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C O N F I D E N T I A L SECTION 01 OF 02 THE HAGUE 000121 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EB/IFD/ODF, EB/IFD/OMA 
STATE ALSO FOR EB/ESC/TFS, EUR/UBI, IO/T 
PARIS ALSO FOR OECD 
TREASURY FOR IA/OFFICE OF TRADE FINANCE 
 
E.O. 12958: DECL: 01/23/2017 
TAGS: PREL EFIN MNUC EXIM UNSC OECD NL
SUBJECT: NETHERLANDS/IRAN: HALTING EXPORT CREDITS 
 
REF: A. STATE 4760 
     ¶B. THE HAGUE 106 
     ¶C. THE HAGUE 94 
 
THE HAGUE 00000121  001.3 OF 002 
 
 
Classified By: ECONOMIC COUNSELOR KAREN ENSTROM, 
REASONS 1.4 (B) AND (D) 
 
¶1.  (C)  Ambassador delivered ref A points on halting export 
credit insurance for Iran to Dutch Finance Minister Gerrit 
Zalm on January 17.  Minister Zalm told the Ambassador the 
Netherlands was fully committed to implementing UNSCR 1737 
but was not prepared to halt export credits for Iran. 
EconCouns had also shared and discussed points on January 16 
with Nicole Bollen, Coordinator for International Financial 
Issues at the Ministry of Finance (MOF) and Dutch 
representative to the Paris Club and OECD Export Credits 
Group.  Per refs B and C, Emboffs discussed the issue 
separately with Ministry of Foreign Affairs (MFA) officials 
prior to the January 22-23 GAERC. 
 
¶2. (C)  On January 22, EconCouns followed up with Bollen and 
Martin Masselink, also from the MOF Office of International 
Financial Issues.  These officials explained that the GONL 
was not willing to act unilaterally on this issue but 
preferred a multilateral approach.  Nonetheless, Bollen said 
export credit insurance through the Dutch export credit 
agency (ECA) Atradius was already "limited and restrictive" 
and subject to strict due diligence procedures.  Within a 
maximum credit exposure ceiling for Iran of 1.5 billion euros 
($1.9 billion), Masselink said only 1 billion euros ($1.3 
billion) of older and outstanding loans and guarantees 
currently existed.  He clarified that all new issuances of 
export insurance credit would be subject to a case-by-case 
assessment and approval by the MOF.  Masselink also shared on 
a close-hold basis that the GONL had recently put in place an 
individual cap of 25 million euros ($32 million) on any new 
cases. 
 
¶3.  (U)  Dutch-Iran Trade 
 
Estimated Total Dutch Exports to Iran 
(Thousands of U.S. Dollars) 
------------------------------------- 
 
2004              $641,154 
2005              $945,206 
2006 (Jan-Oct)    $766,654 
 
 
 
Top Dutch Exports to Iran (2005) 
(Thousands of U.S. Dollars) 
-------------------------------- 
 
Mineral fuels           $345,161 
(incl processed) 
 
Machinery and           $196,828 
transport equipment 
 
Chemical products       $190,987 
 
 
 
Estimated Total Iranian Exports to the Netherlands 
(Thousands of U.S. Dollars) 
--------------------------------------------- ----- 
 
2004              $684,311 
2005              $1,102,330 
2006 (Jan-Oct)    $1,303,235 
 
 
THE HAGUE 00000121  002 OF 002 
 
 
 
 
Top Iranian Exports to the Netherlands (2005) 
(Thousands of U.S. Dollars) 
--------------------------------------------- 
 
Mineral fuels           $1,009,141 
(incl processed) 
 
Chemical products       $28,101 
 
(source: Dutch Central Bureau for Statistics) 
ARNALL