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.

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Objectives
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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

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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

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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

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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;


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(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