O 152319Z FEB 07
FM SECSTATE WASHDC
TO EU MEMBER STATES COLLECTIVE IMMEDIATE
AMEMBASSY BEIJING IMMEDIATE
AMEMBASSY MOSCOW IMMEDIATE
AMEMBASSY TOKYO IMMEDIATE
USEU BRUSSELS IMMEDIATE

UNCLAS STATE 019366 
 
SIPDIS 
 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PREL KNNP KN PARM IR
SUBJECT: ADDITIONAL DESIGNATIONS OF IRANIAN ENTITIES UNDER 
E.O. 13382 
 
¶1.  (U) This is an action request.  Please see paragraph 2. 
 
OBJECTIVES 
---------- 
 
¶2.  (SBU) Washington requests that addressees notify host 
government/EU officials not earlier than 10:30 a.m. EST on 
Friday, February 16, 2007 that the United States is 
designating three additional Iranian entities under E.O. 
13382 ("Blocking the Property of Weapons of Mass Destruction 
Proliferators and their Supporters") on Friday, February 16, 
¶2007.  This information is embargoed until after the 
designations have been publicized in the United States. 
These designations are aimed at protecting the U.S. financial 
system from financial activity supporting ongoing 
proliferation facilitated by the Atomic Energy Organization 
of Iran (AEOI). Addressees are requested to provide the 
non-paper in paragraph 4 to host government/EU officials. 
 
REPORTING DEADLINE 
------------------ 
 
¶3.  (U) Posts should delay delivery until not earlier than 
10:30 a.m. EST on Friday, February 16, 2007.  Public 
announcement of the designation in the U.S. will occur at or 
soon after 10:30 a.m. EST on Friday, February 16, 2007. 
Please report delivery of the U.S. non-paper and any 
immediate response by February 23, 2007.  Please slug replies 
for ISN, T, TREASURY, EUR, EAP and NEA.  Please use SIPDIS 
caption on all responses. 
 
 
BACKGROUND/NONPAPER 
------------------- 
 
¶4.  (U) Begin text of background/non-paper for EU, UK, 
FRANCE, GERMANY, ITALY, AUSTRIA, BELGIUM, BULGARIA, CYPRUS, 
CZECH REPUBLIC, DENMARK, ESTONIA, FINLAND, GREECE, HUNGARY, 
IRELAND, LATVIA, LITHUANIA, LUXEMBOURG, MALTA, NETHERLANDS, 
POLAND, PORTUGAL, ROMANIA, SLOVAKIA, SLOVENIA, SPAIN, SWEDEN, 
JAPAN, CHINA, and RUSSIA: 
 
The U.S. would like to inform your government that on 
February 16, 2006 the U.S. Treasury Department is designating 
three additional entities pursuant to Executive Order (E.O.) 
13382 ("Blocking the Property of Weapons of Mass Destruction 
Proliferators and their Supporters"), an authority aimed at 
freezing the assets of proliferators of weapons of mass 
destruction and their supporters and at prohibiting 
transactions and trade between those designated entities and 
banks in U.S. jurisdiction. 
 
The following names will be added to Treasury,s Office of 
Foreign Assets Control (OFAC) list of Specially Designated 
Nationals and Blocked Persons ("SDN list") and published in 
the Federal Register pursuant to Executive Order 13382. 
 
¶1.    KALAYE ELECTRIC COMPANY (a.k.a. KALA), 33 Fifteenth 
(15th) Street, Seyed-Jamal-Eddin-Assad Abadi Avenue, Tehran, 
Iran 
 
¶2.    KAVOSHYAR COMPANY (a.k.a. KAAVOSH YAAR; a.k.a. 
KAVOSHYAR), Vanaq Square, Corner of Shiraz Across No. 71, 
Molla Sadra Ave, Tehran, Iran 
 
¶3.    PIONEER ENERGY INDUSTRIES COMPANY (a.k.a. PISHGAM 
ENERGY DEVELOPMENT), P.O. Box 81465-361, Isfahan, Iran 
 
In June 2005, President Bush designated the Atomic Energy 
Organization of Iran (AEOI) in the Annex to Executive Order 
13382 ("Blocking Property of Weapons of Mass Destruction 
Proliferators and Their Supporters"). 
 
Kalaye Electric Company and Kavoshyar Company are owned or 
controlled by AEOI and act for or on its behalf. Kalaye has 
been linked to Iran,s centrifuge research and development 
efforts.  Kalaye is also listed in the Annex to UN Security 
Council Resolution 1737 because of its involvement in Iran,s 
nuclear program. Kavoshyar,s sole shareholder is AEOI. 
Pioneer Energy Industries Company provides services to AEOI, 
including technological support. 
 
As you know, the unanimous adoption of UNSCR 1737 on December 
23 establishes a legal obligation for countries to take 
action against the financial underpinnings of Iranian 
proliferation and WMD programs by requiring states to freeze 
the assets that are owned or controlled by, or acting for or 
on behalf of entities and individuals named in the Annex of 
the resolution. 
 
The United States urges you to also take action to freeze the 
assets of entities and individuals explicitly listed in the 
Annex of UNSCR 1737, as well as those entities that are owned 
or controlled by or acting on behalf or at the direction of 
them.  In this regard we hope you will consider actions to 
freeze the assets of the Aerospace Industries Organization 
(AIO), Bank Sepah, and other Iran-related entities the U.S. 
has designated under E.O. 13382. (A full list of the entities 
designated under E.O. 13382 can be found at 
http://www.treas.gov/offices/ 
enforcement/ 
ofac/programs/wmd/wmd.pdf.) 
 
We urge your government to investigate financial 
relationships and transactions in which designated Iranian 
proliferation entities have an interest.  Where it is 
suspected that these relationships and transactions may be 
facilitating Iran,s proliferation activities, we urge you to 
cease dealings with the entities in question. 
 
We look forward to working with you on this and other related 
security matters and are prepared to provide additional 
assistance as appropriate. 
 
End background/non-paper. 
 
POINT OF CONTACT 
---------------- 
 
¶8.  (U) Questions may be directed to ISN/CPI (Michelle New, 
202-647-0186, or Anthony Ruggiero, 202-647-5181). 
RICE 
 
 
NNNN 
 



End Cable Text