MALAYSIAN-BASED IRANIAN FRONT COMPANY SEEKS TO

S E C R E T STATE 130917

SIPDIS

E.O. 12958: DECL: 12/24/2034
TAGS: MTCRE PARM PREL MNUC ETTC KSCA IR CH MY
SUBJECT: MALAYSIAN-BASED IRANIAN FRONT COMPANY SEEKS TO
PURCHASE EXPORT-CONTROLLED GYROSCOPES FROM CHINESE FIRM (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 in late November 2009, the
Malaysian firm Electronic Component Limited (ECL) attempted to
buy five TRS-500 gyroscopes from the Chinese firm VibTel
Industrial Co. Inc. These gyroscopes can be used in the
guidance systems of ballistic missiles, cruise missiles, and
unmanned aerial vehicles, and are controlled by the Missile
Technology Control Regime (MTCR),the Wassenaar Arrangement,
and China's own missile-related export controls. Although ECL
is located in Malaysia, it is part of an Iranian-controlled
network of front companies that Iran uses to procure sensitive
items on behalf of entities of proliferation concern. We are
therefore concerned that if VibTel were to ship these
gyroscopes to Malaysia, ECL would subsequently forward them to
Iran, the location of the actual end-user. We want to alert
Chinese officials to this information and encourage them to
take measures to prevent VibTel from acting as a supplier to
ECL and affiliated firms.


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.

--The U.S. has information indicating that in November 2009,
the Malaysia-based firm Electronics Component Limited (ECL)
attempted to buy five 3-axis model TRS-500 gyroscopes from the
Chinese firm VibTel Industrial Co. Inc.

--TRS-500 gyroscopes are controlled by the Missile Technology
Control Regime (MTCR) and the Wassenaar Arrangement, as well
as
by China's own missile-related export controls, and can be
used in the guidance systems of ballistic missiles, cruise
missiles, and unmanned aerial vehicles.

--Although ECL is located in Malaysia, it is actually part of
a network of Iranian-controlled front companies that procure
sensitive goods on behalf of a number of Iranian entities of
proliferation concern.

--It is therefore likely that if this equipment were to be
shipped to ECL in Malaysia, it would be subsequently diverted
to Iran, where the actual end-user is located.

--According to its website (www.vibtel.com),VibTel Industrial
Co. Inc. is located at 308, BaiHuaYuan Business-Building, No.
11, ZhongGuanCun Nan Da Jie, HaiDian District, Beijing,
100081, China.

--We urge you to take all appropriate measures to prevent
VibTel Industrial Co. Inc. from supplying this equipment to
ECL or other affiliated firms.

--We appreciate your cooperation on nonproliferation matters
and look forward to hearing to hearing the results of your
investigation.

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