ITALY NOTIFIED OF ADDITIONAL IRAN DESIGNATIONS

C O N F I D E N T I A L ROME 000047 SIPDIS SIPDIS E.O. 12958: DECL: 01/10/2016 TAGS: PREL KNNP KN PARM IR IT SUBJECT: ITALY NOTIFIED OF ADDITIONAL IRAN DESIGNATIONS UNDER E.O. 13382 REF: STATE 02284 Classified By: DCM Anna M. Borg for reasons 1.4 (b) and (d). Summary -------------- ¶1. (C) The Embassy delivered ref points on Bank Sepah designation to the MFA, Bank of Italy, and Ministry of Finance January 9. Pol M/C then spoke to Filippo Formica, MFA Nuclear Non-Proliferation Office Director, noting US interest in possible Italian follow-up action on Bank Sepah and our own intent to propose designation of AIO to the 1737 Committee. Formica said the GOI would hold an interagency meeting January 10 to discuss next steps. End Summary. ¶2. (C) The Embassy delivered ref points on Bank Sepah designation to the MFA, Bank of Italy, and Ministry of Finance January 9. Pol M/C then spoke to Filippo Formica, MFA Nuclear Non-Proliferation Office Director, noting US interest in possible Italian follow-up action on Bank Sepah. Formica said the GOI, via Italian DCM Stefano Stefanini, had reached agreement with USG officials on language relevant to Italy in the public announcement of the Bank Sepah designation. And Formica said he thought the wording agreed upon was good. ¶3. (C) Formica sought confirmation that the non-paper we had provided was not, in fact, the text of the actual Treasury designation. Pol M/C said no, this was a pre-notification non-paper, which was also being provided to Italy, UK, France and Germany, following up on Washington briefings the day before to the four countries' embassies. Treasury would announce the actual designation at 1030 EST on January 9. ¶4. (C) Pol M/C probed Formica for an update on GOI decision making on its own next steps re Bank Sepah and AIO. Formica said the issue was under active consideration. There would be an MFA meeting later January 9, and an interagency consultation January 10. ¶5. (C) He noted that our non-paper indicated the USG would be proposing the designation of AIO in the 1737 Committee. Pol M/C said yes, we had already designated AIO ourselves, it had been included in initial resolution drafts, and Treasury U/S Levey and other USG officials have made plain in various meetings and messages that this was our intent. Pol M/C also noted that EUR A/S Fried would be in town January 10 for a series of meetings with Italian officials, including MFA Political and Multinational Affairs director Giulio Terzi, and this would undoubtedly be on the agenda. ¶6. (C) Formica undertook to update us on the Italian position as soon as further information became available. He noted that he was departing himself January 10 for a G7 proliferation finance meeting in Paris, and he expected Bank Sepah to be on the agenda there as well. SPOLGI