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