TERRORISM FINANCE: U.S. DOMESTIC DESIGNATION OF JUD

C O N F I D E N T I A L LONDON 003208 SIPDIS SIPDIS STATE FOR EB/ESC/TFS, S/CT, EUR/UBI, IO/PSC E.O. 12958: DECL: 05/04/2016 TAGS: ETTC EFIN PTER KTFN UK SUBJECT: TERRORISM FINANCE: U.S. DOMESTIC DESIGNATION OF JUD REF: STATE 68788 Classified By: Economic Counselor Sandra Clark for reasons 1.4(B) and ( D) ¶1. (C) Embassy delivered reftel demarche to Ben Lyon in the Foreign and Commonwealth Office's Counterterrorism Policy Department and to Sean Byrne in Her Majesty's Treasury's Financial Systems and International Standards Department. Both said that the UK would be holding an internal Asset Freezing Working Group meeting on May 9, and would consider whether to pursue a domestic designation of JUD and IKK at that meeting. ¶2. (C) Lyon said that the FCO had asked UKUN to provide its analysis on why China had decided to put a hold on the designation. He said that the FCO's initial speculation is that China had placed a hold on the joint U.S.-UK-French submission of JUD in retaliation for the fact that the U.S., UK, and France had all placed holds in the Chinese submission of ETLO to the 1267 Committee. ¶3. (C) Lyon said that if UKUN's reporting supported this view, the UK would seek to co-ordinate joint demarches with us and the French in Beijing to underscore our displeasure that China was playing politics with the AQ sanctions regime. Visit London's Classified Website: http://www.state.sgov.gov/p/eur/london/index. cfm Tuttle