Identifier
Created
Classification
Origin
09DAMASCUS884
2009-12-23 10:02:00
CONFIDENTIAL
Embassy Damascus
Cable title:
SYRIAN MFA HOPES REVOKING BANK AMAN LICENSE NOT
how-toVZCZCXRO3986 OO RUEHROV DE RUEHDM #0884/01 3571002 ZNY CCCCC ZZH O 231002Z DEC 09 FM AMEMBASSY DAMASCUS TO RUEHC/SECSTATE WASHDC IMMEDIATE 7159 INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY RUEHGB/AMEMBASSY BAGHDAD PRIORITY 0060 RUEHLO/AMEMBASSY LONDON PRIORITY 0837 RUEHFR/AMEMBASSY PARIS PRIORITY 0791 RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY RUEAIIA/CIA WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY RHEFDIA/DIA WASHINGTON DC PRIORITY RHMFISS/HQ USCENTCOM MACDILL AFB FL PRIORITY RHEHNSC/NSC WASHDC PRIORITY RUMICEA/USCENTCOM INTEL CEN MACDILL AFB FL PRIORITY RHEHAAA/WHITE HOUSE WASHDC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 DAMASCUS 000884
SIPDIS
DEPARTMENT FOR NEA/ELA, NEA/IZ
NSC FOR SHAPIRO/MCDERMOTT
LONDON FOR LORD
PARIS FOR NOBLES
E.O. 12958: DECL: 12/22/2019
TAGS: EFIN ETTC PGOV PREL PTER CASC IR SY
SUBJECT: SYRIAN MFA HOPES REVOKING BANK AMAN LICENSE NOT
PRECONDITION FOR U.S. REVIEW OF COMMERCIAL BANK OF SYRIA;
CONSIDERS U.S. ASSISTANCE REQUESTS FOR AMCITS DETAINED IN
IRAN
REF: A. STATE 124998
B. DAMASCUS 728
C. STATE 130338
Classified By: CDA Charles Hunter for Reasons 1.4 b and d.
C O N F I D E N T I A L SECTION 01 OF 02 DAMASCUS 000884
SIPDIS
DEPARTMENT FOR NEA/ELA, NEA/IZ
NSC FOR SHAPIRO/MCDERMOTT
LONDON FOR LORD
PARIS FOR NOBLES
E.O. 12958: DECL: 12/22/2019
TAGS: EFIN ETTC PGOV PREL PTER CASC IR SY
SUBJECT: SYRIAN MFA HOPES REVOKING BANK AMAN LICENSE NOT
PRECONDITION FOR U.S. REVIEW OF COMMERCIAL BANK OF SYRIA;
CONSIDERS U.S. ASSISTANCE REQUESTS FOR AMCITS DETAINED IN
IRAN
REF: A. STATE 124998
B. DAMASCUS 728
C. STATE 130338
Classified By: CDA Charles Hunter for Reasons 1.4 b and d.
1. (C) Charge and Pol/Econ Chief delivered Ref A demarche
on December 23 to Husam Aala, Chief of Staff for Vice Foreign
Minister Faisal Miqdad. Aala recalled Miqdad had discussed
the subject of Bank Aman during his late-September meetings
with State, Commerce, and Treasury officials and understood
the U.S. concern. Miqdad had urged U.S. officials to take
positive steps that would allow Treasury to initiate a review
under Section 311 of the Patriot Act of the Commercial Bank
of Syria's (CBS) record of compliance with money laundering
issues. Aala asked three questions: what was the status of
Bank Saderat at the UN? (2) Had Washington made the demarche
to Syrian Ambassador Mustafa as well? and (3) What would
happen if Syria reacted positively to the U.S. request to
rescind the license for Bank Aman? Alaa said Syria remained
encouraged by the U.S. Administration's desire for better
relations with Syria, but Damascus hoped to see more concrete
gestures, such as providing a positive response to repeated
requests for assistance in enabling the transfer of a
Presidential plane to Syria from Qatar and in facilitating a
Section 311 review of CBS.
2. (C) Charge replied Treasury had raised its concerns with
Miqdad regarding Bank Aman in late September. Reports that
the Syrian Central Bank had issued a license for a joint
venture between CBS and Bank Saderat triggered immediate
concerns in Washington because the U.S. had designated
Saderat in October 2007 for its role in terrorist financing
and the UN had identified Saderat for proliferation-related
concerns in March 2008. The U.S. would be unable to begin
discussion on the Section 311 provisions in force against CBS
while the joint Saderat-CBS was proceeding with the support
of the Syrian government. Treasury, moreover, had a
regulatory responsibility to publicly warn U.S. financial
institutions regarding the establishment of Bank Aman, but we
preferred to discuss our concerns privately before taking
such actions.
3. (C) Aala replied he would convey the demarche to Miqdad
and others but reiterated Syria's desire to see positive and
concrete gestures from the U.S. "I hope revoking Bank Aman's
license is not a pre-condition" for a Section 311 review of
CBS, he stressed. Charge answered that our desire was to
raise our concerns privately. Without Syrian action on Bank
Aman's license, however, Washington would be unable to
respond positively to Miqdad's request for a Section 311
review for CBS. Aala replied Syria wanted to encourage a
positive atmosphere for better relations, but doing so would
require steps by both sides. Charge said that continuing
relations between CBS and Saderat would complicate this
bilateral issue and force Treasury to fulfill its legal
responsibilities. Aala took these points and expressed hope
that an upcoming visit by U/S Burns would open discussions on
the state of play in bilateral relations and identify
positive was to move the relationship forward.
--------------
Request for Help for AmCits Detained in Iran
--------------
4. (C) Charge also raised ref C message from the Secretary
asking for Syria's assistance in winning the release of, and
ensuring more regular consular access to, Joshua Fattal,
Shane Bauer, and Sarah Shourd, three Americans arrested by
Iranian authorities on July 31 while hiking near the
Iraqi/Iranian border. The U.S. had seen media reports
suggesting a trial was imminent and was deeply concerned
about winning their release. Aala said he would pass this
DAMASCUS 00000884 002 OF 002
request along.
HUNTER
SIPDIS
DEPARTMENT FOR NEA/ELA, NEA/IZ
NSC FOR SHAPIRO/MCDERMOTT
LONDON FOR LORD
PARIS FOR NOBLES
E.O. 12958: DECL: 12/22/2019
TAGS: EFIN ETTC PGOV PREL PTER CASC IR SY
SUBJECT: SYRIAN MFA HOPES REVOKING BANK AMAN LICENSE NOT
PRECONDITION FOR U.S. REVIEW OF COMMERCIAL BANK OF SYRIA;
CONSIDERS U.S. ASSISTANCE REQUESTS FOR AMCITS DETAINED IN
IRAN
REF: A. STATE 124998
B. DAMASCUS 728
C. STATE 130338
Classified By: CDA Charles Hunter for Reasons 1.4 b and d.
1. (C) Charge and Pol/Econ Chief delivered Ref A demarche
on December 23 to Husam Aala, Chief of Staff for Vice Foreign
Minister Faisal Miqdad. Aala recalled Miqdad had discussed
the subject of Bank Aman during his late-September meetings
with State, Commerce, and Treasury officials and understood
the U.S. concern. Miqdad had urged U.S. officials to take
positive steps that would allow Treasury to initiate a review
under Section 311 of the Patriot Act of the Commercial Bank
of Syria's (CBS) record of compliance with money laundering
issues. Aala asked three questions: what was the status of
Bank Saderat at the UN? (2) Had Washington made the demarche
to Syrian Ambassador Mustafa as well? and (3) What would
happen if Syria reacted positively to the U.S. request to
rescind the license for Bank Aman? Alaa said Syria remained
encouraged by the U.S. Administration's desire for better
relations with Syria, but Damascus hoped to see more concrete
gestures, such as providing a positive response to repeated
requests for assistance in enabling the transfer of a
Presidential plane to Syria from Qatar and in facilitating a
Section 311 review of CBS.
2. (C) Charge replied Treasury had raised its concerns with
Miqdad regarding Bank Aman in late September. Reports that
the Syrian Central Bank had issued a license for a joint
venture between CBS and Bank Saderat triggered immediate
concerns in Washington because the U.S. had designated
Saderat in October 2007 for its role in terrorist financing
and the UN had identified Saderat for proliferation-related
concerns in March 2008. The U.S. would be unable to begin
discussion on the Section 311 provisions in force against CBS
while the joint Saderat-CBS was proceeding with the support
of the Syrian government. Treasury, moreover, had a
regulatory responsibility to publicly warn U.S. financial
institutions regarding the establishment of Bank Aman, but we
preferred to discuss our concerns privately before taking
such actions.
3. (C) Aala replied he would convey the demarche to Miqdad
and others but reiterated Syria's desire to see positive and
concrete gestures from the U.S. "I hope revoking Bank Aman's
license is not a pre-condition" for a Section 311 review of
CBS, he stressed. Charge answered that our desire was to
raise our concerns privately. Without Syrian action on Bank
Aman's license, however, Washington would be unable to
respond positively to Miqdad's request for a Section 311
review for CBS. Aala replied Syria wanted to encourage a
positive atmosphere for better relations, but doing so would
require steps by both sides. Charge said that continuing
relations between CBS and Saderat would complicate this
bilateral issue and force Treasury to fulfill its legal
responsibilities. Aala took these points and expressed hope
that an upcoming visit by U/S Burns would open discussions on
the state of play in bilateral relations and identify
positive was to move the relationship forward.
--------------
Request for Help for AmCits Detained in Iran
--------------
4. (C) Charge also raised ref C message from the Secretary
asking for Syria's assistance in winning the release of, and
ensuring more regular consular access to, Joshua Fattal,
Shane Bauer, and Sarah Shourd, three Americans arrested by
Iranian authorities on July 31 while hiking near the
Iraqi/Iranian border. The U.S. had seen media reports
suggesting a trial was imminent and was deeply concerned
about winning their release. Aala said he would pass this
DAMASCUS 00000884 002 OF 002
request along.
HUNTER