PSI: SUMMARY OF SEPTEMBER 2008 PARIS OPERATIONAL

UNCLAS SECTION 01 OF 03 STATE 115935

SIPDIS

E.O. 12958: N/A
TAGS: KNNP MNUC PARM PREL
SUBJECT: PSI: SUMMARY OF SEPTEMBER 2008 PARIS OPERATIONAL
EXPERTS GROUP (OEG) MEETING

SUMMARY AND ACTION REQUEST


1. The seventeenth Proliferation Security Initiative
PSI) Operational Experts Group (OEG) meeting took place
in Paris, France on September 25-26, 2008. The twenty PSI
countries participating in the OEG work on behalf of
all PSI participants (i.e., the more than 90
countries that have endorsed the PSI Statement of
Interdiction Principles). We would like to share key
insights from the latest meeting with all countries
that have endorsed the PSI, with which we want to
deepen our operational cooperation.


2. Posts are requested to provide the summary in
paragraph 4 below of the September 2008 OEG meeting
results to host government officials from relevant
agencies such as Ministries of Defense, Foreign
Affairs, Law Enforcement agencies (including Customs,
Border Control, etc.),and intelligence agencies.

OBJECTIVE


3. To inform all PSI-endorsing states of the latest
developments resulting from the September 25-26, 2008 PSI
OEG meeting in Paris, France. Post may draw from the
background paragraph 4, which may be left as a nonpaper.
Additional meeting materials for posts' reference can
be provided by State/ISN/CPI (Carlos Guzman) upon
request (GuzmanCS@state.gov).

BACKGROUND


4. BEGIN NON-PAPER ON THE SEPTEMBER 2008 PSI OEG MEETING
HOSTED BY FRANCE:

-- The Government of France hosted the seventeenth PSI
Operational Experts Group (OEG) meeting on September
25-26, 2008. The meeting included experts from 20 PSI
partner countries that work together to establish a PSI
exercise program and develop operational concepts in
support of the Initiative and on behalf of the more than
90 PSI participant states.

-- The meeting included presentations and discussions on
a broad range of topics, including the U.S.-hosted PSI
fifth anniversary meetings held on May 28-29 in
Washington, the 2005 Protocol to the Convention for the
Suppression of Unlawful Acts Against the Safety of
Maritime Navigation (SUA),the International Civil
Aviation Organization (ICAO) convention amendment
process, an update on the Financial Action Task Force
(FATF),PSI exercises, legal and law enforcement issues,
and European Union strategies to combat WMD-related
proliferation.

-- THE PSI FIFTH ANNIVERSARY MEETINGS. The U.S.
discussed the results of the Senior-Level Meeting
and the PSI Outreach Workshop held May 28-29, 2008 in
Washington. The meeting resulted in the adoption of
the Washington Declaration, which set out key priorities
for the future: to focus on regional PSI activities and
outreach workshops; to strengthen communication channels
among counterpart government agencies in PSI partner
states; and to continue work to strengthen relevant
international law and frameworks (see: http://www.state.
gov/r/pa/prs/ps/2008/may/105268.htm).

-- EUROPEAN UNION AND PSI. An invited representative
from the European Union described how the EU is
playing a role in nonproliferation. First, the EU
provides a legal basis for PSI activities of its
member states by translating UNSCR sanctions at the EU
level and implementing its own set of sanctions. The
EU has established a legal regulatory framework in
areas where states have transferred authority to the
European Union (e.g., dual-use intem export control
regime) and sets out best practices for Member States
(e.g., customs regulations).Second, the EU offers
capacity-building and institutional support in
implementing PSI Interdiction Principles - the Joint
Research Centre develops operational tools in areas
such as the surveillance of maritime traffic and
container screening. Third, EU institutions contribute
to the fight against proliferation through assistance
and outreach efforts to third countries, and this
includes inserting a WMD clause in cooperation

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agreements with third parties.

-- FINANCIAL ACTION TASK FORCE (FATF). Denmark summarized
the FATF's efforts to prevent proliferation finance. The
FATF's mandate was extended in 2008 to include the
analysis of financing aspects of WMD proliferation.
FATF's approach is based on recommendations on the
implementation of UN Security Council resolutions. It
seeks to provide tools for implementing the financing
aspects of those resolutions based on a typology process
(threat assessment, methods and measures, identification
of policy issues). Denmark underlined that the main PSI
challenge in this regard is information and intelligence
sharing with financial institutions and industry.

-- PSI WEBSITE UPDATE. Germany gave a presentation on
the PSI internet website project which currently contains
practical information, contact details, and an archive of
previous PSI meetings and exercises. Access can be
requested by all PSI partners by contacting the local
German embassy. Germany suggested improvements to the
website to increase participation, add content (PSI
newsletter, search engine, "national areas", etc.) and
improve interactivity (discussion groups, information
exchanges). All participants underlined the importance
of the work Germany has undertaken. Delegates discussed
the development and use of the German website as a PSI
information repository and outreach tool.

-- PSI EXERCISES AND OUTREACH. France presented on its
March 2008 Exercise "Guistir", which included an outreach
event and a live exercise at sea and in the harbour in
cooperation with the Djibouti authorities. New Zealand
outlined Exercise "Maru", which took place in September.
Its objectives were to improve the capabilities and
interoperability of regional PSI partners, improve the
collective understanding within the PSI community of
disposition and liability issues, and encourage a greater
understanding of the PSI within the Asia-Pacific region.
The exercise focused on post-interdiction issues,
including the response to legal challenges to justify a
course of action, liability, ownership and disposition of
the goods seized, prosecution and media strategy.
Canada gave a presentation on the PSI inject into the
U.S.-hosted Exercise "Panamax" exercise held in August.
This was a multinational exercise that brought together
Western Hemisphere partner nations to address regional
security concerns.

-- 2005 SUA PROTOCOLS. Spain, which ratified the 2005
SUA Protocol in April 2008, reported that it did not
encounter any specific domestic difficulties during the
ratification process. The Spanish penal code covers all
the new SUA offences in a material way. A number of
other PSI partners are currently in the same process.
The U.S. Senate has provided its advice and consent to
the SUA Protocol, but Congress has yet to enact the
necessary implementing legislation. The U.S. delegation
described its nine bilateral PSI shipboarding agreements,
which are consistent with the implementation of UNSCR
1540, PSI objectives and the provisions of the 2005 SUA
Protocol. The U.S. delegation circulated samples of forms
that are used to request and provide the authorization of
the flag state to board and, if evidence is found, to
request information for disposition. It was also
mentioned that the provisions of the SUA Protocols are
serving as a basis for the discussion in the ICAO to
introduce new offenses to counter proliferation by air.
PSI partners were encouraged, while respecting the
sovereignty of PSI States, to pursue the
ratification/accession process of the 2005 SUA Protocol.
Delegations discussed other legal issues related to
boarding operations in the high seas under the 2005 SUA
Protocol, including the boarding regime itself and law
enforcement procedures and the nature of these standards
for these boarding operations (domestic, international
with regard to human rights).

-- LEGAL ISSUES. Turkey presented a review of its export
control legislation, which used the EU list as a model.
Turkey's draft law on strengthening the export controls
on dual use and sensitive goods was submitted to the
Turkish Grand National Assembly in June 2008. Australia
discussed the progress by ICAO on improving the existing
legal framework (updating the Montreal and Hague
Conventions). Australia requested OEG states to consider
the draft amendment to the Montreal Convention and
provide comments. Australia also emphasized the necessity
of building relationships with industry and to engage a
broader range of countries in the process. The U.S.
examined disposition and liability with a focus on the

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question of goods abandoned or unclaimed. The
presentation outlined customs abandonment statutes,
issues related to the disposition of abandoned or
unclaimed merchandise, and liability. France outlined
steps taken recently to support PSI, including the
development of its national response plan related to
WMD proliferation and associated Standard Operating
Procedures, a draft law to reinforce French legislation,
new dual-use goods export control mechanisms, and a draft
PM directive calling all institutions to take into
account WMD counter proliferation.

-- LAW ENFORCEMENT ISSUES. The U.S. gave a presentation
exploring key law enforcement issues, including
information acquisition, analysis and targeting, engaging
industry, supply chain security and capacity building.
France provided information on the role of customs in
control of dual use goods and technology, starting from
licensing procedure to offences and penalties. It
outlined the basic principles of customs control of
dual-use goods: it is based mainly on EU Regulation
1334/2000, which covers products controlled under various
international non-proliferation regimes. This Community
Regulation set up a community regime for the control of
dual-use items and technology exports. The presentation
showed that this regulation is fully and directly
applicable in French law and that it will be clarified
by French Customs. France further described the different
license types used in France, the licensing procedure,
the role of French Customs in controlling dual-use
exports, and the relevant offences and penalties.

-- PSI MODEL NATIONAL RESPONSE PLAN. Portugal announced
the release of the Portuguese version of the national
response plan, available to all PSI-endorsing states.

-- PSI EXERCISE PROGRAM. The UK provided an update on
the Lessons Identified database that would be used to
document the PSI Exercise Program and help guide and
prioritize focus areas of future exercises.

-- PSI SCHEDULE 2009. The U.S. will host the next OEG
meeting with Western Hemisphere regional participation
on May 12-14, 2009. Poland will host a European regional
OEG in June 2009. The U.S. will host an exercise in the
Gulf region in October 2009. Singapore will host an
exercise in November 2009. All dates are subject to
change. Australia gave a short presentation of the PSI
Master Events List (MEL) that will reflect all exercises
and outreach activities, noting that it plans to post the
tool on the PSI website hosted by Germany.

END NON-PAPER ON THE SEPTEMBER 2008 PSI OEG MEETING
HOSTED BY FRANCE.

POINTS OF CONTACT


5. Please slug responses for OSD GSA (Beth Flores) and
State/ISN/CPI (Carlos Guzman). USG POC for PSI
Operational Experts Group issues is Beth Flores,
OSD/GSA (beth.flores@osd.mil). USG POC for PSI policy
issues is Carlos Guzman, State/ISN/CPI
(GuzmanCS@state.gov).
RICE