US embassy cable - 03OTTAWA1181

S E C R E T OTTAWA 001181 
 
SIPDIS 
 
STATE FOR EB/ESC/ESP (GLASS), S/CT (FOX), IO/PHO (PEREZ), 
AND WHA/CAN 
TREASURY FOR GENERAL COUNSEL (DAVID AUFHAUSER), OFAC 
DIRECTOR (NEWCOMB), TREASURY DAS FOR TERRORISM (ZARATE), 
AND TREASURY TASK FORCE ON TERRORIST FINANCING 
NSC FOR PETERS 
JUSTICE FOR BETSY BORKE, OFFICE OF INTERNATIONAL 
AFFAIRS/CRIMINAL DIVISION 
 
E.O. 12958: DECL: 02/03/2013 
TAGS: EFIN, ETTC, PTER, PREL, CA, Terrorist Finance, Terrorism 
SUBJECT: TERRORIST FINANCE - OTTAWA: GOC RESPONSE ON 
TARGETTING HEPI AND HCI 
 
REF: A. OTTAWA 1142 
 
     B. STATE 101323 
     C. OTTAWA 960 
     D. STATE 79970 
 
Classified By: Classified by Economics Minister Counselor Michael Galla 
gher.  Reason 1.5 (b and d). 
 
 
1. (U)  Action request paragraph 3. 
 
2.  (SBU) Canada's Department of Foreign Affairs and Trade 
conveyed (by fax) the following response to our ref B 
demarche.  The fax cover sheet requested that we advise the 
GOC of how we expect to proceed. 
 
Begin text of GOC response: 
 
--  Thank you for your visit of April 22, 2003 and for 
consulting with us on your anticipated next steps with 
respect to combatting terrorism financing. 
 
--  As you are aware, all of the individuals and entities, 
identified in your April demarche, are known to Canadian 
authorities. In fact, law enforcement investigations are 
ongoing. 
 
--  Canada continues to weigh the merits of designating 
Canadians and entities based in Canada, as terrorist, under 
our legislation, against the effects that such designation 
would have on ongoing criminal investigations. 
 
--  At this time, we believe that a designation of the 
individuals and entities in question, by the United Sates or 
the UNSC 1267 Committee, would be deleterious to the ongoing 
law enforcement actions in Canada. 
 
--  We will continue to share information with you through 
established law enforcement and intelligence channels. 
 
End text. 
 
3.  (S)   Embassy contacts explained unofficially that the 
GOC understands from recent conversations with DC 
counterparts that the proposed designation is a 
"housekeeping" measure designed to ensure that groups or 
individuals removed from the G-7 listing process in April, 
2002, do not fall through the cracks.  The GOC is under the 
impression that confirmation that they object to the 
designation due to ongoing investigations is sufficient to 
prevent USG designation of the proposed targets. 
 
4.  (S)  Action request:  Please let us know if this is not 
the case.  If Washington intends to proceed with the 
designation, we will so advise the GOC. 
CELLUCCI