SHIELD: FOLLOWING UP ON CASES OF CHEM/BIO

S E C R E T STATE 085793

NOFORN
SIPDIS

E.O. 12958: DECL: 08/07/2034
TAGS: CH ETTC IR PARM PREL
SUBJECT: SHIELD: FOLLOWING UP ON CASES OF CHEM/BIO
PROLIFERATION CONCERN

REF: A. A. BEIJING 2170

B. B. STATE 77681

C. C. BEIJING 1951

D. D. STATE 71261

E. E. BEIJING 1253

F. F. BEIJING 1204

G. G. STATE 44852

H. H. 08 BEIJING 2648

I. I. 08 BEIJING 2614

J. J. 08 BEIJING 1263

K. K. 08 BEIJING 1080

L. L. 08 STATE 28928

M. M. 07 BEIJING 5848

N. N. 07 STATE 123386 AND PREVIOUS

Classified By: Robert Mikulak, Dir., ISN/CB Reasons: 1.4 (c) and (d)


1. (U) This is an action request. Please see paragraph 3.


2. (S//NF) BACKGROUND: The U.S. has provided the Chinese
government with information regarding a number of cases of
chemical and biological weapons proliferation since 2008
(reftels). We would like to follow-up with China and request
an update on a number of open proliferation cases in advance
of potential nonproliferation talks with Chinese officials in
Washington, currently scheduled for fall 2009. END
BACKGROUND.


3. (SBU) ACTION REQUEST: Department requests Embassy Beijing
deliver the points in paragraph 6 to appropriate host
government officials and report a response. The points may
be left as a nonpaper. END ACTION REQUEST.


4. (U) Please contact ISN/CB Andrew Souza at 202-647-4838 or
souzaam@state.sgov.gov for further information.


5. (S//NF) Please begin all responses with SHIELD and slug
for ISN.


6. (U) Begin talking points/nonpaper:

(SECRET//REL CHINA)

We appreciate your interest in advancing our mutual
nonproliferation goals and look forward to hearing your
responses regarding these proliferation cases at the upcoming
U.S.-China nonproliferation dialogue.


A. Shanghai Gymta International Trade Company, Ltd.

-- On March 19, 2008, the U.S. raised with you our concern
that Shanghai Gymta International Trade Company, Ltd. has
been assisting the Iranian company Industrial Pioneers (I.P.)
Farayand to acquire chemical weapons-useful items and
technology, some of them Australia-Group controlled, from
suppliers in China during the time period 2007-2008.

-- The end-user of the items of I.P. Farayand's joint venture
manufacturing glass-lined chemical reactor vessels in Iran is
called Shimi Azarjaam.


B. Shenzhen Yujie Electronics Company Ltd.

-- In May 2009, the U.S. raised with you our concerns that
in July 2008 the Iranian firm Nasser Sultani Trading, acting
as a middle-man, procured hydrofluoric acid from the Chinese
entity Shenzhen Yujie Electronics Company Ltd.

-- We are looking into your request for additional
information, but we have nothing further to share at this
time.


C. Zhejiang Material Industries Chemical Group and Shanxi
Weigida Pharmaceuticals Company

-- In May 2009, the U.S. raised with you concerns that a
group of employees from Zhejiang Material Industries Chemical
Group and Shanxi Weiqida Pharmaceuticals Company may have
traveled to Iran to provide technical training and expertise,
as well as installation and start-up of a plant purchased by
the Iranians.

-- We are looking into your request for additional
information, but we have nothing further to share at this
time.


D. Yongyi Chemicals Group Company and Qingdao Hong Jin
Trading Company

-- In July 2009, the U.S. raised with you concerns that
Syria is seeking to purchase a large quantity of pinacolyl
alcohol from China.

-- Pinacolyl alcohol is controlled by the Australia Group
and is also a Schedule 2B chemical under the Chemical Weapons
Convention, as it is a precursor for the chemical warfare
agent Soman and has few commercial applications.


E. Zibo Chemet

-- We have discussed the activities of Zibo Chemet on
several different occasions and welcome China's decision to
take punitive measures against Zibo Chemet Equipment Company
in response to transfers of glass-lined chemical equipment to
Iran.

-- In July 2009, the U.S. raised with you concerns that Zibo
Chemet recently transferred Australia Group-controlled
technology to manufacture glass-lined chemical reactor
vessels to the Iranian entity Shimi Azarjaam.

-- Not only is this case of proliferation concern, it also
undermines the market share of law-abiding Chinese chemical
equipment exporters.

End talking points/nonpaper.
CLINTON