e • • • • • • • • e e • e e • e e e e CONFIDENTIAL VZCZCFHL011DKA880 RR RlJFBAU tE RUIKGPQ #5959 2620516 ZNY CCCCC ZZH R 180 152 SEP 80 FM A EMBASSY THE HAGUE TO RUEHC SECSTATE WASHDC 9 2 INFO RLFBOL AMEMEASSY BONN 7310 RUFHBS AMEMBASSY BRUSSELS 8710 RUSBQD AMEMEASSY ISIAMA BAD 0331 RUFBUK AMEMIASSY LONDON 771 4 RUSBAE AMEMEASSY NKw DELHI 0345 RUFHAU AME EASSY VIENNA 1256 ET CON F I D F NT I AL THE HAGUE 05959 P AGUF 05959 18 SEP 80 TOll 0917 Cf 05692 CHARGE IAEA I FO AMB CM IAEA-10 POL ECON CHRON 15 F ERUSSELS FCR OSEEC VIENNA FOR USIAFA E O 1206 GDS 9 16 86 REICHENBACH A OR E TAGS PARM TECH ENRG NL SUBJECT iBE KHAN AFFAIR TUBING SUPPLIER IDENTIFIED 1 REF THE HAGUE 1359 1 U TEE GON REPORT TO THE PARLIAMENT LAST FEBRUARY REFTEL ON THE KHAN CASE MENTIONED THE EXPORT FRCM THE NETHERLANDS OF 6500 TUBES OF A SPECIAL HARD TYPE OF STEEL WHICH HAD BIEN CITED AS BEING PARTS FOR A GAS CF TRIFUGE SYSTEM BEING BUILT IN PAKISTAN THE SOURCE or THE TUBES BAD NOT BEEN REVEALED IN THE REPORT CHAPT 4 PARA 4 4 THROUGH THE DILIGENCE OF A LA• STUDENT AT TqE CATHOLIC UNIVERSITY OF TILBURG THE NA E OF THE SUPFLIIR OF THE TUBING HAS ow COME TO LIGHT THE STUDENT WROTE A ARTICLE IN THE UNIVERSITY ' S NEWSPAPER WHICH CITED THE VAN roORNE RANSMISSIE B V OF TitBURG AS HAVING SUPPIIFD 6 200 STEEL TU ES CENTRIFUGE CASI GS I 1976 SUITABLE FOR USE IN URANIU ENRICEMENT TO PAKISTAN FOR THE LATTER ' S ULTRACENTRIFUGE PROJECT THF STUDENT SAID THAT VAN DOORNE MADE THE DELIVfR IES WITHOUT A EXPORT IICENSE FROM THE MI NISTRY OF ECONOMIC AFFAIRS A D THAT AT LEAST ONE ADDITI ONAL DUTCH CO PA Y BAS ALSO BFE CITED AS BEI G INVOLV t IN EXPORTS F SirIIAR rATERIALS TO AKISTAN I N TEE SAME PER I O C 2 U THE VAN DOORNE CO PANY IS O•NED BY THE FORMER OWNFRS OF THE rAF AUTOMOBIIE TRUCK PRODUCT IO N FACILITY THEY SOLD OFF TilE AUTOMOTIVE SFGMENT TO VOLVO A D THE TRUCK PLANT TO INTFRNATIONAL HARVESTER IN 1 74 KEEPI G A PORTION 01 TB1Id OlD PLAKT FOR DEVELOPME T OF A F TRANSM I SSION SYSTEM T1 IS BUSINESS DESPI TE GON PARTI 80- 589 9 25 PERCEN SUBSE OEN LY cur TO 12 5 PERCE T HAS NEVER PROVE D SUC CESSFUI 3 U 2 THI IXPORT OF TBF T BE H D PEEN DESCR I BED BY THE GO PARTI CULARLY G AVE OFFE SS I I TS REPOFT TO PARL I A FNT A SPOKESMAN FOR VAN DOORNE SA ID AFTER THE RECi T EXPOSE THAT HIS COMPA Y REClIVED THE ORDER FOR THE TUBES THRCUGH TOE PAKISTANI EMBASSY I EONN · AMB FB EA OB 1 _ • CON FI DEr 'TI AL • • PH SF VH ISPO SIC · LE AS A e • • • • • j GOV • • • • DECLASSIF IED Authority N ND7 • • • • • •I 3 Q • • e • • • • • e • e e e e e e • • • • • • HAGUE 0595 CONFIDEN TIAL BE SAID THAT THE EXPCRTS BAD CEASED AFTER CU STO S OFFICIALS IN A STERDAM HAD FOUND TEAT BILL OF LADI G FOR A SH IPMENT TO PAKISTAN DID NOT CORRESPOND ITH THE CONTENTS OF THI RELEVANT CASES WHICH CONTAI NED THE TUBES • AN ECONO ICS MINISTRY SPOKESMAN SAID VA DOORNE CONTINUED TEE EXPORT OF TUEES TO PAKISTAN DESPITE ORAL AND WRITTFN WARNI GS 1ROM THE GOVERNMENT NOT TO DO SO • 4 U BECAlSE CF THE CURRENT INTEREST IN PARLIA ENT OVER THE SOURCE OF TEE TUBES HAMSTRA PIY MA AGER OF VAN DOORNF SAID IN A LATER PRESS STATEMENT THAT ON SEPTEMBER 19 1979 SOME 300 TUBES WERE RETURNED BY CUSTOMS AT SCHIPHOL AIRPORT THE N WE NOTICED WE NEEDED AN EXPORT LICENSE UP TO THAT TIMF WI HAD DONE EVERYTHING VIRY OPENLY ••• NO SECRETS THFRE rs NO INVOLVEMENT OF rY FACTORY IN TEE CONSTRUCTION OF THE FNRICHrENT FACTORY IN PAKISTAN WE ONLY EXECUTED 5 OR 6 ORDERS FOR THE TUBES THEY ARE VERY COMMON TUBES THAT CAN BE OPDERED ANYWHERE HE SAID 5 C FOLLOWI G THE RECENT ANNOUt- CME NT THE ECON CO UN CALLEB ON C F BOUVEY OF THE ENERGY POLICY STAFF OF THE MINISTRY OF ECONOMIC AFFAIRS WHO CONF IRMED THE ALLEGATIONS INVOLVINV VAN DOORNE TRANSMISSIE HE SAID THE FIRr WAS AwARE THE TUBES WIRE BEING SHIPPED TO PAKISTAN ANB THAT TH1 MATTER HAS OW BEEN TURNED OVER TO THE STATE CRir-'INAL INVESTIGATION DEPART ENT FOR JUDICIAL INQUIRY IT IS OUT OF THE HANDS OF HIS MINISTRY AITHOUGE AN ADMISSION OF EGLIGE CE BY CUSTOMS HAS RESULTED IN A REPRIMAND BY HIS DEPARTMENT OF TSE CUSTOMS DI VISION OF 'IHE INISTRY OF FINANCE BOUVEY SAID THAT MUCH OF THE CASE CATES BACK SEVEN YEARS A 'D THEREBY CAUSES PROBLEMS IN DEVELOP ING EVIDENCE AND TESTIMONY TO PROVE THAT T1IF CUTCH FIRr KNOWINGLY SHIPPED 'IBE TUBES TO PAKISTAN FOR NUCLEAR APPLICATIONS HE ADMITTED THAT THE EXPORT OF STEEL TUBING IS NOT GENERALLY CONTROLLED BY LICENSING EOWEVIR TRA CERS ARE EXPECTED TO BE AWARE OF THE POSSIBLE NUCLEAR APPLICATION CF SOME GOODS AND TO SEFK LICENSES ACCOR CINGY BOUVEY INDICATED 'IHAT THE INVESTIGAT I ON WOULD TAKE ANOTHER MCNTB TO COMPLETE BUT I THE MEANTIME STEPS ARE EIGN TAKEN TO TIGHTIN CUSTOMS PERFOFMANCE TEROUGB CLOSER SCRUTINY OF DUAL- US ITEMS JOSEPH BT CONF I DENTIAL HAG UE 05959 • • • • • • • • • • • • • • • • • • • • DECLASSIFIED Authority NNt 7 ° 3blo • •