TFI201: ITALY FREEZES IRAQI GOVERNMENT ASSETS

C O N F I D E N T I A L ROME 001203

SIPDIS


STATE FOR TFI201 - EB ACTION OFFICER;
TREASURY FOR OFAC (NEWCOMB)

E.O. 12958: DECL: 03/21/2013
TAGS: ECON EFIN ETTC PREL IT IZ EUN
SUBJECT: TFI201: ITALY FREEZES IRAQI GOVERNMENT ASSETS

REF: SECSTATE 74249

CLASSIFIED BY: ECONOMIC MINISTER SCOTT KILNER FOR REASONS 1.5 (B) AND (
D)


1. (C) ECON COUNSELOR MET WITH GIUSEPPE MARESCA, FINANCE
MINISTRY DIRECTOR FOR FINANCIAL CRIMES, ON THE MORNING OF
MARCH 21 TO DISCUSS REFTEL REQUEST. MARESCA'S IMMEDIATE
RESPONSE WAS "THE ITALIAN GOVERNMENT WILL DO THIS. WE SIMPLY
HAVE TO DECIDE THE BEST MECHANISM." THE FASTEST AND EASIEST
WAY, HE SAID, WOULD BE EU ACTION. IN ANY CASE, MARESCA
STATED, HE WOULD DISCUSS THIS WITH HIS COLLEAGUES IN THE MFA
AND CENTRAL BANK AND WORK OUT A JOINT PLAN OF ACTION.
MARESCA ADDED THAT THE VALUE OF IRAQI ASSETS IN ITALY WAS
WELL BELOW THE VALUE CITED IN THE UN FIGURE.


2. (C) POLITICAL MINISTER RAISED THE REQUEST ON THE AFTERNOON
OF MARCH 21 WITH MINISTER ANTONIO BADINI, MFA DIRECTOR
GENERAL FOR THE MIDDLE EAST. BADINI SAID THAT THE ORDER HAD
GONE OUT THAT SAME MORNING (SOON AFTER OUR MEETING WITH
MARESCA) TO FREEZE ALL IRAQI ASSETS. BADINI CONFIRMED THAT
THE VALUE OF IRAQI ASSETS IN ITALY WAS FAR LESS THAN THAT
CITED REFTEL.
SEMBLER

NNNN
2003ROME01203 - Classification: CONFIDENTIAL