China's missile-relevant export controls. --Xianco is located at #37 first floor, 5 Yard, No. 1 Lianhu Road, Xian, Shaanxi, China. --United Nations Security Council Resolution 1737 prohibits the transfer of MTCR-controlled items to Iran. --We also want to advise you that Xianco could be sanctioned pursuant to U.S. law for the transfer of MTCR-controlled items to Iran. --We urge you to investigate this information and to take action to prevent Xianco from continuing to supply these items to Iran's ballistic missile program. --We look forward to future cooperation on nonproliferation matters and to hearing of the actions your government takes in response to this information. End talking points/non-paper ¶5. (U) Washington POC is ISN/MTR John Paul Herrmann (Phone: 202-647-1430). Please slug any reporting on this issue for ISN/MTR and EAP/CM. ¶6. (U) A word version of this document will be posted at www.state.sgov.gov/demarche. CLINTON