DPRK: UAE REPORTS SANCTIONS VIOLATION TO 1718

C O N F I D E N T I A L USUN NEW YORK 000775 SENSITIVE SIPDIS E.O. 12958: DECL: 08/17/2019 TAGS: PREL PHUM ETTC MCAP KN UNSC SUBJECT: DPRK: UAE REPORTS SANCTIONS VIOLATION TO 1718 COMMITTEE Classified By: Amb. Alejandro Wolff for Reasons 1.4 (B),(D) ¶1. (C) SUMMARY: The United Arab Emirates (UAE) has reported to the Security Council's DPRK Sanctions Committee ("1718 Committee") a possible violation of UN sanctions imposed on North Korea. The UAE reports having stopped a vessel loaded with containers of arms being shipped from North Korea to Iran and requests Committee guidance on what to do with the intercepted cargo. The UAE mission has told USUN that it wants a letter from the Committee that will allow it to seize and dispose of the items. USUN proposes a Committee response that will set a positive precedent, help detect and deter future sanctions violations and encourage greater transparency in states' dealings with the DPRK; additionally, this incident provides an opportunity to highlight Iran's role as a serial violator for Security Council resolutions. A proposed response would include one or more Committee letters to the parties involved, including the alleged violators (Iran and North Korea),and assistance from the newly-established DPRK Panel of Experts (POE). END SUMMARY. UAE REPORTS FINDING DPRK CONTRABAND EN ROUTE TO IRAN -------------- -------------- ¶2. (C) On August 14, the United Arab Emirates (UAE) mission submitted a report to the Security Council's DPRK Sanctions Committee ("1718 Committee") about a possible violation of UN sanctions imposed on North Korea. According to the report (emailed to IO and EAP),the UAE authorities stopped a Bahamas-flagged vessel, the ANL Australia, that was carrying ten containers of "suspected prohibited materials" from the DPRK to Bandar Abbas, Iran. The report states that the UAE took action "based on information collected by the UAE intelligence." It further specifies that the containers were found to contain military equipment including detonators, rocket launchers, munitions, explosives including ammunition for rocket-propelled grenade weapons. The report notes the name of the exporting company ("OTIM SPA," apparently the Chinese office of an Italian firm) and an Iranian importing company named "T.S.S. Co." The UAE requested that the 1718 Committee provide guidance on how to dispose of the above-mentioned shipment, which has been confiscated by the UAE authorities and is currently under guard. The UAE also asked that this information be kept strictly confidential. ¶3. (C) In a subsequent phone call, UAE Charge Mohammed Abushahab explained to USUN Sanctions Unit chief that the UAE was most interested in guidance from the Committee about what to do with the intercepted cargo. He said that the UAE believed such guidance from the Committee was needed before a domestic judge would be able to rule on a seizure. USUN pointed to the clear language in paragraph 14 of resolution 1874 that both authorizes and obligates states to seize and dispose of this cargo. References to this paragraph, he said, could be included in a Committee response letter to the UAE. WAY FORWARD: EXPLOITING AN OPPORTUNITY -------------- ¶4. (C) USUN notes that this incident offers an opportunity to set a positive precedent for the DPRK Sanctions Committee's response to sanctions violations. If handled well, the Committee can take steps to help detect and deter future violations, encourage greater transparency in states' dealings with North Korea and engage a number of specific states (and their firms) on the need for strict adherence to these sanctions. Additionally, this incident may allow us to call attention to Iran's role as a serial violator of Security Council resolutions. ¶5. (C) As it decides on a response, the 1718 Committee will likely look for inspiration from the spring 2009 actions of the Iran Sanctions Committee ("1737 Committee") to deal with Iranian-origin arms found being shipped to Syria above the Cypriot-flagged vessel Monchegorsk. Roughly in line with this precedent, USUN envisions a Committee response including these elements: -- A Committee reply to the UAE stating clearly that a violation has occurred, pointing to the UAE's obligation to seize/dispose of the cargo, and thanking the UAE for its responsible conduct; -- Committee letters to the alleged violators (Iran and DPRK) stating clearly that a violation has occurred and requesting additional information within fifteen days; -- Committee letters to the other involved states (Australia, Bahamas, China, Italy) stating clearly that a violation has occurred and requesting additional information within fifteen days; -- A Committee request to the DPRK Panel of Experts (POE) to prepare a report on the incident along with recommendations on ways to prevent its repetition; -- Committee publication on its website of the salient details of the incident, along with a call on states to exercise vigilance to prevent sanctions violations from occurring in similar circumstances; -- A final round of letters to the violators (Iran, DPRK) reminding them of their obligations under the UN Charter to respect decisions of the Security Council; -- Possible Security Council discussion of the matter at future regularly-scheduled briefings by the 1718 Committee. ¶6. (C) USUN intends to consult with key countries, particularly the P-3 plus Japan, on the way forward in the Committee. Turkish charge Fazli Corman, acting chair of the 1718 Committee, has pledged to coordinate action with the United States. RICE