VZCZCXRO6879
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #0375/01 0320735
ZNY SSSSS ZZH
R 010735Z FEB 08
FM AMEMBASSY BEIJING
TO RUCPDOC/USDOC WASHDC
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEHGH/AMCONSUL SHANGHAI 8833
RHEHNSC/NSC WASHDC
RHMFISS/DEPT OF HOMELAND SECURITY WASHINGTON DC
RUEHC/SECSTATE WASHDC 4773
RUEAIIA/CIA WASHINGTON DC

S E C R E T SECTION 01 OF 03 BEIJING 000375 
 
SIPDIS 
 
NOFORN 
SIPDIS 
 
USDOC FOR 532/BIS/OEA/GKRIZAY/TWILLIS/ 
GCARKDAK 
USDOC FOR 532/BIS/EA/MBORMAN/BKRITZER 
USDOC FOR 0I0/ADESSARAN/WZARIT 
SHANGHAI FOR EP AND CONS/SAO COORDINATOR 
SECSTATE FOR EAP/CM 
SECSTATE FOR EB/ESP 
DEPT OF HOMELAND SECURITY FOR ICE/STRATEGIC 
NSC FOR PROSTRAT 
CIA FOR WINPAC 
 
E.O. 12958: DECL: 09/10/2017 
TAGS: BEXP CH ETRD ETTC PREL
SUBJECT: POST SHIPMENT VERIFICATION: D365577 JIUJIANG 
PRECISION  MEASUREMENT TECHNOLOGY RESEARCH INSTITUTE 
 
REF: A) USDOC 9554 (10/31/07) 
 
BEIJING 00000375  001.2 OF 003 
 
 
Classified By: Jeannette L. Chu, Export Control Officer 
           for reasons 1.4 b/h 
 
¶1. (U) Unauthorised disclosure of the information below is 
prohibited by Section 12(c) of the Export Administration Act. 
 
¶2. (U) REFTEL requested a Post-Shipment Verification (PSV) 
end-use check to be conducted at JIUJIANG PRECISION 
MEASUREMENT TECHNOLOGY RESEARCH INSTITUTE ("JJ PRECISION 
MEASUREMENT") to determine that this entity is in possession 
of a Model 1440 Precision Index Table described in the export 
license application as a serrated tooth circle divider using 
two face gears of identical shape and pitch. This commodity 
is classified as ECCN 2B006, valued at $75,700 and controlled 
for national security and nuclear non-proliferation reasons. 
MOORE TOOL COMPANY, 800 Union Avenue, Bridgeport, Connecticut 
06607 submitted the export license application. The foreign 
purchaser was JIUJIANG RENHE TRADING CO. LTD., 19 Qing Nian 
Road, Building B, Gate 2, Room 102, Jiujiang City, JiangXi 
Province, China. Para. 13 of REFTEL notes that the importer 
listed on the MOFCOM End-User/End-Use Statement is DATANG 
YONGSHENG TECHNOLOGY CO. INC., 40 Xueyuan Road, Haidian 
District, Beijing, China. 
 
¶3. (U) Post received REFTEL on November 1, 2007 and on 
November 5, 2007, ECO requested that the Department of Mechanic, 
Electronic and High Technology Industries of the Ministry of 
Commerce (MOFCOM) arrange a PSV at JIUJIANG PRECISION 
MEASUREMENT TECHNOLOGY RESEARCH INSTITUTE in accordance with 
the Exchange of Letters on End-Use Visit Understanding 
(EUVU). 
On January 23, 2008 MOFCOM scheduled this PSV for January 25, 
¶2008. 
 
¶4. (U) On January 25, 2008, ECO, accompanied by MOFCOM 
official ZHOU Quan and CHEN Zhimin from the JiangXi Provincial 
Department of Foreign Trade and Economic Cooperation, conducted 
a site visit at JIUJIANG PRECISION MEASUREMENT TECHNOLOGY RESEARCH 
INSTITUTE ("JJ PRECISION MEASUREMENT" or "INSTITUTE"), 
83 Jiu Rui Road, Jiujiang City, JiangXi Province, China and 
met with LI Xing, Deputy Director and Research Fellow, and 
other Institute employees. 
 
¶5. (U) Mr. LI stated that in 1999 JJ PRECISION MEASUREMENT 
developed a calibration device for measuring and maintaining 
optical theodolites used in land surveying and topological 
research. This device simplifies the calibration process. 
According to Mr. LI, JJ PRECISION MEASUREMENT does not/NOT 
manufacture optical theodolites. JJ PRECISION MEASUREMENT 
uses the MOORE TECHNOLOGY COMPANY Model 1440 Precision Index 
Table to verify the accuracy of their own calibration device. 
Mr. LI clarified that JJ PRECISION MEASUREMENT does not use 
this Precision Index Table to directly calibrate optical 
theodolites. Mr. LI stated that JJ PRECISION MEASUREMENT 
manufactures approximately 20 optical theodolite calibration 
instruments a year and sells these to provincial metrology 
institutes. 
 
¶6. (SBU) In response to specific questioning by ECO, Mr. LI 
advised that JJ PRECISION MEASUREMENT has also developed an 
autocollimator and other precision metrology devices. Mr. LI 
stated that JJ PRECISION MEASUREMENT sells approximately 200 
to 300 metrology devices a year, mostly to provincial 
metrology institutes. JJ PRECISION MEASUREMENT also makes a 
balancing instrument that tests the balance of rods and crankshafts, 
which is sold to automobile factories and manufacturers of 
drill bits. Mr. LI revealed that JJ PRECISION MEASUREMENT 
also develops individual projects on demand. He described 
another product as very small sticks used for fine survey 
measurements of angles. (COMMENT: See company website at 
www.jjjmcs.com for product pictures and descriptions.) 
 
 
BEIJING 00000375  002.2 OF 003 
 
 
 
¶7. (SBU) In response to specific questioning by ECO, Mr. LI 
stated that JJ PRECISION MEASUREMENT was established in 1963 
and relocated to its current location in 1997. JJ PRECISION 
MEASUREMENT has 450 employees and consists of one office 
building and two factory buildings on the same site. Mr. LI 
stated that JJ PRECISION MEASUREMENT is subordinate to the 
CHINA STATE SHIPBUILDING COMPANY ("CSS") but did not/NOT 
disclose that JJ PRECISION MEASUREMENT is also known as the 
No. 6354 RESEARCH INSTITUTE (see CSS website 
www.shipbuilding.com.cn/en/en company accessed on 28 January 
2008). Mr. LI advised that JJ PRECISION MEASUREMENT 
has a spin-off enterprise named JIN DA JIAN CHE JI SU YOU 
XIAN GONG SI a/k/a JIU JIANG JING DA MEASUREMENT TECHNOLOGY 
COMPANY, which he described as a private shareholding 
company established in May 2007 (see company website at 
www.jdjjg.com). This company engages in essentially the same 
activities as its parent company, JJPRECISION MEASUREMENT. 
In response to specific questioning from ECO, Mr. LI stated 
that JJ PRECISION MEASUREMENT used to receive funding from 
the central government but is now completely self-funding. 
 
¶8. (U) Mr. LI showed ECO with a copy of the U.S. export 
license conditions and affirmed his understanding of the 
prohibitions against transfer, resale, alteration or 
modification of the precision index table. ECO notes, 
however, that these export license conditions appear 
to have been faxed to JJ PRECISION MEASUREMENT on 
January 22, 2008. 
 
¶9. (SBU) ECO observed the MOORE TOOL COMPANY Model 1440 
Precision Index Table in a room on the fQ floor of the 
JJ PRECISION MEASUREMENT office building. The room was 
marked "Angle Measurement Laboratory". One person in a 
lab coat was in this room, which contained a single metrology 
device that appeared to be a precision index table with an 
optical scope labeled "Hilger and Watts", which was connected 
to a meter. JJ PRECISION MEASUREMENT officials removed a case 
from a cupboard on the wall and showed ECO the MOORE TOOL 
COMPANY precision index table in this case. ECO observed 
serial number 8-1440-299 etched onto the side of this 
device. Mr. LI and other JJ PRECISION MEASUREMENT officials 
stated that this precision index table is placed beneath 
their own in order to verify the calibration of their device, 
which is then used to calibrate the optical theodolite 
calibrator described in para. 5 above. ECOobserved signs 
on the wall marked, "U = 0.5 dgrees", "K = 1.98" and 
"P = 95%". Mr. LI dscribed these were instructions for the 
use ofthis device. In response to direct questioning y ECO, 
Mr. LI stated that JJ PRECISION MEASUREMENT only uses the 
precision index table a fe times every year. Fewer than 
five employees have access to this instrument. 
 
¶10. (S) ADDTIONAL INFORMATION: Research by ECO disclosed 
that the JUIJIANG PRECISION MEASUREMENT TECHNOLOGY RESEARCH 
INSTITUTE is also known as the No. 6354 Research Institute 
of the China State Shipbuilding Corporation (CSSC). The CSSC 
website, www.shipbuilding.com.cn/en/en company, states that this 
facility was originally located in Shanghai and "moved to the 
foot of scenic Lushan Mountain for combat readiness". The website 
further discloses that this institute was previously known as 
the No. 63 Research Institute before being renamed the No. 6354 
Research Institute in 1980. ECO notes that a No. 63 Research 
Institute is under the command of the People's Liberation Army 
(PLA) General Staff in Nanjing. The CSSC website describes the 
work of the JIUJIANG PRECISION MEASURING TECHNOLOGY RESEARCH 
INSTITUTE as "design and manufacture of inertial guidance testing 
equipment, dynamic balance machine, vibration and balance test 
machine, precision components, precision test equipment, and 
environmental products and states that the products developed 
by this institute have been "widely applied to the national defense 
industries of navigation, aviation and space." Additionally, the No. 
6345 Research Institute appears on the exhibitors list for the China 
International Defence Electronics Exhibition (CIDEX) trade show, 
 
BEIJING 00000375  003.2 OF 003 
 
 
which will be held April 1-4, 2008, in Beijing. The 6354 Research 
Insitute previously participated in CIDEXX in 2004. 
 
The company website for JIUJIANG PRECISION MEASURING 
TECHNOLOGY RESEARCH INSTITUTE, www.jjjmcs.com/qyjj-e.php, does 
not state a direct link to the No. 6354 Research Institute, however, 
it claims to have also been named as the "No. 3303 Calibration 
Laboratory of National Defense Regional Metrology Station". This 
website also describes the work of this organisation as developing 
and manufacturing inertial guidance testing equipment, vibration 
and dynamic balancing equipment, precision components and 
metrology instruments, and environmental engineering products. 
 
Additional open-source research by ECO revealed that the 
No. 6354 Research Institute has published findings of 
research projects in the areas of "Evaluation of uncertainty 
of angle measurement of vertical scales of theodolite by 
multi-tooth dividing table", machine vision technology for 
autocollimation and measurement based upon interpolative 
evaluation algorithms, and the development of a "high 
accuracy two-axis autocollimator." ECO notes that while 
theodolites and autocollimators do have civilian uses for 
conducting land surveys, these instruments also have a wide 
range of potential military applications including laser positioning, 
measurement 
and guidance, the development of anti-satellite capability 
(ASAT), and the development of tracking systems utilizing 
laser, radar and optoelectronic measurement systems. ECO does 
not find Mr. LI's claims of annual sales of an optical theodolite 
calibration device or other products to be credible given the 
fairly esoteric nature of precision metrology devices. ECO 
further notes the inherent vulnerabilities in Mr. LI's statement 
that the JIUJIANG PRECISION MEASUREMENT TECHNOLOGY RESEARCH INSTITUTE 
researches,develops and produces custom precision metrology 
instruments on request. Mr. LI did not provide any information 
regarding previous, current or future customers for custom- 
designed precision metrology instrument. 
 
Lastly, ECO observed that during this PSV end-use visit, an 
unidentified individual who claimed to represent the Jiujiang 
City Foreign Trade Bureau (but who would not exchange 
business cards), made extensive and unwarranted efforts to view 
ECO's notes throughout the site visit. This individual also 
exhibited an uncharacteristic knowledge and understanding of precision 
metrology devices. 
 
¶11. (S) RECOMMENDATION: UNFAVOURABLE. ECO found Mr. LI 
to be forthcoming and cooperative throughout the site 
visit. However, ECO stresses that she did not observe 
the commodity in use nor was she able to tour any of 
the manufacturing areas, which would have been useful 
in understanding the application of this item. ECO notes 
the clear nexus between the stated end-user, JIUJIANG 
PRECISION MEASUREMENT TECHNOLOGY RESEARCH INSTITUTE, 
and the CSS No. 6354 Research Institute and calls attention 
to other indicia of high risk of diversion to military 
programs including the development and maintenance of 
weapons systems and space applications. 
 
RANDT