US-ARMENIA JOINT ACTION PLAN: SIGNING AND

S E C R E T STATE 033655 E.O. 12958: DECL: 04/06/2019 TAGS: ETTC PARM PINR IR AM SUBJECT: US-ARMENIA JOINT ACTION PLAN: SIGNING AND IMPLEMENTATION REF: A. 08 YEREVAN 1040 ¶B. 08 YEREVAN 1051 ¶C. 09 YEREVAN 20 ¶D. 09 YEREVAN 25 ¶E. 09 YEREVAN 62 Classified By: EUR/PRA Office Director Anita Friedt Reasons 1.4 (B) and (D) ¶1. (S) This is an action request. Embassy Yerevan please see para 13. (Note: This cable is being resent to fix formatting errors in the original. End note) ¶2. (S) SUMMARY: On March 27, 2009, EUR A/S Fried and Armenian Ambassador Markarian signed the "Joint Action Plan Between the Government of the United States of America and the Government of the Republic of Armenia On Preventing Transfers of Concern of Conventional Arms and Dual Use Items" (the Plan). A/S Fried, in signing the document, pointedly advised Amb. Markarian that the countries of concern discussed, though not named, in the Plan are Cuba, Iran, North Korea, Sudan and Syria. Armenia took a positive step towards addressing the deficiencies in its export control system that allowed the illicit transfer to happen. However, its stalling tactics leading up to the signing, its refusal to incorporate the specific countries of concern, especially Iran, in the agreement or accompanying notes, and its refusal to accept a nonpaper on implementing the Plan at the signing are stark reminders that the real challenge will be the prompt and effective implementation of the commitments in the action plan. End Summary The Joint Action Plan -------------- ¶3. (S) The Plan outlines policies regarding the transfer of conventional arms and related dual use goods and technologies and contains steps Armenia has committed to take to prevent the proliferation of sensitive items to countries of concern. The highlight of the action plan is Armenia's intent to implement, within 180 days, laws/regulations to prevent the transfer, reexport, transit, or transshipment of conventional arms and related technical data, and dual-use goods and technologies, as described in the Wassenaar Arrangement, to any country under a UN arms embargo, other countries of concern (see para 5),certain other recipients, or terrorists. Armenia also committed to consult with the U.S. to facilitate a risk assessment regarding exports, transits, and transshipments of conventional weapons. ¶4. (S) In addition, Armenia has committed to bring its export controls up to international standards, which include making public its export laws and regulations, harmonizing its control lists with those of the European Union and the Wassenaar Arrangement, the Missile Technology Control Regime, the Nuclear Suppliers Group, and the Australia Group, adopting catch-all controls, intangible technology controls, and brokering controls, and creating an independent and transparent process for exports of conventional arms and related dual-use goods. "Countries of Concern" -------------- ¶5. (S) During negotiations many of the key aspects of the Plan were acceptable to Armenia, but a major point of contention was how to characterize the countries covered by the Plan. To meet U.S. policy needs, the agreement had to include the U.S.- designated States Sponsors of Terrorism (SSOT) -- Cuba, Iran, Sudan, and Syria -- North Korea, countries under a UN embargo, or terrorists. The U.S. proposed nearly a dozen different formulations for the text of the agreement, including as a confidential side letter/nonpaper. ¶6. (S) The original U.S. proposal was to use the term "State Sponsor of Terrorism." Second, the U.S. offered to note that SSOT is a term defined under U.S. law or specifically reference the relevant sections of U.S. law that define State Sponsor of Terrorism, without using that phrase. Third, we proposed listing the countries by name (Iran, Syria, North Korea, Cuba, and Sudan). Fourth, we proposed using mutually agreed countries, accompanied by an exchange of side letters or documents listing the countries (or any of the suggested alternatives) at the signing of the Plan. Alternatively, the U.S. letter would list the countries and the Armenian letter would indicate it concurred with the substance of the US letter. Another option was to avoid any reference in the Joint Action Plan to the letters and just use the term "mutually agreed countries," but still exchange letters identifying the countries of concern. ¶7. (S) All of the U.S. formulations were rejected by the Government of Armenia, with reasons ranging from the lack of meaning in Armenian or international law of the terms or laws suggested to the core concern: that any formulation that identified Iran would anger this powerful neighbor with dire consequences for Armenia. The solution to the impasse was an agreement that the U.S. send a nonpaper fifteen days after the signing of the Plan that identified the "countries of concern" to the U.S. The term would be in quotation marks in the nonpaper, as a way of creating a linkage to the Plan. Armenian Stalling Tactics -------------- ¶8. (S) In the two days leading up to the March 27 signing of the Plan, the Armenians did everything they possibly could to delay signing, involving repeated phone calls from Ambassador Markarian pleading for last-minute changes to already agreed language at the behest of Foreign Minister Nalbandian. First, there were issues with the U.S.-provided Armenian-language version and a request to drop the quotation marks around "countries of concern." Then came a request that the Plan be classified (the Armenian embassy claimed we had been in agreement all along that it would be classified). However, after agreeing to sign the Plan in English only, the Armenians called back, stating the GOAM wanted to sign both the Armenian and English texts simultaneously and pleaded we delay until March 30 so we could work the translation over the weekend. They also proposed editing the text of the Plan to say that an Armenian-language version would be signed at a later date. US Response to Armenian Tactics -------------- ¶9. (S) Classification: We agreed to classify the Plan "SECRET/REL Government of Armenia," after signing. (Note: It is clear the Armenians intend to compartment this agreement so that only a few people in the GOAM are even aware of its existence, let alone its substance. End Note) Quotation marks in the nonpaper: We did not agree to delete the quotation marks. The quotes are very important to link the nonpaper identifying the countries of concern to the U.S. and the Joint Action Plan. Language: We tried unsuccessfully to get a conformed Armenian text prior to the March 27 signing. We committed to conform an Armenian text as quickly as possible. Armenia is concerned about A/S Fried,s pending departure, as they want the same signature on both the English and Armenian texts. (Note: On April 1, A/S Fried signed an Armenian text. End Note) ¶10. (S) In the end, A/S Fried called Amb. Markarian to tell him the U.S. was prepared to sign and thought there was agreement on the text of the Plan, the U.S. nonpaper, and all the other details. He made clear to Markarian that the U.S. had been more than accommodating and the Armenian side was clearly stalling. If Armenia was not prepared to sign the Plan, the U.S. would continue down the path towards sanctions. At that point Markarian quickly called back to report he had spoken to the President and had authorization to sign. The Plan was signed in English only, but we agreed to sign an Armenian text as soon as possible. The Signing -------------- ¶11. (S) Before signing the Plan, A/S Fried made clear that the term "countries of concern" in the Joint Action Plan referred to: Cuba, Iran, North Korea, Sudan, and Syria. A/S Fried also informed Amb. Markarian that, per agreement, we would separately send in 15 days a classified (Secret/Releasable Government of Armenia) side nonpaper which will specify the "countries of concern" Note that the Armenians insisted the classification appear only at the top of the page, not at the bottom. (Text of nonpaper para 18). ¶12. (S) Per the Plan and the Armenian Embassy,s earlier request, A/S Fried also attempted to provide Ambassador Markarian a nonpaper (para 15) on next steps for implementing the Plan, which proposes the first meeting of the expert-level working group, establishes the consultation process for arms exports from Armenia, and sets up a U.S. experts visit to Armenian ports and all export control related agencies. Ambassador Markarian declined to accept the nonpaper, indicating it was "too formal." A/S Fried repeatedly pressed him to make sure he understood what the document was, but he was noncommittal and didn't appear to even read the nonpaper. ¶13. (S) Action Request: Request that Embassy Yerevan immediately follow-up with appropriate host-government officials to deliver the nonpaper in para 15 on implementation of the Plan and the proposed agenda for the first expert level working group in para 16. If host-government officials refuse to accept the nonpaper, request that you orally deliver the points and seek agreement on the dates of the working group. ¶14. (S) Comment: It was clear the Armenians were using every possible tactic to stall signing of the agreement. Markarian said that FM Nalbandian was extremely concerned that the "notorious incident" be kept confidential in any report. We know implementation will be the tough part; and if recent Armenian behavior indicates how they will proceed on implementation, we will need to keep up our pressure and the threat of sanctions. ¶15. (S) Begin text of nonpaper: SECRET/REL ARMENIA U.S.-Armenia Joint Action Plan: Road Map on Next Steps -- The U.S. welcomes the signing of the Joint Action Plan (the Plan) between the U.S. and Armenia on preventing transfers of concern of conventional arms and dual-use items. The Plan was the result of a serious export control issue related to Iran that occurred several years ago, which will remain classified. -- We appreciate your willingness to sign a written action plan that reaffirms your government's intention to take steps to ensure that such transfers do not recur. -- The U.S. is committed to assisting the Government of Armenia in its efforts to strengthen its export control laws and their implementation to ensure that there will never be another serious export control-related issue. -- Implementation of the Plan will be critical to improving Armenia,s export control system. -- A strong first step in implementation will be to quickly convene the first meeting of the expert-level working group. We would like to propose the first meeting occur in Yerevan during the week of May 4. (Provide copy of proposed agenda.) -- Second, we would like to immediately begin work on developing the process and procedures for implementing the consultation mechanism regarding the risk assessment identified in paragraph one of the Plan. In the coming days we intend to provide you with a proposed process for this consultation. -- Third, we would like to have U.S. experts visit Armenian ports and all agencies with responsibilities and roles relevant to the export control regulatory and enforcement process to evaluate the export control system in Armenia, starting in April. End text of nonpaper ¶16. (S) Begin text of proposed agenda for the expert level working group: SECRET/REL ARMENIA U.S. ) Armenia Export Control Working Group Yerevan, Armenia May 2009 Agenda Item 1: Risk Assessment/Mitigation -- Briefing on Iranian and Syrian support for insurgents in Iraq, terrorists, and other countries of concern (U.S.) -- Conducting Risk Assessments for Licensing (U.S.) -- Armenia,s regulatory system for authorizing dual-use exports (Armenia) -- Implementing UNSCRs 1540 and those on Iran (1747, 1803, and 1835) (Armenia) Agenda Item 2: Export Control Enhancement -- Briefing on catch-all controls (U.S.) -- Briefing on end-use controls (U.S.) -- Briefing on brokering controls (U.S.) -- Briefing on Intangible Transfers of Technology (U.S.) Agenda Item 3: Implementation of the Joint Action Plan -- Implementation of laws, regulations, policies, and procedures envisioned in Paragraphs 1 and 2 of the Joint Action Plan (Armenia) -- Steps necessary to update and harmonize Armenian export control laws, regulations, and control lists with the EU and the nonproliferation regimes (Armenia) -- Armenian industry outreach plans (Armenia) - timeline for publication of Armenian export control license requirements, denied parties/entities, control lists, and application procedures - timeline, format, and frequency of industry outreach events, to include which industries will be targeted (manufacturers, freight forwarders, brokers, nuclear facilities, etc) - Armenian internal compliance requirements. -- What EXBS program can do to assist (Training, technical exchanges, and evaluations/assessments) (U.S.) End Proposed Agenda. ¶17. Begin Text of Joint Action Plan (SBU) Joint Action Plan Between the Government of the United States of America and the Government of the Republic of Armenia On Preventing Transfers of Concern of Conventional Arms and Dual Use Items The Government of the United States of America and the Government of the Republic of Armenia (hereinafter &the Participants8), Acknowledging the positive track in their bilateral relations in the security sphere, Noting the positive impact of Armenia,s contribution to the international fight against terrorism through participation in international coalition efforts, Emphasizing their effective partnership on anti-terrorism issues in multilateral forums, namely the OSCE and EAPC, Reiterating their full commitment to the provisions of all relevant UN Security Council Resolutions, Cognizant of the fact that the Republic of Armenia has adapted the European Union,s export control list of dual use commodities to its own national control list and of Armenia,s efforts toward the improvement of its border security, inter alia, with the support of the United States Government, Noting that Armenia has established a regulatory system for authorization of dual use exports; Intend, in furtherance of this Joint Action Plan, to pursue the following understandings with respect to policies and standards promoting transparency and responsibility in the transfer of conventional arms and related dual use goods and technologies. ¶1. The Government of Armenia intends to implement, within 180 days of signing this Joint Action Plan, national laws, regulations, policies, and procedures to prevent the transfer, reexport, transit, or transshipment of conventional arms and related technical data, as described in the Wassenaar Arrangement's Munitions List, by the Government, its citizens, or from its territory to any country under a UN arms embargo, other countries of concern, and any recipient if there is an unacceptable risk that the items could be diverted to such countries or to terrorists. ¶2. The Government of Armenia intends to implement, within 180 days of signing this Joint Action Plan, national laws, regulations, policies, and procedures to prevent the transfer, reexport, transit, or transshipment of controlled dual use goods and technologies, as described in the Wassenaar Arrangement's dual use list, by the Government, its citizens, or territory to any country under a UN arms embargo, other countries of concern, and any recipient if there is an unacceptable risk that the items could be diverted to such countries or to terrorists. ¶3. The Government of Armenia intends to: -- Create and deploy at all points of entry interagency trade enforcement teams dedicated to the detection and interdiction of conventional arms and related dual use goods and technologies. -- Harmonize its export control laws and regulations with those of the EU and update its laws and regulations as necessary to ensure continued harmonization. -- Institute end-use and end-user based controls, intangible technology controls, and brokering requirements in export control legislation and regulations. -- Update and make public Armenian export control lists, and harmonize those lists with the control lists of the Wassenaar Arrangement, the Missile Technology Control Regime, the Nuclear Suppliers Group, and the Australia Group. -- Create an independent and transparent internal process for review and approval of exports of conventional arms. This review, including explicit advanced licensing procedures, should include input from key agencies such as the Ministries of Defense and Foreign Affairs. -- Continue to allow periodic, short-notice visits by experts from the Government of the United States of America to jointly evaluate the export control process in Armenia. ¶4. The Government of Armenia further intends to consult with the Government of the United States of America to facilitate the risk assessment contemplated in paragraph one. ¶5. The Government of the United States of America pledges to expand export control and border security assistance to the Government of Armenia, subject to the availability of appropriated funds. This assistance could include additional training programs, technical assistance, or equipment to upgrade Armenia's export control system and border security. ¶6. The Participants intend to continue the Security Dialogue and establish an expert-level working group to share information on proliferation-related activities and discuss specific ways in which the Government of Armenia can continue cooperation in the area of improving the export control process and its implementation. This Joint Action Plan constitutes a political arrangement between the Participants and is not a legally binding document. The Participants intend to commence cooperation under this Joint Action Plan upon signature. Signed at Washington on March 27, 2009. FOR THE GOVERNMENT OF THE FOR THE GOVERNMENT OF UNITED STATES OF AMERICA: THE REPUBLIC OF ARMENIA: End Text of Joint Action Plan ¶18. (S) Begin Text of Nonpaper on "Countries of Concern" SECRET//RELEASABLE TO GOVERNMENT OF ARMENIA The U.S. informs Armenia that Iran, North Korea, Syria, Sudan, and Cuba are "countries of concern." U.S. law, including the Foreign Assistance Act and the Iran, North Korea, and Syria Nonproliferation Act, reflects this concern regarding certain transfers to these five countries. (Note: Per agreement with the GOAM, there are no classification markings in the footer. End Note) CLINTON