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Viewing cable 09STATE48525,
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Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
09STATE48525 | 2009-05-12 23:23 | 2011-06-08 00:00 | SECRET//NOFORN | Secretary of State |
Appears in these articles: http://www.aftenposten.no/spesial/wikileaksdokumenter/article3988329.ece |
VZCZCXRO2704
OO RUEHBC RUEHDBU RUEHDT RUEHKN RUEHMJ RUEHMR RUEHPA RUEHPB RUEHRN
RUEHROV
DE RUEHC #8525/01 1322338
ZNY SSSSS ZZH
O 122323Z MAY 09
FM SECSTATE WASHDC
TO ALL DIPLOMATIC POSTS COLLECTIVE IMMEDIATE
S E C R E T SECTION 01 OF 06 STATE 048525
SIPDIS NOFORN
E.O. 12958: DECL: 04/26/2019 TAGS: EFIN ETTC KNNP PREL PARM XE ZO KN
REFS: A) 06 STATE 055463 B) 08 ABU DHABI 000325 C) 08 STATE 30247 D) 08 SEOUL 650 E) 08 SEOUL 1207 F) 06 STATE 180512 G) 07 STATE 064579 H) 07 ABU DHABI 873 I) 07 STATE 162279 J) 09 STATE 19783 K) 08 STATE 123035 L) 06 STATE 43354 M) 06 SINGAPORE 3187 N) 06 MOSCOW 12396 O) 06 BERLIN 1285
Classified by: ISN Acting A/S C.S. Eliot Kang for reasons 1.4 (b) and (d).
¶1. (U) This is an action request. Please see paragraph 3.
------------------ SUMMARY/BACKGROUND ------------------
¶2. (SBU) In response to the April 5, 2009 launch of a Taepo Dong-2 (TD-2) ballistic missile by the Democratic Peoples Republic of Korea (DPRK), the UN Security Council issued a Presidential Statement (PRST) on April 13, 2009. The PRST stated that the TD-2 launch was in contravention of UN Security Council Resolution (UNSCR) 1718 and indicated the Security Councils agreement to adjust the sanctions measures imposed by paragraph 8 of the resolution through the designation of entities and goods. If the UNSCR 1718 Sanctions Committee did not act by April 24, the PRST indicated that the Security Council itself would do so by April 30. On April 24, the Sanctions Committee designated three DPRK entities to be subject to the asset freeze provisions in paragraph 8 (d) of UNSCR 1718. These entities are: Korea Mining Development Trading Corporation (KOMID), the Korea Ryonbong General Corporation (Ryonbong), and Tanchon Commercial Bank. The United States wants to provide background and identifier information to all States on the newly designated entities and their affiliates, and urge States to implement immediately the asset freeze obligations of UNSCR 1718 to prevent further proliferation-related activities by the DPRK. Under paragraph 8(d) of UNSCR 1718, the asset freeze provisions also apply to funds, financial assets, and economic resources that are owned or controlled directly or indirectly by designated entities, and to persons and entities acting on behalf of or at the direction of the designated entities.
------------------------- OBJECTIVES/ACTION REQUEST -------------------------
¶3. (S/NF) All posts are requested to deliver the nonpaper in paragraph 4 to relevant host government officials in the foreign affairs and finance ministries. Embassies Abu Dhabi, Berlin, Bern, Cairo, Copenhagen, London, Moscow, New Delhi, Sanaa, Seoul, Singapore, and Stockholm are requested to deliver additional classified points in paragraph 5 as appropriate. Embassies Beijing, Kuala Lumpur, and Consulate Hong Kong are requested not to deliver this demarche. Washington is preparing a targeted demarche to these three posts with additional classified information that will be provided at a later date. The text of UNSCR 1718 can be found at under S/RES/1718 (2006). The text of the Presidential Statement (PRST) can be found at under S/PRST/2009/7 of 13 April 2009. The text of the Security Council determination of items and entities subject to measures imposed in Resolution 1718 can be found at: tm. Posts should pursue the following objectives:
-- Note the new designations of Tanchon Commercial Bank, KOMID, and Ryonbong and provide host governments with
background and identifier information on these entities and their affiliates.
-- Urge host government officials to investigate whether these entities have a presence in their jurisdiction and, if so, request that they immediately freeze the assets of the three designees, as well as any funds, other financial assets or economic resources that are owned or controlled, directly or indirectly, by the designated entities and those of persons or entities acting on the behalf of or at the direction of designated entities, per UNSCR 1718.
-- Recommend host government officials also take steps to prevent their nationals or persons or entities within their territories from engaging in transactions with those designated entities, per UNSCR 1718.
FOR Embassies Abu Dhabi, Berlin, Bern, Cairo, Copenhagen, London, Moscow, New Delhi, Seoul, Singapore, and Stockholm:
-- Urge host government officials to investigate whether financial institutions within their jurisdiction maintain correspondent relationships with Tanchon Commercial Bank, and ensure that any Tanchon correspondent accounts are frozen.
For Embassies Abu Dhabi and Sanaa:
-- Request host governments to refrain from engaging in any cooperation with KOMID.
¶4. (SBU) BEGIN TEXT OF SENSITIVE BUT UNCLASSIFIED NONPAPER
-- In response to the April 5, 2009 launch of a Taepo Dong-2 (TD-2) missile by the Democratic Peoples Republic of Korea (DPRK), the UN Security Council issued a Presidential Statement (PRST) on April 13, 2009. The PRST stated that the TD-2 launch was in contravention of UNSCR 1718 and indicated the Security Councils agreement to adjust the sanctions measures imposed by that resolution. If the UNSCR 1718 Sanctions Committee did not act by April 24, the Security Council indicated that it would do so itself. On April 24, the Sanctions Committee designated three DPRK entities to be subject to the asset freeze provisions in paragraph 8 (d) of UNSCR 1718. These entities are: Korea Mining Development Trading Corporation (KOMID), the Korea Ryonbong General Corporation (Ryonbong), and Tanchon Commercial Bank.
---------------------------- IMPLEMENTATION OF UNSCR 1718 ----------------------------
-- The United States is urging immediate enforcement of the sanctions in paragraph 8(d) of UNSCR 1718 against the newly designated entities. Paragraph 8(d) of UNSCR 1718 instructs Member States to "freeze immediately the funds, other financial assets and economic resources which are on their territories at the date of the adoption of this resolution or at any time thereafter, that are owned or controlled, directly or indirectly, by the persons or entities designated by the Committee or by the Security Council... or by persons or entities acting on their behalf or at their direction." Member States must also "ensure that any funds, financial assets or economic resources are prevented from being made available [to the designated entities] by their nationals or by any persons or entities within their territories, to or for the benefit of such persons or entities."
-- With the designation of these three DPRK entities pursuant to UNSCR 1718, it is each States responsibility to ensure that the requirements of paragraph 8(d) are implemented immediately with respect to these entities and persons and entities acting on their behalf or at their direction.
-- We urge you to investigate whether there are any assets belonging to these entities in your jurisdiction, and ensure that they are immediately frozen.
-- We also urge you to take steps to prevent nationals or persons or entities within your territory from engaging in transactions with those designated entities unless approved as an allowable exemption.
-- We specifically request that you investigate whether
financial institutions in your jurisdiction maintain correspondent relationships with Tanchon Commercial Bank, and ensure that any Tanchon correspondent accounts are frozen.
-- The newly designated North Korean entities are vital to the progress of the DPRKs ballistic missile and other weapons programs.
-- In addition to implementing the asset freeze pursuant to Resolution 1718, we ask you remain vigilant and ensure that no North Korean proliferation-related activities and transactions whatsoever take place in your jurisdiction.
-- We look forward to working with your government to ensure full implementation of UNSCR 1718, as well as the additional measures described above.
--------------------------------------------- ------- KOREA MINING DEVELOPMENT TRADING CORPORATION (KOMID) --------------------------------------------- -------
-- The Korea Mining Development Trading Corporation (KOMID) is North Koreas primary arms dealer and main exporter of goods and equipment related to ballistic missiles and conventional weapons. KOMID offices are located in multiple countries and facilitate weapons sales while seeking new customers. The United States has repeatedly applied sanctions to the KOMID organization over the past ten years for trading in missile technology.
-- In June 2005, KOMID was designated by the President in the Annex to U.S. Executive Order (E.O.) 13382, "Blocking Property of Weapons of Mass Destruction Proliferators and Their Supporters," for material contributions to the proliferation of weapons of mass destruction or their means of delivery.
-- E.O. 13382, issued on June 28, 2005, blocks the assets under U.S. jurisdiction of foreign persons and entities named in the Executive Order or subsequently designated by the U.S. Departments of Treasury or State for materially contributing to (or for posing a risk of materially contributing to) the proliferation of weapons of mass destruction; for providing or attempting to provide financial or other support to such proliferation activities; or for being owned or controlled by, or acting for or on behalf of, another designee. In addition to the asset freeze, E.O. 13382 prohibits all transactions between any U.S. person and the designated persons and entities.
-- Identifier information for KOMID is as follows: a.k.a. Changgwang Sinyong Corporation; a.k.a External Technology Trading Corporation; a.k.a. North Korean Mining Development Trading Corporation; a.k.a. KOMID, Central District, Pyongyang, North Korea.
-- In October 2005, two KOMID subsidiaries, Hesong Trading Corporation and Tosong Technology Trading Corporation, were also designated under E.O. 13382. Both Hesong and Tosong are located in Pyongyang, North Korea.
----------------------- TANCHON COMMERCIAL BANK -----------------------
-- Tanchon Commercial Bank, headquartered in Pyongyang, assumed from Korea Changgwang Credit Bank Corporation (KCCBC) the role as the main DPRK financial agent for sales of conventional arms, ballistic missiles, and goods related to the assembly and manufacture of such weapons. Since the late 1980s, Tanchon Commercial Bank and its predecessor, KCCBC, have collected revenue from weapons-related sales that were concentrated in a handful of countries mainly located in the Middle East and several African states. These revenues provide the DPRK with a significant portion of its export earnings and financially aid the DPRKs own development of nuclear-related, other weapons of mass destruction- related, and ballistic missile-related programs and arms-related purchases.
-- Tanchon has been involved in financing ballistic missile sales from KOMID to Irans Shahid Hemmat Industrial Group (SHIG). SHIG is the Iranian organization charged with developing Irans liquid- fueled ballistic missile program and is designated under UNSCR 1737 for an asset freeze similar to that in UNSCR 1718.
-- Since 2005, Tanchon has maintained an active relationship with Irans Bank Sepah, which is linked to the provision of extensive financial services to Irans ballistic missile program and was also designated by the UN Security Council in the annex of UNSCR 1747 for an asset freeze.
-- Tanchon was also designated by the President of the United States in the annex to E.O. 13382.
-- Identifier information for Tanchon Commercial Bank is as follows: f.k.a. Changgwang Credit Bank; f.k.a. Korea Changgwang Credit Bank, Saemul 1-Dong Pyonchon District, Pyongyang, North Korea.
------------------------------------------ KOREA RYONBONG GENERAL TRADING CORPORATION ------------------------------------------
-- The DPRK defense conglomerate Korea Ryonbong General Corporation specializes in acquisition for DPRK defense industries and support to that countrys military- related sales. An English-language DPRK trade journal (Foreign Trade of the DPRK) has carried advertisements from International Chemical, a subsidiary of Korea Ryonbong General Trading Corporation, offering ammonium diuranate (ADU), a processed form of yellowcake, for sale on the international market.
-- Identifier information for Korea Ryonbong General Trading Corporation is as follows: a.k.a. Korea Yonbong General Corporation; f.k.a. Lyongaksan General Trading Corporation, Potonggang District, Pyongyang, North Korea; Rakwon-dong, Pothonggang District, Pyongyang, North Korea.
-- Korea Ryonbong General Trading Corporation was also designated by the President in the annex to E.O. 13382. On October 21, 2005, six DPRK entities that are subsidiaries of Korea Ryonbong, were were also designated under E.O. 13382. These entities are:
- Korea International Chemical Joint Venture Company. a.k.a. Chosun International Chemicals Joint Operation Company; a.k.a. International Chemical Joint Venture Corporation; a.k.a. Choson International Chemicals Joint Operation Company, Hamhung, South Hangyong Province, North Korea; Mangyongdae-kuyok, Pyongyang, North Korea; Mangyungdae-gu, Pyongyang, North Korea. Korea International Chemical Joint Venture Company is a subsidiary company of Korea Ryonbong General Corporation.
- Korea Ryonha Machinery Joint Venture Corporation. a.k.a. Korea Ryenha Machinery J/V Corporation; a.k.a. Chosun Yunha Machinery Joint Operation Company; a.k.a. Ryonha Machinery Joint Venture Corporation), Central District, Pyongyang,North Korea; Mangungdae-gu, Pyongyang, North Korea; Mangyongdae District, Pyongyang, North Korea. Korea Ryonha Machinery Joint Venture Corporation is a subsidiary company of Korea Ryonbong General Corporation.
- Korea Complex Equipment Import Corporation, Rakwon- dong, Pothonggang District, Pyongyang, North Korea. Korea Complex Equipment Import Corporation is a subsidiary company of Korea Ryonbong General Corporation.
- Korea Kwangsong Trading Corporation, Rakwon-dong, Porhonggang District, Pyongyang, North Korea. Korea Kwangsong Trading Corporation is a subsidiary company of Korea Ryonbong General Corporation.
- Korea Pugang Trading Corporation, Rakwon-dong, Pothonggang District, Pyongyang, North Korea. Korea Pugang Trading Corporation is a subsidiary company of Korea Ryonbong General Corporation.
- Korea Ryongwang Trading Corporation. a.k.a. Korea Ryengwang Trading Corporation), Rakwon-dong, Pothonggang District, Pyongyang, North Korea. Korea Ryongwang Trading Corporation is a subsidiary company of Korea Ryonbong General Corporation.
END SENSITIVE BUT UNCLASSIFIED NONPAPER
¶5. (S/REL UAE, SWITZERLAND, SWEDEN, EGYPT, DENMARK, UNITED KINGDOM, RUSSIA, INDIA, YEMEN, SOUTH KOREA,
SINGAPORE) BEGIN SECRET POINTS
FOR UAE, SWITZERLAND, SWEDEN, EGYPT, DENMARK, UNITED KINGDOM, RUSSIA, INDIA, SOUTH KOREA, SINGAPORE: -- In 2006 (REF A, L), we noted our concern that Tanchon maintained one or more correspondent accounts in your jurisdiction.
-- Given the continuation of DPRK proliferation activities and the designation of these three entities to be subject to the measures in paragraph 8(d) of UNSCR 1718, we strongly reiterate our request that you use the following information to take action to close such an account, in order to prevent North Korea from using your jurisdiction to facilitate proliferation-related financial transactions.
FOR DENMARK ONLY: -- We previously raised with you in March 2006 our concern (REF L) that Tanchon Commercial Bank maintained a correspondent account with Den Danske Bank AS- Copenhagen. According to April 2009 Bankers Almanac information, Tanchon still maintains that account.
FOR SWEDEN ONLY: -- We previously raised with you in March 2006 our concern (REF L) that Tanchon Commercial Bank maintained a correspondent account with Nordea Bank Sweden- Stockholm, Skandinaviska Enskilda Banken-Stockholm, and Svenska Handelsbanken-Stockholm. According to April 2009 Bankers Almanac information, Tanchon still maintains all three accounts.
FOR SWITZERLAND ONLY: -- We previously raised with you in March 2006 our concern (REF L) that Tanchon Commercial Bank maintained a correspondent account with Lloyds TSB Bank-Geneva. According to April 2009 Bankers Almanac information, Tanchon still maintains that account.
FOR UNITED KINGDOM ONLY: -- We previously raised with you in March 2006 our concern (REF L) that Tanchon Commercial Bank has correspondent accounts with Bank of China International- London, British Arab Commercial Bank-London, Havin Bank- London, HSBC Bank Plc.-London, Lloyds TSB Bank-London, Moscow Narodny Bank-London, and National Bank of Egypt International-London. According to April 2009 Bankers Almanac information, Tanchon still maintains those accounts.
FOR EGYPT ONLY: -- We previously raised with you in April 2006 our concern (REF A) that Tanchon Commercial Bank maintains a correspondent account with National Bank of Egypt; Cairo, Egypt. According to April 2009 Bankers Almanac information, Tanchon still maintains that account.
-- We strongly urge Egypt to refrain from engaging in any cooperation with KOMID, particularly in light of this UN designation under UNSCR 1718.
FOR INDIA ONLY: -- We previously raised with you in April 2006 our concern (REF A) that Tanchon Commercial Bank maintains a correspondent account with State Bank of India; Mumbai, India. According to April 2009 Bankers Almanac information, Tanchon still maintains that account.
FOR SINGAPORE ONLY: -- We previously raised with you in 2006 our concern that Tanchon Commercial Bank maintains correspondent accounts with Deutsche Bank AG; Singapore (REF A) and United Overseas Bank Limited; Singapore (REF M). You reported to us (Ref M) that the Tanchon account at UOB had been closed, but according to April 2009 Bankers Almanac information, Tanchon still maintains accounts at Overseas Bank Limited and Deutsche Bank.
-- We are requesting confirmation that this account remains closed, and request that you ensure that any Tanchon correspondent accounts in your jurisdiction are frozen.
FOR GERMANY ONLY: -- We previously raised with you in April 2006 our concern (REF A) that Tanchon Commercial Bank maintains a correspondent banking account with Deutsche Bank AG- Singapore branch. You informed us in May 2006 that that account had been closed (REF O), but the April 2009 Bankers Almanac information indicates that Tanchon still maintains that account.
-- We are requesting confirmation that this account remains closed, and request that you ensure that any Tanchon correspondent accounts in your jurisdiction are frozen.
FOR UAE ONLY: -- In March 2008 (REF B, G, H, I), you told us that Tanchon Commercial Bank was not licensed to operate in the UAE and that the Central Bank had frozen its accounts in the UAE based on a U.S. request. We want to ensure that this is still the case and that Tanchon has not tried to renew its presence in UAE jurisdiction.
-- We also have recently raised with you our concerns regarding recent KOMID activities in the UAE and urge you to refrain from engaging in any cooperation with KOMID, particularly in light of KOMIDs UNSC designation (REF K) under UNSCR 1718.
FOR YEMEN ONLY: -- We have recently raised with you our concerns regarding information that KOMID may be involved in a Scud missile-related project in Yemen. We strongly urge the ROYG to refrain from engaging in any cooperation with KOMID, particularly in light of KOMIDs UNSC designation (REF J) under UNSCR 1718.
FOR ROK ONLY: -- We have on numerous occasions discussed (REF C, D, E) the proliferation activities of Bank Mellat Seoul with you. We wish to highlight a point we previously raised (REF C), specifically that Hong Kong Electronics, almost certainly a front company for Tanchon Commercial Bank, has been involved in proliferation-related transactions with Bank Mellat Seoul.
-- We note that the ROKs obligations under Resolution 1718 require it to freeze the assets of entities acting on the behalf of or at the direction of designated entities. We believe Hong Kong Electronics meets this criterion based on its demonstrated link to Tanchon, and we urge you to extend the asset freeze requirements of UNSCR 1718 to both Hong Kong Electronics and Bank Mellat Seoul.
FOR RUSSIA ONLY: -- We previously raised with you in April 2006 our concern (REF A) that Tanchon Commercial Bank maintains a correspondent banking relationship with Bank for Foreign Trade (Vneshtorgbank) and Moscow Narodny bank-Singapore branch.
-- You reported to us (REF N) that the Tanchon correspondent account at VTB had been closed and we are requesting confirmation that this account remains closed, and that any Tanchon correspondent accounts in your jurisdiction are blocked.
END SECRET POINTS
------------------ REPORTING DEADLINE ------------------
¶6. (U) Post should report results within seven business days of receipt of this cable. Please slug replies for ISN, T, EAP, and TREASURY. Please use the caption SIPDIS in all replies.