RESPONSE TO REVOCATION OF IRAN'S U-TURN GENERAL

S E C R E T TOKYO 003200 SIPDIS TREASURY TFI FOR DORSETT, WALLWORK, STACK; STATE ISN FOR CHALMERS, MCGEEHAN, EEB FOR COULTER, T, NEA, INR, EEB, S/CT, INL E.O. 12958: DECL: 11/18/2018 TAGS: KNNP PARM PREL EFIN ETTC KTFNJA SUBJECT: RESPONSE TO REVOCATION OF IRAN'S U-TURN GENERAL LICENSE REF: A. SECSTATE 115523 ¶B. SECSTATE 121356 Classified By: Ambassador J. Thomas Schieffer for reasons 1.4 (b) and ( d). ¶1. (S) In response to reftel demarches delivered November 7 and 17, respectively, to the Ministry of Finance (MOF) and Ministry of Foreign Affairs (MOFA),GOJ officials acknowledged they continue to study Financial Action Task Force (FATF) pronouncements on Iran. Finance Ministry Legal Office Deputy Division Chief Wataru Kikuchi told deputy FINATT the volume and scale of our requests will require in-depth internal discussions to develop a GOJ response. Kikuchi asked if FINATT could provide evidence to the GOJ that shows Banks Melli, Mellat, and Saderat are involved in nuclear non-proliferation activities. Kikuchi stated MOF is aware of both FATF's statements on Iran and the government of Australia's recent action on Iranian banks. He reserved comment on Treasury's action directed at Iranian U-Turn transactions. ¶2. (S) Ministry of Foreign Affairs Middle Eastern and African Affairs Bureau, Second Middle East Division Principal Deputy Director Motosada Motano asked if the GOJ should expect the USG to "cram" policy initiatives as the current administration comes to a close. Ministry of Foreign Affairs Middle Eastern and African Affairs Bureau, Second Middle East Division Assistant Director and Head of Iran Desk Junichi Sumi requested further details on the proposed G7 coordinated statement, including confirmation of whether a draft statement is in circulation. SCHIEFFER