DESIGNATION OF ADDITIONAL IRANIAN ENTITIES AND

UNCLAS STATE 088759 SIPDIS C O R R E C T E D C O P Y (CORRECTED LINK IN PARA 3) E.O. 12958: N/A TAGS: KNNP MNUC IR GM PREL PARM EFIN SUBJECT: DESIGNATION OF ADDITIONAL IRANIAN ENTITIES AND INDIVIDUALS UNDER E.O. 13382 ¶1. (U) THIS IS AN ACTION REQUEST. PLEASE SEE PARAGRAPH THREE. -------------- SUMMARY -------------- ¶2. (U) THE UNITED STATES DESIGNATED AN ADDITIONAL 5 IRANIAN ENTITIES AND INDIVIDUALS UNDER E.O. 13382 ("BLOCKING THE PROPERTY OF WEAPONS OF MASS DESTRUCTION PROLIFERATORS AND THEIR SUPPORTERS") ON AUGUST 12, 2008. THESE DESIGNATIONS ARE AIMED AT IMPLEMENTING OBLIGATIONS PURSUANT TO THE FINANCIAL PROVISIONS CONTAINED IN UN SECURITY COUNCIL RESOLUTIONS (UNSCRS) 1747 AND 1803, WHICH REQUIRE MEMBER STATES TO FREEZE THE ASSETS OF ENTITIES AND INDIVIDUALS DESIGNATED BY THE UN SECURITY COUNCIL AS BEING INVOLVED IN IRAN'S NUCLEAR OR MISSILE PROGRAMS. -------------- OBJECTIVES/ACTION REQUEST -------------- ¶3. (U) POSTS ARE REQUESTED TO PURSUE THE FOLLOWING OBJECTIVES. IN DOING SO, POSTS MAY DRAW FROM THE MEDIA NOTE RELEASED BY THE STATE DEPARTMENT ON AUGUST 12, 2008, WHICH CAN BE FOUND AT: http://www.state.gov/r/pa/prs/ps/2008/aug/108 160.htm . POSTS MAY ALSO DRAW FROM THE PRESS RELEASE ISSUED BY THE DEPARTMENT OF TREASURY ON AUGUST 12, 2008, WHICH CAN BE FOUND AT: http://www.treas.gov/offices/enforcement/ofac .PLEASE NOTE THAT THE EU3 WERE NOTIFIED VIA PHONE BY WASHINGTON. -- INFORM HOST GOVERNMENT OFFICIALS OF THE U.S. DESIGNATIONS UNDER E.O. 13382. -- NOTIFY HOST GOVERNMENT OFFICIALS THAT THESE DESIGNATIONS ARE AIMED AT IMPLEMENTING USG OBLIGATIONS UNDER UNSCRS 1747 AND 1803. -- URGE HOST GOVERNMENTS, IN ACCORDANCE WITH OBLIGATIONS UNDER UNSCRS 1747 AND 1803, TO FREEZE THE ASSETS OF THESE ENTITIES AND INDIVIDUALS IF THEY HAVE NOT ALREADY DONE SO, AS WELL AS THE ASSETS OF PERSONS OR ENTITIES ACTING ON THEIR BEHALF OR AT THEIR DIRECTION, OR BY ENTITIES OWNED OR CONTROLLED BY THEM. -------------- BACKGROUND AND NONPAPER -------------- ¶4. (U) BEGIN TEXT OF NON-PAPER FOR ALL POSTS: TREASURY DESIGNATES IRANIAN NUCLEAR AND MISSILE ENTITIES. AUGUST 12, 2008. THE U.S. GOVERNMENT CONTINUES ITS EFFORTS TO COUNTER IRAN'S PURSUIT OF TECHNOLOGY THAT COULD ENABLE IT TO DEVELOP NUCLEAR WEAPONS AND THE MISSILES CAPABLE OF DELIVERING NUCLEAR WARHEADS. ON AUGUST 12, 2008, THE U.S. DEPARTMENT OF THE TREASURY DESIGNATED FIVE IRANIAN ENTITIES THAT ARE OF PROLIFERATION CONCERN FOR THEIR TIES TO IRAN'S NUCLEAR AND MISSILE PROGRAMS. THESE ACTIONS PROVIDE FURTHER INFORMATION THAT WILL HELP FINANCIAL INSTITUTIONS IN THE U.S. AND WORLDWIDE PROTECT THEMSELVES FROM DECEPTIVE FINANCIAL PRACTICES EMPLOYED BY IRANIAN ENTITIES THAT ENGAGE IN OR SUPPORT PROLIFERATION. THE ENTITIES DESIGNATED TODAY INCLUDE THE NUCLEAR RESEARCH CENTER FOR AGRICULTURE AND MEDICINE (A/K/A KARAJ NUCLEAR RESEARCH CENTER),THE ESFAHAN NUCLEAR FUEL RESEARCH AND PRODUCTION CENTER (NFRPC),JABBER IBN HAYAN, SAFETY EQUIPMENT PROCUREMENT COMPANY (SEP CO.), AND JOZA INDUSTRIAL COMPANY. ALL FIVE OF THE ENTITIES DESIGNATED TODAY WERE PREVIOUSLY DESIGNATED BY THE UNITED NATIONS. THE NUCLEAR RESEARCH CENTER FOR AGRICULTURE AND MEDICINE AND THE NFRPC WERE BOTH DESIGNATED BY THE UNITED NATIONS IN THE ANNEX TO RESOLUTION 1747 FOR THEIR INVOLVEMENT IN IRAN'S NUCLEAR ACTIVITIES. JABBER IBN HAYAN, JOZA INDUSTRIAL COMPANY, AND SEP CO. WERE DESIGNATED BY THE UNITED NATIONS IN ANNEX III TO RESOLUTION 1803 FOR THEIR INVOLVEMENT IN IRAN'S NUCLEAR OR BALLISTIC MISSILE PROGRAMS. THIS ACTION WAS TAKEN PURSUANT TO EXECUTIVE ORDER 13382, AN AUTHORITY AIMED AT FREEZING THE ASSETS OF PROLIFERATORS OF WEAPONS OF MASS DESTRUCTION AND THEIR SUPPORTERS, AND AT ISOLATING THEM FROM THE U.S. FINANCIAL AND COMMERCIAL SYSTEMS. DESIGNATIONS UNDER E.O. 13382 ARE IMPLEMENTED BY TREASURY'S OFFICE OF FOREIGN ASSETS CONTROL (OFAC),AND THEY PROHIBIT ALL TRANSACTIONS BETWEEN THE DESIGNEES AND ANY U.S. PERSON, AND FREEZE ANY ASSETS THE DESIGNEES MAY HAVE UNDER U.S. JURISDICTION. THE NUCLEAR RESEARCH CENTER FOR AGRICULTURE AND MEDICINE, THE NFRPC, AND JABBER IBN HAYAN HAVE BEEN DESIGNATED PURSUANT TO E.O. 13382 BECAUSE THEY ARE OWNED OR CONTROLLED BY, OR ACTING OR PURPORTING TO ACT FOR OR ON BEHALF OF, DIRECTLY OR INDIRECTLY, THE ATOMIC ENERGY ORGANIZATION OF IRAN (AEOI). PRESIDENT GEORGE W. BUSH IN JUNE 2005, DESIGNATED THE AEOI IN THE ANNEX TO E.O. 13382. THE AEOI, WHICH DIRECTLY REPORTS TO THE IRANIAN PRESIDENT, IS THE MAIN IRANIAN ORGANIZATION FOR RESEARCH AND DEVELOPMENT ACTIVITIES IN THE FIELD OF NUCLEAR TECHNOLOGY, INCLUDING IRAN'S CENTRIFUGE ENRICHMENT PROGRAM, AND MANAGES IRAN'S OVERALL NUCLEAR PROGRAM. THE AEOI WAS DESIGNATED BY THE UNITED NATIONS IN THE ANNEX TO UN SECURITY COUNCIL RESOLUTION 1737 FOR ITS ROLE IN IRAN'S NUCLEAR PROGRAM. THE NUCLEAR RESEARCH CENTER FOR AGRICULTURE AND MEDICINE AT KARAJ IS A LARGE AEOI RESEARCH COMPONENT. THE NFRPC IS AEOI'S CENTER FOR DEVELOPMENT OF NUCLEAR FUEL AND IS INVOLVED IN ENRICHMENT-RELATED ACTIVITIES. THE NFRPC'S URANIUM CONVERSION FACILITY, IN OPERATION SINCE 2005, CAN PRODUCE MOST OF THE URANIUM COMPOUNDS NEEDED FOR FUEL CYCLE ACTIVITIES. URANIUM CONVERSION IS AN ESSENTIAL STEP FOR THE CREATION OF NUCLEAR FUEL. JABBER IBN HAYAN, ALSO PART OF THE AEOI, IS INVOLVED IN THE FIELD OF RESEARCH AND DEVELOPMENT IN THE NUCLEAR CYCLE, IN ADDITION TO PROVIDING A WIDE RANGE OF LABORATORY SERVICES FOR THE AEOI'S NUCLEAR PRODUCTION DIVISION. PRESIDENT BUSH ALSO DESIGNATED IRAN'S AEROSPACE INDUSTRIES ORGANIZATION (AIO) AND THE SHAHID HEMMAT INDUSTRIAL GROUP (SHIG) IN THE ANNEX TO E.O. 13382. THE AIO IS THE OVERALL MANAGER OF IRAN'S MISSILE PROGRAM AND OVERSEES ALL OF IRAN'S MISSILE INDUSTRIES. SHIG IS RESPONSIBLE FOR IRAN'S BALLISTIC MISSILE PROGRAMS, MOST NOTABLY THE SHAHAB SERIES OF MEDIUM-RANGE BALLISTIC MISSILES. THE AIO AND ITS SUBORDINATE ELEMENTS, SUCH AS SHIG, OFTEN USE FRONT COMPANIES TO ACCESS FOREIGN TECHNOLOGY AND RAW MATERIALS FOR THE DEVELOPMENT OF IRAN'S MISSILE PROGRAM. SEP CO. HAS BEEN DESIGNATED TODAY FOR BEING OWNED OR CONTROLLED BY, OR ACTING OR PURPORTING TO ACT FOR OR ON BEHALF OF, DIRECTLY OR INDIRECTLY, THE AIO. THE AIO HAS BEEN USING SEP CO. TO PROCURE ON ITS BEHALF SINCE AT LEAST 2003. JOZA INDUSTRIAL COMPANY HAS ALSO BEEN DESIGNATED TODAY FOR BEING OWNED OR CONTROLLED BY, OR ACTING OR PURPORTING TO ACT FOR OR ON BEHALF OF, DIRECTLY OR INDIRECTLY, SHIG. IN AN EFFORT TO EVADE SANCTIONS AND OBSCURE ITS PROCUREMENT EFFORTS, SHIG UTILIZES A SERIES OF FRONT COMPANIES, INCLUDING THE JOZA INDUSTRIAL COMPANY, TO PURCHASE GOODS AND MATERIALS. IN ADDITION TO THESE DESIGNATIONS, IT IS IMPORTANT TO NOTE THAT THE EUROPEAN UNION ADOPTED A COMMON POSITION (CP) IMPLEMENTING THE PROVISIONS OF UNSCR 1803, WHICH ENTERED INTO FORCE ON AUGUST 7, 2008. THE CP UPDATES THE PREVIOUS EU COMMON POSITION ON RESTRICTIVE MEASURES AGAINST IRAN AND IDENTIFIED ADDITIONAL ENTITIES AND INDIVIDUALS TO BE COVERED BY THE RESTRICTIONS ON ADMISSION AND THE FREEZING OF FUNDS IN UNSCR 1803. THE AUGUST 7 CP ALSO PRESCRIBES VIGILANCE OVER FINANCIAL TRANSACTIONS, EXPORT CREDITS, DUAL-USE ITEMS AND CARGO INSPECTIONS. END TEXT OF NON-PAPER FOR ALL POSTS. -------------- REPORTING DEADLINE -------------- ¶5. (U) PLEASE REPORT DELIVERY OF THE U.S. NON-PAPER AND ANY RESPONSE WITHIN SEVEN DAYS OF RECEIPT OF THIS CABLE. PLEASE SLUG REPLIES FOR ISN, T, TREASURY, AND NEA/IR. PLEASE USE SIPDIS CAPTION ON ALL RESPONSES. -------------- POINT OF CONTACT -------------- ¶6. (U) WASHINGTON POINT OF CONTACT FOR FOLLOW-UP INFORMATION IS KEVIN MCGEEHAN, ISN/CPI, (202) 647-5408, MCGEEHANKJ@STATE.SGOV.GOV. ¶7. (U) DEPARTMENT THANKS POST FOR ITS ASSISTANCE. MINIMIZE CONSIDERED RICE