IRAN AND SYRIA NONPROLIFERATION ACT --

S E C R E T STATE 203798 E.O. 12958: DECL: 12/28/2031 TAGS: PARM MTCRE PREL MNUC ETTC SUBJECT: IRAN AND SYRIA NONPROLIFERATION ACT -- NOTIFICATION OF SANCTIONS AGAINST TWO IRAQI ENTITIES (C) Classified By: ISN/MTR DIRECTOR PAM DURHAM FOR REASONS 1.4 (B),(D),and (H). ¶1. (U) This is an action request. Embassy Baghdad please see paragraph 5. ¶2. (S) Background: The Iran and Syria Nonproliferation Act (ISNA) requires periodic reports to Congress identifying foreign entities with respect to whom there is credible information indicating that they have transferred to or acquired from Iran or Syria items on multilateral lists (Australia Group (AG),Chemical Weapons Convention (CWC), Missile Technology Control Regime (MTCR),Nuclear Suppliers Group (NSG),and the Wassenaar Arrangement (WA)) or other items with the potential to make a material contribution to missile, WMD, and certain other weapons programs. The USG has determined that the Iraqi firm, Abu Hamadi, and the Iraqi individual, Kal Al-Zuhiry, have engaged in activities, as noted above, that warrant the imposition of measures pursuant to Section 3 of the ISNA. ¶3. (S) Accordingly, pursuant to the provisions of the ISNA, the following penalties are imposed on this entity, (or individuals),its subunits, subsidiaries, and successors: a. No department or agency of the United States Government may procure, or enter into any contract for the procurement of any goods, technology, or services from them; b. No department or agency of the United States Government may provide any assistance to them, and they shall not be eligible to participate in any assistance program of the United States Government; c. No USG sales to them of any item on the United States Munitions List are permitted, and all sales to them of any defense articles, defense services, or design and construction services under the Arms Export Control Act are terminated; and d. No new individual licenses shall be granted for the transfer to them of items, the export of which is controlled under the Export Administration Act of 1979 or the Export Administration Regulations, and existing such licenses are suspended. These measures, which will take effect shortly, will remain in place for two years. We want to provide advance notice to the Iraqi Government of this decision, note that this determination will be published soon in the Federal Register, and make clear that the penalties are only on the two entities (or individuals). End Background. ¶4. (S) Purpose/Objective: To inform the host government of the sanctions determination prior to its publication in the Federal Register. ¶5. (S) Action request: Post is requested to provide the following suggested talking points to appropriate Iraqi government officials and report response. Talking points also may be provided as a non-paper. ¶6. (S//REL IRAQ) Suggested Talking Points: -- The United States has determined that there is credible information indicating that the Iraqi firm, Abu Hamadi, and the Iraqi individual, Kal Al-Zuhiry, transferred to or acquired from Iran since January 1, 1999, or transferred to or acquired from Syria since January 1, 2005, items on a multilateral control list, or other items that have the potential to contribute materially to WMD, missile, or certain other weapons programs in Iran or Syria. -- Based on this transfer, we have imposed certain measures against this entity as provided in the Iran and Syria Nonproliferation Act (ISNA). -- We are not in a position at this time to describe the activities which led to this determination. -- Accordingly, pursuant to the provisions of the ISNA, the following measures are imposed on these two entities, (or individualS),and their successors, subunits, and subsidiaries: a. No department or agency of the United States Government may procure, or enter into any contract for the procurement of any goods, technology, or services from them; b. No department or agency of the United States Government may provide any assistance to them, and they shall not be eligible to participate in any assistance program of the United States Government; c. No USG sales to them of any item on the United States Munitions List are permitted, and all sales to them of any defense articles, defense services, or design and construction services under the Arms Export Control Act are terminated: and d. No new individual licenses shall be granted for the transfer to them of items, the export of which is controlled under the Export Administration Act of 1979 or the Export Administration Regulations, and existing such licenses are suspended. -- These measures will take effect shortly and will remain in place for two years. -- This determination will be published soon in the Federal Register. ¶7. (U) Please slug any reporting on this issue for ISN/MTR and NEA/I. A response is requested as soon as possible. Department point of contact is Ralph Palmiero, ISN/MTR, 202-647-3737(palmierorm@state.sgov.gov). RICE NNNN End Cable Text