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OO RUEHWEB

DE RUEHWL #0834/01 2981733
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O 251733Z OCT 06
FM AMEMBASSY WELLINGTON
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3415
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C O N F I D E N T I A L WELLINGTON 000834 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR D (FRITZ), EAP/FO, EAP/RSP, AND EAP/ANP 
NSC FOR VICTOR CHA 
OSD FOR ISD/JESSICA POWERS 
PACOM FOR J01E/J2/J233/J5/SJFHQ 
 
E.O. 12958: DECL: 10/25/2016 
TAGS: KNNP PREL PARM NZ KN
SUBJECT: UNSCR 1718: NEW ZEALAND SEEKS GUIDANCE AS IT 
PUSHES AHEAD 
 
REF: A. WELLINGTON 814 
 
     ¶B. STATE 172816 
     ¶C. WELLINGTON 798 
     ¶D. WELLINGTON 778 
 
Classified By: DCM David J. Keegan, 
for reasons 1.4(b) and (d) 
 
¶1.  (SBU) This message contains an action request, at 
paragraph 8. 
 
¶2.  (C) Summary: In 15 recent speeches, NZ leaders have 
condemned North Korea's nuclear test and urged the DPRK to 
return to the six-party talks.  The leaders are also pushing 
their ministries to implement UNSCR 1718 as soon as possible. 
 Five GNZ agencies are reviewing current laws and policies to 
see what is needed.  The agencies would appreciate learning 
how the US intends to implement the resolution, especially: 
1) how we will define luxury goods, 2) which controlled items 
we believe should be included, 3) whether we will offer 
indemnity to banks that wrongly freeze assets, 4) which 
family members will be covered under our travel ban on 
N.Korean officials, and 5) the definition of banned 
"services" related to controlled items.  The officials would 
also appreciate our read-out on whether interdictions will be 
implemented through PSI or other means.  They stress that 
these questions are not impeding their progress, and that GNZ 
should be able to fully implement the UNSCR 1718 by the 
year's end. End Summary. 
 
-------------------------- 
GNZ IS WITH THE PROGRAM... 
-------------------------- 
 
¶3.  (C) On October 24, Pol-Econ Counselor met at the Ministry 
of Foreign Affairs and Trade with Tara Morton, Legal Advisor; 
Carolyn Schwalger, Senior Policy Officer, North Asia 
Division; Gabrielle Rush, Deputy Director Americas Division 
(and Legal Advisor); and Cecilia Warren, Policy Officer, 
Non-proliferation Division.  The officials reported that GNZ 
is working hard to implement UNSCR 1718.  Following a meeting 
last week, they and counterparts from Customs, Police, 
Justice, and Immigration are reviewing what is needed, 
including through consultations with U.S., Australian, and 
other like-minded officials. 
 
¶4.  (C) Once their review is complete, the officials will 
send a memo to Foreign Minister Peters asking him to instruct 
the Parliamentary Council Office (PCO) to draft legislation 
to implement the sanctions under New Zealand's UN Act.  In 
reality, PCO is already aware of the resolution and is in 
close contact with the working level officials conducting the 
review, so the drafting should move very quickly.  Once 
drafted, relevant Ministries will sign off on the legislation 
and it will be submitted to Cabinet, asking they adopt the 
measures by Executive Council (i.e. without Parliamentary 
approval).  The legislation will then be published in the New 
Zealand Gazette.  Legislation normally enters into force 28 
days after being published in the Gazette, but because of 
this resolution's urgency GNZ will seek to waive this rule to 
allow the measures to take effect immediately.  The MFAT 
officials believe the sanctions will be in place by the end 
of the year. 
 
--------------------------------------- 
...BUT SEEK SOME SPECIFICS IN KEY AREAS 
--------------------------------------- 
 
¶5.  (C) According to the MFAT legal advisors, most of the 
resolution should be easy to implement, as it invokes Article 
7 and is similar to other UN resolutions that GNZ has already 
put into place.  But as they review the UNSCR 1718 text, GNZ 
officials have a few questions on UNSCR's provisions. They 
would appreciate USG views on the following: 
 
 
a) Regarding paragraph 8A (1) and (2):  GNZ is monitoring the 
Sanctions Committee debate on which military and controlled 
items should be included.  They believe it is highly likely 
that NZ already bans trade in any items likely to end up on 
the final list.  What do we believe the final list should 
include? 
 
b) Regarding paragraph 8A (3):  GNZ is disappointed that the 
Sanctions Committee did not define luxury goods, and 
officials wonder how we intend to implement this provision. 
Will we define luxury items as anything other than essential 
food and medicines, or do we have something more specific in 
mind?   On this and all items covered by 1718, GNZ vastly 
prefers specific lists as these offer more certainty to both 
Customs and exporters. 
 
c) GNZ will look to the Sanctions Committee for guidance on 
which family members will be covered under the travel ban on 
N.Korean leaders, but would also appreciate our views.  In 
reality, New Zealand already screens very closely all DPRK 
visa applications, but border officials especially would 
appreciate a detailed list of names.  They also would like as 
much biographic information as possible about those covered, 
to help avoid cases of mistaken identity. 
 
d) Regarding the financial assets freeze, New Zealand 
understands Australia will provide indemnity to banks if they 
accidentally freeze assets of individuals not covered by the 
sanctions.  As they debate whether to take similar measures, 
GNZ officials would appreciate learning whether we intend to 
offer indemnity to US banks.  There are now over 15,000 South 
Koreans in New Zealand, and GNZ anticipates local banks may 
make errors because so many Korean names are similar. 
 
e) Regarding paragraph 8C, GNZ is unfamiliar with the 
definition of "services" related to controlled items, and 
would appreciate any clarification we could provide. 
 
¶6.  (C) The GNZ also wonders how others in the region believe 
UNSCR 1718-related interdictions should be handled, and would 
greatly appreciate our views as well as any read-out we can 
share of the Secretary's and other USG discussions on this 
question with regional counterparts. 
 
----------------- 
ON THE FAST TRACK 
----------------- 
 
¶7.  (C) The MFAT officials say that PM Clark, Ministers 
Peters and Goff, and other senior officials have made clear 
their expectation that GNZ working level officials must make 
implementation of UNSCR 1718 their top priority.  The 
officials say they cannot recall a time in recent memory when 
the senior level has been so engaged on a UN sanctions issue. 
 They believe this is due to New Zealand's stated commitment 
to non-proliferation, to the fact that North Korea is much 
closer to home than other sanctioned countries, and to the 
issue's strong geo-political implications. 
 
¶8.  (C) Comment: GNZ also no doubt also sees implementation 
of UNSCR 1718 as a way to demonstrate to A/S Hill and other 
USG officials New Zealand's willingness to stand together 
with the United States.  But whatever the case, commitment at 
the leaders', senior, and working levels is palpable.  We 
will continue to monitor GNZ's implementation of the 
resolution as it moves ahead.  We would also appreciate 
guidance on GNZ's questions as related in paras 5-6.  End 
Comment. 
McCormick