S E C R E T TOKYO 001617

SIPDIS

SIPDIS

E.O. 12958: DECL: 03/27/2016
TAGS: KNNP PARM PREL MNUC EWWT PHSA
SUBJECT: CURTAILING USE OF NORTH KOREAN FLAG OF CONVENIENCE
THROUGH OFAC REGULATION CHANGE

REF: SECSTATE 46192

Classified By: POLITICAL MINISTER COUNSELOR W. MICHAEL MESERVE. REASON
S 1.4 (b),(d).


1. (S) Embassy delivered points contained in reftel to
Ministry of Foreign Affairs Northeast Asia Director Naoki Ito
on March 23 and Ministry of Finance International Bureau
Legal Office Deputy Division Chief Shunichi Fukushima on
March 24, 2006. Both officials expressed appreciation to the
United States Government for sharing this information with
the Government of Japan and promised to consider ways Japan
might take similar action.


2. (S) MOFA NE Asia Director Ito said he would also share
the nonpaper with appropriate officials at the Ministry of
Land, Infrastructure and Transportation (MLIT) because of
that ministry's authority over shipping and registry issues.
MOF Legal Office Deputy Chief Fukushima said that although
the Ministry of Finance generally does not have authority to
act on "shipping matters," MOF's Foreign Exchange Office
could potentially get involved in cases where contracts
between Japanese citizens and DPRK registered ships involve
foreign exchange.


3. (S) Embassy plans to follow-up with appropriate Japanese
officials in MOFA, MOF and MLIT to elicit further responses
and encourage Japan to take similar legislative or regulatory
actions.
SCHIEFFER