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