(S) FOLLOWING UP WITH ITALY REGARDING EFFORTS BY

S E C R E T STATE 075985

SIPDIS

E.O. 12958: DECL: 07/21/2034
TAGS: MTCRE PARM PREL MNUC ETTC KSCA IT IR
SUBJECT: (S) FOLLOWING UP WITH ITALY REGARDING EFFORTS BY
FEDCO TO ACQUIRE ACTUATORS FROM ITALIAN FIRM

REF: A. STATE 34798

B. ROME 472

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 April 2009, the U.S. provided
Italian authorities with information regarding attempts by
Farazeh Equipment Distributor Company (FEDCO) to acquire
Japanese-origin servo actuators from the Italian firm Alpi
Aviation, using Iranian-based Samnov Company as an
intermediary (REF A). FEDCO has previously acted as a
supplier for Iran's unmanned aerial vehicle (UAV) program and
Iran's liquid propellant missile developer Shahid Hemmat
Industrial Group (SHIG). We therefore are concerned that
FEDCO may be seeking these actuators on behalf of Iran's UAV
program. When we raised this issue in April 2009, Italian
authorities responded that they would closely monitor any
exports proposed by Alpi, but hinted that Italian law may
constrain possible actions to be taken. We noted to Italian
officials that as an MTCR Partner, Italy could invoke
"catch-all" controls to prevent this shipment. Since then,
we have not received any substantive response from Italy on
this matter. 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 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