C O N F I D E N T I A L OTTAWA 000835

C O R R E C T E D C O P Y - REMOVE ZEN

SENSITIVE
SIPDIS
STATE FOR: INR, EUR, NEA, ISN, T

E.O. 12958: DECL: 2019/11/13
TAGS: EFIN ETTC KNNP XF ZP ZR IR UK CA
SUBJECT: Canadian Response to UK Decision to Ban the Provision of
Insurance to IRSL

CLASSIFIED BY: ebenjaminson, econmc; REASON: 1.4(B)


1. (C) ECONOFF demarched Foreign Affairs and International Trade
Canada (DFAIT) Iran Deputy Director Gallit Dobner regarding
referenced cable. She expressed surprise that the UK was moving
forward with this action given that it is one of a suite of actions
the Like-Minded Countries have considered rolling out sometime
early in 2010. She ensured us that the USG position in support of
the UK's ban on British companies from trading with the Islamic
Republic of Iran Shipping Lines (IRISL) would be elevated within
DFAIT.




2. (C) Gallit explained that the Canadian Special Economic
Measures Act (SEMA) is used to put economic sanction actions into
effect. DFAIT intends to encompass as many of the other actions
simultaneously as the process - only used twice before - is lengthy
and fraught with multiple derailment points. SEMA authorizes the
Cabinet to impose special economic measures against a state (freeze
or seize assets, prohibitions, etc.) and required Parliament's
approval. NOTE: There are other steps in the process that can be
explained in more detail upon request.




3. (U) Also present was POLOff and Allan Prochazka, Senior
Analyst International Financial Crimes, Finance Canada. Prochazka
stated that the Canadian insurance industry is primarily involved
in property and casualty as well as life insurance. He did not
think there were any providers of Maritime insurance. He stated
that this information will be shared with his director and elevated
as necessary.




4. (U) We contacted the UK High Commission upon receipt of the
demarche request to schedule a joint delivery, however the UK had
already delivered their demarche prior to receipt of our demarche
cable.




5. (C) COMMENT: There was no commitment to move forward on this
issue in advance of the roll out of the other actions agreed upon
by the Like Minded Countries. Canada is awaiting the results of
the P5 negotiations before further consideration of other
sanctions. The Canadians are very sensitive regarding sanctions as
they have several ongoing consular cases in Iran involving citizens
and dual citizens, making this issue very complex for them.




6. (U) If additional information is made available it will be
forwarded.
JACOBSON