KOREAN AIR AGREES TO COMPLY WITH TDO ON 747

S E C R E T SEOUL 000576

SIPDIS

NOFORN
SIPDIS

STATE FOR EEB/ESC/TFS, ISN/CPI, EEB/OTF, EAP/K
NSC FOR PAN AND CHANG
TREASURY FOR OFAC
COMMERCE FOR OEE

E.O. 12958: DECL: 03/22/2018
TAGS: EAIR ETRD ETTC PTER PREL KLIG KS UK IR GR
SUBJECT: KOREAN AIR AGREES TO COMPLY WITH TDO ON 747
AIRCRAFT FOR IRAN; FURTHER CLARIFICATIONS REQUESTED

REF: A. (A) STATE 18255

B. (B) SEOUL 363

C. (C) STATE 21134

D. (D) SEOUL 422

E. (E) STATE 29431

F. (F) SEOUL 573

Classified By: DCM BILL STANTON FOR REASONS 1.4 (B&D).


1. (U) This is an action request. Please see Para 5.


2. (S/NF) The Ministry of Foreign Affairs and Trade's
(MOFAT) Disarmament and Nonproliferation Director Lee
Jang-kuen called in Emboffs March 22 to discuss the results
of the ROKG's interagency meeting held yesterday on Ref (E)
demarche. Lee noted the ROKG duly informed Korean Airlines
(KAL),the Korean company carrying out the 747 overhauls for
Balli Group (BG),of the Temporary Denial Order (TDO) on
March 21. KAL agreed to cooperate fully with the TDO. KAL
urgently requested, however, guidance on whether routine
operational checks and minimal maintenance on the aircraft
can continue to ensure their safety and operability. KAL
representatives also indicated that such work is necessary to
prevent serious deterioration in the aircraft that could
expose KAL to significant civil liabilities.


3. (S/NF) According to Lee, KAL officials believe that BG
will soon register the aircraft in Greece to obtain valid
airworthiness certificates from that country to facilitate
their departure from Korea. KAL officials noted that they
had received no information on the aircrafts' likely onward
destination or the nationality of the pilots that would fly
the aircraft. Lee was nonetheless confident that KAL would
continue to comply with the TDO to keep the aircraft on the
ground.


4. (S/NF) At the March 21 interagency meeting, Ministry of
Construction and Transportation officials stressed their own
statutory basis for denying takeoff clearances was extremely
limited and such action would be unprecedented. MOFAT
officials indicated national security grounds might be
invoked for the detention, but the National Intelligence
Service (NIS) representative had reiterated the ROKG's need
for additional U.S. intelligence to help make that
determination. As a result, Lee urgently requested
additional releaseable intelligence from the USG on Balli
Group's previous and current activities tied to Iran's
support for terrorism in Iraq and elsewhere.


5. (S/NF) ACTION REQUEST: Please provide guidance as soon
as possible on (A) KAL's request to continue doing minimal
work on the aircraft to ensure their safety; and (B) BG's
previous and existing activity in support of Iranian
terrorist-related activity. In addition, we recommend
Washington consider consulting with the Greek government to
block BG's efforts to circumvent the TDO.
VERSHBOW