US embassy cable - 09USUNNEWYORK775

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