Iran evades sanctions meant to deter nuclear plans

? Early last year, a Chinese company placed an order with a Taiwanese agent for 108 nuclear-related pressure gauges. But something happened along the way. Paperwork was backdated. Plans were rerouted, orders reconfigured, shipping redirected.

And the gauges ended up in a very different place: Iran.

The story behind the gauges shows how Iran is finding its way around international sanctions meant to prevent it from getting equipment that can be used to make a nuclear bomb. At least half a dozen times in recent years, the Persian Gulf nation has tried to use third countries as transshipment points for obtaining controlled, nuclear-related equipment.

In the case of the pressure gauges, it succeeded. In the process, the Swiss manufacturer and the Swiss government were duped, a Chinese company went around its own government’s prohibition on moving nuclear-related equipment to Iran, and Taiwanese authorities showed themselves unwilling or unable to get into step with the international community.

Enforcement fails

The deal was a huge victory for Tehran, which had been seeking the gauges for months, said nuclear proliferation expert David Albright, president of the Washington-based Institute for Science and International Security. It also reflected the uneven enforcement of international sanctions against Iran, at a time when the U.S. and other Western countries are pushing hard to expand them.

“The (Iranian) government looked everywhere — Russia, Europe, the U.S., and they were being thwarted by the international community,” Albright said. “It’s really unfortunate they succeeded in using this Taiwan-China connection. … This case is a wake-up call of the importance of universal and timely application of sanctions on Iran.”

Iran says it wants to enrich uranium to generate nuclear power, but the West fears that it actually seeks weapons capabilities.

It’s impossible to verify how Iran is using the gauges, also known as pressure transducers or capacitance diaphragm gauges, which have numerous commercial applications in machines that employ pneumatic or hydraulic pressure. But experts say the large size of the order suggests very strongly that they are for centrifuges to churn out enriched uranium.

As of last November, Iran had 8,692 centrifuges, of which 3,936 were running, according to the International Atomic Energy Agency. Each centrifuge normally requires a transducer, though a single gauge can also serve up to 10 linked centrifuges.

“The gauges are extremely useful to them,” said Ferenc Dalnoki-Veress, a physicist at the James Martin Center for Nonproliferation Studies at California’s Monterey Institute of International Studies. “It’s a very big deal.”

Details of order

At first, the transaction seemed above board.

A Jan. 24, 2009, purchase order shows that Roc-Master Manufacture & Supply Company ordered the gauges for delivery to its Shanghai base. The order — in the amount of $112,303.72 — was placed with Heli-Ocean Technology Co. Ltd., the Taiwanese agent for Swiss manufacturer Inficon Holding AG. Inficon, together with MKS of Andover, Mass., produces most of the world’s supply of this type of transducer.

On Feb. 6, Heli-Ocean received an initial payment from Roc-Master and placed an order with Inficon for the transducers, documents show.

Then the situation changed.

Roc-Master issued a revised purchase order, backdated to Jan. 24, instructing Heli-Ocean to ship the transducers not to Shanghai, but to the Tehran airport. The consignee is named as Moshever Sanat Moaser, an Iranian company described on its Web site as a provider of specialty alloys and industrial parts.

The second purchase order also increased the amount to $145,800, almost $33,500 more than the original, without explanation.

Apparently the change in destination and the nature of the shipment alarmed Heli-Ocean, because in a Feb. 18 e-mail seen by the AP, Roc-Master assured the Taiwanese company that the 108 transducers were not for Iran’s nuclear industry. It also said that Chinese law barred the shipment of the transducers from China to Iran.

None of this was revealed to the Swiss manufacturer and authorities.

Suspicions raised

Inficon CEO Lukas Winkler told the AP that had his company known the end-user was Moshever Sanat Moaser, it would never have sold the transducers to Heli-Ocean. He said the gauges fall within Swiss sanctions on exports to Iran.

“The end-user certificate we got did not say Iran,” he said. “The deal was done via a Chinese company. And we have a certificate with the name of a Chinese end-user on it.”

Winkler said that before the goods were sent, Inficon reported the transaction to Switzerland’s State Secretariat for Economic Affairs, because the number of transducers raised its suspicions.

“We always have the goods checked when it is a big order,” he said. “If someone wants one single device it’s not delicate. But if someone wants 100 at once, that’s very unusual for this type of product.”

In a statement, the Swiss secretariat said the transducers did not require an export license, because “the exporter was not aware that those goods were destined for Iran.”

“Otherwise an approval of the Swiss export control authorities would have been necessary,” the statement continued. “Switzerland would not grant any license for the export of such transducers to Iran.”