SPANISH FIRM SHIPS ADDITIONAL CONSIGNMENT OF

S E C R E T STATE 030962 SIPDIS E.O. 12958: DECL: 03/31/2034 TAGS: MTCRE PARM PREL ETTC MNUC TSPA SP SY SUBJECT: SPANISH FIRM SHIPS ADDITIONAL CONSIGNMENT OF METAL TO SYRIAN ENTITY (S) REF: A. STATE 4134 ¶B. MADRID 87 Classified By: ISN/MTR DIRECTOR PAM DURHAM FOR REASONS 1.4 (B),(C),AND (D). ¶1. (U) This is an action request. Embassy Madrid please see paragraph 4. ¶2. (S) Background: In mid-January, we shared with the Spanish government information indicating a business relationship between the Spanish firm Aceros IMS and several firms that believe could be acting on behalf of the Scientific Studies and Research Center (SSRC),the entity responsible for overseeing Syria's WMD and missile programs. We also advised the GOS that in November 2008, Aceros supplied one of these firms, Industrial Solutions, with over two metric tons of aluminum and steel. This consignment was shipped from the Spanish port of Castillon to Lattakia, Syria aboard the M/V Fast Independence. ¶3. (S) Objectives: We now want to inform Spanish officials that in early February, Aceros shipped another consignment of steel and aluminum to Industrial Solutions on the M/V Fast Challenger. We want to encourage Spanish officials to investigate this information, to reiterate our concerns about Aceros acting as a source of supply to Syrian entities of proliferation concern, and to repeat our request that the GOS take measures to prevent Spanish firms from supplying sensitive goods to these entities. ¶4. (U) Action Request: Request Embassy Madrid approach appropriate Spanish government officials to deliver talking points/non-paper in paragraph 5 below and report response. Talking points also may be provided as a non-paper. ¶5. (S) Begin talking points/non-paper: (SECRET//REL SPAIN) -- We would like to raise with you a matter of proliferation concern and request your government's assistance in investigating this activity. -- In mid-January we discussed with you information related to the Spanish firm Aceros and its business relationship with several Syrian entities that have sought materials that may be diverted to Syria's weapons development programs, possibly via the Scientific Studies and Research Center (SSRC). -- These entities include the Mechanical Construction Factory, Handasieh (also known as the General Organization for Engineering Industries),and Industrial Solutions. -- As you are aware, the SSRC is the agency responsible for overseeing Syria's WMD and missile programs. -- We noted that Aceros has been involved in negotiations for the supply to these entities of a variety of steels and aluminum alloys, including 7075- T6 and 2024-T6 aluminums, which are controlled in some forms under the Nuclear Suppliers Group and the Wassenaar Arrangement. These aluminums are also suitable for use in structural components of ballistic missiles. -- We also advised you that Aceros had shipped a consignment of over two metric tons of aluminum and steel aboard the M/V Fast Independence from Castillon, Spain, for eventual discharge in Lattakia, Syria, where the end-user was Industrial Solutions. -- We now understand that as of February 7, a separate shipment of steel and aluminum from Aceros had arrived in Lattakia aboard the M/V Fast Challenger. As in the previous shipment, the end-user was Industrial Solutions. The cargo was associated with bill of lading number CSTLT1757. -- We encourage you to investigate the information we have provided in order to learn more details on the types and quantities of steel and aluminum Aceros supplied to Industrial Solutions in this shipment. -- We are concerned that the eventual end-user of these materials may be affiliated with Syria's ballistic missile program. -- We therefore urge you to take all appropriate measures to ensure that Aceros is not acting - even unwittingly - as a source of supply to Syrian entities of proliferation concern. -- We appreciate your cooperation on nonproliferation matters and look forward to hearing the results of your investigation. End talking points/nonpaper. ¶6. (U) Please contact ISN/MTR's John Paul Herrmann with any questions or follow-up issues related to this case (202-647-1430 - herrmannjp@state.sgov.gov) and slug any reporting on this issue for ISN/MTR, EUR/WE and EUR/PRA. ¶7. (U) A word version of this document will be posted at www.state.sgov.gov/demarche. CLINTON