IRANIAN PROCUREMENT ENTITY USES ITALIAN FIRM AS

S E C R E T STATE 034798 SIPDIS E.O. 12958: DECL: 04/09/2034 TAGS: MTCRE PARM PREL MNUC ETTC KSCA JA IR IT SUBJECT: IRANIAN PROCUREMENT ENTITY USES ITALIAN FIRM AS INTERMEDIARY IN EFFORTS TO ACQUIRE JAPANESE-ORIGIN ITEMS (S) REF: A. STATE 032269 ¶B. TOKYO 000800 Classified By: ISN/MTR DIRECTOR PAM DURHAM, REASON: 1.4 (C). ¶1. (U) This is an action request. Embassy Rome, please see paragraph 4. ¶2. (S) Background: The United States has information indicating that in mid-February 2009, Iran's Farazeh Equipment Distributor Company (FEDCO) sought servo-actuators manufactured by the Japanese firm Tonegawa-Seiko via the Italian firm Alpi Aviation. We also understand that FEDCO was utilizing another Iran-based firm, possibly Samnow Company, as an additional intermediary in this transaction. FEDCO has previously acted as a supplier for Iran's unmanned aerial vehicle (UAV) and liquid-propellant ballistic missile programs. Although the servo-actuators sought by FEDCO are not controlled, they are suitable for use in UAV flight control systems. ¶3. (S) In April 2009, we shared this information with the Japanese government, which responded that Tonegawa-Seiko exported a quantity of 200 PS050 servo-actuators to Alpi Aviation on February 25 (Reftels). Japanese officials asked that the United States share this information with Italian authorities to try to prevent these items from being transferred to Iran. We want to share this information with Italian officials and encourage them to take all appropriate measures to ensure that Alpi Aviation is not acting as a source of supply to Iranian entities of proliferation concern. ¶4. (S) Action Request: Request Embassy Rome approach appropriate host 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 ITALY) -- We would like to raise with you a matter of proliferation concern and request your assistance in investigating this activity. -- The United States has information indicating that as of mid-February 2009, the Iranian-based procurement entity Farazeh Equipment Distributor Company (FEDCO) was seeking Japanese-origin servo actuators via the Italian firm Alpi Aviation. -- FEDCO was utilizing another Iranian-based firm, possibly Samnow Company, as an intermediary in these efforts. -- The servo actuators sought by FEDCO are models PS050 and SSPS105 manufactured by Japan's Tonegawa-Seiko, and are suitable for use in flight control systems in unmanned aerial vehicles (UAVs) -- We understand from Japanese government officials that on February 25, 2009, Tonegawa-Seiko exported 200 model PS050 servo actuators to Alpi Aviation. -- FEDCO has previously acted as a supplier for Iran's UAV program and Iran's liquid propellant missile developer Shahid Hemmat Industrial Group (SHIG). -- We are concerned that FEDCO may be seeking this equipment on behalf of Iran's UAV program. -- We urge you to take all appropriate measures to ensure that Alpi Aviation is not acting - even unwittingly - as a source of supply to Iranian entities of proliferation concern. -- We appreciate your cooperation on nonproliferation matters and look forward to hearing the results of your investigation. End talking points/non-paper ¶6. (U) Please contact ISN/MTR's John Paul Herrmann with any questions or follow-up issues related to this case (202-647-1430 - herrmannjp2@state.sgov.gov) and slug any reporting on this issue for ISN/MTR and EUR/SE. ¶7. (U) A word version of this document will be posted at www.state.sgov.gov/demarche. CLINTON