PROVIDING FEEDBACK TO THE GOS ON THE EXPORT OF

S E C R E T STATE 026316 SIPDIS E.O. 12958: DECL: 03/19/2034 TAGS: MTCRE PARM PERL ETTC MNUC TSPA SP IR SUBJECT: PROVIDING FEEDBACK TO THE GOS ON THE EXPORT OF TUBES TO IRAN (S) REF: MADRID 108 Classified By: ISN/MTR DIRECTOR PAM DURHAM FOR REASONS 1.4 (B),(D),AND (H). ¶1. (U) This is an action request. Embassy Madrid please see paragraph 5. SPAIN REQUESTS U.S. VIEWS ON EXPORT OF TUBES TO IRAN -------------- -------------- ¶2. (S) Background: Per Reftel, the Spanish interagency is currently reviewing an export license submitted by the Spanish affiliate of the German firm Schmidt-Clemens for the export of "catalyst tube assemblies" to the Iranian firm Chaharmahal VA Bakhitiati Steel Complex Project. Spanish officials have indicated that the tubes are not classified as restricted dual-use goods, but nonetheless have concerns that these items (particularly the "mid- section") may be usable in programs of proliferation concern. Accordingly, they have requested the views of the USG on the potential export of these items to Iran. USG ASSESSMENT -------------- ¶3. (S//REL SPAIN) U.S. technical experts advise that the G4879 (Cr28Ni48W5) alloy tubes under consideration for export by Spanish officials have no known nuclear or ballistic missile applications. The material is a high-temperature corrosion-resistant special alloy designed for reformer tubes used in ethylene cracking units and methane reformers in the petrochemical industry. Methane reformers use natural gas containing methane and steam to extract hydrogen gas. The reformer tube, also known as a catalyst tube, is a cylinder in which a catalyst is placed to enable the necessary chemical reactions. Since these chemical reactions can be extremely hot, a tube of high- temperature, heat-resistant material is needed. G4879 is also commercially used in heat treatment furnaces, cement works, and miscellaneous tooling and is suitable for temperatures in excess of 1000 degrees Celsius. ¶4. (S//REL SPAIN) NOTE: In researching this issue, USG officials found an open source specification from the National Iranian Steel Company on construction details of a chemical processing device. In this specification, drawings are contained that show a tube assembly that uses a central section of G4870 tubing. The specification and drawings appear to be a steam methane reformer used to produce hydrogen gas from natural gas and steam. END NOTE. ¶5. (S) Action Request: Request Embassy Madrid approach appropriate Spanish government officials and, drawing on the information in paragraphs 3 and 4 above, advise them that we know of no specific proliferation concerns related to the export of these tubes to Iran. (Note: State (ISN/CPI) will provide a response septel on the issue of "POSSIBLY PROBLEMATIC FINANCIAL TRANSACTIONS" raised by the GOS and also detailed in Reftel. End note.) CLINTON