ADVISING THE PRC OF BEIJING FIRM'S OFFER OF

S E C R E T STATE 030007 SIPDIS E.O. 12958: DECL: 03/27/2034 TAGS: MTCRE PARM PREL ETTC CH PK SUBJECT: ADVISING THE PRC OF BEIJING FIRM'S OFFER OF SPECIALTY STEEL TO PAKISTANI ENTITY (S) Classified By: ISN/MTR DIRECTOR PAM DURHAM FOR REASONS 1.4 (B),(C),AND (D). ¶1. (U) This is an action request. Embassy Beijing, please see paragraph 4. ¶2. (S) Background: The United States has information indicating that in February 2009, China's Beijing Tianlianxing Scientific Ltd. offered 1,000 kg of specialty steel to Pakistan's Aginel Enterprises, an entity associated with Pakistan's nuclear weapons and missile programs. The type 30CrMnSiA steel is not controlled, but has been used in components of Pakistan's Ghaznavi short-range ballistic missile, a Missile Technology Control Regime Category I system. We therefore have concerns that this steel is intended to support Pakistan's indigenous ballistic missile efforts. ¶3. (S) Objectives: We want to share this information with Chinese officials and request that they take all appropriate measures, including the use of their catch- all controls, to prevent the supply of this steel to Pakistani entities of proliferation concern. ¶4. (U) Action Request: Request Embassy Beijing approach appropriate host government officials to deliver talking points in paragraph 5 and report response. Talking points may also be left as a non-paper. ¶5. (S) Begin talking points/non-paper: (SECRET//REL CHINA) -- We would like to share with you information of potential proliferation concern and request your assistance in investigating this activity. -- The United States has information indicating that in February 2009, the Chinese firm Beijing Tianlianxing Scientific Ltd. offered to provide 1,000 kg of type 30CrMnSiA steel to Pakistan's Aginel Enterprises. -- We are bringing this matter to your attention because we are concerned that this steel is intended to support Pakistan's indigenous ballistic missile development efforts. -- Aginel Enterprises has been associated with Pakistan's nuclear weapons and missile development programs. -- Although not controlled, the 30CrMnSiA steel sought by Pakistan has been used to produce end-domes and motor cases for Pakistan's Ghaznavi missile, which is a Missile Technology Control Regime Category I system. -- We hope you will investigate this activity and use all available measures, including your catch-all controls, to prevent Chinese firms from acting as a source of supply for missile programs in Pakistan. -- We look forward to future cooperation on nonproliferation issues and to hearing of any actions your government takes in response to this information. End talking points/non-paper. ¶6. (U) Department POC is ISN/MTR John Paul Herrmann (Phone: 202-647-1430). Please slug any reporting on this issue for ISN and EAP. ¶7. (U) A word version of this document will be posted at www.state.sgov.gov/demarche. CLINTON