PSI: OPERATIONAL EXPERT GROUP MEETING IN PARIS,

UNCLAS SECTION 01 OF 08 STATE 115964

SIPDIS

E.O. 12958: N/A
TAGS: KNNP MNUC PARM PREL
SUBJECT: PSI: OPERATIONAL EXPERT GROUP MEETING IN PARIS,
FRANCE (SEPTEMBER 25-26, 2008),PART 2 OF 2.

REF: A. STATE 115935

B. STATE 115948

SUMMARY

1. The seventeenth Proliferation Security Initiative
(PSI) Operational Experts Group (OEG) meeting took
place in Paris, France on September 25-26, 2008.
Delegations from the 20 OEG countries participated.
Information contained in this cable is provided for
Posts' information and is not to be passed to host
governments.

OBJECTIVES AND ACTION REQUEST


2. REFTEL A provides a non-paper to pass to host
nation governments of all PSI-endorsing states to
keep them abreast of developments in the PSI
community. REFTEL B contains part 1 of 2 of
OEG reporting cable. Posts are requested to
provide assessments of what PSI outreach activities
(including exercises, table top exercises emphasizing
a national response plan for WMD-related
interdiction, commodity identification training,
etc.) might provide value-added capacity-building
effects to the host country. Email replies to POC
are acceptable, following delivery of REFTEL
non-paper.


3. Continuation of Chairman's Statement: PROLIFERATION
SECURITY INITIATIVE OPERATIONAL EXPERTS GROUP MEETING
PARIS, FRANCE September 25-26, 2008. PART 2 OF 2.

Training - Outreach


4. France presented the outreach event she organised in
cooperation with the Djiboutian authorities in March 2008
(Guistir). This event aimed to raise awareness in North
African and Red Sea countries that are considered to be
in strategic areas but not yet completely familiar with
the PSI. OEG and local countries' interagency teams
exchanged on the whole scope of PSI issues in a genuinely
interactive manner. This seminar was followed by a live
exercise at sea and in the harbour. The event showed how
a country with considerable local knowledge but with
limited means can effectively cooperate and act with an
experienced country offering its expertise.


5. New-Zealand outlined its week-old Maru exercise. 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.
Eight OEG members participated and 20 countries -
including six OEG members and 10 from non-endorsing
countries - sent obervers. 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.


6. Canada gave a presentation on the PSI inject into the
"PANAMAX 08" exercise. This was a multinational exercise
that brought together partner nations to address the
security concerns and defence issues vital to the region.
A PSI component was inserted: missile-related components
transiting from a Middle-Eastern country, via France,
through Canada, to a Latin American country. The
exercise's impact was significant in terms of education,
raising awareness, and outreach. The PSI inject into
Panamax 08 was effectively leveraged and led to three main
recommendations: 1. encourage inserting PSI components
into general exercises, 2. leverage participation in
appropriate exercises for PSI experience and 3. outreach
opportunities.


7. Portugal announced the release of the Portuguese
version of the national response plan, available to all
PSI-endorsing states.

Prospective Break-Out Group Reports

Future of OEG Meetings Break-Out Session


8. Under New-Zealand chairmanship, participants

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considered several issues and made proposals to strengthen
the initiative's efficiency. With regards to the pace
of OEGs, delegations said they would be comfortable with
an annual global OEG meeting, and having at the same time
more frequent regional OEGs with flexible formats and
agendas. A number of countries stressed the need to ensure
substantial discussion especially at regional OEGs.

Membership

-- There was general support to maintain the OEG's
composition in its current format, while leaving open the
possibility to enlarge participation on a case-by-case
basis. The possibilities of inviting "special guests" to
"20 members"-OEG, if needed, will also be kept under
review. It was generally agreed that there could be more
flexibility regarding membership or attendees in regional
OEG meetings (including invitations to non-PSI endorsees).

Continuity

-- Regarding the issue of ensuring a better continuity
between the meetings, the idea of a troika (past, current
and upcoming chairmanship) for OEG meetings was discussed,
as well as that of having a permanent chairmanship or
co-chairing arrangements for the break-out groups. The
United Kingdom, France and the United States, who compose
the current troika, pointed out the relevance of such a
mechanism and agreed to work on that format. Participants
are invited to provide the current troika with ideas on
how that mechanism should be implemented. New Zealand and
Denmark volunteered to provide a first paper, the
mechanism will be reviewed at the next OEG meeting.

Communication

-- The need for more effective communication among the
OEG members was stressed, as was the need for better
communication with non OEG PSI supporters. New Zealand
offered to publish a PSI newsletter with contributions
from partners.

Outreach-Exercises Session


9. Under United States Chairmanship, discussions
mainly focused on the ways and means to conduct outreach
activities and the way to better coordinate them with
exercises or bilateral events. In particular, partners
examined the way to develop a tailored approach in
outreach activities, the way and means to promote PSI
activities for non-member states, the way to improve
the tools (the master events list or a lessons identified
databases),and the importance of interagency dimension.
Partners identified key proposals the plenary should
consider:
-- Outreach - Exercises Breakout Group be continued
at next OEG;
-- Consider Lessons Identified database when planning
future activities;
-- Master Events List (MEL) to be historical record
& future planning tool.

Outreach to Industry Break-Out Session


10. Under British Chairmanship, the following delegations
made presentations:
-- France (sea carrier group) on the concrete needs and
expectations of cargo industry regarding PSI,
-- Germany, the Netherlands and Denmark on their
national perspective,
-- USA on air cargo specific issues.


11. All the participants underlined that involving
industry and the business sector was essential to
achieving success for the PSI. The main targets of the
outreach for PSI are the export and transport industries
(sea carrier groups and air cargo companies). Apart from
PSI outreach, it was reminded that the export industry
already obtains some information through outreach
activities related to dual-use items export controls.


12. Certain countries have already involved the industry
in PSI by organising regular meetings with the authorities
involved in dual-use items controls and the concerned
industries. Well-identified points of contact are
considered to be key elements of a good cooperation
between industry and authorities. This aspect should be
integrated into the national response plans, which can not
avoid examining the question of outreach to industry.


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13. It has to be a "win-win" cooperation: it is crucial
that the government explains to the industrials what they
have to gain from this cooperation:
-- minimising the costs and financial impacts to preserve
company interests,
-- optimising reaction time of the export or transport
industries,
-- improving the flow of information from industry to
authorities and vice-versa.
The group concluded there is a need to bring existing
documents and practices into concrete and detailed
recommendations. This is a long-term effort but a
necessary step at this stage of the PSI,s activities.

Break-Out Group Reports

Exercise Planning


14. Discussions in the Exercise Breakout group centred on
the forthcoming events, useful tools for future planning
and the lessons learned. Presentations were also given on
the exercises to take place in 2009.


15. Forthcoming events

The schedule was updated for 2009:
-- OEG with regional participation in the United States
(May)
-- regional OEG in Poland (June)
-- exercise organized by the US (October)
-- exercise organized by Singapore (November)
Italy enquired about inserting into the master events list
the possibility of a tentative PSI activity in spring 2009
(April, TBC).

As to 2010:
-- the US will reiterate PSI inject in Panamax exercise
(August);
-- Australia is considering organizing a regional event
(details to be confirmed).

-- Australia gave a short presentation of the PSI Master
Events List (MEL). This tool, to be posted on the PSI
website hosted by Germany, will be coordinated by
Australia until 2010. Participants were requested to
update the list of point of contact and events to be
included in the MEL.

Future exercises


16. The group pointed out the need for OEG members to
identify special targets to focus on. But it was also
agreed that this process should be achieved on a flexible
basis, depending on the objectives chosen. Participants
were encouraged to further work on this specific issue,
by determining each OEG country preferred area of
influence.

Lessons learned


17. Dealing with the matrix of lessons learned,
participants agreed that it would be very useful to post
it on the website in the future. In the while, this would
only be the case for the ten lessons that had been
identified in previous OEG meetings as priorities,
switched into recommendations for future exercise
planning.

Exercises


18. Poland gave a presentation on a PSI simulating game
system called "Hamster" intended to develop the idea of
table top exercises. This training system would not
require specific computers on participant side and would
allow partners to work together without requiring them to
be in the same location. Poland would be ready to provide
the OEG with a demonstration of the application during
the US OEG in May 2009.


19. Singapore gave a presentation on its forthcoming
exercise to take place in November 2009. This exercise
could consist of a table top exercise, a maritime
interdiction phase and port search phase. It is intended
to allow sharing knowledge and capacity building with
PSI partners and outreach to non-PSI partners. OEG
members participation was encouraged.


20. The US made an introduction to its exercise "Leading
Edge 2010" scheduled for October 2009. With a table top
exercise and a maritime exercise, "Leading edge 2010"

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will explore integration of Customs, Law Enforcement,
military actions and assets in interdicting shipments of
WMD proliferation concern. US objective are to maintain
"international flavour" and involve all relevant agencies.
It will take place in the Gulf region.

21.Although the UK had to cancel its exercise previously
planned for April 2009, it was in a position to share
interesting views on key objectives for next exercises:
multi-agency, outreach different levels, industry
involvement (airline, airport, transports by land, etc.).

Intelligence Break-Out Session


22. The Intelligence group had a discussion on various
topics and came up with concrete proposals.

-- First cluster of topics relates to understanding the
nature of the threat. A presentation on the outcome of
the Red Teaming exercise in London shed light on all
procurement and shipping methods that may be used by
proliferators. They consist of:

-- security means to protect and hide procurement
operations
-- growing complexity of procurement networks
-- growing sophistication of the delivery chain to
avoid detection and interception
-- diversification of sea and air transportation methods.

-- The group valued this type of exercice as a way to help
us open our minds, focus on new areas and feed the
intelligence collection process. This enables us to
identify ways and means on how proliferators operate,
hence to direct our intelligence collection and analytical
work.

-- In the course of the discussion, the group had an
exchange of views on the growing importance of the trade
between countries of concern and emerging economies'
trade. Developed countries are losing part of their
monopoly on the production of goods, material and
technology used and purchased by proliferators.
This trend has to be taken into account in identifying
new sources of proliferation.

-- The group touched upon the possibility for non state
actors to become not only providers of CBRN material and
technologies, but also end-users (eg, terrorist groups).
Though the intent exists, very few actual and significant
attempts have been uncovered. The group recognised the
difficulty to make CP and CT people work together and
combine their respective approaches and knowledge and
the need to improve this.

-- The second cluster of topics relates to what we have
to do to counter proliferation A presentation was made on
the analytical work that is the indispensable underpinning
of any action. This work should be made at a global level
in order to have the best understanding of WMD programmes
and procurement networks and methods. This enables us to
detect and assess specific cases likely to trigger
interceptions. Recent experiences on real cases have
shown the value of this dialectic.

-- The group heard a presentation on the issue of
managing the risk of intangible technology transfer.
Australia shared its compilation of OEG responses to the
CP ITT Matrix and thanked members for their contributions,
encouraging further responses.

-- Finally, the group came up with two proposals and two
recommendations. Referring to the value of the Red Teaming
exercise, the group welcomes the organisation of a
similar exercise at the next OEG meeting. It raises the
issue of the usefulness of associating people from
shipping/transportation sectors. This would contribute to
help us understand how they operate and what it means for
our work.

-- Given that much of the goods and materials sold by
North Korea have been shipped by sea, a proposal was made
to share information on North Korean owned or operated
vessels. This information would be passively collected
and shared on a voluntary basis. The group supports this
proposal. Practically, information would be exchanged
within the intelligence group at each OEG meeting. In
the light of how the initiative develops, the group
could reflect on other ways and means to exchange that
information on a more on-going basis. The group is of

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the view this is a concrete through modest step towards
fostering the sharing of information.

-- The intelligence group values the existence of and
the work by a group dedicated solely to intelligence - a
domain that is key to CP in general and PSI in
particular, and has its specificities and areas of
competence.

-- Finally the intelligence group supports the
recommendation that each group would have a co-chair.

Combined Legal and Law Enforcement Break-Out Session


23. Partners discussed in length the added-value of the
2005 SUA instrument to the PSI objectives. Partners noted
that SUA is a tool for state cooperation that could help
in countering proliferation by sea. It is the first
multilateral instrument dealing with criminalizing
the proliferation of any WMD and their means of
delivery, as well as the related dual-use items.
The options offered by the SUA Protocol with regard to
boarding in high sea were reminded.

-- A point was made on status of its ratification: among
the six states, Spain is the first PSI partner having
ratified the SUA amended instrument in July 2008. In doing
so, Spain did not meet any specific domestic difficulties
in the ratification process. Besides the enactment of a
recent act on proliferation issues, the Spanish penal code
covers all the new SUA offences in a material way. A
number of other PSI partners are in the same process now.


24. Partners noted the specific added value of the
presentation made by the US delegation which provided a
survey of the nine bilateral shipboarding agreements,
which are in compliance with the implementation of UNSCR
1540, PSI objectives and the provisions of the SUA
Protocol. SUA encourages states parties to conclude such
agreements to facilitate law enforcement operations
(art 8 bis 13),which is of particular interest to meet
the PSI objectives. These bilateral agreements facilitate
the shipboarding among states which want to counter
proliferation shipments. PSI members had the opportunity
during the break-out session to take the measure of the
benefits of such agreements, which will be very helpful
for the development of internal procedures to deal with
boarding operations. The US delegation circulated models
of boarding forms that are used to request the
authorisation of the flag state to board and, if
evidence is found, to request information for
disposition.


25. Delegations discussed a number of legal issues
related to boarding operations in high sea under the
2005 Protocol, including the boarding regime itself and
law enforcement procedures, the nature of these standards
for this boarding operations (domestic, international
with regards to human rights). They also discussed the
identification of the competent jurisdiction. The UK
delegation stressed that many of these issues are already
addressed in the Vienna Convention against drug
trafficking (art 17),while recognizing that
proliferation issues posed specific challenges.


26. As a conclusion, the need to keep discussing in PSI
framework the legal issues related to the implementation
of the 2005 SUA Protocol was highlighted, in order to
help PSI partners finding efficient and operational
solutions. A number of delegations expressed their
interest in having increased exchanges of experience
about real cases to progress in the implementation of
the Protocol. It was also mentioned that the provisions
of the SUA Protocol should serve as a basis for the
discussion under the ICAO to introduce new offences to
counter proliferation by air. PSI partners were
encouraged, while respecting the sovereignty of any
PSI States, to engage and/or accelerate the
ratification process of the 2005 SUA Protocol.

Media Strategy Break-Out Session


27. The break-out group chairman outlined the potential
components and objectives of a media strategy. This
included examining whether it was necessary to
communicate on the PSI, and if so, what form the
communication should take to rally all national and
international actors to stop proliferation flows.


28. All participants felt concerned by the issue of PSI

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media strategy. Discussions established the necessity of
bearing in mind and addressing regional specificities and
concerns. France indicated that there are concerns in
Europe about the PSI being a secretive group lacking
transparency. When addressing these issues, participants
emphasised the necessity of elaborating different media
strategies targeting specific actors. Thus, any
communication strategy ought to be tailored to regional,
country, and actor specificities. There was a consensus
in acknowledging that the main target is not public
opinion - this is usually already dealt with at national
level - but rather policy makers in non-PSI countries
and key private actors.


29. Participants further underlined the difference
between communicating on PSI exercises or meetings, and
PSI real interdictions. The first is useful for outreach
and media strategies already exist - in fact, they have
been quite successful. The second is more delicate
because of the sensitivity of the information involved.


30. All participants agreed on the usefulness of creating
a pool of information (for example, a databank, guidelines
on responses to media enquiries) on which to draw.
Different target audiences exist: the first, official,
for general access; the second, restricted, for PSI member
states; the third as an external source of information
(perhaps a commonly elaborated Wikipedia page).
Ultimately, participants noted relevant targets for a
communication strategy: a media strategy is relevant in
that it influences foreign public opinion and decision
makers; a communication strategy also helps in general
outreach activities. Although the two are distinct, a
link exists - a communication strategy aimed at foreign
decision makers in less active PSI member states or states
that are not members of the PSI could rest on elements
also useful to a media strategy.


31. It was agreed that Questions and Answers (Q&A) would
be a useful tool on which partners could work. Australia
suggested to build on its own set of legal frequently asked
questions (FAQs),which France will circulate and work with
the US and the UK to integrate OEG member states' comments.
Break-out group participants agreed to experiment with
the troika format for its work.

Legal and Law Enforcement Issues


32. Turkey presented the review of its export control
legislation, starting with the working group of export
control experts who in particular examined best practises
in order to transpose them in new pieces of legislation
(for example, the consolidated national control list took
the EU list as a model). As a result, the draft law on
strengthening the export controls of dual use and
sensitive goods was submitted to the Turkish Grand
National Assembly in June 2008.


33. Australia spoke of the progress by ICAO on existing
legal framework (updating the Montreal and Hague
Conventions). Following the previous Australian
presentation at the London OEG, this one pointed out key
issues on models of transport of materials offences. In
next months, there is an opportunity for improvement in
the international legal framework to build on mechanisms
for international cooperation. Australia requested OEG
states to consider the draft and provide comments.
Australia also emphasised the necessity of liaising with
industry and, in terms of the way forward, Australia
stressed especially the need to explain the proposal
and engage broader range of states.


34. The US examined disposition and liability with a focus
on the question of goods abandoned or unclaimed. It
suggested creating a folder in the PSI legal library on
the website dedicated to potential solutions for difficult
legal issues. The US presented its legal framework
relevant to dealing with abandoned or unclaimed
merchandise suspected to be linked to WMD. The
presentation outlined customs abandonment statutes,
issues related to the disposition of abandoned or
unclaimed merchandise, and liability. The US concluded
that abandonment to the US government is an option where
the goods are not subject to seizure.


35. France outlined its national legal process relevant to
PSI. In particular, France commented on its proliferation
response plan, on the global objectives, initial
assessment, proposals for improvements and other
improvements worth considering in reinforcing its

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relevant legislation (especially penal procedure,
penal laws and customs laws). It concluded by underlining
achievements over the last 18 months: a national response
plan related to WMD proliferation and associated SOPs, 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.


36. The US gave a presentation on law enforcement issues.
Dealing with the enforcement operations (information
acquisition, analysis and targeting, engaging industry,
supply chain security and capacity building),the
presentation showed the way ahead: maintain the law
enforcement break-out group, adopt a regional approach
in capacity building and develop a law enforcement
guidelines document. The US hopes to have elaborated this
document by the next OEG meeting in May. The document's
objective would be to identify law enforcement
capabilities towards interdiction, ensure the right law
enforcement experts are part of the full national team,
and identify areas that need to be addressed as part of
capacity building.


37. France 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 listed
the different licence types used in France, the licensing
procedure, the role of French customs in controlling
dual-use exports, and the relevant offences and penalties.
It concluded by mentioning the French customs intelligence
and investigation service in charge of dual-use goods.


38. ANNEX: SUMMARY OF OEG ACTION ITEMS

-- Delegations will review the current content of the PSI
website and notify the German government of any recommended
changes or deletions. Delegations will further discuss the
content of the PSI website hosted by Germany, the different
levels of access and the use of this tool.

-- New Zealand will publish a PSI newsletter.

-- Delegations will prepare for a new real case debriefing
session at the next OEG.

-- Delegations agreed that reporting on FATF activity and
ICAO process should continue.

-- Delegations agreed on further web-based exchanges on
possible solutions to legal issues, including further
work on disposition and liability issues.

-- Delegations agreed on the need to further work on media
strategy issues. France will circulate the Australian
legal FAQs and work with the US and the UK to integrate
the OEG member states comments.

-- Delegations agreed to implement a troika process,
including the last, the current and the future OEG host
nations. UK, France and US agreed to initiate such a
process. New Zealand and Denmark will prepare a paper
to be circulated to partners on that mechanism. That
mechanism will be reviewed at the next OEG meeting.

-- Delegations discussed the possibility of having again
two separate legal issues and law enforcement
break-out sessions.

-- Delegations agreed to give further consideration to
industry outreach, in particular to bring existing
documents and practices together in concrete and
detailed recommendations.

-- As far as the intelligence working group is concerned,
delegates agreed:
- To pursue the exchange of information on North
Korean vessels on a voluntary basis;
- To consider co-chairmanship of this working
group.

-- Poland will host a European regional meeting in

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June 2009.

-- United States will host an OEG with regional participation
in Miami in 12th-14th May 2009.

END OF PSI OEG CHAIRMAN'S STATEMENT

POINTS OF CONTACT


37. 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