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MDHIAN 2465
MOST OF THESE CONSIGNMENTS ARE AIRCRAFT PARTS WHICH COULD BE FOR EITHER MILITARY OR CIVIL USE. OTHER THAN THIS CONSIGNMENT, OTHERS DO NOT/NOT APPEAR TO HAVE INVOLVED CHINA. THE MAJORITY APPEAR TO HAVE COME FROM THE US, AND OCCASIONALLY CANADA, BUT IN ONE CASE JETPOWER RECEIVED PAYMENT THROUGH AN IRANIAN BANK IN LONDON. DELIVERY TO IRAN IN MOST CASES HAS BEEN VIA FORWARDING COMPANIES IN BOMBAY, KUALA LUMPUR, SINGAPORE AND SRI LANKA, RATHER THAN DIRECT TO IRAN.
IT APPEARS TO US THAT OUR INVESTIGATION HAS UNCOVERED A DIRECT HONG KONG LINK IN AN INTERNATIONAL NETWORK SUPPLYING ARMS TO IRAN. THE EXISTENCE OF SUCH A LINK HAS BEEN SUSPECTED FOR A NUMBER OF YEARS, BUT EARLIER INVESTIGATIONS HAVE NOT REVEALED FIRM EVIDENCE OF PHYSICAL TRANS-SHIPMENT HERE, ONLY OF BROKERING ACTIVITY, WHICH IS NOT ILLEGAL.
6.
JETPOWER AND HAWKER PACIFIC COULD BE LIABLE FOR PROSECUTION FOR MAKING FALSE CLAIMS ON LICENCE APPLICATIONS. PROSECUTION ACTION OR ANY OTHER PUBLICITY ABOUT THE CASE COULD ATTRACT WIDE PRESS COVERAGE, PARTICULARLY IN THE ENGLISH LANGUAGE PRESS, WHICH EARLIER THIS YEAR RAN A NUMBER OF ARTICLES SPECULATING ON A HONG KONG LINK WITH A CASE THAT IS THE SUBJECT OF A GRAND JURY INVESTIGATION IN FLORIDA (THE JAPAN AVIATION ELECTRONICS INDUSTRY LTD. (JAE/HEIRAX LTD. CASE), WE BELIEVE THE JETPOWER CASE MAY BE CONNECTED WITH THE FLORIDA CASE, AS BOTH JETPOWER AND HEIRAX DEALT WITH GOLDEN LAWELL/FAISUN.
THE US IS PARTICULARLY CONCERNED ABOUT THE JETPOWER CASE AND A NUMBER OF APPROACHES HAVE BEEN MADE TO US
7.
8.
THIS IS A COPY
THE ORIGINAL HAS BEEN
CLOSED UNDER
FOI EXEMPTION NO. .27.(2).
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