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