SECRET
123000 MDHIAN 2665
SECRET
FM HONG KONG
TO IMMEDIATE FCO
TELNO 2481
OF 091145Z OCTOBER 92
INFO MODUK, DTI, WASHINGTON, PEKING
SIC
SUSPECTED DIVERSION OF MILITARY EQUIPMENT TO IRAN.
SUMMARY
INVESTIGATION BY HKG HAS REVEALED SUSPECTED ILLEGAL DIVERSION OF MISSILE PARTS FROM CHINA TO IRAN VIA HONG KONG. THE
ECONOMIC IMPLICATIONS. CASE COULD HAVE SERIOUS POLITICAL AND INVESTIGATIONS ARE CONTINUING.
DETAIL
2.
ON 30 JULY 1992, A LOCAL COMPANY, JETPOWER INDUSTRIAL LTD., APPLIED FOR A LICENCE TO EXPORT THREE MAGNETRONS TO IRAN. THE MAGNETRONS WERE STATED AS BEING FOR USE IN CIVIL AIRCRAFT. ON 13 AUGUST 1992, ACTING ON INTELLIGENCE, HONG KONG CUSTOMS RAIDED JETPOWER AND TWO CONNECTED COMPANIES, HAWKER PACIFIC LTD, AND GOLDEN LAWELL LTD, AN IRANIAN OWNED COMPANY (PREVIOUSLY KNOWN AS FAISUN LTD), AND SEIZED THE MAGNETRONS AND DOCUMENTS RELATING TO SHIPMENTS OVER THE PAST TWO YEARS.
3.
PRELIMINARY INVESTIGATIONS (WITH THE ASSISTANCE OF THE MILITARY BASED IN HONG KONG) INDICATE THAT THE MAGNETRONS ARE PROBABLY MICROWAVE OSCILLATORS FORMING PART OF THE TARGET DETECTION SYSTEM OF THE US-BUILT PHOENIX MISSILE. CONFIRMATION THAT THIS IS THE CASE WOULD NEED THE MAGNETRONS TO BE OPENED UP AND EXAMINED. THE ORDER FOR THE GOODS WAS PLACED WITH JETPOWER BY GOLDEN LAWELL. JETPOWER WAS SUPPLIED BY HAWKER PACIFIC, AN INDIRECT SUBSIDIARY OF HAWKER SIDDELY, WHICH CLAIMS TO HAVE IMPORTED THE MAGNETRONS FROM CHINA. IT IS NOT KNOWN WHETHER THE MAGNETRONS ARE US ORIGINALS OR CHINESE-MADE COPIES.
4.
EXAMINATION OF THE DOCUMENTATION INDICATES THAT, DURING THE PAST TWO YEARS, JETPOWER HAS SHIPPED 1,300 CONSIGNMENTS OF GOODS OF VARIOUS DESCRIPTIONS TO IRAN. THE INITIAL ASSESSMENT IS THAT
THIS IS A COPY
THE ORIGINAL HAS BEEN
CLOSED UNDER
FOI EXEMPTION NO. 27(3)..
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