GERMAN GOVERNMENT ACTIONS TO IMPLEMENT UNSCR 1737

C O N F I D E N T I A L BERLIN 000034 SIPDIS STATE FOR ISN, IO, NEA, AND EUR/AGS SIPDIS E.O. 12958: DECL: 01/05/2017 TAGS: MNUC KNNP GM SUBJECT: GERMAN GOVERNMENT ACTIONS TO IMPLEMENT UNSCR 1737 SANCTIONS ON IRAN REF: SECSTATE 202585 Classified By: Acting DCM Robert F. Cekuta, for reasons 1.4 (b) and (d) . ¶1. (U) Global Affairs officer passed ref demarche January 3 to officials from the Foreign Trade Law Division in the German Economic Ministry. Foreign Trade Law Division Office Director Ursina Krumpholz and her deputy Ernst Roeder-Messell expressed thanks for the information. Krumpholz said that Germany, as a member of the EU, would follow the Commission's lead in applying the UNSC sanctions. Nevertheless, Roeder-Messell continued, while waiting for the Commission to pass the appropriate regulations, the German Government has been prepared to implement the UNSC sanctions since their adoption. For instance, if an Iranian entity or person listed in the UNSC 1737 Annex tries to obtain any of the sanctioned commodities from German firms, the German Federal Economic and Export Licensing Agency (BAFA) would deny the export license. Conversely, the German Government has the competence to scan banking data and to freeze the assets of any of the entities or persons listed in the UNSC Annex. The German Government is looking, however, to the Commission to put forward regulations to provide a legal basis for freezing assets longer than 6 months, i.e., "permanently" or until the international sanctions are lifted. ¶2. (C) Krumpholz said the UNSC 1737 Annex would be more helpful if it provided more information about the entities and persons, such as addresses and dates of birth. She said this kind of information would help the German Government apply financial sanctions. Roeder-Messell said though the German Government has no equivalent to the U.S. Executive Order or Denied Persons List, it would comply with any lists of sanctioned persons or entities produced by the Commission. ¶3. (C) Poloff held separate discussions with MFA counterparts Wolfgang Rudischhauser of the Nuclear Disarmament and Nonproliferation Division and Holger Mahnicke of the United Nations Policy Division and received further insight into Germany's implementation of the resolution. PolOff was informed that Germany, like other EU members, has already begun taking steps to implement UNSCR 1737 while awaiting the EU regulations. Mahnicke relayed that the European Union will begin developing EU-wide implementing regulations starting on Monday, January 8; however he avoided giving a timeline for how long the process will take. The implementing ministries (Foreign, Economic, Interior, and Finance including the Bundesbank) plan to meet Friday, January 5, to discuss sections of the Resolution calling for countries to make determinations on certain questions. ¶4. (C) While German officials hope Iran will recognize the international community's seriousness, Rudischhauser commented that Iran has existed under some form of sanctions for decades. He expects the February 21 date to come and go, and that the United Nations Security Council will be forced to take further steps. Rudischhauser reiterated that Germany continues actively to seek a peaceful resolution to the situation through its activity with the EU3 3. Fortunately, Germany was able to begin swiftly implementing UNSCR 1737 immediately upon passage as the German Government was actively involved in the negotiations, according to Mahnicke. ¶6. (U) Post will report any further substantive German response septel. KOENIG