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RR RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM
DE RUEHME #4916/01 2542156
ZNR UUUUU ZZH
R 112156Z SEP 07
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC 8829
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE
RUEAHLA/DEPT OF HOMELAND SECURITY
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMFIUU/DEPT OF ENERGY WASHINGTON DC

UNCLAS SECTION 01 OF 04 MEXICO 004916 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: MCAP PARM PTER MX
SUBJECT: READ-OUT OF BILATERAL MEETINGS ON MEXICO'S 
CHEMICAL NATIONAL CONTROL LIST 
 
¶1. (SBU) Summary: On August 16-17, Department of 
Commerce/Bureau of Industry and Security (BIS) senior 
technical and policy representatives participated in a 
bilateral technical exchange in Mexico City, Mexico. This 
meeting was in response to a specific request by the Mexican 
Government seeking assistance in developing a national 
control list with respect to chemicals.  The BIS 
representatives discussed the differences and cross-over 
between the controls and obligations of the Chemical Weapons 
Convention (CWC) and the Australia Group (AG) and discussed 
how the U.S. and other countries implement CWC and AG 
obligations. The GOM representives provided an overview of 
Mexico's Federal Law on the control of chemical substances 
that can be used to make chemical weapons, as well as 
background on how the legislative system works. In addition, 
U.S. and GOM representatives exchanged views on a variety of 
legal and regulatory, industry outreach and process 
development issues.  End summary. 
 
¶2. (SBU) Background: On July 25, Jesus Mao visited Washington 
in his new capacity as Head of Mexico's National Authority on 
Disarmament, Terrorism, and International Security.  This 
National Authority was inaugurated on July 20 as an auxiliary 
agency of the National Security Council to coordinate all 
international terrorism, nonproliferation, international 
security and export control issues.  In his meeting with Mao, 
Assistant Secretary of Commerce for Export Administration 
Christopher Padilla stated that he was impressed with 
Mexico's progress to date and future plans for implementing 
an export control program and obligations under the CWC.  Mao 
requested that BIS send a team to Mexico in the next 15 days 
to work on the chemical control lists in the AG and the CWC 
since Mexico's Federal Law on Chemicals was about to be 
submitted before their legislature in early September. 
 
¶3. (SBU) In response to this request, A/S Padilla sent a 
letter to Mao reiterating that he was impressed with the 
plans laid out by Mao and suggesting several near term 
engagements, including a Bilateral Technical Exchange to 
discuss the differences and cross-over between the controls 
and obligations of the CWC and the AG and discuss how the 
U.S. and other countries implement CWC and AG obligations. 
 
¶4. (SBU) Report of the Bilateral Technical Exchange: On 
August 16 and 17, the GOM hosted this bilateral technical 
exchange at the Center for National Security and 
Investigation (CISEN) facility.  Mao welcomed the U.S. 
delegation, briefly discussed his new role as Head of the 
National Authority, and introduced his staff.  Some of the 
members of Mao's new National Authority team had followed him 
from his previous office at Mexican Customs, while others 
were from various other agencies.  Two of the members had 
just started that day. 
 
¶5. (SBU) Adrianna Rivera, Deputy Chief of Legislative and 
Administrative Harmonization, provided a short briefing on 
Mexico's legislative process.  The GOM plans to send the 
Federal Law for the Control of Chemical Substances 
Susceptible of Deviation for the Manufacture of Chemical 
Weapons to the legislature in early September as a priority 
in the fall session as part of a "special package from the 
Executive Power."  This Federal Chemical Law would be 
introduced in the Senate chamber, since it deals with foreign 
trade.  Rivera noted that this legislation would probably 
take at least three months to pass and if it were not passed 
in the fall session, could possibly carry over into the 
spring. 
 
¶6. (SBU) Jorge Moreno, Deputy Director of Terrorism and 
International Security, discussed in detail the Federal 
Chemical Law which will implement the CWC.  The GOM 
representives noted that Mexico has obligations for companies 
to allow inspections, submit declarations and report 
transfers.  He also noted that the law under consideration 
will impose penalties, including fines and prison terms.  He 
explained how the National Authority will host international 
inspections, and will also conduct national inspections to 
determine compliance.  He also informed the U.S. that the 
National Authority would be taking over the CWC inspector 
host role and had just been notified that they would be 
hosting inspectors the following week.  The U.S. delegation 
discussed how the U.S. does not perform national inspections, 
but rather works with industry on compliance by sending out 
advance teams to inspection sites, working with industry on 
their declarations, and doing Site Vulnerability Assessments. 
 Mao explained how Mexico is currently focused on chemical 
and biological agents controlled by the CWC and AG, but 
intends to implement all four multilateral export control 
 
MEXICO 00004916  002 OF 004 
 
 
regimes.  The U.S. delegation emphasized that it is important 
that industry declarations are correct, because these 
declarations make up the national declaration.  Later in the 
session, the GOM informed us that representatives would be 
attending a host inspector training course run by the OPCW in 
Paris at the end of October.  Also, Mao expressed his intent 
to attend the Conference of States Parties annual meeting on 
the CWC in early November in The Hague. 
 
¶7. (SBU) The GOM representives discussed the roles of the new 
National Authority.  Mao explained how the National Risk 
Assessment Center will work.  The U.S. delegation asked 
several questions with regard to the Mexican export license 
process.  The GOM intends for the National Authority to be 
the ultimate decision maker with regard to whether a license 
is approved or denied.  The National Authority will also have 
the technical experts who update the control lists and 
determine whether items are controlled.  The various Mexican 
agencies that currently administer export controls, such as 
the Ministries of Health, Environment, Defense, and Economy, 
will continue to receive the license application; however, 
their roles will be administrative rather than 
policy-oriented or technical. 
 
¶8. (SBU) The U.S. delegation's chemical expert discussed how 
the U.S. implements both the CWC and the AG. He offered an 
overview of the requirements of the AG versus those of the 
CWC.  Discussion involved how the USG handles its obligations 
and some of the agencies and processes in place.  The GOM had 
a variety of questions.  Mao asked what percentage of 
licenses are processed within our 39 day limit and the U.S. 
committed to provide a break down of licensing statistics. 
The Mexican delegation was interested in this because in the 
Mexican system they need to choose a date when companies can 
assume they are authorized to export. 
 
¶9. (SBU) On August 17, the U.S. delegation's chemical expert 
met with GOM chemical experts to discuss the chemicals 
controlled by the CWC and the AG. A thorough review of all 
CWC scheduled, CWC discrete organic chemicals and Australia 
group chemicals was conducted to ensure the legislative 
process included the entire list. The U.S. delegation 
encouraged the GOM to use legislation to only reference the 
chemicals and not include a detailed spreadsheet. 
 
¶10.  (SBU) U.S. policy representatives also met with GOM 
legal representatives to discuss a variety of legal and 
regulatory, industry outreach and process development issues. 
 As for legal issues, the U.S. delegation asked about 
whether, under existing laws and regulations, the GOM can 
implement export controls and whether comprehensive export 
control legislation is needed.  The GOM representatives noted 
that since the Federal Chemical Law is about to go to the 
legislature, they will focus on their comprehensive export 
control law.  They also noted that Mexico would begin work on 
the export control law in January with the law sent to the 
legislature in September 2008 in the best case scenario.  The 
U.S. delegation agreed to provide the GOM representatives a 
copy of the Legal Authorities Template, which helps countries 
develop comprehensive export control legislation.  Both sides 
discussed what needs to be in the legislation, such as 
penalties, and what is more appropriate for regulations, such 
as the control lists which change periodically.  Both sides 
agreed that it would be productive to have a more in depth 
session in the near term to discuss legal and regulatory 
issues.  The U.S. delegation promised to provide the GOM 
legal representative with the name of an attorney in the BIS 
so that the GOM can ask periodic questions. 
 
¶11. (SBU) As for the Federal Chemical Law, the GOM lead legal 
representative indicated that this was the twelfth draft in 
two years, but that the Organization for the Prohibition of 
Chemical Weapons (OPCW) had reviewed this draft and 
determined that it was sufficient.  The next step is for the 
GOM to get industry buy-in to the provisions of this law. 
The Deputy Chief of Legislative and Administrative 
Harmonization, who had previously worked for the legislature, 
noted that this law would take at least three months to pass 
the legislature.  The U.S. delegation explained the 
difference between the CWC implementing law, the implementing 
regulations and the Executive Order establishing the roles of 
each agency.  Copies of these documents were given to the GOM 
representatives, who requested a copy of the Executive Order 
on the dual use license process. 
 
¶12. (SBU) The GOM Deputy Chief of Legislative and 
Administrative Harmonization informed the U.S. delegation 
that it will be her responsibility to reach out to the 
 
MEXICO 00004916  003 OF 004 
 
 
chemical industry regarding the Federal Chemical Law.  Mao 
had told the U.S. delegation that the heads of the three 
major chemical industry associations were invited to the 
inauguration of the National Authority on Disarmament, 
Terrorism, and International Security, which was attended by 
several ministers, so that they would understand the 
importance of this undertaking for the government.  The GOM 
representatives noted that in the coming few weeks, the 
National Authority would have an initial meeting with 
Asociaci"n Nacional de la Industria Qu!mica (ANIQ) - the 
major Mexican chemical industry group.  Because of this 
timing, both sides agreed that having a joint U.S. - Mexico 
industry outreach event on the CWC with both American 
Chemistry Council and ANIQ should be postponed until the time 
is ripe.  The U.S. representatives also spoke about the BIS 
export control outreach program in the United States, 
emphasizing how both sides benefit from the relationship. 
The U.S. representatives also previewed the Annual Update 
Conference which BIS has invited the GOM to attend and 
discussed additional activities, such as meetings with the 
chairs of the Technical Advisory Committees, which BIS 
intends to have on the margins of the conference.  The GOM 
representatives seemed excited about attending this event. 
Additionally, the U.S. representatives gave a hands-on 
demonstration on how to access U.S. export control laws and 
regulations online, as well as the BIS CWC website.  The GOM 
representatives were eager to review the information online 
about how the U.S. administers its export controls. 
 
¶13. (SBU) Overall, this technical exchange proved extremely 
productive.  The GOM was very engaged in the dialogue and 
very serious about quickly and comprehensively implementing 
its CWC requirements and export controls consistent with all 
four export control regimes. 
 
¶14. (SBU) Next Steps and Follow-On Actions:  The next step is 
for the U.S. to send the GOM a copy of the Legal Authorities 
Template, statistics on U.S. licensing processing, 
information on whether other countries charge money for 
providing licenses, our Executive Order outlining our license 
process, and information on weapons made from each of the 
chemicals.  BIS plans to follow up with the GOM regarding the 
possibility of sending a small team to Mexico in early 
October to further discuss the essential aspects of legal and 
regulatory authorities, as well as organizational and process 
development.  The GOM will select four representatives to 
attend the 20th Annual BIS Update Conference in Washington, 
DC on October 31- November 1. 
 
¶15. This cable was prepared and cleared by USG delegation 
participants. 
 
Participants: 
 
United States 
 
Elizabeth Scott, Director of Chemical and Biological 
Controls, Bureau of Industry and Security, U.S. Department of 
Commerce 
Patricia Muldonian, Senior Policy Advisor for the Office of 
National Security and Technology Transfer Controls, Bureau of 
Industry and Security, U.S. Department of Commerce 
Lisa Meyers, Special Assistant for the Assistant Secretary 
for Export Administration, Bureau of Industry and Security, 
U.S. Department of Commerce 
 
Mexico: 
 
Jesus Mao, Head of National Authority, Ministry of the 
Interior Mexico 
Geraldo Romo, Deputy Director of Strategic Formation and 
International Coordination, Ministry of the Interior Mexico 
Jorge Moreno, Deputy Director of Terrorism and International 
Security, Ministry of the Interior Mexico 
Teresita Macias, Deputy Director of Risk Assessment and 
Security Measures, Ministry of the Interior Mexico 
Adriana Rivera, Deputy Chief of Legislation and 
Administration Harmonization, Ministry of the Interior Mexico 
Jose Hugo German, Department Chief of International 
Cooperation, Ministry of the Interior Mexico 
Adriana Diaz, Department Chief of Non-Proliferation and 
Export Controls, Ministry of the Interior Mexico 
Marco Medina, Department Chief of Risk Assessment and 
Security Measures, Ministry of the Interior Mexico 
Jose Carlos Portoni, Department Chief of Weapons of Mass 
Destruction and Security Measures, Ministry of the Interior 
Mexico 
 
 
MEXICO 00004916  004 OF 004 
 
 
 
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