CARETAKER STATUS PRECLUDES AUSTRALIA FROM ACTING

C O N F I D E N T I A L CANBERRA 001581

SIPDIS

NOFORN
SIPDIS

STATE FOR ISN/CPI A.RUGGIERO, EAP/ANP AND EB

E.O. 12958: DECL: 10/29/2017
TAGS: KNNP PTER PREL PARM EFIN IR AS
SUBJECT: CARETAKER STATUS PRECLUDES AUSTRALIA FROM ACTING
ON IRANIAN DESIGNATIONS AND FATF STEPS

REF: A. STATE 148605

B. STATE 149648

C. CROWLEY-RUGGIERO E-MAIL OF 10/25/07 (NOTAL)

D. RUGGIERO-CROWLEY E-MAIL OF 10/27/07 (NOTAL)


Classified By: Political Counselor James F. Cole for reasons 1.4 (b),(d
).



1. (U) We presented Ref A and B demarches to Paul Foley,
Assistant Secretary for the Middle East and Africa,
Department of Foreign Affairs and Trade (DFAT) on October 29.
(Australia had been inadvertently omitted as an action
addressee on Ref A, per Ref D, thus the delayed delivery.)
Foley, who was joined by Octavia Borthwick, Director of the
Middle East Section, and Michael Opie, Executive Officer for
Iran, said the Australian Embassy in Washington also had sent
him a comprehensive report on the Rice-Paulson announcement
about the designations, and the actions of the Financial
Action Task Force. He undertook to share our points with his
colleagues working on counterproliferation and
counterterrorism.


2. (SBU) In prelimary comments, Foley said any Australian
action on the U.S. designation of Iranian entities and
persons, including approaches to Australian government
financial institutions, would be a matter for the incoming
government following Australia's federal election scheduled
for November 24. (Note: The Australian government has been
in caretaker mode since the dissolution of Parliament on
October 17, and cannot take any policy decisions or actions
that would bind the next government. End Note.)


3. (C) Foley said the GOA supported further action in the
context of the United Nations Security Council and
international efforts to pressure Iran to curb its nuclear
ambitions. For any action against Iran to be effective
outside the UN Security Council, the EU and Japan would need
to be involved. He was heartened that the EU was talking
seriously about the need for further actions, either
bilaterally or through the UNSC.


4. (C) In preparing the Iran brief for the incoming
Australian government, Foley said DFAT would draw attention
to the prospect that Iran might retaliate against the latest
strictures. In that event, Australia would be concerned
about the safety of its Embassy staff in Tehran. To prevent
the likelihood of retaliation and to effectively counter it,
it would be best to have as large a group as possible on
board with the U.S. measures, he advised.


5. (C) Borthwick raised some practical considerations with
shutting down transactions with Iranian banks, namely, how to
facilitate other desired exchanges with Iran, such as student
exchanges, in which remittances would need to pass through
Iranian financial institutions. Another question dealt with
the mechanics of paying Australian Embassy local staff in
Tehran.


6. (SBU) We will report further comments, including reaction
from the Department of the Treasury, septel.

MCCALLUM