BANK SEPAH DEMARCHE

S E C R E T BAGHDAD 001893

SIPDIS

NEA FOR NEA/I
ISN FOR ISN/CPI (CHALMERS)

E.O. 12958: DECL: 06/22/2018
TAGS: ECON EFIN KNNP PTER PARM IR IZ
SUBJECT: BANK SEPAH DEMARCHE

REF: STATE 63693 AND PREVIOUS

Classified by Economic Minister Counselor Charles P. Ries for
reasons 1.4 (b) and (d).


1. (S) During a June 10 meeting, Coordinator for the
Economic Transition in Iraq Ambassador Charles Ries
reiterated to Deputy Prime Minister Barham Salih Iraq's
obligation to comply with its international obligations
regarding the operation of Iranian banks in Iraq, including
Bank Sepah. Ambassador Ries presented Salih with a
compilation of diplomatic notes and non-papers dating from
June 2007, reminded him of Iraq's obligations under UNSCRs
1737, 1747 and 1803, and requested Salih's immediate
intervention to ensure GOI action.


2. (S) Salih pledged to help, and said the Economic
Committee would send a letter to the Central Bank of Iraq
(CBI) and the MFA reminding them of their international
obligations. Salih, however, expressed his private doubts
that the CBI or MFA would take heed.


3. (S) On June 19, Econoff raised the issue with MFA
Department of International Organizations head Mohammed
Humaimidi, relaying reftel points and asking for MFA's
assistance in pressing for GOI compliance. Humaimidi said he
would, once again, inform the CBI as well as the Trade and
Finance ministries of their requirements under the UNSCRs.
Humaimidi noted as an aside, however, that "perhaps at some
point the U.N. Security Council could recognize the necessary
special economic relationship" between Iran and Iraq, "like
they did for Jordan under UNSCR 661."


4. (S) Econ and Treasury Attache are coordinating an
approach to the CBI. Post will report developments, and
possible next steps, via septel.

CROCKER