NEW ZEALAND RESPONSE TO UNSCR 1737 SANCTIONS ON IRAN

C O N F I D E N T I A L WELLINGTON 000219 SIPDIS SIPDIS STATE FOR EAP/ANP - DAN RICCI, ISN, EB, IO, NEA, VCI, P and T, TREASURY for TFI E.O. 12958: DECL: 03/07/2017 TAGS: KNNP UNSC ETRD EFIN PGOV PREL AORC TRGY IR NZ SUBJECT: NEW ZEALAND RESPONSE TO UNSCR 1737 SANCTIONS ON IRAN REF: A) STATE 14071, B) 23001, C) 24344, D) 06 WELLLINGTON 918 Classified by CDA DAVID J KEEGAN for reasons 1.4 (B) and (D). ¶1. (C) Summary: New Zealand is on track to implement UNSCR 1737 measures against entities and individuals linked to Iran's nuclear program. Phil Goff, Minister of Defense and Disarmament, recently delivered a strong message to the government of Iran stressing that it must comply with UNSCR 1737 and IAEA. The GNZ will deliver a similar message as an IAEA observer. End Summary. ¶2. (C) On March 2, PolEcon Counselor and Econoff met with Caroline Bilkey, Deputy Director for UN and Disarmament issues in the Legal Division of New Zealand's Ministry of Foreign Affairs and Trade (MFAT) to discuss New Zealand's progress on implementing USCR 1737 measures against Iran's nuclear program. Bilkey, who was joined by Caroline McDonald and Raylene Liufalani, Director and Policy Officer, respectively, in MFAT's Disarmament Division, said that the GNZ will implement the resolution through New Zealand's United Nations Act of ¶1946. She said that the GNZ is moving with "due haste" and the Parliamentary Council is drawing up the enabling legislation according to MFAT lawyers' instructions. ¶3. (C) Bilkey expects the legislation will be passed shortly. It will be similar to recently enacted sanctions implementing UNSCR 1718 measures against the DPRK (Ref D),although with slightly different financial services provisions to accommodate differing circumstances. MacDonald said that even before the legislation is passed, the GNZ has the ability to hold any export licenses that it suspects may be linked to Iran's nuclear program, although to date such licenses have not been detected. NZ Immigration has also been instructed to bar entry to all Iranians covered by the UNSCR 1737 Annex, Bilkey added. ¶4. (C) New Zealand has a long commitment to nuclear non-proliferation and has consistently condemned Iran's nuclear program, including to Iranian officials who visited Wellington in 2004, when New Zealand was on the IAEA Board. New Zealand's Ministry of Foreign Affairs and Trade (MFAT) holds annual senior level (Deputy Secretary) consultations with Iran. The Deputy Secretary who led the most recent round, held in Tehran, told DCM that New Zealand used the occasion to reiterate its insistence that Iran respond positively to UN calls to halt its enrichment program. Most recently, Minister of Defense and Disarmament Phil Goff issued a press release on Feb. 28 noting that he had reiterated New Zealand's concerns over Iran's nuclear program to Iran's new Ambassador to New Zealand, Morteza Rahmani Movahed. Said Goff, "we are disappointed that Iran has chosen not to comply with the provisions of UNSCR 1737... Iran's refusal to comply with the UNSC and IAEA resolutions is a serious concern and Iran needs to act positively to rebuild international confidence." ¶5. (C) Goff's statement also called for Iran to suspend its enrichment program and allow IAEA unrestricted access. MFAT's Liufalani, who attended the Goff/Movahed meeting, said the statement closely tracks what the Minister said to the Ambassador. She said Goff had included reference to the IAEA report in his statement in order to refute the Ambassador's claims that the report had been favorable to Iran. (NB: Goff's statement also said that while GNZ is working to implement UNSCR 1737, it is highly unlikely that NZ is currently exporting any item to Iran that would come within current sanctions.) ¶6. (SBU) Post will keep Department informed of New Zealand's progress in implementing sanctions. KEEGAN