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### Viewing cable 05MADRID3519, SPAIN: MFA REQUEST FOR U.S. HELP TO STOP SALE OF

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
05MADRID3519 | 2005-10-05 15:03 | 2010-12-26 13:01 | SECRET | Embassy Madrid

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    S E C R E T MADRID 003519

    SIPDIS

    DEPARTMENT FOR ISN/MTR (VAN DIEPEN AND DURHAM) AND EUR/WE

    E.O. 12958: DECL: 10/04/2015
    TAGS: PARM PREL PGOV ETTC SP MTCR
    SUBJECT: SPAIN: MFA REQUEST FOR U.S. HELP TO STOP SALE OF
    EXPLOSIVES PLANT TO LIBYA

    REF: FORDER-DURHAM EMAILS

    Classified By: ESTHOFF KEN FORDER PER 1.4 (B/D)

    ¶1. (U) This is an Action Request for ISN/MTR -- see
    paragraph 8.

    ¶2. (S) MFA Disarmament Affairs Ambassador Tomas
    Rodriguez-Pantoja summoned ESTHOFF September 30 to MFA.
    Rodriguez-Pantoja said that during the U.S.-Spain bilat on
    the first day of the September 12-16 Madrid MTCR plenary, and
    in a subsequent side bar meeting during a plenary Information
    Exchange session, Spain had raised with the ISN/MTR Office
    Director Van Diepen the request by the Spanish firm
    "Espinesa" to sell a Nitrate-based explosives manufacturing
    plant to Libya (allegedly for mining-related conventional
    explosives production).

    ¶3. (S) Rodriguez-Pantoja explained that the Spanish firm
    first wanted to sell the explosives plant in 2000. Spain
    checked with the U.S., which in May and September of 2001
    advised Spain to block the sale, arguing that the plant could
    easily be converted into a missile fuel production facility
    for Libya's SCUD missiles. Spain eventually turned off the
    sale, prohibiting it for a period of three years.
    Rodriguez-Pantoja said the company had sued the GOS after it
    blocked the sale in 2001, and that this suit remained pending
    in the Spanish courts. All the while, the entire plant has
    been sitting in a Valencia warehouse waiting to be sold.

    ¶4. (S) Rodriguez-Pantoja noted that the GOS three year sale
    moratorium had now expired and that in the meantime, Libya
    had started to return to the "normal" community of nations
    (leaving "rogue" status behind). "Espinesa" recently asked
    the GOS for permission to make the same sale to Libya,
    arguing that the three year ban had expired and Libya was now
    a friendly and cooperative country. Rodriguez-Pantoja said
    the Libyan Government had leaned very heavily on the Spanish
    Embassy in Tripoli, requesting repeatedly that Spain let the
    sale go through.

    ¶5. (S) MFA, according to Rodriguez-Pantoja, does not/not
    think the sale should go through. Neither does the CNA (the
    Spanish CIA equivalent). Both argue that while the current
    Libyan Government may have changed its spots, a coup could
    happen any day and a less friendly/responsible Libyan regime
    could emerge. Rodriguez-Pantoja stressed that Libya retains
    400 medium range SCUDs with the ability to strike Israel and
    that this explosives plant could easily be converted from
    producing mining explosives into producing SCUD missile fuel.
    Thus, MFA and CNA want to extend the sales band to 2008
    (three more years). However, the Libyan lobbying of the
    Spanish Embassy, as well as pressure from the company, has
    led the GOS to reopen the issue.

    ¶6. (S) The reason for summoning ESTHOFF to MFA,
    Rodriguez-Pantoja explained, was to request U.S. support for
    MFA/CNA efforts to continue to block the sale.
    Rodriguez-Pantoja said that if the U.S. were to officially
    informed Madrid that it opposed the sale, this would
    strengthen MFA's case to extend the sales ban through 2008.
    In brief, MFA and CNA want the USG as bureaucratic allies in
    their battle to gain GOS approval to prohibit the sale for
    three more years.

    ¶7. (S) Rodriguez-Pantoja said that ISN/MTR Office Director
    Van Diepen had indicated to him at the plenary that the U.S.
    would likely oppose the sale, but would have to confirm this
    after Van Diepen's return to Washington. Rodriguez-Pantoja
    said he was now, via this meeting, requesting an official
    communication of USG views on the sale. Either in writing or
    delivered orally through ESTHOFF would be acceptable.
    Rodriguez-Pantoja said the communication could also go
    through CIA-CNA channels if the U.S. preferred. He said he
    would like to have this communication by Friday October 14,
    if possible. He suggested that internal GOS decision
    meetings regarding the sale would take place shortly after
    that date. ESTHOFF told Rodriguez-Pantoja that he was
    optimistic that the Embassy would be able to pass USG views
    on the sale prior to October 14.

    ¶8. (U) ACTION REQUEST - please pass USG views on this
    possible sale to Embassy Madrid ESTHOFF Ken Forder prior to
    MFA's October 14 deadline.
    AGUIRRE

`