AUSTRALIA ANNOUNCES NEW SANCTIONS AGAINST IRAN;

C O N F I D E N T I A L SECTION 01 OF 04 CANBERRA 001037 SIPDIS STATE FOR NEA AND EAP E.O. 12958: DECL: 10/15/2018 TAGS: KNNP PARM PREL EFIN AS SUBJECT: AUSTRALIA ANNOUNCES NEW SANCTIONS AGAINST IRAN; DROPS ICJ ACTION REF: A. FM SMITH-AMB MCCALLUM TELECON OF OCTOBER 15 ¶B. CANBERRA 1026 ¶C. CANBERRA 927 ¶D. CROWLEY-OPS CTR TELECON OF OCT 13 Classified By: DCM Daniel A. Clune. Reasons: 1.4(b)(d). SUMMARY -------------- ¶1. (C/REL AUS) Addressing Parliament on October 15, Foreign Minister Smith announced Australia would impose new travel and financial sanctions against Iran, with immediate effect, that go beyond requirements of United Nations Security Council resolutions. The sanctions, similar to those previously adopted by the European Union, target 20 Iranian individuals and 18 entities, including Bank Melli and Bank Saderat, that contribute to Iran's nuclear and missile programs or otherwise contribute to Iran's violation of its UNSC obligations. He also announced Australia would not provide new financial support for trade with Iran under its trade promotion programs. FM Smith also told Parliament that Australia was dropping its threatened legal action against Iranian President Ahmadinejad in the International Court of Justice for his calls for the destruction of Israel. In a telephone call to Ambassador McCallum on the morning of October 15 to give him advance notice of his statement, FM Smith explained that his legal advisers that the ICJ motion would likely fail and would distract from efforts to force Iran's compliance with its UNSC obligations. Full text of the Foreign Minister's statement is at para 6 below. END SUMMARY. ¶2. (U) As foreshadowed by his September 17 remarks (Ref A) and by DFAT officials in recent days (reftels),FM Smith told Parliament on October 15 that Australia had decided to take new measures to supplement UN sanctions in response to Iran's defiance of the international community's calls to suspend its uranium enrichment and reprocessing-related activities. Effective October 15, Australia would impose sanctions against 20 Iranian individuals and 18 organizations that contributed to Iran's nuclear and missile programs. The entities include Iran's Bank Melli and Bank Saderat, he said. FM Smith said the measures supported and were in line with similar actions adopted by the EU. ¶3. (U) FM Smith also announced Australia would not provide new financial support for trade with Iran under Australia's trade promotion and finance programs, the Export Finance Insurance Corporation and Export Market Development Grants. ¶4. (U) On a separate Iranian issue, FM Smith took the opportunity to announce that, based on legal advice, Australia would not longer pursue legal action against Iranian President Ahmadinejad in the International Court of Justice for his remarks calling for the destruction of Israel, questioning the Holocaust, and similar anti-Semitic comments. ¶5. (C/REL AUS) In a call to Ambassador McCallum on the morning of October 15, FM Smith outlined what he planned to tell the Parliament, noting the decision to drop the ICF case was based on legal advice that it would not likely succeed. Gary Quinlan, Senior Advisor to the Prime Minister, in a QGary Quinlan, Senior Advisor to the Prime Minister, in a subsequent conversation with the DCM, elaborated further on the legal advice. International legal experts had concluded that only states, not individuals, could be parties to suits brought in the ICJ. An action brought against the Iranian president, therefore, would certainly fail. Quinlan said the Security Council could request an advisory opinion from the Court, but Russia and China would undoubtedly block such a request. The lawyers had also considered legal action in the International Criminal Court (ICC) but Iran was not a party to the ICC. Quinlan said political considerations had also played a part: an ICJ action might have the perverse effect of boosting Ahmadinejad's popularity. Emboffs also learned that the Israeli ambassador had sought to dissuade Australia from bringing an ICJ suit against Ahmadinejad for the same reason. CANBERRA 00001037 002 OF 004 ¶6. (U) Following is the text of FM Smith's October 15 statement: Begin text: Ministerial Statement The Australian Government is deeply concerned at Iran's refusal to suspend its uranium enrichment and reprocessing related activities as required by multiple United Nations Security Council Resolutions. As the House knows, Iran's secret nuclear program was revealed in 2002. Since then, Australia has urged Iran to cooperate fully with the International Atomic Energy Agency (IAEA) and to take the steps necessary to reassure the entire international community about the nature of its nuclear activities. The international community has responded through the adoption of four UNSC resolutions which require Iran to suspend uranium enrichment and reprocessing activities, and to meet the IAEA's verification requirements. Three UNSC resolutions have imposed sanctions, including travel and financial restrictions against those engaged in Iran's proliferation sensitive activities. Australia supports each of these binding resolutions, and has implemented these sanctions fully. While the international community believes it is necessary to bring pressure to bear on Iran, it has also reached out. In particular, the European Union foreign policy chief Solana on behalf of the United States, Russia, France, the United Kingdom, China and Germany has offered a generous incentives package in exchange for Iran's suspension of its enrichment activities. Australia has strongly supported this initiative and has urged Iran to accept it. Unfortunately, Iran has refused to take up this offer and to provide the necessary reassurances. To supplement these UN sanctions, the EU decided recently to impose additional autonomous travel and financial sanctions. Members will recall that on 15 September, the IAEA again confirmed that Iran persisted with uranium enrichment and reprocessing-related activities and had refused to give it access to all relevant facilities. The IAEA also reported it had detailed information suggesting Iran has conducted studies into nuclear weapons and that Iranian military entities have been involved in nuclear procurement. This information further deepened our concerns about Iran's nuclear intentions. As I told the House on 17 September, in light of Iran's continuing failure to comply with its international obligations, the Government would consider what additional measures it could take to bring further pressure to bear on Iran. In response to on-going Iranian defiance of the Security Council and given the Government's strong commitment to nuclear non-proliferation, the Government has now decided to impose new financial and travel sanctions effective from today. The sanctions are targeted against 20 Iranian individuals and 18 organisations which contribute to Iran's nuclear and missile programs, or otherwise assist Iran to violate its CANBERRA 00001037 003 OF 004 Security Council obligations. These organisations include Iranian banks Melli and Saderat. The new measures support and are similar to the action recently taken by the European Union. The new measures are not intended to prevent legitimate Australian trade with Iran. However, the Government will implement vigorously the Security Council's call through UNSCR 1803 to be vigilant about providing financial support for trade with Iran, so as to avoid contributing to Iran's proliferation-sensitive activities. To this end, Australia will not provide new financial support for trade with Iran under Australia's trade promotion and trade finance programs, namely through the Export Finance Insurance Corporation and Export Market Development Grants. The Government will, together with the international community, continue to engage with Iran to urge it to suspend uranium enrichment. I take this opportunity to address a separate matter relating to Iran. The Australian Government has strongly condemned the statements by Iranian President Ahmadinejad calling for the destruction of Israel and questioning the Holocaust. These anti-Semitic comments were appalling by any standard. They have been rightly condemned by the international community, including the UN Secretary General. Australian Government officials in Tehran and Canberra have also repeatedly made our abhorrence clear. We were appalled by the latest anti-Semitic views expressed by the Iranian President in his 23 September address to the UN General Assembly. Again, we condemn these remarks unreservedly. The Iranian President's statements are unacceptable and do nothing to reassure the international community that Iran will act as a responsible international citizen. This is all the more troubling given Iran's nuclear program. The Government has given exhaustive consideration to international legal action against Iran for these statements. Having now considered legal and other advice, the Government has decided not to pursue international legal action against Iran. In doing so, we recognised the complexity of the issues involved and the high legal threshold required to bring forward a case. As well, we determined to avoid pursuing a case which would give further profile to these obscene remarks. Most importantly, the Australian Government would not want such legal action to complicate or distract from the international community's efforts to address the serious concerns about Iran's nuclear program and its failure to abide by binding United Nations Security Council resolutions. It is clear to me that the international community's most pressing priority in relation to Iran is to address Iran's nuclear program. My announcement today on new sanctions reflects the Australian Government's determination to support and reinforce the international community's efforts to hold Iran to account. End text. CANBERRA 00001037 004 OF 004 MCCALLUM