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### Viewing cable 10STATE10900, S) ADDITIONAL INFORMATION FOR CHINA ON THE

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Reference ID | Date | Classification | Origin
--- | --- | --- | ---
10STATE10900 | 2010-02-03 15:03 | SECRET | Secretary of State

`

    VZCZCXYZ0001
    PP RUEHWEB

    DE RUEHC #0900 0341556
    ZNY SSSSS ZZH
    P 031549Z FEB 10
    FM SECSTATE WASHDC
    TO AMEMBASSY BEIJING PRIORITY 0000
    INFO MISSILE TECHNOLOGY CONTROL REGIME COLLECTIVE PRIORITY

` `

    S E C R E T STATE 010900

    SIPDIS

    E.O. 12958: DECL: 02/03/2035
    TAGS: MTCRE PARM PREL MNUC ETTC KSCA IR CH MY
    SUBJECT: (S) ADDITIONAL INFORMATION FOR CHINA ON THE
    MALAYSIA-BASED COMPANY ELECTRONICS COMPONENT LIMITED

    REF: A. 09 STATE 130917
         ¶B. 09 BEIJING 003476

    Classified By: ISN/MTR DIRECTOR PAM DURHAM, REASON: 1.4 (C).

    ¶1. (U) This is an action request.  Embassy Beijing, please
    see paragraph 4.

    ¶2.  (S) Background/Objective: In December 2009, the United
    States shared with China information regarding attempts by
    the Malaysia-based firm Electronics Component Limited (ECL)
    to buy TRS-500 gyroscopes from the Chinese firm VibTel
    Industrial Co. Inc. (Ref A).  These gyroscopes, which are
    controlled by the Missile Technology Control Regime (MTCR)
    and China's missile-related export controls, would be
    suitable for use in the guidance systems of ballistic
    missiles, cruise missiles, and unmanned aerial vehicles.  We
    requested China investigate this information because ECL is
    associated with a network of Iranian-controlled front
    companies that procure sensitive goods on behalf of a number
    of Iranian entities of proliferation concern.

    ¶3.  (S) Chinese officials agreed to investigate this
    information, but asked for additional details on ECL's
    relationships with firms in Iran (Ref B).  To support their
    efforts in this case, we would like to inform them that ECL
    is part of a network of Iranian-controlled front companies
    that includes the Iranian firm Shahin Sefid Esta and the
    Malaysia-based front company Skylife Worldwide Sdn Bhd.  This
    network procures sensitive goods on behalf of a number of
    Iranian entities of proliferation concern, including the
    United Nations Security Council Resolution (UNSCR)
    1737-designated entities Shahid Hemmat Industrial Group
    (SHIG) and Ya Mahdi Industries.  We want to provide this
    information to Chinese officials and emphasize that we
    believe the transfer of this controlled equipment to a
    company linked to UNSCR-designated entities would be
    prohibited pursuant to UNSCR 1737.

    ¶4.  (S) Action Request:  Request Embassy Beijing approach
    appropriate host government officials to deliver talking
    points/non-paper in paragraph 5 below and report response.
    Talking points also may be provided as a non-paper.

    ¶5.  (S) Begin talking points/non-paper:

    (SECRET//REL CHINA)

    --In December 2009, we shared with you information regarding
    attempts by the Malaysia-based firm Electronics Component
    Limited (ECL) to buy TRS-500 gyroscopes from the Chinese firm
    VibTel Industrial Co. Inc.

    --TRS-500 gyroscopes are controlled by the Missile Technology
    Control Regime (MTCR) and China's missile-related export
    controls, and can be used in the guidance systems of
    ballistic missiles, cruise missiles, and unmanned aerial
    vehicles.

    --We also noted that ECL is associated with a network of
    Iranian-controlled front companies that procure sensitive
    goods on behalf of a number of Iranian entities of
    proliferation concern.

    --In response to this information, you agreed to look into
    this matter, but asked if the United States could provide
    additional details on ECL's relationships with firms in Iran.

    --We now want to provide you with additional information
    indicating that ECL is part of a network of
    Iranian-controlled front companies that includes the Iranian
    firm Shahin Sefid Esta and the Malaysia-based front company
    Skylife Worldwide Sdn Bhd.

    --This network procures sensitive goods on behalf of a number
    of Iranian entities of proliferation concern, including the
    Shahid Hemmat Industrial Group (SHIG), which is Iran's
    primary developer of liquid propellant ballistic missiles,
    and Heavy Metal Industries, a front company for the tactical
    missile developer Ya Mahdi Industries.

    --Both SHIG and Ya Mahdi Industries are sanctioned under
    United Nations Security Council Resolution (UNSCR) 1737.

    --Additionally, the TRS-500 gyroscopes are controlled items
    that would be prohibited from being exported to Iran under
    UNSCR 1737.

    --We hope this information is useful in supporting your
    efforts in this case and assists your ability to prevent the
    transfer of these gyroscopes by VibTel Industrial Co. to ECL.

    --We look forward to future cooperation on nonproliferation
    issues and to hearing the results of your investigation into
    this activity at the earliest possible time.

    End talking points/non-paper

    ¶6.  (U) Washington POC is ISN/MTR John Paul Herrmann (Phone:
    202-647-1430).  Please slug any reporting on this issue for
    ISN/MTR and EAP/CM.

    ¶7.  (U) A word version of this document will be posted at
    www.state.sgov.gov/demarche.
    CLINTON

`