Volume 1 - Iraq Watch

• The missile contracts in 2001 were designed toimprove Iraqi missile systems using North Koreanparts. These contracts were signed with the Al-Kamarah State Establishment, the Al-HarithCompany, and the Hutteen Company, which is associatedwith the development of Iraqi heavy weaponry.Fifteen percent of this contract was reportedlycompleted and was paid for through a Syrian companyto the North Korean Embassy in Damascus.• According to documentary evidence, MuzahimSa’b Hasan al-Tikriti visited North Korea in September2001 to discuss procurement projects forthe Al-Samud missile control system, radio relaysfor communications, and improvements to Iraqiantiaircraft systems. The trip resulted in four signedcontracts with the Al-Karamah State Establishmentfor potentiometers (missile guidance and controlrelatedtechnology), missile prelaunch alignmentequipment, batteries, and test stands for servos andjet vanes. Ultimately, North Korea backed awayfrom these agreements, informing the Iraqis thatthey would study the issue. ISG judges that thisequipment was intended for use in the al Samud-2ballistic missile program.As the Iraqi-North Korean procurement relationshipmatured, it broadened from missile–related projectsto a range of other prohibited military equipmentand manufacturing technologies. Recovered documentsfrom November 2001 describe numerouscontracts between Hesong Trading Corporation, basedin Pyongyang, and the Al-Karamah, Al-Harith, andHutten Companies. These contracts included dealsfor:• Ammunition, communications, potentiometers forshort-range surface-to-surface missiles, powder forammunition, and light naval boats.• Laser range finders and fire-control systems forartillery, tank laser range finders, and thermal imagesurvey systems.This series of contracts also specified numerous technologytransfers from North Korea to Iraq to allowSaddam to design and implement laser head riding foranti-tank missile applications and to manufacture:• PG-7 rockets (an Egyptian variant of the RussianRPG-7).• Night-vision devices.• Six-barrel 30-mm guns.• Laser rangefinders for guns.• Thermo image survey systems and rifling tools for122-mm and 155-mm barrels.• Ammunition, jigs, fixtures, dies, parts, liquid-propellantrocket structures, liquid propellant rocketaerodynamics computations, guidance, and controlsystems.As with its other suppliers, Iraq used its accustomedmethods to obtain illicit goods from North Korea. Inshort, North Korea’s illicit procurement relationshipwith Iraq was concealed behind a network of frontcompanies, trade intermediaries, and diplomaticcommunications.• The North Korean side of the relationship wasrepresented by the Defense Industry Department ofthe Korean Worker’s Party through the ChangwangTrading Company. The Tosong Technology TradingCorporation and Hesong Company were also usedto broker the negotiations.• The Syrian-based SES International was used as anintermediary in this trading process. Many transactionsfrom North Korea would be orchestrated bythe North Korean embassy in Damascus, whichwould then endorse the shipment to an Iraqi agentin Syria for transshipment to Iraq.• These intermediaries worked on a commission basisand assisted in facilitating delivery into Iraq forprofit.• Recovered documentation concerning the NorthKorean negotiations stated that all communicationsshould be sent via the Iraqi embassy in Damascus.Secure communications also took place through theEconomic Section of the North Korean Embassy inDamascus.120