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