VZCZCXYZ0002
PP RUEHWEB

DE RUEHC #8250 1821729
ZNY SSSSS ZZH
P R 011706Z JUL 09
FM SECSTATE WASHDC
TO RUEHRL/AMEMBASSY BERLIN PRIORITY 0000
INFO MISSILE TECHNOLOGY CONTROL REGIME COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 0000

S e c r e t state 068250

Sipdis

E.o. 12958: decl: 07/01/2034
Tags: mtcre, parm, prel, ettc, mnuc, tspa, ir, gm, ch
Subject: german test chamber sold by chinese subsidiary to
iran's dio (s)

Classified By: ISN/MTR DIRECTOR PAM DURHAM FOR REASONS
1.4 (b), (c), and (d).

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

¶3. 
¶2. (S) Background and Objectives: The United States has information indicating that the Chinese subsidiary of the German firm Voetsch Industrietechnik sold a VC3 7018 test chamber to Iran's Defense Industries Organization (DIO), an entity sanctioned under United Nations Security Council Resolution 1737. We also understand that as of mid-May 2009, Chinese national and known proliferator QC Chen was working to arrange training on the test chamber for DIO representatives - likely on the premises of Voetsch China. Although this particular test chamber is not controlled by the Missile Technology Control Regime (MTCR), it is suitable for subjecting missile components and systems to the harsh environmental conditions experienced by missiles during launch, flight, and reentry. We want to ask German officials to investigate this information and ensure that Voetsch is taking all measures necessary to prevent unauthorized retransfers of its goods by foreign-based subsidiaries - especially to entities of proliferation concern.

¶3. (U) Action Request: Request Embassy Berlin approach appropriate German 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 raise with you a matter of proliferation concern and request your government's assistance in investigating this activity.

-- The United States has information indicating that Voetsch China (the Chinese subsidiary of Voetsch Industrietechnik) sold a VC3 7018 test chamber to Iran's Defense Industries Organization (DIO).

-- This test chamber is not controlled by the Missile Technology Control Regime (MTCR) or the Australia Group (AG), but is suitable for subjecting ballistic missile components and their weapons payloads to the harsh environmental conditions experienced during the launch, flight and reentry of ballistic missiles.

-- DIO, which is part of Iran's Ministry of Defense and Armed Forces Logistics (MODAFL), is an entity sanctioned under United Nations Security Council Resolution 1737.

-- We also understand that as of mid-May 2009, Chinese national QC Chen was working with DIO to arrange training on the VC3 7018 test chamber. This training will likely be provided at the premises of Voetsch China.

-- Chen may also have played a role in the sale of the test chamber to DIO.

-- Chen is a known proliferator associated with several Chinese entities, including the Wha Cheong Tai Company and China North Wanxing International Company.

-- His activities have been the subject of discussion during the Australia Group Information Exchange.

-- In addition, Chen has been sanctioned by the U.S. on seven separate occasions for his chemical weapons proliferation-related activities, and is currently subject to sanctions which are in place pursuant to the Chemical and Biological Weapons Control and Warfare Elimination Act.

-- We urge you to investigate this activity and ensure that Voetsch is taking all necessary measures to prevent unauthorized retransfers of its goods by foreign-based subsidiaries - especially to entities of proliferation concern.

-- We appreciate Germany's cooperation on nonproliferation matters and look forward to hearing of any actions your government takes in response to this information. End talking points/nonpaper.

¶5. (U) Please contact ISN/MTR's John Paul Herrmann with any questions or follow-up issues related to this case (XXXXXXXXXXXX) and slug any reporting on this issue for ISN/MTR, EUR/PRA and EUR/CE.

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