EFFORTS BY CHINESE COMPANY TO PROVIDE

S E C R E T STATE 130744

SIPDIS

E.O. 12958: DECL: 12/23/2034
TAGS: ETTC MTCRE PREL CH KN
SUBJECT: EFFORTS BY CHINESE COMPANY TO PROVIDE
MTCR-CONTROLLED STEEL TO NORTH KOREAN WEAPONS TRADING
FIRM (S)

Classified By: ISN/MTR Director Pam Durham.
Reasons 1.4 (B),(D),and (H).


1. (U) This is an action request. Embassy Beijing, please
see paragraph 3.


2. (S) Background: The United States has information
indicating that as recently as November 2009, China's Maanshan
Huntian Equipment Ltd. Company was attempting to supply
several types of specialty steel to a North Korean weapons
trading firm. We understand that one of the specialty steels
to be provided by the Chinese company is titanium-stabilized
duplex stainless steel (Ti-DSS). Ti-DSS is controlled by the
Missile Technology Control Regime (MTCR)and would require a
license under China's own missile-relevant export control
laws. Ti-DSS can be used in the production of Scud and No
Dong missiles and is also prohibited from being transferred to
North Korea under United Nations Security Council Resolutions
1718 and 1874. We want to share this information with Chinese
officials and request that they take all appropriate measures
to ensure that Maanshan Huntian Equipment Ltd. Company is not
acting as a source of supply to ballistic missile programs in
North Korea.


3. (U) Action Request: Request Embassy Beijing approach
appropriate host government officials to deliver non-paper in
paragraph 4 and report response.


4. (S) Begin non-paper:

(SECRET//REL CHINA)

-- We would like to alert you to a matter of proliferation
concern and request your assistance in investigating this
activity.

-- The United States has information that in November 2009,
the Chinese company Maanshan Huntian Equipment Ltd. Company
offered to provide a known North Korean weapons trading firm
with several types of specialty steel produced by China,s
Changcheng Special Steel Co., Ltd.

-- Among the types of steel being offered by Maanshan Huntian
Equipment Ltd. Company is type 0Cr21Ni5Ti steel, which is a
titanium-stabilized duplex stainless steel (Ti-DSS) controlled
by the Missile Technology Control Regime (MTCR) and would
require an export license under China,s export control laws.

-- We are concerned that this specialty steel could be used to
support North Korea,s missile development efforts.

-- Ti-DSS is used in the production of Scud and No Dong
propellant tanks and is also an item prohibited from being
transferred to North Korea under United Nations Security
Council Resolutions (UNSCRs) 1718 and 1874.

-- We hope you will investigate this information and take
measures to ensure that companies in China are not supplying
controlled material to weapons-related entities in North
Korea.

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

End non-paper.


5. (U) Department POC is ISN/MTR Ruchi Gugliani (Phone: 202-
647-4019). 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