US embassy cable - 04THEHAGUE746

UNCLAS THE HAGUE 000746 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EB/ESC/TFS(GLASS/SALOOM), IO/PHO, L/EB 
 
TREASURY FOR WALLWORTH AND ZARATE 
 
E.O. 12958 N/A 
TAGS: ETTC, EFIN, IZ, NL 
SUBJECT: IRAQI ASSETS: TRANSFERING ASSETS FROZEN IN THE 
NETHERLANDS TO THE DEVELOPMENT FUND FOR IRAQ 
 
REF: A) STATE 36435 B) HOLLIDAY-KUSHNER E-MAIL OF 2/5/04  C) 
 
STATE 19363  D) 03 THE HAGUE 2674  E) 03 State 291321 
 
1.  (SBU) Dutch authorities are preparing a Ministerial 
decree that will allow them to confiscate Iraqi assets 
frozen in the Netherlands.  This decree should be 
promulgated within the next 90 days and will apply to assets 
of the former regime that are already frozen and any that 
have not yet been discovered.  The decision to effect 
confiscation through Ministerial decree represents a change 
in position: previously, the GONL had maintained that new 
legislation would be required. 
 
2.  (SBU) Until promulgation of this decree, Dutch financial 
authorities still believe they can transfer funds from 
frozen accounts to the DFI with the permission of the 
account holders.  In practice, this has proven more 
difficult than expected.  Transfer of approximately 18,000 
euro from a Rasheed Bank account (note: ref e identifies 
this as a Rafidain account; however, ref b and Dutch 
authorities indicate it is a Rasheed account) held by 
Commerzbank (Nederland) has been delayed by an interregnum 
in Commerzbank management (a key official recently died.) 
and non-receipt by Commerzbank of the original Rasheed Bank 
letter requesting transfer (ref b).  The situation is being 
sorted out.   Dutch officials confirm that ABN Amro account 
41.79.82.992 referenced in ref a was lawfully closed several 
months ago.  They also confirm that the Dutch Central Bank 
holds 1000 euro in of Iraqi Central Bank Funds and that 
approximately 4,000 euro in Rafidain funds are also frozen 
in the Netherlands (possibly also at Commerzbank). 
 
Sobel