TERRORIST FINANCE - OTTAWA: GOC RESPONSE ON

S E C R E T OTTAWA 001181

SIPDIS

STATE FOR EB/ESC/ESP (GLASS),S/CT (FOX),IO/PHO (PEREZ),
AND WHA/CAN
TREASURY FOR GENERAL COUNSEL (DAVID AUFHAUSER),OFAC
DIRECTOR (NEWCOMB),TREASURY DAS FOR TERRORISM (ZARATE),
AND TREASURY TASK FORCE ON TERRORIST FINANCING
NSC FOR PETERS
JUSTICE FOR BETSY BORKE, OFFICE OF INTERNATIONAL
AFFAIRS/CRIMINAL DIVISION

E.O. 12958: DECL: 02/03/2013
TAGS: EFIN ETTC PTER PREL CA
SUBJECT: TERRORIST FINANCE - OTTAWA: GOC RESPONSE ON
TARGETTING HEPI AND HCI

REF: A. OTTAWA 1142


B. STATE 101323

C. OTTAWA 960

D. STATE 79970

Classified By: Classified by Economics Minister Counselor Michael Galla
gher. Reason 1.5 (b and d).



1. (U) Action request paragraph 3.


2. (SBU) Canada's Department of Foreign Affairs and Trade
conveyed (by fax) the following response to our ref B
demarche. The fax cover sheet requested that we advise the
GOC of how we expect to proceed.

Begin text of GOC response:

-- Thank you for your visit of April 22, 2003 and for
consulting with us on your anticipated next steps with
respect to combatting terrorism financing.

-- As you are aware, all of the individuals and entities,
identified in your April demarche, are known to Canadian
authorities. In fact, law enforcement investigations are
ongoing.

-- Canada continues to weigh the merits of designating
Canadians and entities based in Canada, as terrorist, under
our legislation, against the effects that such designation
would have on ongoing criminal investigations.

-- At this time, we believe that a designation of the
individuals and entities in question, by the United Sates or
the UNSC 1267 Committee, would be deleterious to the ongoing
law enforcement actions in Canada.

-- We will continue to share information with you through
established law enforcement and intelligence channels.

End text.


3. (S) Embassy contacts explained unofficially that the
GOC understands from recent conversations with DC
counterparts that the proposed designation is a
"housekeeping" measure designed to ensure that groups or
individuals removed from the G-7 listing process in April,
2002, do not fall through the cracks. The GOC is under the
impression that confirmation that they object to the
designation due to ongoing investigations is sufficient to
prevent USG designation of the proposed targets.


4. (S) Action request: Please let us know if this is not
the case. If Washington intends to proceed with the
designation, we will so advise the GOC.
CELLUCCI