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### Viewing cable 09STATE122950, IRAN'S SHIG USING INTERMEDIARIES IN EFFORT TO

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Reference ID | Date | Classification | Origin
--- | --- | --- | ---
09STATE122950 | 2009-12-01 17:05 | SECRET | Secretary of State

`

    VZCZCXYZ0012
    PP RUEHWEB

    DE RUEHC #2950 3351728
    ZNY SSSSS ZZH
    P R 011724Z DEC 09
    FM SECSTATE WASHDC
    TO AMEMBASSY BERLIN PRIORITY 0000
    INFO MISSILE TECHNOLOGY CONTROL REGIME COLLECTIVE

` `

    S E C R E T STATE 122950

    SIPDIS

    E.O. 12958: DECL: 12/01/2034
    TAGS: MTCRE PARM PREL MNUC ETTC KSCA GE IR
    SUBJECT: IRAN'S SHIG USING INTERMEDIARIES IN EFFORT TO
    PROCURE TEST EQUIPMENT FROM GERMAN FIRMS (S)

    REF: A. 2008 STATE 029412 AND PREVIOUS
         ¶B. 2008 BERLIN 000372
         ¶C. 2008 BERLIN 000637
         ¶D. STATE 019370 AND PREVIOUS
         ¶E. BERLIN 000263
         ¶F. BERLIN 000542

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

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

    ¶2. (S) Background and Objective:  We want to advise German
    officials of information indicating that as of June 2009, two
    Iranian intermediary firms offered test equipment manufactured
    by the German firms Rohde & Schwarz and Hottinger Baldwin
    Messtechnik (HBM) to Iran's primary developer of liquid-fueled
    ballistic missiles, the Shahid Hemmat Industrial Group
    (SHIG).
    While this equipment is not controlled by the Missile
    Technology Control Regime (MTCR), it could be used in
    ballistic missile testing applications.  Moreover, SHIG made
    specific requests for items manufactured by Rohde & Schwarz
    and HBM, and goods produced by the two firms were the targets
    of previous, long-running procurement efforts by SHIG and the
    Iranian procurement network Farazeh Equipment Distributor
    Company (FEDCO, which may have been acting on behalf of SHIG)
    (Refs).  In both cases, German officials investigated the
    information we provided and sensitized the firms to their
    concerns.  (Note: In the HBM case, the company reported that
    it did receive a request from Evertop Services (a FEDCO
    affiliate), but that the request was rejected.  End note.)  We
    want to share this new information with German officials and
    encourage them to continue their efforts to prevent SHIG or
    other Iranian entities of proliferation concern from procuring
    sensitive items from Rohde & Schwarz and HBM.

    ¶3.  Action Request: Request Embassy Berlin 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 GERMANY)

    -- We would like to alert you to information of proliferation
    concern and request your assistance in investigating this
    activity.

    -- Between 2007 and 2009, we discussed with you on numerous
    occasions information indicating that Iranian entities of
    proliferation concern were seeking equipment manufactured by
    the German firms Rohde & Schwarz and Hottinger Baldwin
    Messtechnik (HBM).

    -- Specifically, we advised you that the Shahid Hemmat
    Industrial Group (SHIG, Iran's primary developer of liquid
    fueled ballistic missiles) and entities affiliated with the
    Farazeh Equipment Distributor Company (FEDCO) were engaged in
    efforts to procure Rohde & Schwarz and HBM equipment.

    -- We were pleased to subsequently hear that German officials
    had sensitized representatives of both firms to proliferation
    concerns related to SHIG and FEDCO, and that HBM had rejected
    a request from Evertop Services, an entity affiliated with
    FEDCO.

    -- We now want to share with you related information
    indicating that as of June 2009, SHIG was seeking test
    equipment via Iranian intermediaries from both Rohde & Schwarz
    and HBM.

    -- Specifically, we understand that the Tehran-based Heydari
    Ofogh Sanat Anvar Company offered SHIG an ESIB model
    electromagnetic interference test receiver and spectrum
    analyzer manufactured by Rohde & Schwarz.

    -- We also understand that the Iranian company Hamim
    Commercial offered SHIG pressure transducers and other
    equipment produced by HBM.

    -- While this equipment is not controlled by the Missile
    Technology Control Regime (MTCR), it could be used in
    ballistic missile testing applications.

    -- We do not know if the Iranian intermediaries are already in
    possession of the Rohde & Schwarz and HBM equipment, but
    wanted to make you aware of the fact that Iran's missile
    program made specific requests for items manufactured by these
    German firms.

    -- We also want to reiterate that SHIG often conducts its
    business through front companies and middlemen posing as end
    users.

    -- Given SHIG's interest in this equipment and the previous
    Iranian efforts to acquire Rohde & Schwarz and HBM equipment,
    we wanted to share this latest information with you, and urge
    you to continue your work to prevent these firms from acting,
    even unwittingly, as suppliers to SHIG and other Iranian
    entities of proliferation concern.

    -- We look forward to continuing our excellent cooperation on
    nonproliferation matters and to hearing of any updates related
    to this case.

    ¶5.  (U) Washington POC is ISN/MTR John Paul Herrmann (Phone:
    202-647-1430).  Please slug any reporting on this issue for
    ISN/MTR, EUR/CE, and EUR/PRA.

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

`