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