COUNTERPROLIFERATION TASK FORCE FOLLOW UP: EXPORT

S E C R E T SECTION 01 OF 03 STATE 053868 SIPDIS E.O. 12958: DECL: 05/20/2018 TAGS: PARM PREL MNUC XB ZP ZO AE SUBJECT: COUNTERPROLIFERATION TASK FORCE FOLLOW UP: EXPORT CONTROL LAW REF: A. ABU DHABI 325 ¶B. ABU DHABI 326 ¶C. ABU DHABI 1695 Classified By: NEA/ARP Director A.Steinfeld for reasons 1.4 b,c and d -------------- ACTION REQUEST -------------- ¶1. (SBU) Post is requested to deliver the letter in paragraph three to Director, International Organizations, Ministry of Foreign Affairs, Yacoub al Hosani. End action request. -------------- OBJECTIVES -------------- ¶2. (SBU) Post should achieve the following objectives: -- Thank UAE officials for hosting the third Counterproliferation Task Force (CTF) meeting. -- Deliver the letter from ISN AA/S McNerney and Commerce DAS Borman that follows-up on the February CTF meeting and conveys our thoughts on next steps for the UAE to take regarding implementation of its export control law. -- Note the United States, appreciation for the growing collaboration our countries have on counterproliferation as a result of this process. -- Reiterate the importance we place on effective implementation and enforcement of the export control law and that our offers to assist the UAEG through consultations and related training stands. -- Inform the UAEG that the United States proposes a workshop ) based on the September 2007 legal and regulatory workshop - on implementation of export controls as a follow up to the February CTF. -- Solicit dates from the UAEG by proposing August 27-28, 2008 for the proposed workshop. End objectives. -------------- LETTER -------------- ¶3. (SBU) Begin Letter (a signed original will not follow): May 20, 2008 Yacoub al-Hosani Director, International Organizations Ministry of Foreign Affairs Abu Dhabi, United Arab Emirates Dear Director al-Hosani: The United States extends its appreciation to your government for hosting the productive February Counterproliferation Task Force (CTF). Our cooperative efforts are helping to stem the proliferation of weapons of mass destruction and related items and the enactment of your federal export control law is a significant milestone in the effort. As you know, there is considerable interest from Members of the U.S. Congress regarding your government,s new export control system and we are encouraged by press reports of an investigation into a shipment of zirconium ) an indication that the export control law is being enforced. We also remain committed in helping your government implement and effectively enforce this new law through related export control-related consultations and training, including the June training session for your judges and prosecutors. We would also like to propose an additional workshop to discuss next steps in implementing the new law. This workshop would be a follow on to the successful September 2007 legal STATE 00053868 002 OF 003 and regulatory workshop. It would include discussions on forthcoming legal amendments, regulations, development of a licensing authority, control list revisions, and industry outreach efforts. We have attached a short paper that summarizes each of these areas and hope that we can agree upon a time to conduct this training for August 27-28, 2008. Sincerely, Patricia A. McNerney Acting, Assistant Secretary for International Security and Nonproliferation Department of State Matthew S. Borman Acting, Assistant Secretary for Export Administration Department of Commerce End letter. Begin Recommended Elements for Implementation of the Export Control Law: Recommended Elements to Implement the Export Control Law Control List The export control law provides the UAE government the ability to make revisions to items under control. We recommend the UAE stay current with the multilateral export control regimes. The control lists published with the law passed on August 30, 2007 do not completely cover the four regimes (i.e., the Wassenaar Arrangement, Nuclear Suppliers Group, Australia Group, and the Missile Technology Control Regime). We recommend adopting the European Union,s (EU) Control List because it is a compilation of all four regime lists. Executive Agency Creation of an Executive Agency is recommended in order to administer the export control system. Regulations and Licensing Procedures We recommend regulations be developed and promulgated informing the public of the new requirements and procedures. These regulations should establish what items are controlled, i.e., items stipulated on the control lists or items that are for a weapons of mass destruction or terrorist end users or end uses; how licenses are applied for, reviewed and decided upon; record keeping requirements; appeal procedures; and administrative and criminal penalties. In addition, internal procedures to classify items and review export license applications should be also be included. Industry Outreach Strategy We recommend ongoing outreach to industry on the new law and its implementation. This is a critical part of an effective export control system. Investigations: Identifying Illegal Trade Preventative enforcement measures, as well as enforcement targeting and inspection techniques and strategies, are an important part of a comprehensive export control system. In addition, mechanisms to coordinate with the executive authority and local authorities on suspect shipments and investigations of possible violations are necessary to execute the new law. Prosecutions: Administrative and Criminal Actions Ensuring prosecutors and judges understand the legal/regulatory requirements of the new federal export control law and the development of the necessary operational mechanics for prosecuting export control cases is another critical aspect of a robust export control system. Procedures for administrative actions, such as fines and suspension of exporting privileges, are an additional tool useful to fully implement the new law. End letter. -------------- BACKGROUND -------------- STATE 00053868 003 OF 003 ¶4. (S) On February 25, Acting ISN Assistant Secretary Patricia McNerney led an interagency delegation for the third CTF meeting with the UAEG (ref A). During this meeting, the UAEG asserted that it was enforcing the 2007 export control law, but was in the process of amending it to make it easier to implement and enforce. Prior to the CTF, the U.S. held a legal and regulatory workshop in September 2007 for the UAEG legal team responsible for the UAE's export control law (ref C). It was clear from the discussions during the workshop that the UAEG was still grappling with the complexities of implementing the new export control system. Further, during A/AS McNerney,s meetings she was told that the UAEG lacked expertise in implementing the law and that its licensing process was confusing (ref B). To assist the UAEG in implementing its export control law and capitalize on the momentum created from the CTF and the September 2007 workshop we want to offer a follow-on workshop for the same UAEG experts that were in attendance in September 2007. End background. -------------- REPORTING DEADLINE -------------- ¶5. (U) Please report response by June 3, 2008. -------------- POINT OF CONTACT -------------- ¶6. (U) Department point of contact for follow-up is Chris Herrington ISN/CPI (202) 647-5035. Please slug all responses for ISN, T, and NEA. Washington appreciates Post,s assistance. RICE