VZCZCXYZ0011
PP RUEHWEB

DE RUEHC #0917 3581508
ZNY SSSSS ZZH
P R 241502Z DEC 09
FM SECSTATE WASHDC
TO RUEHBJ/AMEMBASSY BEIJING PRIORITY 2178
INFO MISSILE TECHNOLOGY CONTROL REGIME COLLECTIVE
RUEHKL/AMEMBASSY KUALA LUMPUR 3565

S E C R E T STATE 130917 
 
SIPDIS 
 
E.O. 12958: DECL: 12/24/2034 
TAGS: MTCRE PARM PREL MNUC ETTC KSCA IR CH MY
SUBJECT: MALAYSIAN-BASED IRANIAN FRONT COMPANY SEEKS TO 
PURCHASE EXPORT-CONTROLLED GYROSCOPES FROM CHINESE FIRM (S) 
 
Classified By: ISN/MTR DIRECTOR PAM DURHAM FOR REASON 1.4 (C). 
 
¶1. (U) This is an action request.  Embassy Beijing, please 
see paragraph 3. 
 
¶2.  (S) Background/Objective: The United States has 
information indicating that in late November 2009, the 
Malaysian firm Electronic Component Limited (ECL) attempted to 
buy five TRS-500 gyroscopes from the Chinese firm VibTel 
Industrial Co. Inc.  These gyroscopes can be used in the 
guidance systems of ballistic missiles, cruise missiles, and 
unmanned aerial vehicles, and are controlled by the Missile 
Technology Control Regime (MTCR), the Wassenaar Arrangement, 
and China's own missile-related export controls.  Although ECL 
is located in Malaysia, it is part of an Iranian-controlled 
network of front companies that Iran uses to procure sensitive 
items on behalf of entities of proliferation concern.  We are 
therefore concerned that if VibTel were to ship these 
gyroscopes to Malaysia, ECL would subsequently forward them to 
Iran, the location of the actual end-user.  We want to alert 
Chinese officials to this information and encourage them to 
take measures to prevent VibTel from acting as a supplier to 
ECL and affiliated firms. 
 
¶3.  (S) Action Request:  Request Embassy Beijing 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 CHINA) 
 
--We would like to alert you to information of proliferation 
concern and request your government's assistance in 
investigating this activity. 
 
--The U.S. has information indicating that in November 2009, 
the Malaysia-based firm Electronics Component Limited (ECL) 
attempted to buy five 3-axis model TRS-500 gyroscopes from the 
Chinese firm VibTel Industrial Co. Inc. 
 
--TRS-500 gyroscopes are controlled by the Missile Technology 
Control Regime (MTCR) and the Wassenaar Arrangement, as well 
as 
by China's own missile-related export controls, and can be 
used in the guidance systems of ballistic missiles, cruise 
missiles, and unmanned aerial vehicles. 
 
--Although ECL is located in Malaysia, it is actually part of 
a network of Iranian-controlled front companies that procure 
sensitive goods on behalf of a number of Iranian entities of 
proliferation concern. 
 
--It is therefore likely that if this equipment were to be 
shipped to ECL in Malaysia, it would be subsequently diverted 
to Iran, where the actual end-user is located. 
 
--According to its website (www.vibtel.com), VibTel Industrial 
Co. Inc. is located at 308, BaiHuaYuan Business-Building, No. 
11, ZhongGuanCun Nan Da Jie, HaiDian District, Beijing, 
100081, China. 
 
--We urge you to take all appropriate measures to prevent 
VibTel Industrial Co. Inc. from supplying this equipment to 
ECL or other affiliated firms. 
 
--We appreciate your cooperation on nonproliferation matters 
and look forward to hearing to hearing the results of your 
investigation. 
 
End talking points/non-paper 
 
¶5.  (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. 
 
¶6.  (U) A word version of this document will be posted at 
www.state.sgov.gov/demarche. 
CLINTON