Identifier
Created
Classification
Origin
08SEOUL1454
2008-07-23 02:47:00
SECRET
Embassy Seoul
Cable title:
SEOUL RESPONSE/ACTION REQUEST: CENTRAL BANK OF
how-toVZCZCXRO3791 PP RUEHBC RUEHDE RUEHDIR RUEHKUK DE RUEHUL #1454 2050247 ZNY SSSSS ZZH P 230247Z JUL 08 FM AMEMBASSY SEOUL TO RUEHC/SECSTATE WASHDC PRIORITY 0937 INFO RUCNIRA/IRAN COLLECTIVE PRIORITY RUEHKO/AMEMBASSY TOKYO PRIORITY 4663 RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
S E C R E T SEOUL 001454
SIPDIS
STATE FOR ISN/CPI, T, NEA/IR, IO/PSC, EUR/WE, EAP/K
TREASURY FOR OFAC
E.O. 12958: DECL: 07/23/2033
TAGS: KNNP IR PREL PARM PINR KS EFIN
SUBJECT: SEOUL RESPONSE/ACTION REQUEST: CENTRAL BANK OF
IRAN SEEKING RELATIONSHIP WITH INDUSTRIAL BANK OF KOREA
REF: (A) STATE 69996
Classified By: EMIN ANDREW QUINN FOR REASONS 1.4 (B&D).
S E C R E T SEOUL 001454
SIPDIS
STATE FOR ISN/CPI, T, NEA/IR, IO/PSC, EUR/WE, EAP/K
TREASURY FOR OFAC
E.O. 12958: DECL: 07/23/2033
TAGS: KNNP IR PREL PARM PINR KS EFIN
SUBJECT: SEOUL RESPONSE/ACTION REQUEST: CENTRAL BANK OF
IRAN SEEKING RELATIONSHIP WITH INDUSTRIAL BANK OF KOREA
REF: (A) STATE 69996
Classified By: EMIN ANDREW QUINN FOR REASONS 1.4 (B&D).
1. (U) This is an action request. Please see para 4.
2. (S) On July 23, Ministry of Foreign Affairs and Trade
(MOFAT) Disarmament and Non-proliferation Deputy Division
Director Lee Sang-soo thanked Econoff for the reftel demarche
expressing USG concerns about the Central Bank of Iran's
(Bank Markazi) efforts to conduct business with the
Industrial Bank of Korea (IBK). Lee confirmed that IBK had
been in negotiations with Bank Markazi to open a local
account for Bank Markazi to facilitate Korea's foreign
exchange payments for its crude oil imports from Iran (which
currently account for about 9 percent of Korea's total oil
imports).
3. (S) Lee noted that the ROKG had decided on July 10 to
halt the IBK's negotiations with Bank Markazi, with no action
taken on the account request.
4. (S) ACTION REQUEST: While expressing the ROKG's strong,
ongoing commitment to cooperate with the U.S. on Iran-related
issues, Lee asked for U.S. guidance on whether the ROKG could
proceed in some way to open a local bank account for Bank
Markazi to help facilitate future oil transactions with Iran.
At present, the ROKG is making payments to Bank Markazi via
a German bank located in Germany, but the ROKG would prefer
to use a local bank account arrangement similar to the one
established by the Japanese government. In particular, the
ROKG is seeking USG advice on whether it can allow Bank
Markazi to open a local account strictly to receive oil
payments and for no other purpose. Please advise on
appropriate response. END ACTION REQUEST.
VERSHBOW
SIPDIS
STATE FOR ISN/CPI, T, NEA/IR, IO/PSC, EUR/WE, EAP/K
TREASURY FOR OFAC
E.O. 12958: DECL: 07/23/2033
TAGS: KNNP IR PREL PARM PINR KS EFIN
SUBJECT: SEOUL RESPONSE/ACTION REQUEST: CENTRAL BANK OF
IRAN SEEKING RELATIONSHIP WITH INDUSTRIAL BANK OF KOREA
REF: (A) STATE 69996
Classified By: EMIN ANDREW QUINN FOR REASONS 1.4 (B&D).
1. (U) This is an action request. Please see para 4.
2. (S) On July 23, Ministry of Foreign Affairs and Trade
(MOFAT) Disarmament and Non-proliferation Deputy Division
Director Lee Sang-soo thanked Econoff for the reftel demarche
expressing USG concerns about the Central Bank of Iran's
(Bank Markazi) efforts to conduct business with the
Industrial Bank of Korea (IBK). Lee confirmed that IBK had
been in negotiations with Bank Markazi to open a local
account for Bank Markazi to facilitate Korea's foreign
exchange payments for its crude oil imports from Iran (which
currently account for about 9 percent of Korea's total oil
imports).
3. (S) Lee noted that the ROKG had decided on July 10 to
halt the IBK's negotiations with Bank Markazi, with no action
taken on the account request.
4. (S) ACTION REQUEST: While expressing the ROKG's strong,
ongoing commitment to cooperate with the U.S. on Iran-related
issues, Lee asked for U.S. guidance on whether the ROKG could
proceed in some way to open a local bank account for Bank
Markazi to help facilitate future oil transactions with Iran.
At present, the ROKG is making payments to Bank Markazi via
a German bank located in Germany, but the ROKG would prefer
to use a local bank account arrangement similar to the one
established by the Japanese government. In particular, the
ROKG is seeking USG advice on whether it can allow Bank
Markazi to open a local account strictly to receive oil
payments and for no other purpose. Please advise on
appropriate response. END ACTION REQUEST.
VERSHBOW