SYRIAN ENTITY OF PROLIFERATION CONCERN SEEKS

S E C R E T STATE 004104 SIPDIS E.O. 12958: DECL: 01/15/2034 TAGS: MTCRE PARM PREL ETTC MNUC TSPA CH SY SUBJECT: SYRIAN ENTITY OF PROLIFERATION CONCERN SEEKS ALUMINUM FROM CHINESE FIRM (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 3. ¶2. (S) Background and Objectives: The U.S. has information indicating that in early 2008, Syria's Industrial Solutions placed an order with the Chinese firm Shanghai Yuanshan Industry and Trade Company for a consignment of 2024-T6 aluminum. Industrial Solutions is a cover for the Scientific Studies and Research Center (SSRC),the entity responsible for overseeing Syria's ballistic missile program. 2024-T6 aluminum can be used to produce structural components in ballistic missiles and in some forms is controlled by the Nuclear Suppliers Group and Wassenaar Arrangement. We want to share this information with Chinese officials and urge them to take all appropriate measures to ensure that Shanghai Yuanshan Industry and Trade Company is not acting as a supplier to Syrian entities of proliferation concern. We also want to advise the PRC that sanctions pursuant to U.S. law could be imposed on Shanghai Yuanshan Industry and Trade Company if the firm is found to have supplied Syria with regime-controlled items. ¶3. (U) Action Request: Request Embassy Beijing approach appropriate Chinese government officials to deliver talking points/non-paper in paragraph 4 below and report response. Talking points also may be provided as a non-paper. ¶4. (S) Begin talking points/non-paper: (SECRET//REL CHINA) -- We would like to alert you to information of potential proliferation concern and request your assistance in investigating this activity. -- The U.S. has information that in early 2008, the Syrian company Industrial Solutions placed an order for type 2024-T6 aluminum from the Chinese company Shanghai Yuanshan Industry and Trade Company. -- We are bringing this activity to your attention because we believe this material is intended to support Syria's missile development efforts. -- The 2024-T6 aluminum sought by Industrial Solutions could be used in a missile program to manufacture structural components such as instrument mounting plates, actuator mounts or load bearing components. -- Industrial Solutions is a cover company for the Scientific Studies and Research Center (SSRC),which is the entity responsible for overseeing Syria's ballistic missile program. In some forms, 2024-T6 aluminum is controlled by the Nuclear Suppliers Group and the Wassenaar Arrangement. -- We urge you to immediately investigate this information and use all available measures to ensure that Chinese entities are not acting as sources of sensitive materials for Syria's ballistic missile program. -- We also want to advise you that sanctions pursuant to the U.S. Iran, North Korea, and Syria Nonproliferation Act could be imposed on Shanghai Yuanshan Industry and Trade Company if the firm is found to have supplied Syria with regime-controlled materials. -- We look forward to future cooperation on nonproliferation issues and to hearing of the actions your government takes in response to this information. End talking points/nonpaper. ¶5. (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 and EAP/CM. ¶6. (U) A word version of this document will be posted at www.state.sgov.gov/demarche. RICE