EU/DPRK SANCTIONS: OPPORTUNITY TO INFLUENCE

C O N F I D E N T I A L SECTION 01 OF 02 BRUSSELS 001277 NOFORN SIPDIS STATE FOR P, EAP, ISN, EEB/ESC/TFS, L, EUR/ERA, INL TREASURY FOR TFI, TFFC, OIA, OFAC E.O. 12958: DECL: 09/21/2019 TAGS: ETTC KNNP EFIN KCRM KHLS UNSC PINR FR UK EUN SUBJECT: EU/DPRK SANCTIONS: OPPORTUNITY TO INFLUENCE REF: A. A. EMAIL "USEU TODAY - SECRET/NOFORN - JULY 30 ¶B. 2009" ¶C. B. EMAIL "USEU TODAY - CONFIDENTIAL/NO FORN - JUNE 17 ¶D. C. EMAIL FOWLER-FLORIO/SNYDER 7/29/2009 Classified By: PETER H. CHASE, ECON MINISTER-COUNSELOR FOR REASONS 1.4 (b) AND (d) ¶1. (U) Action Request: Please see paragraph 8. -------------- Summary -------------- ¶2. (C//NF) European Union contacts expect to formalize any unilateral DPRK sanctions over the next several weeks. The deadline for the Swedish Presidency's call for proposals has now passed, but key EU members are still preparing submissions. The USG has an opportunity to influence the designation process by providing input on potential key targets via USEU and/or Embassies in select EU capitals, who should engage their non-proliferation and MFA Asia Director counterparts. End Summary. -------------- EU Sanctions Regime on DPRK, Timing -------------- ¶3. (C//NF) The EU is implementing UNSCR 1874 via the July 27, 2009 Common Position (CP) 2009/573/CFSP, which explicitly allows autonomous action beyond UN measures. To date, CP Annexes for specific designations remain blank, pending EU Member State (EUMS) consensus on targets. Per instructions to EU Member States this past summer, the Swedish Presidency requested names of individuals or entities, backed by solid data, for potential designation. The submissions deadline has passed, but several Member States (including the UK) are still finalizing proposals in capitals. Council contacts expect to hold a meeting by the end of September to discuss and decide upon final designations. The Presidency has yet to schedule this follow-on/action meeting. ¶4. (C//NF) No USEU contacts have been willing or, in some cases (e.g. UK, France, Germany),able to share with us the names of proposed EU targets. One contact did note, however, a general feeling within the Council that the EU was "aiming for robust implementation." ¶5. (C//NF) In parallel, the Commission is drafting the necessary implementing Regulation, but has yet to formally propose it to the Council. A formal draft is expected as early as September 25. Contacts underscore that Iran Regulations are serving as a template, given similarities in the scope and nature of the associated sanctions. The DPRK Regulation should include clauses for sunset and review of measures, targets for autonomous designation, and names of financial institutions to be subject to enhanced scrutiny. Contacts note that the EU would welcome U.S. information about our priority targets for potential EU designation. Crucial Annexes from the U.S. perspective will include autonomous designations and financial institutions for enhanced scrutiny. -------------- Decision-Making Process: Targets -------------- ¶6. (C//NF) Specialists from the Council's Asia working group (COASI) have the lead to forge consensus on DPRK sanctions designations and implementation, likely relying heavily on input from EU Heads of Mission from the region and following instructions from their respective Foreign Ministries' Asia Directors. (COMMENT: As the EU sanctions experience on Burma and Zimbabwe has shown, EU HOMs vary in their degree of understanding of the intricacies and requirements of targeting, providing adequate identifiers, and declassifying background material to help designations withstand subsequent legal challenge in EC and EU Member State courts. A primary entry point for USG influence over the EU's geographic-based sanctions programs remains, therefore, through EU country embassies and Commission delegations in the relevant region. Informal discussions between U.S. and EU counterparts in the field to exchange information and views often efficiently influence EU policy outcome in Brussels. END COMMENT.) ¶7. (C//NF) COASI will discuss the Commission's Regulation proposal and potential targets in conjunction with the Council's Non-Proliferation working group (CONOP). COASI aims to prepare final lists and approve the implementing Regulation during a single, action-oriented meeting. Once COASI reaches consensus, the Council working group of external relations counselors (RELEX) will codify the necessary legal language and formally propose designation lists as Annexes to the EU's DPRK Common Position and Regulation for approval by the Council's Permanent Representatives and, finally, enactment by a consensus of Ministers. -------------- Action Request/Comment -------------- ¶8. (C//NF) USEU has informally shared U.S. press releases regarding the U.S. domestic designation of Korea Kwangson Banking Corp. with key EU institution and member state contacts close to the EU sanctions decision-making process. As a general rule, we encourage EU actors to take similar actions to those we have undertaken domestically in an effort to multilateralize our foreign policy measures. USEU would further welcome formal instruction/guidance on any additional high priority targets the USG might wish to provide for EU consideration as part of its autonomous program launch. The USG should stay engaged with the EU to help ensure a desirable outcome. End Action Request/Comment. MINIMIZE CONSIDERED MURRAY