TREASURY DEPUTY SECRETARY KIMMITT MEETS GERMAN

C O N F I D E N T I A L SECTION 01 OF 02 BERLIN 000278

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E.O. 12958: DECL: 02/10/2017
TAGS: EFIN ETTC PREL KIPR GM IR
SUBJECT: TREASURY DEPUTY SECRETARY KIMMITT MEETS GERMAN
JUSTICE MINISTER ZYPRIES ON SANCTIONS, TERRORIST FINANCING,
AND IPR

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


1. (C) Summary -- Meeting with German Justice Minister
Zypries February 8, U.S. Deputy Treasury Secretary Kimmitt,
accompanied by Ambassador, discussed Germany's goals, as EU
and G-8 President, for combating intellectual property rights
violations, UN sanctions on Iran, and international efforts
to combat terrorists' use of the global financial system. On
SWIFT, while noting concerns about the substance of a U.S./EU
agreement, Zypries stated information on the effectiveness of
the program would help assuage public concerns in Europe.
End Summary.


Intellectual Property Rights
--------------


2. (C) Discussion began with Zypries noting that IPR is a
top priority for Germany, especially in the context of its
current role as EU and G-8 president. German IPR policy, she
said, is developing on the national level, with work
progressing on a new copyright law, as well as in the EU and
G-8 frameworks. German IPR goals in the EU focus on (1)
adopting minimum standards for criminal procedures in
connection with copyright and trademark infringement cases,
and (2) establishing a framework for allowing private
commercial entities to get access to the IP addresses of IPR
pirates. In the G-8 framework, Germany is pushing for a
thorough evaluation of existing international conventions in
terms of their adequacy in addressing IPR violations.


3. (C) Deputy Secretary Kimmitt agreed national legislation
is a necessary first step, but stressed that priority and
resources must be given to enforcement of legislation.
Transnational enforcement measures require particularly close
cooperation. China, for example, has IPR laws on the books
but has been sporadic in terms of enforcement. Treasury
Deputy Secretary Kimmitt welcomed the German idea to forge
greater consensus on international IPR conventions.

Sanctions on Iran
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4. (C) Turning to the issue of Iran sanctions, Deputy
Secretary Kimmitt stressed the need for international

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cooperation in implementing UNSCR 1737. He noted the
resolution calls for specific action against organizations
and individuals that are directly involved in Iran's efforts
to acquire a nuclear capability. Now that the EU has issued
a strong statement in support of the UN resolution, the next
steps are to implement laws and dedicate enforcement
resources to ensure Europe's banking system is not abused in
support of Iranian proliferation. The U.S., he added, stands
ready to assist in any way possible, including technical
assistance in drafting implementing legislation.


5. (C) Zypries noted her Ministry would be responsible for
only part of Germany's efforts in connection with UNSCR 1737.
On issues related to foreign trade, the German MFA and
Economics Ministry have the lead. The Minister added she is
unhappy individuals and entities listed by the UN do not have
legal recourse other than to seek redress in their home
countries. By being listed, entities and individuals can
face "very bad consequences." The Treasury Deputy Secretary
replied that the UN list was originally much longer, but had
been narrowed as a result of lengthy negotiations. All
fifteen UNSC members are satisfied that those listed are key
proliferators and we should not shy away from implementing
the will of the entire UNSC. Referring to Zypries' earlier
comment on the effect on individuals and on organizations
named in the resolution, Treasury Deputy Secretary Kimmitt
said nuclear weapons in the hands of the Tehran regime would
entail even more serious consequences for the broader publics
we represent.

SWIFT/Terrorist Financing
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6. (C) On the issue of TFTP/SWIFT, Treasury Deputy Secretary
Kimmitt recounted his prior conversation with Interior
Minister Schaeuble (septel). Regarding Euopean fears about
possible misuse of data obtaind from SWIFT, he noted the USG
had imposed safegards long before the current public debate
began He briefly outlined the elements of legal
authoities, administrative oversight and external auditng,
emphasizing the degree of specificity with wich requests to
SWIFT must be made. Treasury Deuty Secretary Kimmitt
emphasized our wish to reah an understanding with the EU on
the SWIFT issue, and noted the key role played by EU

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Commissioner Frattini. He said Frattini appears to agree
with us on substance, but would prefer a U.S.-EU deal to be a
binding international agreement. We prefer an exchange of
letters through which we agree to respect each other's
approaches on the issue. We must not allow form to become a
problem, he added.


7. (C) Zypries said she remains concerned about the
substance of a future U.S.-EU agreement on SWIFT. She asked
whether our access to SWIFT's data base has yielded concrete
results, noting that proof of the effectiveness of the
program would help assuage European concerns. Deputy
Secretary Kimmitt undertook to provide Zypries with a paper

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illustrating some of the positive results of the TFTP/SWIFT
program.


8. (U) Deputy Secretary Kimmitt has cleared this message.
TIMKEN JR