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                  ------------------232B2B  290740Z /38    
O 290622Z OCT 07
FM AMEMBASSY CANBERRA
TO SECSTATE WASHDC IMMEDIATE 8477
INFO USMISSION USUN NEW YORK IMMEDIATE 
USEU BRUSSELS IMMEDIATE
AMCONSUL MELBOURNE PRIORITY 
AMCONSUL PERTH PRIORITY 
AMCONSUL SYDNEY PRIORITY

C O N F I D E N T I A L CANBERRA 001581 
 
SIPDIS 
 
NOFORN 
SIPDIS 
 
STATE FOR ISN/CPI A.RUGGIERO, EAP/ANP AND EB 
 
E.O. 12958: DECL: 10/29/2017 
TAGS: KNNP PTER PREL PARM EFIN IR AS
SUBJECT: CARETAKER STATUS PRECLUDES AUSTRALIA FROM ACTING 
ON IRANIAN DESIGNATIONS AND FATF STEPS 
 
REF: A. STATE 148605 
     ¶B. STATE 149648 
     ¶C. CROWLEY-RUGGIERO E-MAIL OF 10/25/07 (NOTAL) 
     ¶D. RUGGIERO-CROWLEY E-MAIL OF 10/27/07 (NOTAL) 
 
 
Classified By: Political Counselor James F. Cole for reasons 1.4 (b),(d 
). 
 
 
¶1. (U) We presented Ref A and B demarches to Paul Foley, 
Assistant Secretary for the Middle East and Africa, 
Department of Foreign Affairs and Trade (DFAT) on October 29. 
 (Australia had been inadvertently omitted as an action 
addressee on Ref A, per Ref D, thus the delayed delivery.) 
Foley, who was joined by Octavia Borthwick, Director of the 
Middle East Section, and Michael Opie, Executive Officer for 
Iran, said the Australian Embassy in Washington also had sent 
him a comprehensive report on the Rice-Paulson announcement 
about the designations, and the actions of the Financial 
Action Task Force.  He undertook to share our points with his 
colleagues working on counterproliferation and 
counterterrorism. 
 
¶2. (SBU) In prelimary comments, Foley said any Australian 
action on the U.S. designation of Iranian entities and 
persons, including approaches to Australian government 
financial institutions, would be a matter for the incoming 
government following Australia's federal election scheduled 
for November 24.  (Note:  The Australian government has been 
in caretaker mode since the dissolution of Parliament on 
October 17, and cannot take any policy decisions or actions 
that would bind the next government. End Note.) 
 
¶3. (C) Foley said the GOA supported further action in the 
context of the United Nations Security Council and 
international efforts to pressure Iran to curb its nuclear 
ambitions.  For any action against Iran to be effective 
outside the UN Security Council, the EU and Japan would need 
to be involved.  He was heartened that the EU was talking 
seriously about the need for further actions, either 
bilaterally or through the UNSC. 
 
¶4. (C) In preparing the Iran brief for the incoming 
Australian government, Foley said DFAT would draw attention 
to the prospect that Iran might retaliate against the latest 
strictures.  In that event, Australia would be concerned 
about the safety of its Embassy staff in Tehran.  To prevent 
the likelihood of retaliation and to effectively counter it, 
it would be best to have as large a group as possible on 
board with the U.S. measures, he advised. 
 
¶5. (C) Borthwick raised some practical considerations with 
shutting down transactions with Iranian banks, namely, how to 
facilitate other desired exchanges with Iran, such as student 
exchanges, in which remittances would need to pass through 
Iranian financial institutions.  Another question dealt with 
the mechanics of paying Australian Embassy local staff in 
Tehran. 
 
¶6. (SBU) We will report further comments, including reaction 
from the Department of the Treasury, septel. 
 
MCCALLUM