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IdentifierCreatedClassificationOrigin
09USUNNEWYORK441 2009-04-29 21:35:00 CONFIDENTIAL USUN New York
Cable title:  

DPRK SANCTIONS COMMITTEE DESIGNATES GOODS, ENTITIES

Tags:   UNSC PREL PHUM ETTC MCAP KN 
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O 292135Z APR 09
FM USMISSION USUN NEW YORK
TO SECSTATE WASHDC IMMEDIATE 6443
INFO UN SECURITY COUNCIL COLLECTIVE IMMEDIATE
AMEMBASSY SEOUL IMMEDIATE
DEPT OF TREASURY WASHDC IMMEDIATE
NSC WASHDC IMMEDIATE
					  C O N F I D E N T I A L USUN NEW YORK 000441 


E.O. 12958: DECL: 04/29/2019
TAGS: UNSC PREL PHUM ETTC MCAP KN

SUBJECT: DPRK SANCTIONS COMMITTEE DESIGNATES GOODS, ENTITIES

Classified By: Amb. Alex Wolff for Reasons 1.4 (B), (D)



1. (C) SUMMARY: The DPRK Sanctions Committee ("1718
Committee") agreed on April 24 to designate explicitly three
high-value entities to be subject to targeted sanctions and
to update a technical list of items to be banned from
transfer to/from the DPRK. By completing this task, the
Committee succeeded in meeting the Security Council's request
to adjust sanctions measures in light of the DPRK's April 5
missile launch. On April 23, Russia and China told USUN they
were prepared to support designating the three entities. On
this basis, USUN presented a carefully-worded designation
proposal to the Committee that would designate the entities
(and also, by extension, their subsidiaries) and update the
list of banned items. Japan initially refused to join
consensus, suggesting that this package was an insufficiently
strong Committee response, and then wrangled the next day
with China and Russia over language in the Committee's final
report to the Security Council. Japan eventually relented,
allowing the Committee to designate the entities and update
the technical list by the April 24 deadline requested by the
Security Council. END SUMMARY.

A CONSENSUS DEVELOPS


--------------------------





2. (C) Over the course of April 23-24, the UN Security
Council's DPRK Sanctions Committee ("1718 Committee")
achieved consensus on designating three DPRK entities to be
subject to an asset freeze and to update a lengthy technical
annex of items to be banned from transfer to/from the DPRK.
(NOTE: On April 13, the Security Council responded to the
DPRK missile launch by adopting a Presidential Statement that
asked the Committee to designate goods and entities and to
report on its efforts by April 24. END NOTE). On April 23,
the Russian and Chinese missions told USUN that they were
prepared to support designating three of the eleven entities
proposed by the United States: the Korea Mining Development
Trading Corporation (KOMID), Tanchon Commercial Bank and
Korea Ryonbong General Corporation. The Chinese and Russian
missions also reconfirmed their agreement to update the list
of items banned under UNSCR 1718 for transfer to/from DPRK
with the latest Missile Technology Control Regime (MTCR)
Annex of prohibite
d goods.



3. (C) On the basis of these discussions, USUN subsequently
drafted a formal proposal for the Committee to designate the
three entities and update the MTCR Annex. This proposal was
drafted in a way that also covered the eight remaining
U.S.-proposed entities, which were subsidiaries of the three
designated entities. (NOTE: Per UNSCR 1718, a designation
covers both the entities explicitly designated as well as
"persons or entities acting on their behalf or at their
direction." The resolution also mandates the freezing of any
assets "are owned or controlled, directly or indirectly" by
designated entities. END NOTE). USUN worked with the chair
to circulate this proposal to the Committee.



4. (C) On April 23, USUN Sanctions Unit chief reiterated the
U.S. insistence that the Committee approve a serious and
credible package of designations no later than the April 24
deadline. The United States, he said, stood behind its
original proposal to the committee (11 entities, updating the
MTCR annex, plus banning the transfer of seven additional
technical items). Any credible package, he added, must
include at a minimum the three high-value entities (KOMID,
Ryonbong and Tanchon) and updating the MTCR Annex. Russian
and Chinese delegates told the Committee they were able to
agree to such a package. Delegates from Libya and Vietnam,
who had previously expressed concerns, agreed not to block
consensus on such a package.



4. (C) The Japanese delegate, however, refused to join
consensus. While welcoming the progress, he said that he
would need to seek final instructions from Tokyo and was
unsure whether his capital would consider the package on the
table -- the three entities, plus MTCR Annex update -- a
sufficiently strong response. The Japanese delegate added
that Japan would insist on language in the Committee's report
saying that the Committee would continue to review all
proposals on the table. (NOTE: In private, the Japanese
delegate explained that this language was important to
justify to domestic audience that the Committee was still
considering a number of entities proposed by Japan. END
NOTE).



5. (C) The French delegate also proposed that the final
designation package be accompanied by publicly releasable
information justifying the designation. Citing European
court cases challenging the legality of targeted sanctions,
he said releasing such information was a "best practice"
followed in other sanctions committees and was an important
transparency measure. USUN, as well as the UK and Libyan
delegates, supported this proposal, while the Chinese
delegate reacted cautiously.



6. (C) USUN assisted the chair in drafting a final Committee
report to the Security Council. Most delegations preferred a
minimalist report that would only inform the Council of the
actions taken in response to the Council's April 13
Presidential Statement. Citing this preference for a
minimalist report, the Chinese delegate insisted on
bracketing Japanese-proposed language saying that the
Committee would continue to examine proposals further.

APRIL 24: THE ENDGAME


--------------------------





7. (C) On April 24, the Committee held a final meeting to
review the designation package (the three entities and
updating the MTCR Annex) and the final report to the Security
Council. The Japanese delegate, explaining that he was under
fresh instructions from Tokyo, continued to insist on
language in the report signaling the Committee would continue
to review outstanding proposals. The Chinese delegate said
this was unacceptable. The Committee deliberated on these
points for several hours. The Chinese delegate told USUN
privately that Chinese Perm Rep Zhang felt that China had
already compromised enough in this process and was therefore
refusing to take the phone calls of Japanese Perm Rep Takasu
to discuss this matter. USUN warned the Japanese delegation
that Japan's inflexible position risked jeopardizing the
whole deal.



8. (C) As the discussion continued, the Russian delegate
announced that in light of FM Lavrov's statements in
Pyongyang earlier that day, Russia would not be able to
accept any forward-leaning language in the text. In light of
this hardening Russian position and the firm position the
Chinese, the Japanese delegate eventually agreed to accept a
watered-down formula in the report of "The Committee will
continue to undertake its tasks as mandated in paragraph 12
of resolution (2006)." The Chinese and Russian delegates
acceded to European request to include publicly releasable
information justifying the designation. Experts developed
brief, one-sentence descriptions of the three entities based
on language provided by the United States.



9. (C) Late in the day on April 24, the Committee met again
to designate formally the three entities and update the MTCR
Annex. The Japanese delegate explained that Japan hoped the
Committee would continue deliberations on the other proposals
on the table. The Committee approved U.S.-drafted talking
points for Ilkin to use in announcing the designations to the
press waiting outside the Committee chamber.

Rice


SVC FOR DUAL PARA 4
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End Cable Text