IRANIAN FIRM SEEKING CONTROLLED MACHINE TOOL ACCESSORIES FROM A COMPANY IN TAIWAN (S)

S E C R E T STATE 045204


E.O. 12958: DECL: 05/04/2034
TAGS: PARM, MTCRE, PREL, TW, IR
SUBJECT: IRANIAN FIRM SEEKING CONTROLLED MACHINE TOOL
ACCESSORIES FROM A COMPANY IN TAIWAN (S)

Classified By: ISN/MTR ACTING DIRECTOR RALPH PALMIERO
REASONS 1.4 (B),(C) AND (D).

1. This is an action request. AIT Taipei, please see
paragraph 3.

2. (S) Background: As part of the U.S.-Taiwan "Gameplan" to
improve Taiwan's export controls, the United States routinely
alerts Taiwan to exports that pose potential proliferation
risks. It is in this context that we would like to inform
Taiwan authorities that in March 2009, Iran's Faratech CNC
Milling Services was seeking to procure a computer
numerically controlled (CNC) rotary table from Tanshing
Accurate Industrial Company Ltd. The rotary table sought by
Faratech CNC Milling Services is potentially controlled by
the Wassenaar Arrangement and will be used to upgrade a
vertical machining center to perform 5-axis machining
operations. A machine with such capabilities would be
suitable for use in a variety of applications required for
the production of ballistic missile, nuclear, and advanced
conventional weapons components. We want to provide this
information to Taiwan authorities to support their export
control efforts and urge them to take measures to ensure that
any proposed sale of this equipment
to Iran is thoroughly scrutinized.

3. (S) Action Request: Request AIT Taipei approach
appropriate officials to deliver talking points/non-paper in
paragraph 4 below and report response. Talking points also
may be provided as a non-paper. (NOTE: Pursuant to a
decision made at the February 2009 Gameplan discussions,
Department plans to concurrently deliver this demarche to
TECRO officials in Washington, D.C. END NOTE)

4. (S) Begin talking points/non-paper:

(SECRET REL TAIWAN)

-- We appreciate our close cooperation on export control
issues as part of the U.S.-Taiwan "Gameplan."

-- It is in this context that we would like to raise with you
a matter of potential proliferation concern and request your
assistance in investigating this activity.

-- The United States has information that in March 2009,
Iran's Faratech CNC Milling Services was seeking to procure
either a model TRNC-255 or TRNC-170 computer numerically
controlled (CNC) rotary table from Tanshing Accurate
Industrial Company Ltd.

-- Our information indicates that these rotary tables are
potentially controlled by the Wassenaar Arrangement and are
being sought by Faratech CNC Milling Services to upgrade a
vertical machining center to perform 5-axis machining
operations.

-- As you are aware, a machine with such capabilities would
be suitable for use in a variety of applications required for
the production of ballistic missile, nuclear, and advanced
conventional weapons components.

-- We are providing you this information to support your
export control efforts and hope you will take measures to
ensure that any proposed sale of this equipment to Iran is
thoroughly scrutinized by your export control authorities.

-- We look forward to continuing cooperation on export
control issues and to hearing of the actions you take in
response to this information.

5. (U) Washington POC is ISN/MTR James Mayes (Phone:
202-647-3185). Please slug any reporting on this issue for
ISN/MTR.

6. (U) A word version file of this document will be posted
at www.state.sgov.gov/demarche.


CLINTON