SPANISH METAL MERCHANT SUPPLIES SYRIAN ENTITIES OF PROLIFERATION CONCERN (S)

S E C R E T STATE 004134



SIPDIS



E.O. 12958: DECL: 01/15/2034

TAGS: MTCR, PARM, PREL, ETTC, MNUC, TSPA, SP, SY

SUBJECT: SPANISH METAL MERCHANT SUPPLIES SYRIAN ENTITIES

OF PROLIFERATION CONCERN (S)



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: The U.S. has information indicating

that since at least 2003, the Spanish firm Aceros IMS

has maintained a business relationship with the Syrian

firms Mechanical Construction Factory, Handasieh,

and Industrial Solutions - firms we 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. Aceros has been

involved with MCF, Handasieh, and Industrial Solutions

in negotiations for the supply of a variety of steels

and aluminum alloys, including 7075-T6 aluminum and

2024-T6 aluminum. Both of these materials can be used

in structural support components in ballistic missiles

and in some forms are controlled by the Nuclear

Suppliers Group and Wassenaar Arrangement. In November

2008, Aceros supplied 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 want to share this information

with Spanish officials and urge them to take all

appropriate measures to ensure that Aceros is not

acting as a supplier to Syrian entities of

proliferation concern. We also want to advise the GOS

that sanctions pursuant to U.S. law could be imposed on

Aceros if the firm is found to have supplied Syria with

regime-controlled items.



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.



-- We have information indicating that the Spanish firm

Aceros IMS has, since at least 2003, maintained a

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).



-- As you will recall from Missile Technology Control

Regime (MTCR) Information Exchange meetings, the SSRC

is the agency responsible for overseeing Syria's WMD

and missile programs.



-- Aceros has been involved in negotiations for the

supply of a variety of steels and aluminum alloys with

the following companies: Mechanical Construction

Factory, Handasieh (also known as the General

Organization for Engineering Industries),and

Industrial Solutions.



-- We do not know the quantity of material supplied by

Aceros to Syria, but believe that at least some of it

was specifically intended for use in Syria's ballistic

missile program.



-- Among the materials Aceros and the companies were

discussing were 7075-T6 and 2024-T6 aluminum. Both of

these materials are suitable for use in structural

components in ballistic missiles and in some forms are

controlled by the Nuclear Suppliers Group and Wassenaar

Arrangement.



-- In addition, as recently as early November 2008,

Aceros 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 encourage you to investigate this information and

take appropriate measures to ensure that Aceros is not

acting as a source of supply to Syria's weapons

development programs.



-- We also want to advise you that sanctions pursuant

to the U.S. Iran, North Korea, and Syria

Nonproliferation Act could be imposed on Aceros if the

firm is found to have supplied Syria with regime-

controlled materials.



-- 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.

RICE