VZCZCXRO6166
RR RUEHTRO
DE RUCNDT #0209/01 0741232
ZNR UUUUU ZZH
R 151232Z MAR 07
FM USMISSION USUN NEW YORK
TO RUEHC/SECSTATE WASHDC 1526
INFO RUEHBP/AMEMBASSY BAMAKO 0076
RUEHRL/AMEMBASSY BERLIN 0799
RUEHDO/AMEMBASSY DOHA 0178
RUEHKL/AMEMBASSY KUALA LUMPUR 0616
RUEHLO/AMEMBASSY LONDON 1102
RUEHMD/AMEMBASSY MADRID 6211
RUEHMO/AMEMBASSY MOSCOW 0959
RUEHTRO/AMEMBASSY TRIPOLI
RUEHSK/AMEMBASSY MINSK 0157
RUEATRS/DEPT OF TREASURY WASHDC
RHMFIUU/DEPT OF HOMELAND SECURITY WASHDC

UNCLAS SECTION 01 OF 03 USUN NEW YORK 000209 
 
SIPDIS 
 
SIPDIS 
 
TREASURY FOR IRS, DHS FOR TSA 
 
E.O. 12958: N/A 
TAGS: OFDP UN CVIS
SUBJECT: PARKING ISSUES, IRS SETTLEMENT INITIATIVE, ALLEGED 
VISA REFUSALS OF IRANIAN OFFICIALS HIGHLIGHTED AT 232ND 
HOST COUNTRY COMMITTEE MEETING, MARCH 5, 2007 
 
 ¶1. Summary:  The UN Committee on Relations with the Host 
Country (Host Country Committee-HCC) discussed the results of 
the HCC's survey of the New York Diplomatic Parking Programme 
(the Program) at its 232nd meeting on March 5, 2007. 
Missions which oppose the Program as implemented or on 
principle (Russian Federation, Mali, Cuba, Libya) focused on 
those few survey statistics indicating perceived problems 
with the Program.  Germany, as President and on behalf of the 
EU, supported by Spain, strongly urged the U.S. as host 
country to request the IRS to extend the March 30 deadline to 
at least June 30, 2007, for submissions regarding the IRS' 
income tax settlement initiative applicable to U.S. citizens 
and permanent resident aliens working at the UN or at UN 
Missions.  Iran protested alleged visa refusals to Iranian 
officals attending Commission for Social Development and 
Commission on the Status of Women meetings.  Belarus thanked 
the U.S. for its smooth handling of Belarus officials 
arriving for this week's international conference at the UN 
on trafficking in women and girls.  At a post-meeting lunch, 
DS/OFM/DAS Claude Nebel and USUN, OFM/NY and HCC Chair 
interlocutors discussed the issue of reciprocity in regard to 
Eritrea's request to buy property (see septel), the IRS 
settlement initiative, problems encountered by UN Mission 
Ambassadors at NY area airports, especially treatment 
accorded them during secondary screening, and the possibility 
of liberalizing travel restrictions in connection with 
UN-related meetings.  End summary. 
 
Parking Survey discussion 
 
 
¶2. Marjorie Tiven, Office of the Mayor, NYC Commissioner for 
the UN, Consular Corps and Protocol gave a statement 
regarding the success of the Parking Program, and the HCC 
Bureau had already circulated the U.S. statement (previously 
emailed to IO/UNP) along with the results of the parking 
survey.  Both NYC and USUN noted the success of the program, 
the resources available to Missions, and NYC announced a 
phone line for the exclusive use of diplomats.as well as 
online improvements in the parking summons adjudication and 
review process. 
 
 
¶3. Libya, Cuba, Mali and the Russian Federation object either 
to the Program's implementation or on principle (as they 
argue that the Program requires them to submit to NYC 
jurisdiction in violation of their privileges and 
immunities). They refused to characterize the Program as a 
success, and focused on what few statistics they could 
interpret as showing dissatisfaction with the Program, with 
Cuba asserting that some of the 126 Missions (out of 192) 
that failed to respond to the survey may have done so because 
they did not trust that the results would be accurately 
reflected in the (Secretariat's) compilation.  The objecting 
delegations noted that 71.2 per cent of the 66 survey 
respondents indicated there was a difference between the 
Missions' understanding of the Program's implementation and 
that of host authorities involved in that implementation. 
The various critics of the survey characterized it as 
preliminary, that problems still needed to be resolved, and 
described the survey as a review of the Parking Program 
rather than a review of its implementation.  Qatar asking 
that the 3 allocated decals to each Mission be transferable 
among a Mission's vehicles.  Russia requested additional 
spaces to accommodate its 100-plus vehicles.  Objecting 
delegations noted that they will raise the issues of 
improvements to/changes in the Program during the fall UNGA 
when the HCC drafts the recommendations section of its report 
to the Sixth Committee. The Chair reminded delegations that 
Committee action was restricted to the ways in which the 
existing Program is being implemented; the Committee has no 
clear mandate to suggest or demand modifications to the 
Parking Program itself. 
 
IRS Settlement Initiative 
 
 
¶4.  The IRS settlement initiative was initially aimed at 
 
USUN NEW Y 00000209  002 OF 003 
 
 
allowing U.S. citizens and  permanent resident aliens (PRA) 
working at embassies and consulates in the Washington, DC 
area to update and regularize their reporting of taxes owed 
to the IRS for the last three years, with the IRS agreeing 
not to look at taxes owed prior to that time.  Although the 
initiative was announced to embassies in the Washington, DC 
area in late 2006, word of the initiative did not reach the 
UN Missions in New York until February 2007.  As the UN 
Secretariat and UN Missions want their employees to be able 
 
SIPDIS 
to take advantage of the initiative, at OFM/NY's and USUN's 
urging, the Department succeeded in getting the IRS to extend 
the original deadline for replying from late February to 
March 30, 2007, with the IRS permitting individuals to sign 
up by submitting their names by that date.  USUN made clear 
that it does not consider the issue as appropriate for the 
HCC because there is no issue of diplomatic privileges and 
immunities involved.  However, the Spanish Permanent 
Representative noted that ensuing strikes by employees at 
Spanish diplomatic missions in the U.S. in mid-February had 
negatively impacted the functioning of its missions in the 
U.S., and thus was a proper topic for HCC consideration. 
 
¶5. Germany, as President and on behalf of the EU, noted the 
negative effect on missions' morale, and requested the U.S. 
as host country to urge the IRS to extend the deadline for 
responding to the initiative to at least June 30, 2007, which 
would allow affected individuals time to learn more about the 
initiative and seek advice of tax counsel as needed.  Spain 
noted that the issue is complicated as each case is affected 
by several factors, including the employee's status in the 
U.S., whether there is a tax treaty or other relevant 
bilateral agreement between the U.S. and the employee's 
country of nationality, etc.  Indonesia asked the Chair to 
send a circular note to all UN Missions. 
Qatar wanted an expanded discussion in front of all UN 
members in order to discuss measures to be taken. 
 
¶6. USUN MinCounselor emphasized that this is an IRS 
initiative, noted that each affected individual's case is 
unique, and reviewed the basics of the initiative, the 
timeline of how and when USUN, OFM/NY and UN Missions learned 
about the initiative, and what is being done to address the 
matter, including exploring the possibility of an IRS 
briefing. He noted that the Treasury and the State 
Departments were consulting on the issue. 
 
Iran protests alleged refusals of visas for Iranian officials 
 
 
¶7.  Iran protested alleged visa refusals to Iranian officals 
attending the Commission for Social Development and 
Commission on the Status of Women meetings.  Iran labelled 
the visa refusals an impediment to Iranian officials' travel 
to the UN to participate in UN conferences, and also noted 
the arbitrary and repeated delays encountered by its G-1 and 
G-2 visa applicants.  Iran expressed it profound concern 
regarding the U.S.'s repeated failure to meet its host 
country obligations, and requested the Committee to take 
measures to ensure that the host country meets those 
obligations, especially as the Iranian officials had 
submitted their visa applications in a timely manner. 
 
¶8.  USUN Host Country MinCouns responded that the US Mission 
was unaware of any such refusals, that we were surprised 
given that the U.S. Mission was in regular contact with the 
Iranian Mission on visa matters, and that we did not believe 
the visas had been refused as there is a long-standing 
procedure in place in the rare case where an official visa is 
refused.  USUN MinCouns also indicated that if Iran 
encountered problems with the issuance of these visas, it 
should have notified the U.S. Mission, which in turn could 
have followed up and perhaps solved whatever problems arose. 
USUN MinCouns urged Iran to provide details after the meeting 
so that the U.S. Mission could look into the alleged visa 
refusals, and that USUN would respond to the Iran Mission 
directly.  USUN is informed 
that there have been recent press reports from London that 
some Iranians coming to New York had visa problems. 
 
USUN NEW Y 00000209  003 OF 003 
 
 
 
Belarus thank-you 
 
 
¶9. Belarus expressed gratitude to the the U.S. for its 
response to Belarus' request to ensure rapid processing at 
the airport helping the Belarus delegation attend the 
international conference on trafficking in women and girls 
that opened March 5.  Belarus noted its appreciation for the 
etiquette displayed by customs and airport officials, and 
hoped that such treatment would continue.  USUN did not 
respond, but the HCC Chair replied that it was good for the 
HCC to hear positive news concerning the issue of diplomats' 
treatment at airports. 
 
Post-HCC meeting lunch: reciprocity, IRS, airport woes, and 
travel restrictions 
 
 
¶10. At a lunch following the HCC meeting, DS/OFM/DAS Claude 
Nebel, USUN MinCounselor Graham, OFM/NY Director 
Winton/Deputy Director Smith and HCC Chair Mavroyiannis 
(Cyprus) discussed the issue of reciprocity in regard to 
Eritrea's request to buy property (see septel), the IRS 
settlement initiative, problems encountered by UN Mission 
diplomats at airports, especially treatment accorded them 
during secondary screening, and the possibility of 
liberalizing of travel restrictions in connection with 
UN-related meetings. 
 
--IRS settlement initiative: The problem seems more prevalent 
at missions of developed countries, especially those in the 
EU, and is compounded by the fact that several Missions may 
have inadvertently given inaccurate information and advice 
concerning the tax liability of their U.S. citizen and PRA 
employees.  DAS Nebel noted that Treasury and State are 
discussing the possiblility of extending the deadline for 
NY-based Missions. The HCC Chair is requesting a room at the 
UN which would allow an IRS representative to brief the UN 
communityon the settlment initiative and one is tentatively 
scheduled for the week of March 19. 
 
--airport woes:  HCC Chair Mavroyiannis noted that UN 
Ambassadors and even lower level diplomats at UN missions 
often carry sensitive documents (e.g., position papers to 
read on the plane or take home) in their carry-on luggage. 
Receiving a boarding pass imprinted with "SSSS" and thus 
being selected for random secondary screening often requires 
the diplomats to open their carry-on luggage and risks having 
these documents opened and examined by Transportation 
security Administration (TSA) personnel.  The ambassadors 
often complain of the brusque tone and treatment by airline 
or TSA personnel, even when the diplomat identifies himself 
as an ambassador, and the frequency with which the diplomats 
are subjected to the "SSSS" secondary screening makes them 
seriously doubt that their selection is truly random.  The 
ambassadors find being singled out in front of other 
travelers at SSSS secondary screening embarrassing, 
especially if they are traveling with colleagues not so 
selected, and particularly if they come from cultures where 
losing face or being embarrassed is regarded as more 
abhorrent than is the case in American culture.  UN Permanent 
Representatives repeatedly request that they be exempt from 
such SSSS secondary screenings. DS/OFM/DAS Nebel noted that 
there are discussions on this issue between the Department 
and the TSA. 
 
--flexibility re travel restrictions:  HCC Chair Mavroyiannis 
also conveyed the hope that the Department would begin to 
look more favorably toward granting permission to Cuban and 
other officials subject to travel restrictions who are 
invited to attend UN-related meetings beyond the 25 mile NYC 
limit, such as the annual July seminar at Princeton 
University on UN-related topics. 
WOLFF