RESPONSE TO POSSIBLE INCORPORATION OF JOINT

UNCLAS SECTION 01 OF 02 STATE 115243 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ECON EFIN KNNP PARM PTER IR PK SUBJECT: RESPONSE TO POSSIBLE INCORPORATION OF JOINT IRANIAN-PAKISTANI SHIPPING LINE REF: A. A) STATE 104496 ¶B. B) STATE 69339 ¶C. C) STATE 94723 ¶1. (SBU) This is an action request. Please see paragraph three. -------------- SUMMARY/BACKGROUND -------------- ¶2. (SBU) Recent press reports suggest that Pakistan is considering the establishment of a joint shipping line with Iran to boost maritime cooperation and trade. Due to recent public exposure of Iran,s use of its primary shipping line, the Islamic Republic of Iran Shipping Line (IRISL),for proliferation activities, it would make sense for Iran to work around the increased scrutiny of IRISL by using its other shipping lines for proliferation-related shipments. For this reason, Washington strongly urges Pakistan to end any discussions with Iran on a joint shipping line, as Iran may now use other shipping lines for proliferation activities. -------------- OBJECTIVES/ACTION REQUEST -------------- ¶3. (SBU) Washington requests Embassy Islamabad approach appropriate Pakistani officials in the foreign affairs and finance ministries, and other appropriate government agencies, including those responsible for shipping and customs activities, to discuss this issue. Post should pursue the following objectives, and may draw from the information in REFTELs on the designation of IRISL and its subsidiaries. -- Inform Pakistan of Iran,s established history of using its primary shipping line, the Islamic Republic of Iran Shipping Line (IRISL),for proliferation-related purposes (REF B, C). -- Note that IRISL was specifically mentioned in operative paragraph 11 of UNSCR 1803 (REFTEL),which called upon States, in accordance with national legal authorities and consistant with international law, to inspect the cargoes going to or from Iran, of aircraft and vessels, at their airports and seaports, owned or operated by Iran Air Cargo and IRISL, provided there are reasonable grounds to believe that the aircraft or vessel is transporting goods prohibited under UNSCR 1803 and UNSCRs 1737 and 1747. -- Inquire whether IRISL or any subsidiaries or affiliates of IRISL are involved in the proposed joint venture. -- Advise Pakistan that any Pakistani joint venture with IRISL or any other UNSCR-designated entity could subject those entities involved with such joint ventures to designation under E.O. 13382 (REF A). (Note: Six of IRISL,s joint ventures designated under E.O. 13382 on September 10, 2008 are in countries outside of Iran. End note.) -- Convey that as international scrutiny of IRISL has increased, there is a likelihood that Iran may use its other shipping lines for its proliferation activities. Pakistan does not want to provide Iran with an additional means to facilitate proliferation. -- Urge Pakistan to end discussions with Iran to establish a joint shipping company and to reconsider expanding trade ties with Iran. -------------- REPORTING DEADLINE -------------- ¶4. (U) Please report delivery of the U.S. non-paper and any response. Please slug replies for ISN, T, SCA, TREASURY, and NEA/IR. Please use SIPDIS caption on all responses. -------------- POINT OF CONTACT -------------- STATE 00115243 002 OF 002 ¶5. (U) Washington point of contact for follow-up information is Kevin McGeehan, ISN/CPI, (202) 647-5408, mcgeehankj@state.sgov.gov. ¶6. (U) Department thanks Post for its assistance. RICE