VZCZCXRO3592
OO RUEHSL
DE RUEHRL #0791/01 1821224
ZNY CCCCC ZZH
O 011224Z JUL 09
FM AMEMBASSY BERLIN
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4493
INFO RUEHZG/NATO EU COLLECTIVE PRIORITY
RUCNDT/USMISSION USUN NEW YORK PRIORITY 0778

C O N F I D E N T I A L SECTION 01 OF 03 BERLIN 000791 
 
SIPDIS 
STATE FOR ISN/CPI-MARK FELIPE AND JENNIFER CHALMERS 
 
E.O. 12958: DECL: 06/30/2019 
TAGS: PARM PREL KNNP ECON EFIN EUN KN GM
SUBJECT: GERMAN MFA SUPPORTS U.S. EFFORTS ON IMPLEMENTING 
UNSCR 1874 AGAINST NORTH KOREA 
 
REF: A. STATE 65483 
     ¶B. STATE 66250 
 
Classified By: ACTING POLITICAL MINISTER COUNSELOR STAN OTTO. REASONS: 
1.4 (B) AND (D). 
 
¶1. (C) SUMMARY: The German MFA supports the U.S. effort to 
mobilize the international community to fully implement UNSCR 
¶1874.  In this regard, the Germans suggest that we focus our 
efforts on new EU president Sweden, which they say remains 
skeptical about enhanced sanctions against North Korea. 
While Germany is ready and willing to carry out inspections 
of suspect vessels in its own territorial waters, it is 
reviewing whether and how this can be done on the high seas. 
With regard to expanded economic and financial sanctions, 
Germany has already circulated a non-paper within the EU 
proposing to ban the export of additional dual-use and 
industrial goods and to strengthen the existing embargo on 
luxury goods (full text of paper at para 6).  END SUMMARY 
 
DEMARCHE 
 
¶2. (SBU) Post delivered reftel talking points to MFA Arms 
Control Action Officer Claudia Schneider, North Korean Desk 
Officer Jens Wagner and UNSC Action Officer Dirk Stockhausen 
on June 26, emphasizing the importance the U.S. places on 
implementing new UNSCR 1874, especially the 
inspection-related provisions and the expanded financial 
measures.  On June 30, Wagner provided a preliminary reaction 
and shared a copy of a Germany non-paper on EU implementation 
of UNSCR 1874, which he said is scheduled to be discussed by 
the EU Working Group on Asia (COASI) on July 1 and then at EU 
RELEX meeting on July 2 (see para 6 for full text). 
 
FOCUS ON SWEDEN 
 
3.(C) Wagner said Germany supported the U.S. effort to 
mobilize the international community to fully implement UNSCR 
¶1874.  In this regard, he suggested that we focus special 
attention on new EU president Sweden.  He characterized 
Sweden as being "skeptical" about enhanced sanctions, because 
it fears they could stimulate a backlash from Pyongyang that 
could close off the few remaining lines of communication to 
the regime.  Wagner said he had recently talked to his 
counterpart in the Swedish MFA and said she was open to input 
on this issue from the U.S. 
 
INSPECTIONS 
 
¶4. (C) With regard to the U.S. points on inspections of 
suspect vessels, Wagner said that Germany will have no 
problem carrying out such inspections in German territorial 
waters.  However, he highlighted that Germany is not yet 
quite sure whether it can do this on the high seas.  New 
national legislation might be necessary to enable such 
action.  He said the issue was under view by legal officials 
in several different ministries including MFA, MOD, MOJ and 
Ministry of Interior. 
 
SANCTIONS 
 
¶5. (C) Wagner emphasized, however, that Germany has already 
formulated its position on implementation of the expanded 
economic and financial sanctions, as outlined in the German 
non-paper.  He said Germany was proposing to ban the export 
of additional dual-use and industrial goods and to strengthen 
the existing embargo on luxury goods.  He noted that up to 
now, Germany has defined a car with a value of 15,000 Euros 
or more as a "luxury good."  Germany now proposes to have an 
EU-wide standard that would lower the threshold to 3,000 
Euros.  Wagner thought it was important to have greater 
clarity at the EU level on what was meant by "luxury goods" 
under UNSCRs 1874 and 1718.  Otherwise, there would continue 
to be widely varying interpretations about what was allowed 
and what was not. 
 
GERMAN NON-PAPER 
 
¶6. (SBU) German non-paper on EU implementation of UNSCR 1874: 
 
The European Council called for UNSCR 1874 to be implemented 
in a robust way and without delay.  Germany feels that in 
doing so the EU should be ready to go beyond measures adopted 
by the United Nations Security Council and would offer the 
following ideas: 
 
¶1. The EU has already imposed a full arms embargo on the 
DPRK. Now we should also introduce an export ban on further 
Dual-use and industrial goods which are of relevance to the 
DPRK leadership in their pursuit of proscribed activities. 
 
BERLIN 00000791  002 OF 003 
 
 
Financial services related to such goods should also be 
banned.  A draft list of possible items is attached. 
 
¶2. The EU should strengthen the existing embargo on luxury 
goods by expanding the list attached to EC regulation 
329/2007.  We should aim to cover not only goods considered 
as "luxury" by European standards, but all items considered 
as luxury goods in North Korea.  To ensure an effective 
implementation of the embargo on luxury goods, the Regulation 
should, depending on the product, either provide for an 
export ban or introduce a threshold value. For example the EU 
should consider banning exports of all alcoholic beverages as 
well as all perfumes to North Korea and also introduce a very 
low threshold value for permissible car exports from the EU 
(e.g. 3000,- Euros or less per vehicle).  The text of the 
Regulation and the relevant positions in Annex III should be 
accordingly amended and precisely defined. 
 
¶3. UNSCR 1874 announces further designations of persons and 
entities subject to asset-freezes and travel restrictions. 
The EU should prepare for designating, autonomously, 
additional persons and entities based on the criteria 
mentioned in UNSCR 1718, thereby following the example set by 
implementing UNSCR resolutions on Iran. 
 
¶4. On top of the ban on financial services related to 
proscribed goods (see above, para 1), the EU should implement 
op 18 of UNSCR 1874 by freezing all assets of persons and 
entities whose DPRK-related activities must be prevented 
under that paragraph. 
 
List of Dual-use and industrial goods for an EU export ban 
proposed by Germany. 
 
In addition to those goods which are subject to licensing 
requirements under Regulation (EC) 1334/2000, cf. also Art. 4 
para. 5 and Art. 5 para. 1 of the Regulation, Germany 
proposes the following goods for an EU export ban: 
 
¶1. Spin-forming machines and flow-forming machines having a 
roller force of more than 30 kN and specially designed 
components therefor (asterisk). 
 
Technical Note: 
For the purpose of this item machines combining the functions 
of spin-forming and flow-forming are regarded as flow-forming 
machines. 
 
¶2. Equipment as follows (asterisk): 
 
a) Fermenters capable of cultivation of pathogenic 
"micro-organisms" or viruses, or capable of toxin production, 
without the propagation of aerosols, and having a total 
capacity of 10 l or more; 
 
b) Agitators for fermenters as mentioned in the paragraph 
above, 
 
Technical Note: 
Fermenters include bioreactors, chemostats and 
continuous-flow systems. 
 
¶3. Equipment for the deposition of metallic overlays for 
non-electronic substrates as follows, and specially designed 
components and accessories therefor (asterisk): 
 
a) Chemical vapor deposition (CVD) production equipment; 
 
b) Physical vapor deposition (PVD) production equipment; 
 
c) Production equipment for deposition by means of inductive 
or resistance heating. 
 
¶4. Radar- based navigation or surveillance systems for vessel 
or airborne traffic control and specially designed components 
therefor (asterisk). 
 
Note: 
This item should not affect the legitimate export of 
radar-systems required for air traffic security according to 
ICAO (The detailed wording of this note has to be determined.) 
 
¶5. Trucks with a payload exceeding 1 000 kg (asterisk). 
 
Note: 
This item includes flatbed trailers, semi trailers and other 
trailers. 
 
¶6. Helicopters, helicopter power transfer systems, gas 
turbine engines and auxiliary power units (APUs) for use in 
 
BERLIN 00000791  003 OF 003 
 
 
helicopters and specially designed components therefor. 
 
¶7. Internal combustion engines (i.e. axial piston or rotary 
piston type) having all of the following, and specially 
designed components therefore: 
 
a) Designed or modified for flight applications (e.g. 
composed of lightweight motor components), and 
 
b) A total displacement equal to or greater than 75 cm3 and 
equal to or less than 900 cm3 (for axial piston engines), or 
a displacement equal to or less than 900 cm3 per rotary 
piston. 
 
¶8. Equipment specially designed for the production (including 
printing) of banknotes, legal tenders, banknote paper and 
special security paper. 
 
Notes: 
 
¶1. "Technology" and "Software" for the development and 
production of equipment specified in the positions of this 
proposal should become an element of this annex.  However, 
details of appropriate prohibitions need to be discussed in 
further detail. 
 
¶2. To be determined whether references to items listed in 
Annex I of the EC Dual-use Regulation or in the Annexes of 
existing EC-Sanctions-Regulations are necessary and therefore 
to be included into these item positions (see where marked 
with an asterisk). 
Koenig