(S) POSSIBLE PAYMENT TO JAPANESE FIRM FROM

S E C R E T STATE 065286 E.O. 12958: DECL: 06/24/2034 TAGS: MTCRE PARM PREL MNUC ETTC KSCA JA KN SUBJECT: (S) POSSIBLE PAYMENT TO JAPANESE FIRM FROM MYANMAR BRANCH OF KOREAN WEAPONS TRADING ENTITY Classified By: ISN/MTR ACTING DIRECTOR RALPH M. PALMIERO, REASON: 1.4 (C). ¶1. (U) This is an action request. Embassy Tokyo, please see paragraph 3. ¶2. (S) Background: The United States has information indicating that, as of September 2008, the Myanmar branch of the Korea Mining Development General Trading Corporation (KOMID) was arranging a payment of $1 million to the Japanese firm Akiyama Trading Corporation. Although we have no information regarding the reason for this payment, we are concerned that Akiyama may be involved in a business relationship with KOMID. KOMID is North Korea's primary weapons trading entity and has been designated pursuant to United Nations Security Council Resolution 1718 for its role in North Korea's nuclear and ballistic missile programs. We want to bring this information to the attention of Japanese authorities to inform their export control efforts. We also want to ask them to investigate this information with a view to ensuring that Japanese companies are not entering into business relationships with entities of proliferation concern such as KOMID. ¶3. (S) Action Request: Request Embassy Tokyo approach appropriate host 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 JAPAN) -- We would like to raise with you a matter of proliferation concern and request your government's assistance in investigating this activity. -- The United States has information indicating that in September 2008, the Myanmar branch of the Korea Mining Development General Trading Corporation (KOMID) was arranging a payment of over $1 million to the Japanese firm Akiyama Trading Corporation via an unidentified Chinese bank. -- Although we have no information concerning the reason for this payment, we are concerned that Akiyama - which also maintains an office in Pyongyang - may be involved in a business relationship with KOMID. -- As you are aware, KOMID is North Korea's primary weapons trading entity and is designated pursuant to United Nations Security Council Resolution 1718 for its role in North Korea's nuclear and ballistic missile programs. -- We know you share our concerns about KOMID's proliferation activities and hope this information is useful in supporting your export control efforts. We also urge you to investigate this information and take all appropriate measures to ensure that Japanese firms are not involved in cooperation with KOMID or other North Korean entities of proliferation concern. -- We look forward to continued close cooperation on nonproliferation issues and to hearing of any actions your government takes in response to this information. End talking points/non-paper ¶5. (U) Washington POC is ISN/MTR Mike Kennedy (Phone: 202-647-3176). Please slug any reporting on this issue for ISN/MTR and EAP/J. ¶6. (U) A word version of this document will be posted at www.state.sgov.gov/demarche. CLINTON NNNN End Cable Text