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.

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Summary
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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.

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EU Sanctions Regime on DPRK, Timing
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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.

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Decision-Making Process: Targets
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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.

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Action Request/Comment
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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