O 090029Z JAN 07
FM SECSTATE WASHDC
TO AMEMBASSY BERLIN IMMEDIATE
AMEMBASSY LONDON IMMEDIATE
AMEMBASSY PARIS IMMEDIATE
AMEMBASSY ROME IMMEDIATE
INFO TREASURY DEPT WASHINGTON DC IMMEDIATE 0000

S E C R E T STATE 002284 
 
SIPDIS 
 
 
E.O. 12958: DECL: 01/08/2017 
TAGS: PREL KNNP KN PARM FR GE IT UK
 
SUBJECT: ADDITIONAL IRAN DESIGNATIONS UNDER E.O. 13382 
 
 
Classified By: Classified by ISN PDAS Patricia A. McNerney, 
Reasons:  1.4 (b) and (d). 
 
¶1. (SBU) This is an action request, please see paragraph 2. 
 
OBJECTIVES 
---------- 
 
¶2.  (SBU) Washington requests that addressees provide 
courtesy pre-notification OOB, Tuesday, January 9 (local 
time) to host government officials that the United States 
will designate two additional entities and one individual 
under E.O. 13382 ("Blocking the Property of Weapons of Mass 
Destruction Proliferators and their Supporters") on January 
9, 2007 at 10:30am EST for their support for Iranian entities 
engaged in proliferation activities.  Host governments should 
be informed that this information is embargoed until after 
the designations have been publicized in the United States. 
Washington informed the Embassies of France, Germany, Italy, 
and the United Kingdom of the designations on January 8. 
These designations are aimed at protecting the U.S. financial 
system from ongoing proliferation financial activity 
facilitated by Bank Sepah and persons owned or controlled by, 
or acting or purporting to act on behalf of, Bank Sepah. 
Addressees are requested to provide the non-paper in 
paragraph 4 to host governm 
ent officials. 
 
REPORTING DEADLINE 
------------------ 
 
¶3.  (U) Public announcement of the designation in the U.S. 
will occur at January 9, 2007 at 10:30am EST.  Please report 
delivery of the U.S. non-paper and any immediate response by 
January 9, 2007.  Please slug replies for ISN, T, TREASURY, 
EUR and NEA. 
 
 
BACKGROUND/NONPAPER 
------------------- 
 
¶4.  (S/REL TO UK, FRANCE, GERMANY and ITALY) Begin text of 
background/non-paper for UK, FRANCE, GERMANY and ITALY: 
 
The U.S. would like to inform your government that the U.S. 
Treasury Department will designate two additional entities 
and one additional individual for their support for 
proliferation activities by Iranian entities pursuant to 
Executive Order (E.O.) 13382 ("Blocking the Property of 
Weapons of Mass Destruction Proliferators and their 
Supporters"), an authority aimed at freezing the assets of 
proliferators of weapons of mass destruction and their 
supporters and prohibiting transactions and trade between 
those designated entities and banks in U.S. jurisdiction, on 
January 9, 2006. 
 
The United States has used E.O. 13382 to designate eight 
other Iranian entities as proliferators or supporters of 
proliferation activities. 
 
This information is embargoed until after the publication of 
the designations by an official statement from the U.S. 
Treasury Department. 
 
The following names will be added to Treasury's Office of 
Foreign Assets Control (OFAC) list of Specially Designated 
Nationals and Blocked Persons ("SDN list") and published in 
the U.S. Federal Register pursuant to Executive Order 13382. 
 
¶1.    BANK SEPAH, Imam Khomeini Square, P.O. Box 11364-9569, 
Tehran, Iran: all offices worldwide (NPWMD) 
 
¶2.    BANK SEPAH INTERNATIONAL, PLC, 5/7 Eastcheap, London, 
EC3M 1JT, United Kingdom (NPWMD) 
 
¶3.    AHMAD DERAKHSHANDEH, c/o Bank Sepah, No 33 Hormozan 
Building, Pirozan St., Sharak Ghods, Tehran, Iran; DOB 11 
August, 1956; POB Iran (NPWMD) 
 
Bank Sepah is being designated for providing financial 
support and services for three entities previously designated 
for proliferation activities under E.O. 13382: the Aerospace 
Industries Organization (AIO), the Shahid Hemmat Industries 
Group (SHIG), and the Shahid Bakeri Industries Group (SBIG). 
Bank Sepah International, PLC, UK and Ahmad Derakhshandeh are 
being designated because they are owned or controlled by, or 
act or purport to act for or on behalf of, Bank Sepah. 
 
These designations are one part of the U.S. strategy to 
counter the proliferation of weapons of mass destruction. 
 
The U.S. action also helps to implement UN Security Council 
Resolution 1737, which requires States to prevent assistance 
to Iran related to its nuclear and delivery system programs. 
As you know, SHIG and SBIG were included in the Annex of 
UNSCR 1737. 
 
SBIG is also involved in Iran's missile programs.  Among the 
weapons SBIG produces are the Fateh-110 missile, with a range 
of 200 kilometers, and the Fajr rocket systems, a series of 
North Korean-designed rockets produced under license by SBIG 
with ranges of between 40 and 100 kilometers.  Both systems 
are capable of being armed with at least chemical warheads. 
 
SHIG is responsible for some of Iran's ballistic missile 
programs, most notably the Shahab series of medium range 
ballistic missiles which are based on the North 
Korean-designed No Dong missile.  The Shahab is capable of 
carrying chemical, nuclear, and biological warheads and has a 
range of at least 1300 kilometers.  SHIG has received help 
from Russia, China and North Korea in the development of this 
missile. 
 
Both SHIG and SBIG are affiliates of Iran's AIO, which is a 
subsidiary of the Iranian Ministry of Defense and Armed 
Forces Logistics, and is the overall manager and coordinator 
if Iran's missile program.  AIO oversees all of Iran's 
missile industries.  The United States intends to propose the 
designation of AIO to the UNSCR 1737 Committee. 
 
One way States should implement the requirements of the 
resolution is to refrain from facilitating Iran's nuclear or 
missile programs by ceasing dealings with entities involved 
in these activities and blocking or seizing accounts or 
transactions associated with such programs or activities. 
 
The U.S. actions today are aimed at ensuring that Iranian 
entities engaged in ballistic missile proliferation - AIO, 
SHIG, and SBIG-are not able to fund these activities using 
the U.S. financial system. 
 
It is critical that the international community present Iran 
with a consistent and uniform front to press Iran to comply 
with its obligations and seek swift, full and effective 
implementation of the measures contained in UNSCR 1737 by all 
UN members. 
 
We therefore urge your government to undertake similar 
actions against Bank Sepah, AIO, SHIG, and SBIG, and to 
investigate financial relationships and transactions in which 
Bank Sepah and other E.O. 13382 designated Iranian 
proliferation entities have an interest. 
 
We look forward to working with you on this and other related 
security matters and are prepared to provide additional 
assistance as appropriate. 
 
End background/non-paper. 
 
POINT OF CONTACT 
---------------- 
 
¶5.  (U) Questions may be directed to ISN/CPI (Michelle New, 
202-647-0186, or Jennifer Chalmers, 202-647-9715). 
RICE 
 
 
NNNN 
 



End Cable Text