DEPUTY TREASURY SECRETARY KIMMITT MEETS WITH

S E C R E T SECTION 01 OF 02 BERLIN 000277

SIPDIS

SIPDIS

E.O. 12958: DECL: 02/10/2017
TAGS: EFIN ETTC PTER PREL GM IR
SUBJECT: DEPUTY TREASURY SECRETARY KIMMITT MEETS WITH
GERMAN INTERIOR MINISTER SCHAEUBLE

Classified By: EMIN Robert F. Cekuta for Reason 1.4 (b) and (d)


1. (C) Deputy Secretary of the Treasury Kimmitt met with
German Interior Minister Wolfgang Schaeuble (CDU) February 8
as part of his discussions with senior German officials.
Discussing TFTP/SWIFT, Schaeuble re-affirmed that the big
issue is the need to balance our responsibilities to protect
personal data as well as to strive to protect our citizens
against terrorism. The lack of understanding in Germany and
elsewhere in the EU of data protection and other constraints
on accessing/using the information are a challenge we must
confront. In response to the Treasury Deputy Secretary's
suggesting a U.S.-EU exchange of letters on the subject,
Schaeuble noted that a formal U.S./EU agreement regarding
access to SWIFT's data would require the European
Parliament's involvement. Treasury Deputy Secretary Kimmitt
also raised implementation of UNSCR 1737 and the need to
convince Iran to stop its efforts to acquire nuclear weapons
capability; Schaeuble agreed to contact Foreign Minister
Steinmeier and Economics Minister Glos, who have direct
responsibility for the 1737 implementation, to confirm
Germany is doing all it can. The Interior Minister raised
Chancellor Merkel's transatlantic initiative to intensify
economic cooperation between the U.S. and the EU. Schaeuble
agreed with the Deputy Secretary's points, including that
success of the initiative will send an important political as
well as economic signal, and that, if the initiative is
approved at the April Summit, ways must be found to continue
momentum on the initiative beyond the term of Germany's
presidency. Schaeuble noted it is important to ensure EU
integration proceeds as part of the overall transatlantic
partnership, not as something separate. End Summary.

-------------- --------------
Interior Minister Schaeuble: TFTP/SWIFT; UNSC 1737;
Transatlantic Economic Partnership
-------------- --------------


2. (C) Deputy Secretary Kimmitt began his discussion with
Interior Minister Schaeuble by noting his late January talks
in Brussels with EU Commissioner Frattini on the issue of
TFTP/SWIFT -- part of the ongoing dialogue on the issue
between the USG and the Commission. Treasury Deputy
Secretary Kimmitt said Frattini encouraged him to meet with

SIPDIS
the relevant German ministers, in their EU Presidency
capacity, to share views on the issue. Schaeuble noted that,
while the Finance Ministry has the lead on SWIFT, he would do
whatever he could to be helpful. The big issue, said
Schaeuble, is balancing data protection responsibilities and
counterterrorism. The Treasury Deputy Secretary assured
Schaeuble the U.S. takes data protection as seriously as the
Europeans, and agreed the challenge is to strike a balance
between legitimate data-privacy concerns and protecting our
publics from terrorist attacks. There are signs this view is
taking hold in European governments as well, he added, with
the possible exception of within the European Parliament.
The German Interior Minister agreed with this assessment.


3. (S) Treasury Deputy Secretary Kimmitt outlined the
extraordinary measures the USG employs to ensure appropriate
handling of data obtained from SWIFT. He noted all USG
inquiries must be based on information obtained from law
enforcement or intelligence sources, they may only seek
specific, narrowly-defined information pertaining to the
case, and the data must be requested in a Treasury subpoena.
In addition, an outside auditing firm which reports to the
auditing committee of the SWIFT board of directors must
verify that the information sought is in fact in compliance
with the subpoena. Only then does the USG obtain access to
the data, he said, adding that the TFTP/SWIFT mechanisms have
been the subject of careful scrutiny from the U.S. Congress
and U.S. privacy organizations. Schaeuble said the
perception in Europe is the U.S. obtains "boxes of
information" and uses the data for purposes other than
combating terrorism. The Treasury Deputy Secretary made
clear there is no dual-use and the number of subpoenas issued
is relatively small. Interior Minister Schaeuble indicated
this reality is not well known in Europe -- the prevailing
view is that the U.S. is a "developing country" in terms of
data protection. It is important, he added, to make the USG
safeguards known to European publics.


4. (C) Deputy Secretary Kimmitt added the USG recognizes
access to SWIFT's data is a political as well as a law
enforcement issue and wants to develop a common approach with
the EU. Our goal, he noted is to agree on a
mutually-acceptable approach by the time of the U.S.-EU
Summit at the end of April. Treasury Deputy Secretary
Kimmitt indicated we are making good progress on substance,
but there is some disagreement over the form of a U.S-EU

BERLIN 00000277 002 OF 002


undertaking on SWIFT. Commissioner Frattini, Deputy Treasury
Secretary Kimmitt noted, seems to favor a binding

SIPDIS
international agreement, whereas we prefer an exchange of
letters through which we agree to respect each other's
approaches on the issue. He asked that Germany support this
procedural track. Schaeuble expressed understanding for our
sense of urgency and observed that a formal international
agreement would necessarily involve the European Parliament,
something that would make the process more complicated.


5. (C) Deputy Secretary Kimmitt also raised the issue of
UNSCR 1737 implementation, noting the resolution called for
targeted sanctions against specific, illegal conduct, namely
Iran's efforts to acquire a nuclear weapons capability. He
pointed to the UNSC requirement that governments ensure their
companies and banks do not further Iran's proliferation
efforts. The Treasury Deputy Secretary said he understands
work is being done in the European Commission to put the
required regulatory mechanisms in place, which will then lead
to member state implementation. We see the issue not as the
U.S. against Iran, but Iran opposing the international
community, he added. Given that the EU-3 had played a
leading role in earlier negotiations with Iran, successful
implementation of UNSCR 1737 should be especially important
for Germany and other EU members.


6. (C) While noting implementation of Iran sanctions was not
the direct responsibility of the Interior Ministry, Schaeuble
emphasized that FM Steinmeier and Economics Minister Glos are
deeply engaged on this issue. Schaeuble expressed confidence
Germany is doing all that is needed and undertook to confer
with Steinmeier and Glos to confirm this is the case.


7. (C) Schaeuble raised Chancellor Merkel's Transatlantic
Economic Partnership initiative aimed at intensifying
economic cooperation between the U.S. and EU. Deputy
Secretary Kimmitt said the USG fully supports the initiative

SIPDIS
from the President on down. Success of the initiative will
also send a positive political signal in addition to its
economic benefits. It is important, he continued, that we
maintain momentum on the initiative beyond the term of
Germany's EU presidency. The U.S. will seek concrete results
by the time of the U.S.-EU Summit and mechanisms to ensure
continuity thereafter. Schaeuble agreed with this approach,
adding it is important to ensure EU integration proceeds as
part of the overall transatlantic partnership.


8. (U) Treasury Deputy Secretary Kimmitt cleared this cable.
TIMKEN JR