(S) CHEMICAL WEAPONS CONVENTION (CWC): DEMARCHE

S E C R E T STATE 015526 SIPDIS THE HAGUE FOR CWC DEL E.O. 12958: DECL: 02/19/2059 TAGS: CWC PARM PREL IR SUBJECT: (S) CHEMICAL WEAPONS CONVENTION (CWC): DEMARCHE FOR ALLIES REGARDING AN IRANIAN INSPECTOR WORKING IN THE TECHNICAL SECRETARIAT Classified By: ISN/CB Acting Office Director Rick D'Andrea for reasons 1.4 (b),(c) and (d) ¶1. (U) This is an action request. Please see paragraph 4. ¶2. (S//NF) BACKGROUND: The French Delegation to the Organization for the Prohibition of Chemical Weapons (OPCW) called an informal meeting of the Close Allies to share information from Paris on an Iranian inspector who previously worked for the Iranian firm Melli Agrochemical Company, a known CW proliferator. Melli Agrochemical is owned by Bank Melli, which is subject to U.S. proliferation finance sanctions (E.O. 13382) and has also been designated by the EU and Australia as a known proliferator. In addition, United Nations Security Council Resolution 1803 calls on all member states to exercise vigilance with regard to activities between financial institutions in their countries and all Iranian banks particularly Bank Melli. ¶3. (S//NF) France has said that it will block this inspector's access to France, but has asked the broader question as to whether the OPCW should have hired him at all. ¶4. (SBU) ACTION REQUEST: Request U.S. Del coordinate with France, UK, Germany, Australia, Canada, and Japan drawing off cleared language in paragraph 6. ¶5. (S//NF) Please begin all responses with CWC01-09 and slug for ISN. ¶6. (U) Begin talking points: (SECRET//REL France, UK, Germany, Australia, Canada, Japan) -- In the spirit of our nonproliferation cooperation, we would like to share with you information about a matter of proliferation concern. -- We understand and agree with the concern raised by the government of France regarding an OPCW inspector who was previously employed by Melli Agrochemical Company in Iran. -- Melli Agrochemical Company was established in 1984-85 by direct investment of the Bank Melli Investment Company to be one of the largest producers of pesticides in the Middle East. -- Melli Agrochemical manufactures pesticides, but also has a record of buying nerve agent precursors on behalf of Iran's defense ministry. -- Melli Agrochemical has been known to procure nerve agent precursors such as P2S5. -- In 2008, the U.S., the EU, and Australia designated Bank Melli for proliferation related activities and the UN has issued a call for vigilance with respect to all Iranian banks, specifically Bank Melli. -- Bank Melli was designated by the U.S. for its transactions with entities designated under United Nations Security Council Resolutions (UNSCRs),including Iran's Defense Industrial Organization (DIO),Bank Sepah, and Shahid Hemmat Industrial Group. Bank Melli also provides banking services to the Islamic Revolutionary Guard Corps, and the Qods Force and also engages in deceptive financial practices. -- Iran's Defense Industries Organization has ties to the Iranian chemical warfare and missile development programs that are well known to the international community. -- With respect to the individual inspector, it is the policy of the United States to bar inspectors from countries that the Secretary of State has designated as State Sponsors of Terrorism. As such all inspectors from Iran are barred. -- We look forward to working together to address this nonproliferation issue. End talking points. CLINTON