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TO RUEHC/SECSTATE WASHDC IMMEDIATE 0327
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RHHMUNA/CDR USPACOM HONOLULU HI IMMEDIATE
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RUEKJCS/JOINT STAFF WASHINGTON DC IMMEDIATE
RUEKDIA/DIA WASHINGTON DC IMMEDIATE
RHEHNSC/NSC WASHINGTON DC IMMEDIATE
RUEHBN/AMCONSUL MELBOURNE PRIORITY 5661
RUEHBAD/AMCONSUL PERTH PRIORITY 3934
RUEHDN/AMCONSUL SYDNEY PRIORITY 3871

C O N F I D E N T I A L SECTION 01 OF 04 CANBERRA 001037 
 
SIPDIS 
 
STATE FOR NEA AND EAP 
 
E.O. 12958: DECL: 10/15/2018 
TAGS: KNNP PARM PREL EFIN AS
SUBJECT: AUSTRALIA ANNOUNCES NEW SANCTIONS AGAINST IRAN; 
DROPS ICJ ACTION 
 
REF: A. FM SMITH-AMB MCCALLUM TELECON OF OCTOBER 15 
     ¶B. CANBERRA 1026 
     ¶C. CANBERRA 927 
     ¶D. CROWLEY-OPS CTR TELECON OF OCT 13 
 
Classified By: DCM Daniel A. Clune. Reasons: 1.4(b)(d). 
 
SUMMARY 
------- 
¶1. (C/REL AUS) Addressing Parliament on October 15, Foreign 
Minister Smith announced Australia would impose new travel 
and financial sanctions against Iran, with immediate effect, 
that go beyond requirements of United Nations Security 
Council resolutions.  The sanctions, similar to those 
previously adopted by the European Union, target 20 Iranian 
individuals and 18 entities, including Bank Melli and Bank 
Saderat, that contribute to Iran's nuclear and missile 
programs or otherwise contribute to Iran's violation of its 
UNSC obligations. He also announced Australia would not 
provide new financial support for trade with Iran under its 
trade promotion programs.  FM Smith also told Parliament that 
Australia was dropping its threatened legal action against 
Iranian President Ahmadinejad in the International Court of 
Justice for his calls for the destruction of Israel.  In a 
telephone call to Ambassador McCallum on the morning of 
October 15 to give him advance notice of his statement, FM 
Smith explained that his legal advisers that the ICJ motion 
would likely fail and would distract from efforts to force 
Iran's compliance with its UNSC obligations.  Full text of 
the Foreign Minister's statement is at para 6 below.  END 
SUMMARY. 
 
¶2. (U) As foreshadowed by his September 17 remarks (Ref A) 
and by DFAT officials in recent days (reftels), FM Smith told 
Parliament on October 15 that Australia had decided to take 
new measures to supplement UN sanctions in response to Iran's 
defiance of the international community's calls to suspend 
its uranium enrichment and reprocessing-related activities. 
Effective October 15, Australia would impose sanctions 
against 20 Iranian individuals and 18 organizations that 
contributed to Iran's nuclear and missile programs.  The 
entities include Iran's Bank Melli and Bank Saderat, he said. 
 FM Smith said the measures supported and were in line with 
similar actions adopted by the EU. 
 
¶3. (U) FM Smith also announced Australia would not provide 
new financial support for trade with Iran under Australia's 
trade promotion and finance programs, the Export Finance 
Insurance Corporation and Export Market Development Grants. 
 
¶4. (U) On a separate Iranian issue, FM Smith took the 
opportunity to announce that, based on legal advice, 
Australia would not longer pursue legal action against 
Iranian President Ahmadinejad in the International Court of 
Justice for his remarks calling for the destruction of 
Israel, questioning the Holocaust, and similar anti-Semitic 
comments. 
 
¶5. (C/REL AUS) In a call to Ambassador McCallum on the 
morning of October 15, FM Smith outlined what he planned to 
tell the Parliament, noting the decision to drop the ICF case 
was based on legal advice that it would not likely succeed. 
Gary Quinlan, Senior Advisor to the Prime Minister, in a 
QGary Quinlan, Senior Advisor to the Prime Minister, in a 
subsequent conversation with the DCM, elaborated further on 
the legal advice.  International legal experts had concluded 
that only states, not individuals, could be parties to suits 
brought in the ICJ.  An action brought against the Iranian 
president, therefore, would certainly fail.  Quinlan said the 
Security Council could request an advisory opinion from the 
Court, but Russia and China would undoubtedly block such a 
request.  The lawyers had also considered legal action in the 
International Criminal Court (ICC) but Iran was not a party 
to the ICC.  Quinlan said political considerations had also 
played a part: an ICJ action might have the perverse effect 
of boosting Ahmadinejad's popularity. Emboffs also learned 
that the Israeli ambassador had sought to dissuade Australia 
from bringing an ICJ suit against Ahmadinejad for the same 
reason. 
 
CANBERRA 00001037  002 OF 004 
 
 
 
¶6. (U) Following is the text of FM Smith's October 15 
statement: 
 
Begin text: 
 
Ministerial Statement 
 
The Australian Government is deeply concerned at Iran's 
refusal to suspend its uranium enrichment and reprocessing 
related activities as required by multiple United Nations 
Security Council Resolutions. 
 
As the House knows, Iran's secret nuclear program was 
revealed in 2002. 
 
Since then, Australia has urged Iran to cooperate fully with 
the International Atomic Energy Agency (IAEA) and to take the 
steps necessary to reassure the entire international 
community about the nature of its nuclear activities. 
 
The international community has responded through the 
adoption of four UNSC resolutions which require Iran to 
suspend uranium enrichment and reprocessing activities, and 
to meet the IAEA's verification requirements. 
 
Three UNSC resolutions have imposed sanctions, including 
travel and financial restrictions against those engaged in 
Iran's proliferation sensitive activities. 
 
Australia supports each of these binding resolutions, and has 
implemented these sanctions fully. 
 
While the international community believes it is necessary to 
bring pressure to bear on Iran, it has also reached out. 
 
In particular, the European Union foreign policy chief Solana 
on behalf of the United States, Russia, France, the United 
Kingdom, China and Germany has offered a generous incentives 
package in exchange for Iran's suspension of its enrichment 
activities. 
 
Australia has strongly supported this initiative and has 
urged Iran to accept it. 
 
Unfortunately, Iran has refused to take up this offer and to 
provide the necessary reassurances. 
 
To supplement these UN sanctions, the EU decided recently to 
impose additional autonomous travel and financial sanctions. 
 
Members will recall that on 15 September, the IAEA again 
confirmed that Iran persisted with uranium enrichment and 
reprocessing-related activities and had refused to give it 
access to all relevant facilities. 
The IAEA also reported it had detailed information suggesting 
Iran has conducted studies into nuclear weapons and that 
Iranian military entities have been involved in nuclear 
procurement. 
 
This information further deepened our concerns about Iran's 
nuclear intentions. 
 
As I told the House on 17 September, in light of Iran's 
continuing failure to comply with its international 
obligations, the Government would consider what additional 
measures it could take to bring further pressure to bear on 
Iran. 
 
In response to on-going Iranian defiance of the Security 
Council and given the Government's strong commitment to 
nuclear non-proliferation, the Government has now decided to 
impose new financial and travel sanctions effective from 
today. 
 
The sanctions are targeted against 20 Iranian individuals and 
18 organisations which contribute to Iran's nuclear and 
missile programs, or otherwise assist Iran to violate its 
 
CANBERRA 00001037  003 OF 004 
 
 
Security Council obligations. 
 
These organisations include Iranian banks Melli and Saderat. 
 
The new measures support and are similar to the action 
recently taken by the European Union. 
 
The new measures are not intended to prevent legitimate 
Australian trade with Iran. 
 
However, the Government will implement vigorously the 
Security Council's call through UNSCR 1803 to be vigilant 
about providing financial support for trade with Iran, so as 
to avoid contributing to Iran's proliferation-sensitive 
activities. 
 
To this end, Australia will not provide new financial support 
for trade with Iran under Australia's trade promotion and 
trade finance programs, namely through the Export Finance 
Insurance Corporation and Export Market Development Grants. 
 
The Government will, together with the international 
community, continue to engage with Iran to urge it to suspend 
uranium enrichment. 
 
I take this opportunity to address a separate matter relating 
to Iran. 
The Australian Government has strongly condemned the 
statements by Iranian President Ahmadinejad calling for the 
destruction of Israel and questioning the Holocaust. 
 
These anti-Semitic comments were appalling by any standard. 
They have been rightly condemned by the international 
community, including the UN Secretary General. Australian 
Government officials in Tehran and Canberra have also 
repeatedly made our abhorrence clear. 
 
We were appalled by the latest anti-Semitic views expressed 
by the Iranian President in his 23 September address to the 
UN General Assembly. Again, we condemn these remarks 
unreservedly. 
 
The Iranian President's statements are unacceptable and do 
nothing to reassure the international community that Iran 
will act as a responsible international citizen. 
 
This is all the more troubling given Iran's nuclear program. 
 
The Government has given exhaustive consideration to 
international legal action against Iran for these statements. 
 
Having now considered legal and other advice, the Government 
has decided not to pursue international legal action against 
Iran. 
 
In doing so, we recognised the complexity of the issues 
involved and the high legal threshold required to bring 
forward a case. 
 
As well, we determined to avoid pursuing a case which would 
give further profile to these obscene remarks. 
 
Most importantly, the Australian Government would not want 
such legal action to complicate or distract from the 
international community's efforts to address the serious 
concerns about Iran's nuclear program and its failure to 
abide by binding United Nations Security Council resolutions. 
 
It is clear to me that the international community's most 
pressing priority in relation to Iran is to address Iran's 
nuclear program. 
 
My announcement today on new sanctions reflects the 
Australian Government's determination to support and 
reinforce the international community's efforts to hold Iran 
to account. 
 
End text. 
 
CANBERRA 00001037  004 OF 004 
 
 
 
MCCALLUM