Identifier
Created
Classification
Origin
07ROME256
2007-02-08 09:24:00
CONFIDENTIAL
Embassy Rome
Cable title:  

IRAN: REPORTS OF LEGAL ACTION AGAINST ITALY

Tags:  PREL PTER ECON EFIN IR IT 
pdf how-to read a cable
VZCZCXRO1577
OO RUEHBC RUEHDE RUEHDIR RUEHKUK
DE RUEHRO #0256 0390924
ZNY CCCCC ZZH
O 080924Z FEB 07
FM AMEMBASSY ROME
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7135
RUEATRS/DEPT OF TREASURY WASHDC IMMEDIATE
INFO RUCNIRA/IRAN COLLECTIVE PRIORITY
RUEHFR/AMEMBASSY PARIS PRIORITY 2211
RUEHLO/AMEMBASSY LONDON PRIORITY 1347
RUEHRL/AMEMBASSY BERLIN PRIORITY 1723
RUEHDE/AMCONSUL DUBAI PRIORITY 0216
RUEHFL/AMCONSUL FLORENCE PRIORITY 2140
RUEHMIL/AMCONSUL MILAN PRIORITY 8322
RUEHNP/AMCONSUL NAPLES PRIORITY 2278
C O N F I D E N T I A L ROME 000256 

SIPDIS

SIPDIS

AMCONSUL DUBAI/IRPO, AMY LENK AND JILLIAN BURNS
TREASURY FOR U/S LEVEY

E.O. 12958: DECL: 02/08/2017
TAGS: PREL PTER ECON EFIN IR IT
SUBJECT: IRAN: REPORTS OF LEGAL ACTION AGAINST ITALY
MISLEADING

Classified By: A/ECMIN KATHLEEN REDDY FOR REASONS 1.4 (B) AND (D).

Summary and Comment
--------------------

C O N F I D E N T I A L ROME 000256

SIPDIS

SIPDIS

AMCONSUL DUBAI/IRPO, AMY LENK AND JILLIAN BURNS
TREASURY FOR U/S LEVEY

E.O. 12958: DECL: 02/08/2017
TAGS: PREL PTER ECON EFIN IR IT
SUBJECT: IRAN: REPORTS OF LEGAL ACTION AGAINST ITALY
MISLEADING

Classified By: A/ECMIN KATHLEEN REDDY FOR REASONS 1.4 (B) AND (D).

Summary and Comment
--------------


1. (C) Iran Daily reported online (in English) January 30
and 31 that the Government of Iran will "take legal action
against Italy,s decision to suspend its banking cooperation
with Iran." Government of Italy contacts believe the
proposed legal action by Iran is not linked to UNSCR 1737 or
recent Treasury Department designations, but, rather, to the
Court of Rome's 2005 decision to honor a U.S. court ruling in
favor of the families of U.S. citizens killed by
Iranian-sponsored acts of terrorism in the 1990s. (This
ruling led Italy to freeze the bank accounts of the Iranian
Embassy in Rome.) The GOI provided the Embassy with figures
that show a marked decrease of Iranian banking assets in
Italy since the Court of Rome's decision. End Summary and
Comment.


2. (U) Iran Daily reported on its website (in English)
January 30 and 31 that the Government of Iran will "take
legal action against Italy,s decision to suspend its banking
cooperation with Iran." The article's sole source is the
Managing Director of Iran's Export Development Bank, Tahmasb
Mazaheri. He is quoted as saying that Iran will go to an
Italian court "in the near future" and that Italy had once
"severed" banking ties with Iran, which led Iran to withdraw
assets from Italy. The second of the two articles also
reported that "Italy,s move to restrict its financial
transactions with Iran comes a few weeks after the United
States barred American financial institutions from doing
business with a major Iranian bank."


3. (C) Poloff and Econoff spoke with MFA and MOF officials
February 1-2 about the two articles quoted above. Our
contacts agreed that the "legal action" mentioned is not
related to UNSCR 1737 and recent Treasury designations of
Iranian Banks Sepah and Saderat. Rather, our contacts
believe that Mazaheri's comments were tied to the Court of
Rome's 2005 decision to freeze the accounts of the Iranian
Embassy in Rome, following a U.S. court ruling awarding USD
523 million in damages to Amcit families of victim of
Iranian-sponsored acts of terrorism in Israel in 1995 and

1996. (Note. According to Embassy contacts, this case is
still in the Italian court system. End note.)


4. (C) The MFA provided the Embassy February 1 with figures
from the Italian Foreign Exchange Office (Ufficio Italiano
dei Cambi) of total Iranian banking assets in Italy. The
figures show a marked decrease in Iranian banking assets over
the past two years:

-- December 31, 2004 = 906 million euros;
-- December 31, 2005 = 565 million euros; and
-- June 30, 2006 = 168 million euros.


5. (C) Comment. As we see it, the Iran Daily article is
sloppy: Mazaheri does not clearly state the reason for
Iran,s supposed planned court action in Italy. We report
the matter to clarify that Embassy sources do not believe
that the Iranian official is referring to possible legal
action against the Government of Italy for issues related to
UNSCR 1737. End Comment.
SPOGLI