VZCZCXRO0400
RR RUEHBC RUEHDE RUEHKUK RUEHMOS
DE RUEHSW #0725/01 0931304
ZNR UUUUU ZZH
R 031304Z APR 06
FM AMEMBASSY BERN
TO RUEHC/SECSTATE WASHDC 2003
INFO RUCNIRA/IRAN COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHINGTON DC

UNCLAS SECTION 01 OF 02 BERN 000725 
 
SIPDIS 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EUR/AGS 
 
E.O. 12958: N/A 
TAGS: ETTC EFIN KNNP IR SZ
SUBJECT: IRANIAN OPPOSITION GROUP CLAIMS IRAN REPATRIATED 
ITS SWISS GOLD 
 
1.(SBU) Summary: Several Swiss media outlets are reporting 
that, during the fall of 2005, Iran repatriated 250 tonnes 
of the Iranian Central Bank's gold, valued at 5 billion 
Swiss Francs ($3.8 billion), on deposit with Credit Suisse 
Zurich and flew the gold in cargo aircraft to the United 
Arab Emirates.  The source of the report is an Iranian 
communist opposition group called the Organization of 
Guerrillas Fedais for the People of Iran (OGFPI).  While 
stopping well short of confirming the report, an employee of 
the Swiss Banking Commission told Poloff that Iran's 
movement of its gold "cannot be excluded," but that he 
doubted it was such a large sum.  Credit Suisse did not deny 
reports of the gold movement.  The OGPFI has also claimed 
that Iran repatriated from western banks a total of about 
700 tonnes of gold and $20 billion in other assets, 
presumably in response to the threat of sanctions over 
Iran's nuclear program.  Meanwhile, on January 22, 2006, 
Credit Suisse and UBS each announced that they would cease 
their commercial relations with Iran.  End summary. 
 
2.(SBU) The Swiss newspaper "La Liberte" and several other 
dailies reported on March 30 that the Iranian Government had 
repatriated 250 tonnes of gold from Switzerland during 
October and November 2005.  The reports also cited the 
Iranian opposition group OGFPI as claiming the Iranian 
government repatriated a total of 700 tonnes of gold and 
more than $20 billon from other western banks during the 
same period.  In Switzerland, the Markazi Bank, Iran's 
Central Bank, had reportedly deposited 250 tonnes of gold at 
Credit Suisse in Zurich.  Credit Suisse did not deny reports 
of the repatriation.  According to the press, other experts 
believe the gold might have been stored in a duty-free 
warehouse to avoid Swiss customs.  As for Switzerland's 
largest bank, UBS spokesman Serge Steiner denied any UBS 
involvement in Iranian gold transfers. 
 
3.(SBU) According to a monthly publication called 
"Jetstream," run by a plane-spotting club, the gold was 
carried on at least three Air Iran cargo jets that landed at 
Zurich Kloten Airport in October and November 2005. 
Jetstream wrote that the plane spotters found the landings 
notable, since Iranian cargo planes rarely visit Zurich. 
The dates and types of planes are as follows: 
 
-- October 24, 2005 - Boeing 747-200 
-- November 14 and 23 - Airbus A 300 
 
4.(SBU) Swiss officials have been publicly non-committal on 
the alleged transfer -- likewise in private conversation. 
The deputy Near East chief at the Department of Foreign 
Affairs said she had no information on the issue.  One 
employee of the Swiss Banking Commission researched the 
issue at Poloff's request and replied April 3 with the 
following information:  The report of the gold repatriation 
cannot be excluded; such repatriation would not violate any 
international sanctions; a Swiss financial institution would 
not have been required to file a suspicious activity report, 
as long as it was satisfied that the gold movement was a 
legitimate action of the Iranian Central Bank; if any 
Iranian gold repatriation took place, he would be surprised 
if it was that large, given the difficulty of transporting 
250 tonnes of cargo on three aircraft (the official 
estimated that a 747 could carry 100 tonnes, and the A-300s 
50 tonnes each). 
 
5.(SBU) Our Banking Commission contact also described the 
allegations as consistent with other recent developments 
between Iran and Swiss financial institutions.  On January 
22, 2006, UBS announced a halt to commercial relations with 
Iran, two days after the Iranian regime acknowledged the 
repatriation of its foreign assets for fear of western 
sanctions.  Credit Suisse's management followed with a 
January 23 decision not to engage in new banking relations 
or renew expiring contracts with Iran or Syria.  According 
to Swiss National Bank data, Iranian assets in Switzerland 
totaled Sfr.2 billion ($1.5 billion), mostly held by UBS and 
Credit Suisse. 
 
Comment 
------- 
 
6.(SBU) Swiss banking privacy laws forbid government 
employees from sharing banking information absent a mutual 
legal assistance treaty request.  Given this fact, a phrase 
indicating that the Iranian gold repatriation "cannot be 
excluded" may be as much indication as could be expected 
that the story might be credible, albeit not necessarily the 
 
BERN 00000725  002 OF 002 
 
 
250 tonnes reported in the press.  Nonetheless, the report 
must remain under the category of "unconfirmed." 
Willeford