VZCZCXRO9420
PP RUEHAP RUEHFL RUEHLA RUEHMJ RUEHPB RUEHPOD RUEHROV RUEHTRO
DE RUEHC #5935/01 3041921
ZNR UUUUU ZZH
P 301910Z OCT 08
FM SECSTATE WASHDC
TO PROLIFERATION SECURITY INITIATIVE COLLECTIVE PRIORITY
RUEHKB/AMEMBASSY BAKU PRIORITY 7581
RUEHBD/AMEMBASSY BANDAR SERI BEGAWAN PRIORITY 7650

UNCLAS SECTION 01 OF 03 STATE 115935 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: KNNP MNUC PARM PREL
SUBJECT: PSI: SUMMARY OF SEPTEMBER 2008 PARIS OPERATIONAL 
EXPERTS GROUP (OEG) MEETING 
 
SUMMARY AND ACTION REQUEST 
 
¶1.  The seventeenth Proliferation Security Initiative 
PSI) Operational Experts Group (OEG) meeting took place 
in Paris, France on September 25-26, 2008. The twenty PSI 
countries participating in the OEG work on behalf of 
all PSI participants (i.e., the more than 90 
countries that have endorsed the PSI Statement of 
Interdiction Principles). We would like to share key 
insights from the latest meeting with all countries 
that have endorsed the PSI, with which we want to 
deepen our operational cooperation. 
 
¶2. Posts are requested to provide the summary in 
paragraph 4 below of the September 2008 OEG meeting 
results to host government officials from relevant 
agencies such as Ministries of Defense, Foreign 
Affairs, Law Enforcement agencies (including Customs, 
Border Control, etc.), and intelligence agencies. 
 
OBJECTIVE 
 
¶3. To inform all PSI-endorsing states of the latest 
developments resulting from the September 25-26, 2008 PSI 
OEG meeting in Paris, France.  Post may draw from the 
background paragraph 4, which may be left as a nonpaper. 
Additional meeting materials for posts' reference can 
be provided by State/ISN/CPI (Carlos Guzman) upon 
request (GuzmanCS@state.gov). 
 
BACKGROUND 
 
¶4.  BEGIN NON-PAPER ON THE SEPTEMBER 2008 PSI OEG MEETING 
HOSTED BY FRANCE: 
 
-- The Government of France hosted the seventeenth PSI 
Operational Experts Group (OEG) meeting on September 
25-26, 2008.  The meeting included experts from 20 PSI 
partner countries that work together to establish a PSI 
exercise program and develop operational concepts in 
support of the Initiative and on behalf of the more than 
90 PSI participant states. 
 
-- The meeting included presentations and discussions on 
a broad range of topics, including the U.S.-hosted PSI 
fifth anniversary meetings held on May 28-29 in 
Washington, the 2005 Protocol to the Convention for the 
Suppression of Unlawful Acts Against the Safety of 
Maritime Navigation (SUA), the International Civil 
Aviation Organization (ICAO) convention amendment 
process, an update on the Financial Action Task Force 
(FATF), PSI exercises, legal and law enforcement issues, 
and European Union strategies to combat WMD-related 
proliferation. 
 
-- THE PSI FIFTH ANNIVERSARY MEETINGS.  The U.S. 
discussed the results of the Senior-Level Meeting 
and the PSI Outreach Workshop held May 28-29, 2008 in 
Washington. The meeting resulted in the adoption of 
the Washington Declaration, which set out key priorities 
for the future: to focus on regional PSI activities and 
outreach workshops; to strengthen communication channels 
among counterpart government agencies in PSI partner 
states; and to continue work to strengthen relevant 
international law and frameworks (see:  http://www.state. 
gov/r/pa/prs/ps/2008/may/105268.htm). 
 
-- EUROPEAN UNION AND PSI.  An invited representative 
from the European Union described how the EU is 
playing a role in nonproliferation. First, the EU 
provides a legal basis for PSI activities of its 
member states by translating UNSCR sanctions at the EU 
level and implementing its own set of sanctions. The 
EU has established a legal regulatory framework in 
areas where states have transferred authority to the 
European Union (e.g., dual-use intem export control 
regime) and sets out best practices for Member States 
(e.g., customs regulations).Second, the EU offers 
capacity-building and institutional support in 
implementing PSI Interdiction Principles - the Joint 
Research Centre develops operational tools in areas 
such as the surveillance of maritime traffic and 
container screening. Third, EU institutions contribute 
to the fight against proliferation through assistance 
and outreach efforts to third countries, and this 
includes inserting a WMD clause in cooperation 
 
STATE 00115935  002 OF 003 
 
 
agreements with third parties. 
 
-- FINANCIAL ACTION TASK FORCE (FATF). Denmark summarized 
the FATF's efforts to prevent proliferation finance. The 
FATF's mandate was extended in 2008 to include the 
analysis of financing aspects of WMD proliferation. 
FATF's approach is based on recommendations on the 
implementation of UN Security Council resolutions. It 
seeks to provide tools for implementing the financing 
aspects of those resolutions based on a typology process 
(threat assessment, methods and measures, identification 
of policy issues). Denmark underlined that the main PSI 
challenge in this regard is information and intelligence 
sharing with financial institutions and industry. 
 
-- PSI WEBSITE UPDATE.  Germany gave a presentation on 
the PSI internet website project which currently contains 
practical information, contact details, and an archive of 
previous PSI meetings and exercises. Access can be 
requested by all PSI partners by contacting the local 
German embassy. Germany suggested improvements to the 
website to increase participation, add content (PSI 
newsletter, search engine, "national areas", etc.) and 
improve interactivity (discussion groups, information 
exchanges). All participants underlined the importance 
of the work Germany has undertaken. Delegates discussed 
the development and use of the German website as a PSI 
information repository and outreach tool. 
 
-- PSI EXERCISES AND OUTREACH. France presented on its 
March 2008 Exercise "Guistir", which included an outreach 
event and a live exercise at sea and in the harbour in 
cooperation with the Djibouti authorities.  New Zealand 
outlined Exercise "Maru", which took place in September. 
Its objectives were to improve the capabilities and 
interoperability of regional PSI partners, improve the 
collective understanding within the PSI community of 
disposition and liability issues, and encourage a greater 
understanding of the PSI within the Asia-Pacific region. 
The exercise focused on post-interdiction issues, 
including the response to legal challenges to justify a 
course of action, liability, ownership and disposition of 
the goods seized, prosecution and media strategy. 
Canada gave a presentation on the PSI inject into the 
U.S.-hosted Exercise "Panamax" exercise held in August. 
This was a multinational exercise that brought together 
Western Hemisphere partner nations to address regional 
security concerns. 
 
-- 2005 SUA PROTOCOLS.  Spain, which ratified the 2005 
SUA Protocol in April 2008, reported that it did not 
encounter any specific domestic difficulties during the 
ratification process. The Spanish penal code covers all 
the new SUA offences in a material way. A number of 
other PSI partners are currently in the same process. 
The U.S. Senate has provided its advice and consent to 
the SUA Protocol, but Congress has yet to enact the 
necessary implementing legislation.  The U.S. delegation 
described its nine bilateral PSI shipboarding agreements, 
which are consistent with the implementation of UNSCR 
1540, PSI objectives and the provisions of the 2005 SUA 
Protocol. The U.S. delegation circulated samples of forms 
that are used to request and provide the authorization of 
the flag state to board and, if evidence is found, to 
request information for disposition. It was also 
mentioned that the provisions of the SUA Protocols are 
serving as a basis for the discussion in the ICAO to 
introduce new offenses to counter proliferation by air. 
PSI partners were encouraged, while respecting the 
sovereignty of PSI States, to pursue the 
ratification/accession process of the 2005 SUA Protocol. 
Delegations discussed other legal issues related to 
boarding operations in the high seas under the 2005 SUA 
Protocol, including the boarding regime itself and law 
enforcement procedures and the nature of these standards 
for these boarding operations (domestic, international 
with regard to human rights). 
 
-- LEGAL ISSUES.  Turkey presented a review of its export 
control legislation, which used the EU list as a model. 
Turkey's draft law on strengthening the export controls 
on dual use and sensitive goods was submitted to the 
Turkish Grand National Assembly in June 2008.  Australia 
discussed the progress by ICAO on improving the existing 
legal framework (updating the Montreal and Hague 
Conventions). Australia requested OEG states to consider 
the draft amendment to the Montreal Convention and 
provide comments. Australia also emphasized the necessity 
of building relationships with industry and to engage a 
broader range of countries in the process.  The U.S. 
examined disposition and liability with a focus on the 
 
STATE 00115935  003 OF 003 
 
 
question of goods abandoned or unclaimed. The 
presentation outlined customs abandonment statutes, 
issues related to the disposition of abandoned or 
unclaimed merchandise, and liability.  France outlined 
steps taken recently to support PSI, including the 
development of its national response plan related to 
WMD proliferation and associated Standard Operating 
Procedures, a draft law to reinforce French legislation, 
new dual-use goods export control mechanisms, and a draft 
PM directive calling all institutions to take into 
account WMD counter proliferation. 
 
-- LAW ENFORCEMENT ISSUES.  The U.S. gave a presentation 
exploring key law enforcement issues, including 
information acquisition, analysis and targeting, engaging 
industry, supply chain security and capacity building. 
France provided information on the role of customs in 
control of dual use goods and technology, starting from 
licensing procedure to offences and penalties. It 
outlined the basic principles of customs control of 
dual-use goods: it is based mainly on EU Regulation 
1334/2000, which covers products controlled under various 
international non-proliferation regimes. This Community 
Regulation set up a community regime for the control of 
dual-use items and technology exports. The presentation 
showed that this regulation is fully and directly 
applicable in French law and that it will be clarified 
by French Customs. France further described the different 
license types used in France, the licensing procedure, 
the role of French Customs in controlling dual-use 
exports, and the relevant offences and penalties. 
 
-- PSI MODEL NATIONAL RESPONSE PLAN.  Portugal announced 
the release of the Portuguese version of the national 
response plan, available to all PSI-endorsing states. 
 
-- PSI EXERCISE PROGRAM. The UK provided an update on 
the Lessons Identified database that would be used to 
document the PSI Exercise Program and help guide and 
prioritize focus areas of future exercises. 
 
-- PSI SCHEDULE 2009.  The U.S. will host the next OEG 
meeting with Western Hemisphere regional participation 
on May 12-14, 2009.  Poland will host a European regional 
OEG in June 2009.  The U.S. will host an exercise in the 
Gulf region in October 2009.  Singapore will host an 
exercise in November 2009.  All dates are subject to 
change.  Australia gave a short presentation of the PSI 
Master Events List (MEL) that will reflect all exercises 
and outreach activities, noting that it plans to post the 
tool on the PSI website hosted by Germany. 
 
END NON-PAPER ON THE SEPTEMBER 2008 PSI OEG MEETING 
HOSTED BY FRANCE. 
 
POINTS OF CONTACT 
 
¶5.  Please slug responses for OSD GSA (Beth Flores) and 
State/ISN/CPI (Carlos Guzman). USG POC for PSI 
Operational Experts Group issues is Beth Flores, 
OSD/GSA (beth.flores@osd.mil). USG POC for PSI policy 
issues is Carlos Guzman, State/ISN/CPI 
(GuzmanCS@state.gov). 
RICE