IRAN-INDIA JOINT VENTURE SHIPPING LINE IN TALKS

UNCLAS STATE 121818 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ECON EFIN KNNP PARM IR PREL SUBJECT: IRAN-INDIA JOINT VENTURE SHIPPING LINE IN TALKS TO ORDER NEW VESSELS FROM SOUTH KOREAN FIRM REF: A) STATE 104496 ¶1. (SBU) This is an action request. Please see paragraph three. -------------- SUMMARY/BACKGROUND -------------- ¶2. (SBU) Recent press reports have suggested that Iran-o-Hind Shipping is in talks with Hanjin Heavy Industries to purchase two 80,000-dwt post-Panamax bulker vessels for delivery in 2011. Iran-o-Hind also has two supermax tankers under construction at Hyundai Heavy Industries for delivery in 2009 and January 2011. On September 11, 2008, Iran-o-Hind was designated by the U.S. under Executive Order (E.O.) 13382 because it is owned or controlled by, or acting or purporting to act on behalf of, directly or indirectly, Islamic Republic of Iran Shipping Lines. In order to prevent designation of South Korean firms for providing services to Iran-o-Hind, the Government of South Korea should advise South Korean firms to withdraw from any new contract discussions with Iran-o-Hind, cancel any contracts that are already underway, and end any further contact with Iran-o-Hind. In addition, India should advise the Shipping Corporation of India (a state-owned firm) to divest its 49% ownership share in Iran-o-Hind due to IRISL's majority ownership share of the company. -------------- OBJECTIVES/ACTION REQUEST -------------- ¶3. (SBU) Washington requests Posts approach appropriate officials in the foreign affairs ministry and other appropriate government agencies, as warranted, including those responsible for finance, 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. -- Remind host governments that Iran-o-Hind was designated by the U.S. under Executive Order (E.O.) 13382 because it is owned or controlled by, or acting or purporting to act on behalf of, directly or indirectly, Islamic Republic of Iran Shipping Lines (IRISL) (REF A). -- Note that IRISL was mentioned in operative paragraph 11 of UNSCR 1803 (REFTEL),which calls upon states, in accordance with their national legal authorities and consistent with international law, to inspect 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. Such scrutiny was deemed appropriate because IRISL has engaged in proliferation-related activity (REF A). -- Remind South Korea that any provision of services by South Korean firms to IRISL, Iran-o-Hind, or any other U.S.-designated entities may be cause for designation of that firm under E.O. 13382. -- Urge the ROKG to advise South Korean firms to withdraw from any new contract discussions with Iran-o-Hind, cancel any contracts that are already underway, and end any further contact with Iran-o-Hind. -- Urge India to consider directing the Shipping Corporation of India (a state-owned firm) to divest its 49% ownership share in Iran-O-Hind due to IRISL's majority ownership of the company. -------------- REPORTING DEADLINE -------------- ¶4. (U) Please report delivery of the U.S. points and any response within seven days of receipt of this cable. Please slug replies for ISN, T, SCA, TREASURY, and NEA/IR. Please use SIPDIS caption on all responses. -------------- POINT OF CONTACT -------------- ¶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