GERMAN THOUGHTS ON SANCTIONS, EU3 UNITY

S E C R E T BERLIN 002593 SIPDIS SIPDIS E.O. 12958: DECL: 08/31/2016 TAGS: EU IR KNNP PARM PGOV PREL UN SUBJECT: GERMAN THOUGHTS ON SANCTIONS, EU3 UNITY REF: SECSTATE 143323 Classified By: CLASSIFIED BY DCM JOHN KOENIG FOR REASONS 1.4 (b) and (d ). ¶1. (U) Summary: Charge raised Iran with Foreign Office State Secretary (U/S-equivalent) August 30 and Embassy delivered SIPDIS reftel demarche August 31. Germany is ready for discussion of Iran to return to the Security Council and supports discussion of punitive measures. The critical task, in Berlin's view, is keeping Russia and China on the same page as the U.S., UK, France, and Germany. End summary ¶2. (C) Charge Koenig discussed Iran August 30 with Foreign Office State Secretary Reinhard Silberberg, who said it was clear the Iranian case would go back to the Security Council, and there needed to be a discussion of punitive measures. Germany's goal, according to Silberberg, was to ensure the international community remained in lock-step on Iran. Silberberg said the Iranians had created a great deal of difficulty in an already uncertain situation. He said Larijani would like to engage in negotiations, but Germany could not do so against this background. ¶3. (C) Poloff delivered demarche points (Ref A) in separate meetings on August 31 with the Foreign Office's Deputy Commissioner for Arms Control Ruediger Luediking, the Head of the Arms Control and Non-Proliferation Division Hellmut Hoffmann, and the newly-installed Director of the Iran Office, Sabine Sparwasser. Ambassador Luediking affirmed that Germany would support sanctions "if the UNSC goes that route." Hoffmann commented that the Lebanon was expected to receive the bulk of the attention at the September 1-2 Gymnich meeting of EU Foreign Ministers, downplaying the role Iran would play on the agenda. Both Luediking and Sparwasser noted the EU3 remains united on the need to act in response Iran's belligerence, and expect the EU Presidency's statement on the matter to closely reflect the EU3's thoughts. Sanctions Mechanics: -------------- ¶4. (C) Global Affairs officer met separately with Ministry of Economics and Technology (BMWi) Export Control Desk Officer Christof Wegner September 1 to inquire about the steps that Germany would take to implement any sanctions that the UNSC should decide to impose on Iran. Wegner said that would depend on the wording of the UNSC resolution and how the European Commission (EC) would interpret it. Presumably the EC would have EU-wide jurisdiction over the sanctions and draft the necessary regulations, as opposed to individual EU members drafting regulations at the national level. Provided the EC in Brussels drafts the regulations, subject to approval by all EU member states, the EC would publish them in the official journal of the EU, at which point they would be binding. All EU member states would have to adhere to them. ¶5. (C) Wegner noted that, in this scenario, the GOG would not have to draft regulations and instead would amend existing laws, presumably the Foreign Trade and Payments Act (FTPA), to incorporate the sanctions' provisions and penalties for violations. Considering that the sanctions are likely to be economic in nature, the BMWi would probably have the lead in amending the FTPA. The government would publish the amended laws in the federal gazette, at which point they would be binding. Wegner said that any violations of UN or EU sanctions would be a felony, with a minimum penalty of one year in prison. TIMKEN JR