US embassy cable - 04MADRID4374

S E C R E T MADRID 004374 
 
SIPDIS 
 
FOR NP/CBM AND EUR/WE 
 
E.O. 12958: DECL: 11/10/2014 
TAGS: PARM, PREL, ETTC, SP, CBW 
SUBJECT: (S) SPAIN: SHIELD S59A-03: EMBASSY MEETING ON 
TELSTAR WITH SPANISH FOREIGN MINISTRY 
 
REF: STATE 233405 
 
Classified By: KATHLEEN M. FITZPATRICK, POLITICAL COUNSELOR. 
REASONS 1.4 (B) & (D) 
 
1. (U)  This is an action message.  Please see paragraph 3. 
 
2. (S)  Poloffs delivered non-paper providing additional 
information on Telstar on November 10 to the Spanish Foreign 
Ministry's director general for international economic 
relations, Javier Hergueta.  Hergueta said Telstar is willing 
to cooperate fully with the USG to have sanctions removed. 
He expressed concern, however, that the report was 
inaccurate.  He explained that Telstar did sell the freeze 
dryer and spare parts to Iran.  However, according to 
Hergueta, the transaction occurred in January 2003 (not 
January 2004 as stated in the non-paper) before the Iranian 
end-user was known as Exir Pharmaceuticals and before the EU 
passed legislation that defined the transferred equipment as 
dual use goods subject to export licensing restrictions. 
Hergueta reiterated Telstar's willingness to halt future 
transfers of its goods to Iran, and to otherwise cooperate as 
necessary to have the USG sanctions removed.  He proposed to 
set up a meeting between Emboffs, MFA officials, and Telstar 
representatives to discuss this case in greater detail. 
 
3.  (S) Action request:  Embassy understands this case is 
being discussed between NP and Spanish embassy officials in 
Washington for possible review by an interagency group.   We 
seek Department's guidance as to whether a meeting in Madrid 
between Emboffs, MFA officials and Telstar is desirable.  End 
comment. 
ARGYROS