GERMANY NOTIFIED OF DESIGNATION OF IRAN'S DEFENSE

C O N F I D E N T I A L BERLIN 000764 SIPDIS STATE FOR ISN/CPI AND EUR/AGS SIPDIS E.O. 12958: DECL: 04/13/2017 TAGS: PREL KNNP PARM KN IR GM SUBJECT: GERMANY NOTIFIED OF DESIGNATION OF IRAN'S DEFENSE INDUSTRIES ORGANIZATION UNDER E.O. 13382 REF: A. STATE 40909 ¶B. BERLIN 707 Classified By: Global Affairs Counselor Donald R. Shemanski, for reason s 1.4 (b) and (d). ¶1. (C) Global Affairs officer delivered ref A demarche to Claudia Schuett of the German Ministry of Foreign Affairs April 2 and to Ursina Krumpholz and Ernst Roeder-Messell of the German Ministry of Economics April 3. The officials thanked us for the information on the U.S. designation of Iran's Defense Industries Organization (DIO) under E.O. 13382 and said they would convey it to other appropriate German agencies. Roeder-Messell, Desk Officer in the Foreign Trade Law and Law of the Sea Division, said the accompanying information about DIO, such as the alternate spellings and address, were particularly useful. He asked whether the USG intended to seek inclusion of such information by the UNSC in future annexes. ¶2. (C) Roeder-Messell said the German Government issued an interim directive February 8 against all the entities listed on the UNSCR 1737 Annex to block their financial transactions, so DIO would have been unable to conduct any business in Germany since then. Krumpholz, Office Director of the Foreign Trade Law and Law of the Sea Division, added that German Customs authorities have been checking shipments to Iran to prevent the export of any items in contravention of UNSCR 1737. ¶3. (C) Krumpholz elaborated on EU actions to prevent exports to Iran in contravention of UNSCR 1737. She said the EU Dual Use Working Group inserted a requirement into the EU Directive to implement UNSCR 1737, issued February 27, 2007, that certain dual-use items not otherwise listed under EU export controls would require authorization to be shipped to Iran. (Note: For a partial listing of these goods, see the list in reftel B. End note.) When asked whether EU member states advise the others of license denials, Krumpholz said they inform the other member states and the EU Commission via the Dual Use Working Group. The authority for license denials is found in EU Regulation 1334, Article 9, from 2000, she said. ¶4. (C) Schuett, Desk Officer in the MFA's International Economic and Financial Policy Division, said the German Government is exercising heightened vigilance over exports to Iran and would not allow any shipments in violation of UNSCR ¶1737. TIMKEN JR