Identifier
Created
Classification
Origin
08VALLETTA420
2008-10-03 14:28:00
SECRET
Embassy Valletta
Cable title:
MALTA STUDYING USG REQUEST TO TAKE ACTIONS AGAINST
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S E C R E T SECTION 01 OF 02 VALLETTA 000420
SIPDIS
FOR ISN, T, TREASURY, AND NEA/IR
E.O. 12958: DECL: 10/03/2018
TAGS: ECON EFIN ETRD PARM KNNP EUN EWWT PREL MT IR
SUBJECT: MALTA STUDYING USG REQUEST TO TAKE ACTIONS AGAINST
LOCAL IRISL SUBSIDIARY
REF: A. STATE 104496
B. VALLETTA 89
C. VALLETTA 132
Classified By: DCM Jason Davis, reasons 1.4 (b) and (d)
S E C R E T SECTION 01 OF 02 VALLETTA 000420
SIPDIS
FOR ISN, T, TREASURY, AND NEA/IR
E.O. 12958: DECL: 10/03/2018
TAGS: ECON EFIN ETRD PARM KNNP EUN EWWT PREL MT IR
SUBJECT: MALTA STUDYING USG REQUEST TO TAKE ACTIONS AGAINST
LOCAL IRISL SUBSIDIARY
REF: A. STATE 104496
B. VALLETTA 89
C. VALLETTA 132
Classified By: DCM Jason Davis, reasons 1.4 (b) and (d)
1. (C) On October 2, Ambassador and DCM met with Minister of
Finance Tonio Fenech and MinFin Head of Secretariat Alan
Caruana to deliver reftel demarche. Emphasizing that action
would be consistent with UNSCRs 1737, 1747 and 1803, the
Ambassador told the Finance Minister that the U.S. was urging
Malta to freeze the assets of IRISL (Malta) LTD, to require
comprehensive mandatory inspections of IRISL-related cargo,
and to ensure that all Maltese companies cease business
operations with IRISL. Separately, DCM conveyed the same
request to Charles Inguanez, head of Malta's interagency
Sanctions Monitoring Board and the Director General for
Economic Affairs at MFA.
2. (C) Initially somewhat taken aback at the broad
ramifications of the request (IRISL Malta has a significant
presence at Malta's Freeport, and IRISL transshipment
activity constitutes a large chunk of total activity there --
one of the reasons the U.S. recently funded a 1.2 million
dollar VACIS-equipped warehouse for Maltese Customs at the
Freeport),Minister Fenech in the end assured the Ambassador
that Malta was "fully committed to combatting WMD
proliferation" and would do its utmost to support the request
to the fullest extent possible under Maltese law. Caruana
told DCM several hours later that Malta's Sanctions
Monitoring Board was already examining the issue, and would
determine what action would be possible on the basis of
relevant UN resolutions and EU policy.
Comment
--------------
3. (C) It would be unusual for the GOM to decline to take
action on a direct USG request. As reported Ref B, Malta
agreed during the visit of Treasury U/S Levey to keep a close
eye on Iranian involvement in Malta's banking system; it has
since (Ref C, inter alia) worked consistently behind the
scenes to strictly limit that access. In this case, however,
despite the Finance Minister's good intentions, it seems
quite possible that unilateral GOM action to shut down a
commercial entity -- one that is well established here and
which has counterparts elsewhere in the E.U. -- may turn out
to be not possible at this time. Economics and logistics are
not the only factors; even more significant is the priority
Malta places on acting in concert with its fellow EU member
states. A decision to step up inspections of IRISL cargo is
more likely, but "comprehensive, mandatory inspections" of
all IRISL containers transitting the Freeport would present a
severe logistical challenge.
MINIMIZED CONSIDERED
VALLETTA 00000420 002 OF 002
BORDONARO
SIPDIS
FOR ISN, T, TREASURY, AND NEA/IR
E.O. 12958: DECL: 10/03/2018
TAGS: ECON EFIN ETRD PARM KNNP EUN EWWT PREL MT IR
SUBJECT: MALTA STUDYING USG REQUEST TO TAKE ACTIONS AGAINST
LOCAL IRISL SUBSIDIARY
REF: A. STATE 104496
B. VALLETTA 89
C. VALLETTA 132
Classified By: DCM Jason Davis, reasons 1.4 (b) and (d)
1. (C) On October 2, Ambassador and DCM met with Minister of
Finance Tonio Fenech and MinFin Head of Secretariat Alan
Caruana to deliver reftel demarche. Emphasizing that action
would be consistent with UNSCRs 1737, 1747 and 1803, the
Ambassador told the Finance Minister that the U.S. was urging
Malta to freeze the assets of IRISL (Malta) LTD, to require
comprehensive mandatory inspections of IRISL-related cargo,
and to ensure that all Maltese companies cease business
operations with IRISL. Separately, DCM conveyed the same
request to Charles Inguanez, head of Malta's interagency
Sanctions Monitoring Board and the Director General for
Economic Affairs at MFA.
2. (C) Initially somewhat taken aback at the broad
ramifications of the request (IRISL Malta has a significant
presence at Malta's Freeport, and IRISL transshipment
activity constitutes a large chunk of total activity there --
one of the reasons the U.S. recently funded a 1.2 million
dollar VACIS-equipped warehouse for Maltese Customs at the
Freeport),Minister Fenech in the end assured the Ambassador
that Malta was "fully committed to combatting WMD
proliferation" and would do its utmost to support the request
to the fullest extent possible under Maltese law. Caruana
told DCM several hours later that Malta's Sanctions
Monitoring Board was already examining the issue, and would
determine what action would be possible on the basis of
relevant UN resolutions and EU policy.
Comment
--------------
3. (C) It would be unusual for the GOM to decline to take
action on a direct USG request. As reported Ref B, Malta
agreed during the visit of Treasury U/S Levey to keep a close
eye on Iranian involvement in Malta's banking system; it has
since (Ref C, inter alia) worked consistently behind the
scenes to strictly limit that access. In this case, however,
despite the Finance Minister's good intentions, it seems
quite possible that unilateral GOM action to shut down a
commercial entity -- one that is well established here and
which has counterparts elsewhere in the E.U. -- may turn out
to be not possible at this time. Economics and logistics are
not the only factors; even more significant is the priority
Malta places on acting in concert with its fellow EU member
states. A decision to step up inspections of IRISL cargo is
more likely, but "comprehensive, mandatory inspections" of
all IRISL containers transitting the Freeport would present a
severe logistical challenge.
MINIMIZED CONSIDERED
VALLETTA 00000420 002 OF 002
BORDONARO