FURTHER DISSEMINATION OF INFORMATION OF TECHNICAL PROGRESS COBALT DIVERSION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP63-00084A000200070009-9
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 12, 2016
• Document Release Date: September 22, 2000
• Sequence Number: 9
• Publication Date: December 9, 1954
• Content Type: REPORT

Approve-TFor Release 2001/08/27 : CIA-RDP63-G"84A000200070009-9
' S-Le-C?R.-E-T
10/9
9 December 1954
George Mabry
1. Subject:
Further Dissemination of Information on Technical Progress
Cobalt Diversion
2. Reference;
DCN Case 243; Buenos Aires D?225, 13 Sept. 54; Bonn D-554,
10 September 1954.
3. Summary:
In April 1954 Heinrich Hahn obtained an Argentine license for
the import of 40,000 kilos of pure metallic cobalt. The Argentine
importer named in the license denies any knowledge of either the
license or of any transaction behind it. Hahn obtained the license
for Georges de Puoz, manager of Technical Progress, Zurich, a firm
which diverted at least fifty tons of cobalt from the Ugine refinery
at Grenoble early in 1954.
A recent review of the file on this case shows that the German
i4inf.stry of Economics has been notified that the fraudulent Argentine
license is outstanding and may be used to obtain a German export license.
The Ministry has agreed not to issue an export license against this
Argentina : ;!port license.
The :Field apparently assumes that Technical Progress will
attempt to use the Argentine import license only in West Germany.
However, there is nothing in the terms of the license itnelf which
wou .d restrict its use to an import from West Germany. We assume
that Tech ical Progress might present the same Argentine license to
the export authorities of France, Italy, Belgium, or the United
Kingdom as well as to the authorities of West Germany. HICOG believes
it likely that Technical Progress will try to obtain the cobalt from
Duiebu;^ger Kupferhuette as it has in the past.
%owhere in our file of the case do we have an explicit statement
that notice of the facts in this case has been given to the export
control authorities of any European Government other than Germany.
In iriewof the pronounced success which Technical Progress had in
19.-)I.> in obtaining cobalt from a French refinery (Ugine, Gre
noble),
E/ST' suggests that the following steps be taken.
S-E-C-R-E-T
State Dept. declassification & release instructions on file
Approved For Release 2001/08/27 : CIA-RDP63-00084AO00200070009-9
 Approve For Release 2001/08/27: CIA-RDP63- O084A000200070009-9
S- -C-R-E - t
AST
. z r-eat the information in Bonn D-554, 10 September
1951, Bonn D-351, 12 August 19511, and in Buenos Aires
D-225, 13 September 19514, to Paris/Emtassy, Brussels,
London, and Rome.
b. Request these additional addressees to determine whether
the fraudulent Argentine import license has already been
used to obtain the export of cobalt from the respective
countries.
c. If the import license has not already been used for
this purpose request the additional addressees to place
the appropriate government officials on notice that the
fraudulent license may be presented as the basis for an
export license and ask that reasonable precautioirLs be
taken against honoring the fraudulent license if, as, and
when it maZr be presented.
d. Have Paris suggest that French export control officials
explicitly notify the Ligine sales force to report promptly
any efforts to send cobalt to Argentina.
5. DCN Action;
,,)MU(w-
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S E-C-R-E T
Approved For Release 2001/08/27 : CIA-RDP63-00084AO00200070009-9