US embassy cable - 03ZAGREB2408

UNCLAS ZAGREB 002408 
 
SIPDIS 
 
 
SENSITIVE 
 
STATE FOR EB/ES/TSP, IO/PHO AND L/EB 
TREASURY FOR ZARATE AND WALLWORTH 
 
E.O. 12958: N/A 
TAGS: EFIN, PREL, IZ, HR 
SUBJECT: IRAQI ASSETS: CROATIA PLANS TO TRANSFER FROZEN 
ASSETS TO DEVELOPMENT FUND FOR IRAQ 
 
REF: A. STATE 291321 
     B. STATE 196163 

SENSITIVE BUT UNCLASSIFIED -- PLEASE HANDLE ACCORDINGLY. 
 
1.  (U) IN RESPONSE TO REFTEL A, THE MFA AND THE MINISTRY OF 
FINANCE'S FINANCIAL INTELLIGENCE UNIT REPORTED THAT THE 
REFERENCED BANK ACCOUNT AT PRIVREDNA BANK HAD BEEN LOCATED. 
THE ACCOUNT, UNDER THE NAME OF THE CENTRAL BANK OF IRAQ, HAS 
APPARENTLY BEEN FROZEN SINCE 1991 UNDER UNSCR 661.  IN 
RESPONSE TO OUR REQUEST AND UNSCR 1483, THE GOC IS REQUESTING 
THAT A JUDGE ORDER PRIVREDNA BANKA TO TRANSFER THE MONEY TO 
THE DEVELOPMENT FUND FOR IRAQ.  THIS SHOULD OCCUR NEXT WEEK, 
AND OUR CONTACTS DO NOT ANTICIPATE ANY PROBLEMS. 
 
2.  (SBU) WHILE WE WELCOMED THIS NEWS, WE QUESTIONED WHY THE 
ACCOUNT HAD NOT BEEN IDENTIFIED DURING THE INITIAL SEARCH FOR 
IRAQI ASSETS, REFTEL B.  OUR FIU CONTACT WAS UNSURE, BUT SAID 
THAT THE ACCOUNT HAD BEEN TRANSFERRED INTERNALLY AND PLACED 
IN A SPECIAL STATUS BY THE BANK AFTER ITS 1991 SEIZING, AND 
MAY THEREFORE HAVE BEEN MISSED. 
 
3.  (SBU) POST NOTES THAT UNSCR 1463, PARA 23 (A) ONLY MAKES 
A GENERAL REFERENCE TO GOVERNMENT OF IRAQ ENTITIES, WHILE 
PARA 23 (B) LISTS SPECIFIC INDIVIDUALS.  ACCORDING TO THE 
UNSC PRESS RELEASE DATED JULY 2, "(A) LIST OF ENTITIES TO BE 
IDENTIFIED PURSUANT TO PARAGRAPHS 19 AND 23 OF SECURITY 
COUNCIL RESOLUTION 1483 (2003) WILL BE ISSUED AT A LATER 
STAGE, AND WILL BE INCLUDED TOGETHER WITH THE LIST OF 
INDIVIDUALS IN A CONSOLIDATED LIST OF THE COMMITTEE."  IT 
APPEARS THAT THIS LIST OF IRAQI STATE ENTITIES WAS NEVER 
POSTED.  WHILE THE CENTRAL BANK OF IRAQ OBVIOUSLY QUALIFIES 
AS A STATE ENTITY UNDER UNSCR 1483'S PARA 23 (A), OTHER 
    ENTITIES MAY NOT BE AS OBVIOUS.  THE VARIOUS BANKS IN CROATIA 
MAY ALSO HAVE CONCENTRATED ON THE LIST OF NAMES PROVIDED BY 
THE GOC FOR SEIZURE, RATHER THAN THE VAGUELY WORDED REFERENCE 
TO IRAQI STATE ENTITIES.  TO ENSURE THAT ALL IRAQI ASSETS ARE 
IDENTIFIED, IT WOULD BE USEFUL IF A LIST, EVEN PARTIAL, OF 
STATE ENTITIES, WERE ISSUED BY THE UNSCR COMMITTEE.  WE WOULD 
THEN ASK THE GOC TO CONDUCT A SECOND, MORE THOROUGH, SEARCH. 
FRANK 
 
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