SANCTIONS INFORMATION FOR BUSINESS COMMUNITY

UNCLAS SECTION 01 OF 02 HARARE 000179 SIPDIS SIPDIS AF/S FOR BNEULING NSC FOR SENIOR AFRICA DIRECTOR C. COURVILLE USDOC FOR BECKY ERKUL TREASURY FOR J. RALYEA, B. CUSHMAN PASS USTR FOR FLORIZELLE LISER STATE PASS USAID FOR MARJORIE COPSON E.O. 12958: N/A TAGS: PREL PGOV ETRD ASEC ZI SUBJECT: SANCTIONS INFORMATION FOR BUSINESS COMMUNITY ¶1. (SBU) This is an action request; please see para 3. ¶2. (SBU) Embassy has received numerous inquiries from American companies about the USG's targeted sanctions policy in Zimbabwe and its implication for their operations here. To be responsive to our business community, pre-empt additional inquiries, forestall potential misunderstandings, and assist U.S. companies in their efforts to avoid inadvertently violating sanctions, we propose to send letters under the Ambassador's signature advising American companies here of our sanctions policy. ¶3. (SBU) ACTION REQUEST: Embassy seeks Department clearance for the following text in communicating with American companies in Zimbabwe. BEGIN TEXT (date) Mr./Ms. Very I. Person Managing Director Large American Company 1234 Samora Machel Harare Dear Mr./Ms. Person: We have received inquiries from several American firms about the implications of U.S. sanctions policies on their operations in Zimbabwe. This letter is intended to convey to you general information about our sanctions policies and to identify resources with additional information that you can access if you so require. Revised Executive Order 13288 (enclosed),signed by President Bush on November 22, 2005, bars U.S. citizens, permanent residents, and U.S.-based corporations from conducting transactions with those who formulate, implement, or benefit from policies that undermine Zimbabwe's democratic institutions. A list of these individuals and their known instrumentalities is enclosed for your information in order to facilitate your ability to conduct business in Zimbabwe without unwittingly violating U.S. law. As you know, this policy is not a generalized economic sanction against the country or the people of Zimbabwe. This policy is specifically targeted against a limited group of individuals who have been and are responsible for undermining Zimbabwe,s democratic institutions. Americans are free to conduct business with Zimbabweans who are not on the sanctions list. If you would like more detailed information, please contact the Office of Foreign Assets Control (OFAC) within the U.S. Department of Treasury. You can visit the OFAC website at www.treas.gov/ofac and/or call the OFAC compliance hotline at 202-622-2430. The enclosed OFAC fact sheet also has more specific information regarding penalties and procedures. I urge your firm to take this opportunity to review your business dealings in Zimbabwe to ensure compliance with the enclosed Executive Order and annex. Should you have specific questions on the applicability of sanctions to your company's operations, we would be happy to work further with you. You may wish to contact Frances Chisholm in the Embassy's Political/Economic Section if you require additional information. She can be reached directly HARARE 00000179 002 OF 002 at 250-593 Ext. 206 or ChisholmFM@state.gov. Sincerely, Christopher W. Dell Ambassador Encl: Financial Sanctions Executive Order and annex OFAC Fact Sheet END TEXT DELL