DESIGNATION OF THE ISLAMIC REPUBLIC OF IRAN

S E C R E T SECTION 01 OF 02 STATE 104496 SIPDIS E.O. 12958: DECL: 09/30/2018 TAGS: AG AS AJ BE CH CY EG RE GM IN IR IT JA LY MY MT NO, PK, SA, SN, KS, SP, SW, TW, TU, TC, UK, ECON, EFIN, ETRD, PARM, KNNP, EUN, EWWT, PREL SUBJECT: DESIGNATION OF THE ISLAMIC REPUBLIC OF IRAN SHIPPING LINES REF: A. STATE 69339 ¶B. STATE 94723 Classified By: ISN Patricia A. McNerney for reasons 1.4 (b) and (d). ¶1. (C) This is an action request. Please see paragraph 4. -------------- SUMMARY/BACKGROUND -------------- ¶2. (SBU) The United States designated the Islamic Republic of Iran Shipping Lines (IRISL) and 18 subsidiaries under E.O. 13382 ("Blocking the Property of Weapons of Mass Destruction Proliferators and their Supporters") on September 10, 2008. These designations are consistent with obligations in UN Security Council Resolutions (UNSCRs) 1737, 1747 and 1803, which require Member States to freeze the assets of entities and individuals designated by the UN Security Council as being involved in Iran's nuclear or missile programs, and freezing the assets of entities acting on their behalf or at their direction. IRISL facilitates shipments of military and proliferation-related cargo destined for Iran's defense industry, including to organizations that have been designated in UN Security Council Resolutions 1737 and 1747. These designations highlight the dangers of doing business with IRISL and its affiliates, and provide information that will help financial institutions in the U.S. and worldwide protect themselves from deceptive financial practices employed by Iranian entities like IRISL that engage in or support proliferation. ¶3. (S/REL TO ADDRESSEES) This is a follow up cable to a previous demarche (Ref A and B) to addressees on IRISL's proliferation-related activities. We would like to inform these countries of IRISL's designation and request that they take similar actions, consistent with national legal authorities, to freeze the assets of this entity, and its affiliated companies, for their facilitation of military and proliferation-related cargo to UN-designated entities. We also want to convey to host governments that any entity in their jurisdiction found to be conducting business with IRISL and other designated entities, or any entity that is owned or controlled by, or acting for or on behalf of IRISL and its affiliated companies, may be subject to designation under E.O. 13382. -------------- OBJECTIVES/ACTION REQUEST -------------- ¶4. (S/REL TO ADDRESSEES) Posts are requested to pursue the following objectives. In doing so, Posts should draw from the press release issued by the State Department on September 10, 2008, which can be found at www.state.gov/r/pa/prs/ps/2008/sept/109485.ht m and the press STATE 00104496 002 OF 002 -- Inform host government officials of the U.S. designations under E.O. 13382. -- Notify host government officials that these designations are consistent with USG obligations under UNSCRs 1737, 1747 and 1803. -- Urge host governments, consistent with obligations under UNSCRs 1737, 1747 and 1803 and their own national legal authorities, to 1) freeze the assets of these entities if they have not already done so, as well as the assets of persons or entities acting on their behalf or at their direction, or by entities owned or controlled by them; 2) require comprehensive mandatory inspections of IRISL-related cargo; and 3) ensure that all national companies, particularly freight forwarders and insurance companies, cease business operations with IRISL. -- Note that firms in the jurisdiction of host governments risk designation under E.O. 13382 if they act or purport to act for or on behalf of, directly or indirectly, IRISL, the listed IRISL subsidiaries, or any other E.O. 13382 designated entity, and/or if they provide, or attempt to provide, financial, material, technological, or other support for, or goods or services in support of any designated entity. -------------- REPORTING DEADLINE -------------- ¶5. (U) Please report any response within seven days of receipt of this cable. Please slug replies for ISN, T, TREASURY, and NEA/IR. Please use SIPDIS caption on all responses. -------------- POINT OF CONTACT -------------- ¶6. (U) Washington point of contact for follow-up information is Jennifer Chalmers, ISN/CPI, (202) 647-9715, chalmersja@state.sgov.gov. ¶7. (U) Department thanks Post for its assistance. ¶8. (U) Tripoli minimize considered. RICE