CANADA'S POSITIVE RESPONSE TO UNSCR 1737 DEMARCHE

UNCLAS OTTAWA 000316

SIPDIS

SENSITIVE
SIPDIS

STATE FOR NEA, T, WHA/CAN, EEB/ESC/TFS, AND ISN/CPI
(JENNIFER CHAMBERS AND JOSH KIRSHNER)

E.O. 12958: N/A
TAGS: PARM PREL KNNP EFIN ETTC IR CA
SUBJECT: CANADA'S POSITIVE RESPONSE TO UNSCR 1737 DEMARCHE

REF: STATE 16917


1. (SBU) In response to reftel delivered by Economic
Minister Counselor to Mark Gwozdecky, Department of Foreign
Affairs and International Trade (DFAIT) Non-Proliferation and
Disarmament Nuclear Division Director, Gwozdecky said that
Canada shares the United States' view of the risks of Iran's
nuclear program.


2. (SBU) Carolyn Knobel, DFAIT, United Nations, Human Rights,
and Economic Law Division Deputy Director explained that the
GOC has been working since December to create implementing
regulations for UNSCR 1737 and are nearing completion; the
regulations could be introduced as early as next week once
they are approved by the cabinet. She explained that the new
regulations will mirror the Security Council resolution and
all listed individuals and entities will be subject to asset
freezes. Their names will be added to the Terrorist
Financing list maintained by the Office of the Superintendent
of Financial Institutions Canada by which all Canadian
financial institutions must vet new accounts and periodically
review existing accounts.


3. (SBU) However, she noted that Aerospace Industries
Organization (AIO) was not listed in the resolution though
its subsidiaries and executives were. Therefore, Canada will
not be instituting a complete ban on financial transactions
in Canada for AIO. Knobel did not know if AIO has any
presence in Canada.


4. (SBU) Knobel explained that Canada will adhere to all
Security Council Resolutions but the GOC,s preferred
approach to financial sanctions is consistent with article
six of the resolution - to examine all transactions, blocking
suspicious activity, rather than attempting to identify and
list all individuals and entities suspected of funneling
money to Iran or other areas of concern. This brings
Canadian border agencies into the enforcement picture.


5. (SBU) Knobel also said that it would be very helpful to
have additional information, including aliases, dates of
birth, addresses and other identifying information, about the
individuals and entities listed in UNSCR 1737.


6. (SBU) Meeting Participants:

Canadian Side:
Mark Gwozdecky - DFAIT Non-Proliferation and Disarmament
Nuclear Division Director
Carolyn Knobel - DFAIT Economic Law Section, United Nations,
Human Rights, and Economic Law Division Deputy Director
Shawn Caza - DFAIT Non-Proliferation and Disarmament Nuclear
Division Deputy Director
Marc-Antoine Dumas - DFAIT United Nations, Human Rights, and
Economic Law Division Legal Officer
Craig Weichel - DFAIT Non-Proliferation and Disarmament
Nuclear Division Policy Officer
David Da Silva - DFAIT Non-Proliferation and Disarmament
Nuclear Division Policy Officer

U.S. Side:
Brian Mohler ) U.S. Embassy Ottawa Economic Minister
Counselor
Ryan Stoner ) U.S. Embassy Ottawa Economic Officer

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WILKINS