(S) FOLLOWING UP WITH ITALY ON MACHINE TOOL SALE

S E C R E T STATE 075910 SIPDIS E.O. 12958: DECL: 07/21/2034 TAGS: MTCRE PARM PREL MNUC ETTC KSCA IT IR SUBJECT: (S) FOLLOWING UP WITH ITALY ON MACHINE TOOL SALE TO IRAN REF: A. 08 STATE 055497 ¶B. 08 ROME 000683 ¶C. 08 STATE 75132 ¶D. 08 ROME 910 Classified By: ISN/MTR DIRECTOR PAM DURHAM, REASON: 1.4 (C). 1.(U) This is an action request. Embassy Rome, please see paragraph 3. ¶2. (S) Background: In May 2008, the U.S. provided Italian officials with information that the Italian machine tool manufacturer CMS Industries sold 5-axis computer numerical controlled (CNC) processing machines to clients in Iran via the Turkish-based machine tool distributor Art Makina (Ref A). The CNC processing machines sold by CMS Industries are designed to work with advanced materials such as aluminum and composites and are controlled by the Nuclear Suppliers Group and Wassenaar Arrangement. In response, Italian officials requested further information regarding the company involved (Ref B). The United States provided this additional information about this case to the GOI on 23 July 2008, but we have not received a subsequent response from the GOI on this matter (Ref C). We therefore want to follow-up with Italian authorities and request an update on the status of Italy,s investigation into this case at the earliest possible time. ¶3. (S) Action Request: Request Embassy Rome follow-up with appropriate host government authorities to request an update on the GOI's investigation of this machine tool case and report response. ¶4. (U) Washington POC is ISN/MTR Mike Kennedy (Phone: 202-647-3176). Please slug any reporting on this issue for ISN/MTR and EUR/PRA. CLINTON