DEMARCHE REQUEST: SOLICIT GOI RESPONSE TO DRAFT

C O N F I D E N T I A L SECTION 01 OF 05 STATE 049806 SIPDIS E.O. 12958: DECL: 05/06/2018 TAGS: ETTC EFIN PREL PTER IZ RU UK SUBJECT: DEMARCHE REQUEST: SOLICIT GOI RESPONSE TO DRAFT UNSCR FOR TERRORIST FINANCING IN IRAQ REF: A. BAGHDAD 1050 ¶B. SECSTATE 42515 Classified By: IO PDAS James B. Warlick, Reasons: 1.4(b) and (d) ¶1. (U) This is an action request. See paragraphs 2 and 8. -------------- Objectives -------------- ¶2. (SBU) Post is requested to pursue the following objectives with the GOI: -- Share with the GOI the draft text of a UNSC resolution that imposes targeted sanctions on individuals or entities that engage in or provide support for acts of violence that threaten Iraq,s peace and security and solicit GOI input (see paragraph 7). The GOI will need to ensure that it has the monitoring capacity and domestic legislation in place to enforce the types of sanctions contained in the draft resolution, i.e. the ability to freeze assets. -- Urge the GOI to decide on a list of sanctions designees that will be attached to the resolution as an annex, working from the draft list of targets provided by the USG. -- Encourage the GOI to elicit Russian support for this resolution. In making this approach, the GOI should remind the Russians of Moscow,s frequent public statements of concern for Iraq,s stability, which Russia acknowledges is threatened in part by the spread of international terrorism to Iraq. The GOI should further remind the GOR that a peaceful and prosperous Iraq is in Russia,s security, political, and economic interests. The GOI should call upon Russia to make good on its public offers to help Iraq in its time of need and should express to Moscow a willingness to work closely with Russia in order to win passage of the resolution. For starters, the Russians could help set a timetable for P-5 discussions to garner support for this proposal to revise the scope of UNSCR 1518. -- Post should share the draft resolution with the UK Embassy as soon as possible and encourage them to participate in achieving the above objectives. Background ¶3. (SBU) Per Ref A, on April 25, 2008, Embassy Baghdad reported strong GOI interest in pursuing a new UNSC Resolution that would impose targeted sanctions on individuals or entities that damage Iraq,s peace and security. In response, the Department has developed a draft UNSCR that would add to the measures imposed in UNSCR 1483, which apply to individuals and entities associated with the former Iraqi regime, as defined in Paragraph 23 of UNSCR ¶1483. Due to the unique characteristics of the asset freeze imposed under UNSCR 1483, it is not possible to simply extend the sanctions provisions of UNSCR 1483 to the individuals/entities listed pursuant to this new resolution. Instead, such individuals/entities will be subject to a different set of sanctions, as described in the draft resolution. The two sanctions regimes will remain separate; however, the Committee established pursuant to UNSCR 1518 will assist with both regimes. ¶4. (SBU) The draft resolution will mandate the existing Committee established pursuant to UNSCR 1518 with handling the new sanctions regime, vice creating a new Committee to handle the regime. Expanding the mandate of an existing Committee will likely be less contentious for the GOI and other Council Members than creating an entirely new Committee through a Chapter VII resolution, considering the GOI,s oft-repeated desire to avoid new Chapter VII resolutions. Although the draft resolution must invoke Chapter VII because it establishes a new sanctions regime, the consideration of its targets by an existing Committee will likely alleviate some of the opposition to new Chapter VII language. In addition, creating an additional sanctions Committee would put undue strain on smaller UNSC delegations that do not have the manpower to attend and contribute to the additional meetings that this would entail. ¶5. (SBU) The draft resolution subjects the STATE 00049806 002 OF 005 insurgency-related designees to a travel ban, asset freeze, and arms embargo. The designation criteria were taken from E.O. 13438 (Blocking Property of Certain Persons Who Threaten Stabilization Efforts in Iraq). After consulting with the Treasury Department, the Department has decided the better approach would be to include an annex of individuals and entities that the Council would designate upon adoption of the resolution, vice waiting until after the Resolution is passed to develop a list of individuals and entities within the 1518 Committee, which operates by consensus. The USG has already submitted a list of proposed targets to the GOI. In response, the GOI indicated that they would like to see the draft language of a resolution before making a decision on which individuals and entities to include in an annex. ¶6. (SBU) The GOI will need to engage in significant high-level diplomacy in Baghdad and P-5 capitals to overcome skepticism by SC members like Russia, China, Libya, South Africa, and Indonesia, which are expected to focus on the likelihood that such a resolution will target Iranians and Syrians. The Iraqis should gauge the level of Russian support first and foremost, and appeal to the Russians to follow through on their publicly expressed willingness to support Iraq,s stability, which Moscow acknowledges is threatened by the spread of international terrorism. The Russians in October 2007 placed a &technical hold8 on our request, which was co-sponsored by Iraq and the UK, to list six individuals under UNSCR 1483 (sanctioning former regime elements linked to Saddam Hussein). Five of the six were based in Syria, and although the justification behind our listing request to the 1518 committee was based on these individuals, ties to the former Iraqi regime, we know all six are actively engaged in facilitating insurgent activities and could potentially be considered for listing under a revised UNSCR. Although the GOR has never provided to us a satisfactory explanation for placing the holds, we suspect they took this action to prevent what it perceived was a politically-motivated slight to Syria. Just prior to our October 2007 listing requests, the Russian mission to the UN floated the idea to USUN of winding down the 1518 committee, which had been largely inactive for the previous two years. The GOI will have to convince Russia that this current initiative is meant to help ensure that the 1518 committee,s work actively reflects current realities on the ground. Further, it is imperative that the GOI impress upon the Russians that this proposal to revise the scope of 1518 is meant to help promote security in Iraq, and not to target neighboring Syria (or Iran). Reporting and Point of Contact ¶7. (U) Post should report the results of its efforts. Please contact IO/UNP Bridget Lines at LinesBM@state.sgov.gov or 202-647-7142 for additional information. ¶8. (C) Begin text of resolution: The Security Council Recalling all of its previous resolutions on Iraq, Reaffirming the sovereignty and territorial integrity of Iraq, and reaffirming further the importance of the principle of non-interference in the internal affairs of Iraq, Welcoming the efforts of the Government of Iraq((fill in or delete) Expressing its deep concern about the role of individuals and entities fueling the Iraqi insurgency, some of whom are facilitating violent destabilization efforts from outside of Iraq, which undermines efforts to promote economic reconstruction and political reform in Iraq, Calling upon the international community, particularly countries of the region and Iraq,s neighbours, to support the Iraqi people in their pursuit of peace, stability, security, democracy, and prosperity, and noting that successful implementation of this resolution will contribute to regional stability, Demanding those who use violence in an attempt to subvert the political process should lay down their arms and participate in the political process, and encouraging the Government of Iraq to continue to engage with all those who renounce violence, Reaffirming that acts of terrorism must not be allowed to disrupt Iraq,s political and economic transition, and STATE 00049806 003 OF 005 further reaffirming the obligations of Member States under resolution 1618 (2005) and other relevant resolutions and international conventions with respect, inter alia, to terrorist activities in and from Iraq or against its citizens, Recognizing that international support for security and stability is essential to the well-being of the people of Iraq as well as the ability of all concerned, including the United Nations, to carry out their work on behalf of the people of Iraq, and expressing appreciation for Member State contributions in this regard under resolution 1483 (2003), resolution 1511 (2003),resolution 1546 (2004),resolution 1637 (2005),and resolution 1723 (2006), Determining that the situation in Iraq continues to constitute a threat to international peace and security, Acting under Chapter VII of the Charter of the United Nations, ¶1. Notes that insurgents, irrespective of their affiliation, motivation or identity, threaten the peace and stability of the Iraqi people and undermine efforts of the Iraqi Government to promote reconstruction by committing, directing, or supporting violent attacks in Iraq, and demands that insurgents cease their destabilization efforts in the interests of promoting peace, stability, economic reconstruction, and humanitarian assistance to Iraq and the Iraqi people; ¶2. Decides that all Member States shall take the following measures with respect to individuals or entities listed in the Annex to this resolution, and to any individuals or entities designated by the Council or the Committee established pursuant to resolution 1518 (2003) (&the Committee8) as engaged in or providing support for acts of violence that threaten the peace or stability of Iraq or that undermine efforts to promote economic reconstruction and political reform in Iraq or to provide humanitarian assistance to the Iraqi people: (a) Prevent the entry into or transit through their territories of these individuals, provided that nothing in this paragraph shall oblige a State to refuse entry into or require departure from its territories of its own nationals; (b) Freeze without delay the funds, other financial assets and economic resources which are on their territories from the date of adoption of this resolution or at any time thereafter, that are owned or controlled, directly or indirectly by these individuals or entities, or by individuals or entities acting on their behalf or at their direction, or by entities owned or controlled by them, and ensure that any funds, financial assets or economic resources are prevented from being made available by their nationals or by any persons or entities within their territories, to or for the benefit of these individuals and entities; ¶3. Decides that the measures imposed in paragraph 2(a) above shall not apply where the Committee determines in advance and on a case-by-case basis that such travel is justified on the grounds of humanitarian need, including religious obligation, or where the Committee concludes that an exemption would further the objectives of the resolution; ¶4. Decides that the measures imposed by paragraph 2(b) above do not apply to funds, other financial assets or economic resources that have been determined by relevant States: (a) to be necessary for basic expenses, including payment for foodstuffs, rent or mortgage, medicines and medical treatment, taxes, insurance premiums, and public utility charges or exclusively for payment of reasonable professional fees and reimbursement of incurred expenses associated with the provision of legal services or fees or service charges, in accordance with nationals laws, for routine holding or maintenance of frozen funds, other financial assets and economic resources, after notification by the relevant States to the Committee of the intention to authorize, where appropriate, access to such funds, other financial assets or economic resources and in the absence of a negative decision by the Committee within three working days of such notification; (b) to be necessary for extraordinary expenses, provided that such determination has been notified by the relevant States to the Committee and has been approved by the Committee; (c) to be the subject of a judicial, administrative or arbitral lien or judgment, in which case the funds, other STATE 00049806 004 OF 005 financial assets and economic resources may be used to satisfy that lien or judgment provided that the lien or judgment was entered into prior to the date of the present resolution, is not for the benefit of a person or entity designated pursuant to paragraph 2 above, and has been notified by the relevant States to the Committee; ¶5. Reaffirms the prohibitions related to the sale or supply to Iraq of arms and related materiel under previous resolutions, as modified by paragraph 21 of resolution 1546 (2004) to exempt arms or related materiel required by the Government of Iraq or the multinational force to serve the purposes of that resolution, stresses the importance for all States to abide strictly by these prohibitions, and notes the significance of Iraq,s neighbors in this regard; ¶6. Decides further that all Member States shall take the necessary measures to prevent the direct or indirect supply, sale or transfer to persons or entities designated pursuant to paragraph 2 above from their territories or by their nationals or using their flag vessels or aircraft of arms and related materiel of all types, and the provision to these persons or entities of any technical assistance or training, financial assistance, investment, brokering or other services, and the transfer of financial resources or services related to the supply, sale, transfer, manufacture or use of such items; (6bis. Decides that the provisions of paragraph 2 above shall also apply to individuals and entities designated by the Committee as violating measures imposed by Member States in accordance with paragraph 6 above;) ¶7. Reaffirms the mandate of the Committee as set out in paragraph 1 of resolution 1518 (2003),in particular to continue to identify individuals and entities referred to in paragraph 23 of resolution 1483 (2003),and decides further that its mandate shall also include the following tasks: (a) to seek from all States, in particular those in the region, information regarding the actions taken by them to implement effectively the measures imposed by paragraphs 2 and 6 of this resolution and whatever further information it may consider useful in this regard; (b) to examine and take appropriate action on information regarding alleged violations of measures imposed by paragraphs 2 and 6 of this resolution; (c) to consider and decide upon requests for exemptions set out in paragraphs 3 and 4 of this resolution; (d) to designate additional persons and entities subject to the measures imposed by paragraphs 2 and 6 of this resolution; (e) to promulgate guidelines as may be necessary to facilitate the implementation of the measures imposed by this resolution; (f) to report at least every six months to the Security Council on its work and on the implementation of this resolution, with its observations and recommendations, in particular on ways to strengthen the effectiveness of the measures imposed by paragraphs X, Y and Z of this resolution; ¶8. Requests the Secretary-General to establish, in consultation with the Committee, for a period of (X) months, a Panel of Experts consisting of up to (X) members, with the range of expertise necessary to fulfill the mandate set out in this paragraph, to undertake the following tasks: (a) to assess, monitor and report on and make recommendations regarding the implementation of measures referred to in paragraphs 2, 5 and 6 above, to pursue case studies, as appropriate, and to explore in depth any other relevant issues as directed by the Committee; (b) to present to the Committee recommendations, which could be used by Member States to assist them with the implementation of the measures referred to in paragraphs 2, 5 and 6 above; (c) to consult with Member States, particularly those in the region, regarding their implementation of the measures referred to in paragraphs 2, 5 and 6 above and report to the Committee the results of such consultations, as well as specific recommendations for improved implementation of measures and possible new measures; STATE 00049806 005 OF 005 (c) investigate any violations of the measures referred to in paragraphs 2, 5 and 6 above; (d) to report to the Council, through the Committee, no later than six months from the date of adoption of this resolution with observations and recommendations in the areas set out in subparagraphs (a) to (c) above; ¶9. (Paragraph on next steps/intent to review the situation (optional)) ¶10. Decides to remain seized of the matter. Annex ¶A. Individuals ¶1. (Name) (short description of basis for listing) ¶B. Entities ¶1. (Name) (location)(short description of basis for listing) RICE