MFA on Interdictions and Export Control Prosecution

S E C R E T SECTION 01 OF 02 ABU DHABI 000472

SIPDIS

SIPDIS
NOFORN

STATE FOR T, ISN, AND NEA/ARP
COMMERCE FOR BIS

E.O. 12958: DECL 4/14/2018
TAGS: PARM PREL ETTC AE
SUBJECT: MFA on Interdictions and Export Control Prosecution

Reference: A) STATE 33109, B) ABU DHABI 352, C) ABU DHABI 323

(U) Classified by Martin Quinn, Charge d'Affaires a.i., for reasons
1.4 b and d.


1. (S/NF) Summary: On April 3, MFA International Organizations
Director Yacub Al-Hosani denied requests for USG access to the
remaining containers (interdicted at USG request yet still sitting in
Dubai awaiting further processing),explaining that there was
increasing UAEG concern that the USG leaked sensitive information
about its cooperation with the UAEG to the press. He reiterated the
UAEG's determination not to allow the goods to reach Iran and his
personal hope that a way would be found to confiscate the items
permanently. He told Econchief that the Dubai Prosecutor's Office
had declined to provide him with information on the ongoing export
control case, but that security services had provided him with some
details. End Summary.

Keep Interdictions Confidential
--------------


2. (S/NF) On April 3, Econchief met with MFA International
Organizations Director Yacub Al-Hosani to discuss efforts to resolve
outstanding interdictions and to offer a dialogue about how to
dispose of the items (ref a). Econchief explained that the USG's
intention is always to provide as much information as possible and
suggested that if the USG were allowed discrete access to the
containers, we might be able to develop further actionable
information. Al-Hosani's response to that suggestion was
uncharacteristically blunt. He said there was increasing concern
about the USG "leaking" UAEG-provided information to the press. He
told Econchief that he had received three calls from UAEG colleagues
complaining that UAEG-provided information was showing up in the
press, adding that "from now on" the UAE might need to be more
"careful" about providing sensitive information to the USG. (Note:
The meeting came the day after the publication in the International
Herald Tribune of the New York Times article regarding transshipments
in Dubai. This may have been the proximate cause for the complaints,
although Al-Hosani also made reference to the November 2007 Financial
Times article about the UAE stopping transshipments to Iran,
"encouraged by the U.S." End Note.)


3. (S/NF) In response to Econchief's comment that the Financial Times
had cited a UAEG official as the source of the news, Al-Hosani said
that the Minister of Foreign Affairs had asked him whether the
information had leaked from his office, an embarrassing question
which he hotly denied. He told Econchief that the UAE maintained
information regarding Iranian interdictions on a very "close hold"
basis. He stressed that he believed the State Department was
handling information appropriately, but expressed concern that the
size of the USG and the number of different agencies involved made it
difficult to protect the information completely.


4. (S/NF) With regard to establishing an expert level dialogue on
disposing the items, Al-Hosani originally rejected the idea, then
promised to consider it. His preference if the goods could not be
returned to their countries of origin would be to find some means of
confiscating the goods, but this action would need to be cleared by
the lawyers.

The UAE's First Export Control Prosecution
--------------


5. (S/NF) Al-Hosani and Econchief briefly discussed the ongoing
prosecution under the UAEG's export control law (the first case under
that law). Al-Hosani explained that the Dubai Public Prosecutor's
Office had declined to provide him with information about the case,
due to the fact that it was an ongoing prosecution. He had also
approached the "security services" for information on the matter and
had received a brief written reply which he shared with Econchief.
Informal translation of the text follows.


6. (S/NF) Begin Informal Embassy Translation

-- Received information that the goods contained a quantity of an
unknown substance, weighing 24 kilograms. It was believed that it
was the material Zirconium, which is used in missile ignitions. This
is considered a prohibited good. (Cost for one Kilogram is USD
120,000.)

-- The goods were imported for re-export and consisted of mineral
rods and components.

-- The information was forwarded to the Public Prosecutor's Office
with knowledge that this shipment was a crime and the goods were
tested. The results of the test confirmed that the rods were made of
the above mentioned material [Zirconium], which is used in a number
of applications, among them nuclear reactors.

ABU DHABI 00000472 002 OF 002



-- By November 22, 2007 preparations had been made to "trap" the
above-mentioned goods and to seize him [the suspect] and take
possession of the materials.

-- During the investigation, the suspect confessed to acting as a
go-between in an operation to sell the Zirconium and alleged that the
person who procured the materials was his friend, a UAE national
[name redacted], and his job was to deliver it to the source in order
to find the buyer, knowing that this material has a number of uses,
both positive and negative.

-- The matter was resubmitted to the Public Prosecutor's Offices and
was reinvestigated to establish a relationship [between the defendant
and] the goods.

--The testimony was recorded and the person and the file were
transferred to the police station for [filing of] charges for
possession of strategic goods.

End Informal Embassy Translation.

Comment
--------------


7. (S/NF) It appears that Al-Hosani's concerns about USG "leaks"
have to do -- at least partially -- with maintaining his reputation
among other UAEG agencies. He is interested in sharing information
with the USG and understands his role as the UAE's designated
interlocutor on these transshipment issues. While the UAEG has
clearly made a political decision to enforce the UNSCRs on Iran and
to work with the USG on stopping transshipments, it has serious
concerns about publicizing the extent of this cooperation. Notably,
UAE security/intelligence officials, who handle the interdictions,
have not complained directly to GRPO about the USG leaking
information. However, our success in gaining ongoing access to
information, and in increasing access as needed to enhance the
fidelity of our understanding in specific cases, depends on our
perceived reliability in keeping confidences. End Comment.

Quinn