VZCZCXRO0790
PP RUEHGA RUEHHA RUEHQU RUEHVC
DE RUEHOT #0316 0472219
ZNR UUUUU ZZH
P 162219Z FEB 07
FM AMEMBASSY OTTAWA
TO RUEHC/SECSTATE WASHDC PRIORITY 5027
INFO RUCNCAN/ALL CANADIAN POSTS COLLECTIVE PRIORITY
RUCNDT/USMISSION USUN NEW YORK PRIORITY 0287
RUEATRS/DEPT OF TREASURY WASH DC PRIORITY

UNCLAS OTTAWA 000316 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA, T, WHA/CAN, EEB/ESC/TFS, AND ISN/CPI 
(JENNIFER CHAMBERS AND JOSH KIRSHNER) 
 
E.O. 12958: N/A 
TAGS: PARM PREL KNNP EFIN ETTC IR CA
SUBJECT: CANADA'S POSITIVE RESPONSE TO UNSCR 1737 DEMARCHE 
 
REF: STATE 16917 
 
 ¶1. (SBU) In response to reftel delivered by Economic 
Minister Counselor to Mark Gwozdecky, Department of Foreign 
Affairs and International Trade (DFAIT) Non-Proliferation and 
Disarmament Nuclear Division Director, Gwozdecky said that 
Canada shares the United States' view of the risks of Iran's 
nuclear program. 
 
¶2. (SBU) Carolyn Knobel, DFAIT, United Nations, Human Rights, 
and Economic Law Division Deputy Director explained that the 
GOC has been working since December to create implementing 
regulations for UNSCR 1737 and are nearing completion; the 
regulations could be introduced as early as next week once 
they are approved by the cabinet.  She explained that the new 
regulations will mirror the Security Council resolution and 
all listed individuals and entities will be subject to asset 
freezes.  Their names will be added to the Terrorist 
Financing list maintained by the Office of the Superintendent 
of Financial Institutions Canada by which all Canadian 
financial institutions must vet new accounts and periodically 
review existing accounts. 
 
¶3. (SBU) However, she noted that Aerospace Industries 
Organization (AIO) was not listed in the resolution though 
its subsidiaries and executives were.  Therefore, Canada will 
not be instituting a complete ban on financial transactions 
in Canada for AIO.  Knobel did not know if AIO has any 
presence in Canada. 
 
¶4. (SBU) Knobel explained that Canada will adhere to all 
Security Council Resolutions but the GOC,s preferred 
approach to financial sanctions is consistent with article 
six of the resolution - to examine all transactions, blocking 
suspicious activity, rather than attempting to identify and 
list all individuals and entities suspected of funneling 
money to Iran or other areas of concern.  This brings 
Canadian border agencies into the enforcement picture. 
 
¶5. (SBU) Knobel also said that it would be very helpful to 
have additional information, including aliases, dates of 
birth, addresses and other identifying information, about the 
individuals and entities listed in UNSCR 1737. 
 
¶6. (SBU) Meeting Participants: 
 
Canadian Side: 
Mark Gwozdecky - DFAIT Non-Proliferation and Disarmament 
Nuclear Division Director 
Carolyn Knobel - DFAIT Economic Law Section, United Nations, 
Human Rights, and Economic Law Division Deputy Director 
Shawn Caza - DFAIT Non-Proliferation and Disarmament Nuclear 
Division Deputy Director 
Marc-Antoine Dumas - DFAIT United Nations, Human Rights, and 
Economic Law Division Legal Officer 
Craig Weichel - DFAIT Non-Proliferation and Disarmament 
Nuclear Division Policy Officer 
David Da Silva - DFAIT Non-Proliferation and Disarmament 
Nuclear Division Policy Officer 
 
U.S. Side: 
Brian Mohler ) U.S. Embassy Ottawa Economic Minister 
Counselor 
Ryan Stoner ) U.S. Embassy Ottawa Economic Officer 
 
Visit Canada's Classified Web Site at 
http://www.state.sgov.gov/p/wha/ottawa 
 
WILKINS