US embassy cable - 02VATICAN83

UNCLAS VATICAN 000083 
 
SIPDIS 
 
DEPT. FOR EUR/WE (MENNUTI), EB/ESC (WILLIAMSON); DEPT PLEASE 
PASS OFAC 
 
FROM EMBASSY VATICAN/MESSAGE NO. 004/02 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PREL, ETTC, EFIN, VT 
SUBJECT: VATICAN PM WANTS HIS MONEY 
 
 
                       UNCLASSIFIED 
 
PAGE 02        VATICA  00083  080918Z 
1.   (SBU) THIS IS AN ACTION MESSAGE.  CARDINAL SODANO, 
VATICAN PM EQUIVALENT, ON 01/08/02 PASSED CHARGE A LETTER 
VERBALE ADDRESSED TO THE AMBASSADOR (FAXED TO EUR/WE) IN 
WHICH HE REQUESTED THE INTERVENTION OF THIS EMBASSY TO 
EXPEDITE THE UNBLOCKING BY OFAC OF VATICAN OFFICIAL FUNDS. 
THESE FUNDS WERE DESTINED TO SUPPORT THE HOLY SEE'S EMBASSY 
(NUNCIATURE) IN HAVANA.  SODANO ALSO ASKED POST TO PASS TO 
THE DEPARTMENT OF THE TREASURY A NOTE VERBALE REQUESTING THE 
UNBLOCKING OF THE FUNDS.  ACTION REQUESTED: PLEASE PASS THIS 
INFORMATION TO OFAC ASAP; PLEASE PROVIDE GUIDANCE FOR 
RESPONDING BEFORE THURSDAY, JANUARY 10, WHEN AMBASSADOR WILL 
SEE SODANO AT AN OFFICIAL FUNCTION. 
 
2.  (SBU)  THE INFORMATION POST HAS ON THIS ISSUE ALL COMES 
FROM A PACKET OF CORRESPONDENCE BETWEEN THE ARCHDIOCESE OF 
NEW YORK AND OFAC (ALL FAXED TO EUR/WE).  THE BASIC FACTS 
ALLEGED ARE THAT THE ARCHDIOCESE ATTEMPTED ON JULY 5, 2001 
TO TRANSFER A PORTION OF THE PROCEEDS OF A VATICAN 
INVESTMENT TO THE ACCOUNT OF THE HAVANA NUNCIATURE AT THE 
ISTITUTO PER LE OPERE RELIGIOSE (IOR -- THE VATICAN'S 
OFFICIAL BANK). AT THAT POINT OFAC BLOCKED THE TRANSFER. 
THE NUNCIATURE APPLIED FOR A LICENSE BY JULY 7, 2001.  BY 
SEPTEMBER 25, 2001 OFAC AND THE ARCHDIOCESE HAD EXCHANGED 
CORRESPONDENCE DETAILING PARTICULARS OF THE PROPOSED IOR 
TRANSACTION.  BY JANUARY 5,2002, WITH NO APPARENT ACTION ON 
THE PART OF OFAC, CARDINAL SODANO SENT THE NOTE AND LETTER 
REFERRED TO ABOVE. 
 
3.  (SBU) COMMENT:  THIS TRANSACTION HAS RISEN TO THE LEVEL 
OF A FOREIGN POLICY ISSUE WITH THE LETTER FROM THE PRIME 
MINISTER TO THE AMBASSADOR.  WE NOTE THAT ON SEVERAL LEVELS 
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PAGE 03        VATICA  00083  080918Z 
THIS ISSUE IS A NEURALGIC ONE FOR THE HOLY SEE -- FIRST 
BECAUSE THE MONEY IS PART OF THE VATICAN'S OFFICIAL, INDEED 
DIPLOMATIC ACCOUNTS.  SECOND, BECAUSE IT HAS BEEN BLOCKED AS 
PART OF A SANCTIONS REGIME THAT THE HOLY SEE HAS RESOLUTELY 
OPPOSED SINCE ITS INCEPTION.  THIRD, BECAUSE THE IOR HAS IN 
THE LAST YEAR BEEN SUBJECT TO A NUMBER OF LEGAL PROCEEDINGS 
IN U.S. COURTS IN A MANNER WHICH SODANO PERSONALLY HAS 
ASSERTED VIOLATE THE HOLY SEE'S INTERNATIONAL SOVEREIGN 
RIGHTS.  SODANO WILL ENCOUNTER THE AMBASSADOR AT THE ANNUAL 
DIPLOMATIC CORPS DINNER THIS COMING THURSDAY; THIS ISSUE IS 
EXACTLY THE SORT OF ISSUE HE HAS SEIZED UPON IN THE PAST TO 
PILLORY THE USG FOR ITS ALLEGED LACK OF RESPECT FOR VATICAN 
SOVEREIGNTY.  END COMMENT. 
MERANTE 
 
                       UNCLASSIFIED 
 
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 2002VATICA00083 - Classification: UNCLASSIFIED