PRE NOTIFICATION OF SANCTIONS AGAINST UAE ENTITY

S E C R E T STATE 111428 E.O. 12958: DECL: 10/08/2018 TAGS: MNUC PARM PREL XB ZP AE ZO SUBJECT: PRE NOTIFICATION OF SANCTIONS AGAINST UAE ENTITY Classified By: NEA Gene A. Cretz for reasons 1.4 b,c,d ¶1. (U) This is an action request. Please see paragraph three. -------------- SUMMARY -------------- ¶2. (S) The United States will impose sanctions under the Iran, North Korea, and Syria Nonproliferation Act (INKSNA) on 22 October. There are also other firms in other countries that will be reported to Congress for INKSNA violations. One UAE company - R and M International Free Zone Company (FZCO) ) will be among those sanctioned. -------------- ACTION REQUEST -------------- ¶3. (S) Post is requested to pre-notify the UAE at least 24 hours in advance of the U.S. announcement of its decision to sanction R and M International FZCO under INKSNA and explain why we are taking this action. The Department will notify Post via email as soon as a decision has been made to make the sanctions public. Please draw from the talking points in paragraph seven. End action request. -------------- OBJECTIVES -------------- ¶4. (S) Post should achieve the following objectives: -- Given our close cooperation on counterproliferation, note our desire to provide prior notification of a sanction decision that will affect one UAE company - R and M International FZCO. -- Emphasize that sanctions are not directed at the UAE but only at the company. -- Encourage the UAE to investigate the company. End objectives. -------------- BACKGROUND -------------- ¶5. (S) The Iran, North Korea, and Syria Nonproliferation Act (INKSNA) requires periodic reports to Congress identifying foreign entities with respect to whom there is credible information indicating that they have transferred to or acquired from Iran, North Korea or Syria goods, services, or technology on multilateral export control lists (Australia Group (AG),Chemical Weapons Convention (CWC),Missile Technology Control Regime (MTCR),Nuclear Suppliers Group (NSG),and the Wassenaar Arrangement (WA) or certain other items with the potential to make a material contribution to the development of WMD or ballistic or cruise missile systems. The U.S. has the discretion to impose sanctions on such foreign entities. ¶6. (S) The USG has determined that R and M International FZCO (located in the UAE) has engaged in activities, as noted above, that warrant the imposition of sanctions under the INKSNA. This case has not been raised previously with the UAE Government. Penalties imposed by the sanction will take effect shortly and remain in place for two years. This sanctions determination and the name of the company will be published in the Federal Register once a decision has been made by the Department to notify Congress and the public. End Background. -------------- TALKING POINTS -------------- ¶7. (S/REL UAE) Suggested Talking Points: -- The Iran, North Korea, and Syria Nonproliferation Act (INKSNA) requires the USG to report transfers made by foreign entities with respect to whom there is credible information indicating that they have transferred to or acquired from Iran, North Korea or Syria goods, service, or technology on multilateral control lists (Australia Group (AG),Chemical Weapons Convention (CWC),Missile Technology Control Regime (MTCR),Nuclear Suppliers Group (NSG),and the Wassenaar Arrangement (WA) or certain other items with the potential to make a material contribution to the development of WMD or ballistic or cruise missile systems. -- The United States has determined that there was credible information indicating that the UAE-based company, R and M International FZCO transferred items listed under the multilateral control list Wassenaar Arrangement to Syria - a country named in INKSNA. -- Syria,s Ministry of the Interior arranged for the purchase of bullet proof vests worth nearly $700,000 (USD) from the R and M International FZCO in July 2006. The vests were to be used by the Ministry,s Internal Security Forces at the Department of Administrative Affairs in Damascus. -- These bullet proof vests are controlled under the Wassenaar Arrangement and are therefore reportable under the INKSNA. -- We have information that R and M International FZCO is located at the Jebel Ali Free Zone, P.O. Box 2619092, Dubai. -- There are also other firms in other countries that will be reported to Congress for INKSNA violations. -- The imposition of this sanction is directed only at R and M International FZCO and not at the UAE. -- We will announce publicly in the Federal Register the imposition of penalties against R and M International FZCO as well as sanctions against other entities located in other countries. -- We encourage you to investigate R and M International FZCO, its successors, subunits, and subsidiaries for possible violations of your laws. -- The following penalties, which will take effect shortly and remain in place for two years, will be imposed on R and M International FZCO, its successors, subunits, and subsidiaries: a. No department or agency of the United States Government may procure, or enter into any contract for the procurement of any goods, technology, or services with R and M International FZCO, its successors, subunits, and subsidiaries; b. No department or agency of the United States Government may provide any assistance to them, and they shall not be eligible to participate in any assistance program of the United States Government; c. No United States Government sales to them of any item on the United States Munitions List are permitted, and all sales to them of any defense articles, defense services, or design and construction services under the Arms Export Control Act are terminated; and d. No new individual licenses shall be granted for the transfer to them of items controlled under the Export Administration Act of 1979 or the Export Administration Regulations, and existing such licenses are suspended. -- We look forward to continued cooperation on this and other related security matters. End talking points. -------------- POINT OF CONTACT -------------- ¶8. (U) Washington point of contact is Stephen Tomchik, VCI/FO and Chris Herrington ISN/CPI. Please slug all responses for VCI, ISN, NEA, and T. We appreciate Post,s assistance. RICE NNNN End Cable Text