P 231853Z MAR 09
FM SECSTATE WASHDC
TO AIT TAIPEI PRIORITY 0000
INFO MISSILE TECHNOLOGY CONTROL REGIME COLLECTIVE PRIORITY

S E C R E T STATE 027726

E.O. 12958: DECL: 03/23/2034 TAGS: PARM MTCRE PREL TW IR TU

SUBJECT: (S) ALERTING TAIWAN TO TURKISH INTERMEDIARYS EFFORTS TO SUPPLY TAIWAN-ORIGIN MACHINE TOOLS TO IRAN

REF: A. 08 STATE 109927 B. 08 AIT TAIPEI 001474 C. AIT TAIPEI 000076 D. AIT TAIPEI 000226

Classified By: ISN/MTR DIRECTOR PAM DURHAM REASONS 1.4 (B), (C) AND (D).

¶1. This is an action request. AIT Taipei, please see paragraph 4.

¶2. (S) Background: In October 2008, the U.S. alerted Taiwan that an intermediary in Turkey named Ak Makina was working to supply Taiwan-origin machine tools to Iran (Ref A). During the February 2009 U.S.-Taiwan Gameplan meetings in Taipei, Taiwan authorities informed us that their investigation of this activity had been unable to uncover evidence that this Turkish firm had diverted Taiwan-origin machine tools to Iran (Ref D). We want to follow-up and provide Taiwan authorities with additional information about this case to support their export control efforts.

¶3. (S) Specifically, we want to alert Taiwan that in late 2008 and early 2009, Turkeys Ak Makina was working to supply Irans Ardalan Machineries Company with a variety of machine tools produced by companies in Taiwan. Ardalan Machineries is associated with Irans Shahid Hemmat Industrial Group (SHIG), which is the entity responsible for overseeing Irans liquid propellant ballistic missile program. We believe one of the machines sought by Ardalan Machineries is controlled by the Wassenaar Arrangement and the Nuclear Suppliers Group (NSG), and that all of this equipment can be used by SHIG to support its missile production efforts. We want to ask Taiwan authorities to investigate this activity and urge them to closely scrutinize machine tools exports to Turkey, particularly those involving Ak Makina.

¶4. (S) Action Request: Request AIT Taipei approach appropriate officials to deliver talking points/non-paper in paragraph 5 below and report response. Talking points also may be provided as a non-paper. (NOTE: Pursuant to a decision made at the February 2009 Gameplan discussions, Department plans to deliver this demarche to TECRO officials in Washington, D.C. END NOTE)

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

(SECRET REL TAIWAN)

-- We appreciate our continued cooperation on export control and nonproliferation issues as part of the U.S.-Taiwan "Gameplan."

-- You will recall that in October 2008, we brought to your attention efforts by Irans Machine Sazi Tabriz to procure machine tools from Taiwan companies through an intermediary in Turkey named Ak Makina.

-- This was one of the cases for which you provided us an update during our February 2009 U.S.-Taiwan Gameplan meetings in Taipei.

-- We now would like to provide you additional information about this case to support your efforts to prevent diversions of Taiwan-origin machine tools to Iran.

-- Specifically, we want to alert you that in late 2008 and early 2009, Turkeys Ak Makina was working to supply Irans Ardalan Machineries Company with a variety of machine tools produced by companies in Taiwan.

-- Ardalan Machineries is associated with Irans Shahid Hemmat Industrial Group (SHIG).

-- SHIG is responsible for overseeing Irans liquid propellant ballistic missile program and has been designated under United Nations Security Council Resolution (UNSCR) 1737 for its proliferation activities.

-- Our information indicates that in late December 2008, Ardalan Machineries was working with Ak Makina to procure a model XD32H lathe produced by the Taiwan subsidiary of South Koreas Hanwha Machinery Co.

-- We believe this machine is capable of performing five-axis machining operations and is potentially controlled by the Wassenaar Arrangement and the Nuclear Suppliers Group (NSG).

-- Such a machine could be used by SHIG to manufacture liquid rocket engine and missile guidance components.

-- In addition, Ardalan Machineries has worked with Ak Makina to purchase the following Taiwan-origin equipment since December 2008:

-a model SR3-AXP CNC vertical machining center equipped with a rotary table and a V4A-XP CNC vertical machining center produced by Akira-Seiki of Taiwan;

-model DV1270 and VB-1516 CNC vertical machining centers produced by Taiwans Vision Wide Technology Co. Ltd.; and

-a model SL35HE lathe produced by Taiwans Mori Seiki.

-- Although not controlled, each of these machine tools is highly-capable and could be used by SHIG to support its production of liquid rocket engine components.

-- We believe Irans Ardalan Machineries Company is working with Turkeys Ak Makina to circumvent your export controls and urge you closely scrutinize machine tools exports to Turkey, particularly those involving Ak Makina.

-- We look forward to continued cooperation on nonproliferation issues and would appreciate hearing of the actions you take in response to this information at the earliest possible time.

End talking points/non-paper

¶6. (U) Washington POC is ISN/MTR James Mayes (Phone: 202-647-3185). Please slug any reporting on this issue for ISN/MTR.

¶7. (U) A word version file of this document will be posted at .
CLINTON