DPRK: AUSTRALIA "EXCITED" ABOUT OPPORTUNITY

C O N F I D E N T I A L USUN NEW YORK 000778

SENSITIVE
SIPDIS

E.O. 12958: DECL: 07/19/2019
TAGS: PREL PHUM ETTC MCAP KN UNSC
SUBJECT: DPRK: AUSTRALIA "EXCITED" ABOUT OPPORTUNITY
CREATED BY SANCTIONS VIOLATION

REF: USUN 775

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


1. (C) SUMMARY: The Australian mission approached USUN to
discuss Australia's role in an apparent violation of UN
sanctions imposed on North Korea involving an
Australian-based shipping firm. The Australians noted that
Canberra authorities were aware that the UAE had discovered
arms apparently being shipped from North Korea to Iran aboard
the vessel "ANL Australia." USUN confirmed the broad facts
of the case, noting that the Security Council's relevant
Sanctions Committee (the "1718 Committee') would likely
request from Australian authorities additional information
about the incident. The Australian mission staff reported
that Canberra was "excited" about the chance to use this
incident to demonstrate Australia's commitment to
implementing the UN sanctions on North Korea. END SUMMARY.


2. (C) On August 19, Australian mission First Secretary Sarah
de Zoeten and legal advisor Andrew Rose requested a meeting
with USUN Sanctions Unit chief to discuss Australia's role in
a possible violation of UN sanctions imposed on North Korea,
namely Security Council resolution 1874. They told USUN that
Australian authorities were aware that the United Arab
Emirates (UAE) claimed to have intercepted arms apparently
being transferred from North Korea to Iran (reftel) aboard a
Bahamas-flagged ship, the "ANL Australia," which was operated
by the Australian-based firm "ANL Container Line Proprietary
Limited." Noting that U.S. 1874 Coordinator Ambassador Phil
Goldberg had recently discussed the incident with Australian
embassy officials in Washington, they said that Canberra had
instructed them to approach USUN for information on next
steps in New York.


3. (C) USUN Sanctions Unit chief confirmed that the UAE had
recently reported to the Security Council's relevant
Sanctions Committee (the "1718 Committee") about its
interception of this cargo, but he emphasized that this
information should remain confidential for the time being.
Within the following week, he said, the Committee may begin
sending letters to all the countries involved in the incident
to solicit more information. Assuming this approach is
acceptable to the Committee, the Committee would likely ask
Australian authorities to provide additional information
about the incident no later than thirty days after receipt of
the Committee's letter. USUN noted that this incident could
be used to set a positive precedent for the 1718 Committee's
response to sanctions violations, as well as spark Committee
action that might detect and deter future violations.


4. (C) Rose reported that Canberra authorities were "excited"
about the opportunity to use this incident to demonstrate
Australia's commitment to full implementation of the UN
sanctions on North Korea. Pointing to problems with
Australia's implementation in the 1990s of sanctions on Iraq,
he emphasized that Australia had since adopted new
regulations that would more easily allow for the prosecution
of Australians linked to sanctions violations. De Zoeten
explained that Canberra had already begun quietly
investigating the case and also distributed to its missions
abroad contingency press guidance for use when the incident
inevitably went public. Rose suspected that because of the
facts of the case -- in particular the name of the vessel,
the "Australia" -- his country's role in the incident would
attract press attention.


5. (C) Noting President Obama's June 22 conversation
Australian Prime Minister Rudd about 1874 implementation,
USUN pledged to consult closely with the Australian mission
on next steps in the Committee's investigation of the
incident.
RICE