ATTEMPTS OF IRANIAN FIRM TO ACQUIRE MACHINE TOOLS FROM SOUTH KOREA'S HYUNDAI-KIA (S)

S E C R E T STATE 124128



SIPDIS



E.O. 12958: DECL: 12/03/2034

TAGS: PARM, MTCRE, PREL, IR, TU, KS

SUBJECT: ATTEMPTS OF IRANIAN FIRM TO ACQUIRE MACHINE TOOLS

FROM SOUTH KOREA'S HYUNDAI-KIA (S)



REF: A. STATE 28283

B. SEOUL 504

C. SEOUL 677

D. STATE 50260

E. STATE 66211



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

paragraph 3.



2. (S) Background: The United States has information that

the Iranian firm Machine Sazi Tabriz was attempting to

acquire computer numerically controlled (CNC) machine tools

from the South Korean manufacturer Hyundai-Kia in October

2009. Machine Sazi Tabriz is the largest machine tool

manufacturer in Iran and likely supplies imported machine

tools to Iran's nuclear and ballistic missile programs.

Earlier this year, we alerted South Korean authorities to a

similar case involving an effort by an Iranian missile-

related entity to procure machine tools from Hyundai-Kia

through the Turkey-based company Ak Makina (Reftels). We

understand and appreciate the ROK ultimately denying the

license for this previous transaction. We now want to ask

South Korean authorities to investigate this effort by

Machine Sazi Tabriz to acquire goods from Hyundai-Kia and

urge the ROK to closely scrutinize all machine tool exports

to Iran to ensure that such equipment is not used to support

programs of proliferation concern.



3. (U) Action Request: Request Embassy Seoul approach

appropriate host government officials to deliver talking

points in paragraph 4 and report response. Talking points

may also be left as a non-paper.



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



(SECRET//REL SOUTH KOREA)



-- We would like to alert you to information of potential

proliferation concern and request your assistance in

investigating this activity.



-- The United States has information that in October 2009,

Iran's Machine Sazi Tabriz was seeking to acquire machine

tools from South Korea's Hyundai-Kia.



-- We understand that the machines sought by Machine Sazi

Tabriz include two model HS630 horizontal machining centers

and one model HS800 machining center.



-- We are bringing this matter to your attention because we

are concerned that Machine Sazi Tabriz could potentially be

seeking these machines on behalf of weapons-related end-users

in Iran.



-- While just below the control thresholds of the Nuclear

Suppliers Group and Wassenaar Agreement, the HS630 and HS800

machining centers are versatile machine tools capable of

performing precision machining operations required for the

production of missiles and other weapons components.



-- Machine Sazi Tabriz is the largest machine tool

manufacturer in Iran and likely supplies imported machine

tools to Iran's nuclear and ballistic missile programs.



-- You will recall that earlier this year, we shared with you

our concerns that Iran's missile program was seeking a

variety of machine tools produced by Hyundai-Kia through the

Turkish company Ak Makina.



-- We hope you will investigate this activity and use your

catch-all control authorities to closely scrutinize all

machine tool exports to Iran to prevent such equipment from

being used to support Iran's weapons development efforts.



-- We look forward to continued cooperation on export control

and nonproliferation issues and would appreciate hearing of

the actions you take in response to this information at the

earliest possible time.



End talking points/non-paper



5. (U) Washington POC is ISN/MTR James Mayes (Phone: 202-

647-3185). Please slug any reporting on this issue for

ISN/MTR.



6. (U) A word version file of this document will be posted at

www.state.sgov.gov/demarche.

CLINTON