FM AMEMBASSY LONDON
TO RUEHC/SECSTATE WASHDC PRIORITY 1218
S E C R E T SECTION 01 OF 02 LONDON 000254

NOFORN
SIPDIS

SUBJECT: (S) UK URGES USG TO DECLASSIFY INTELLIGENCE RELATED TO IRAN SANCTIONS

Classified By: KATHLEEN DOHERTY, ECONOMIC COUNSELOR, FOR REASONS 1.4 B
& D

¶1. (S/NF) Summary: UK Treasury and Foreign Office officials have expanded upon their prior request for USG declassification of intelligence on Iran sanctions issues………
HMG is concerned that a lack of substantial USG-provided information in the public statements of case will hamper the ability of EU and UK lawyers to present a strong argument to the European Court of First Instance in Bank Melli’s appeal of the EU sanctions.HMT officials fear they will lose the case using only the current information, and that loss could severely damage the EU’s abilities to pursue further sanctions against Iran’s nuclear proliferation activities……
End Summary.

¶2. (S/NF)
HMT officials asked us to come in January 26 to reiterate HMG’s request for support in upcoming cases at the European Court of First Instance…… In addition, a terrorist finance case ……… challenging ……… designation by the EU has many crossover issues concerning the level of evidence used in the designation process. HMT is also concerned because the Yassin Qadi EU listing……………was mentioned……..

The British told us the recent UK and EU court demands for more specific derogatory information in the statements of case is being applied widely – including against
country-based targets.

Note: HMG recently de-listed Qadi from their domestic terrorist finance designations due to lack of sufficient evidence and fear an adverse court ruling could shut down their whole asset freezing regime. End note.

¶3. ……………

¶4. (C) HMT officials expect a rash of well-funded challenges to other sanctions regimes as well, including the EU’s Zimbabwe penalties. John A. Bredenkamp is wealthy enough to mount an aggressive fight, has already written several letters indicating he will challenge the sanctions, and HMT believes the EU’s case against him is thin on evidence….

The More Specific the Better
—————————-

¶5. (S/NF) Specific information as to the bad actions of each designated entity will be necessary to rebut the designee’s charges that the EU case against them is insufficient, HMT told us. The burden is on the government these days to prove its case in both European and UK courts – a shift in the court’s attitude from previous years, we were told…………………………………

TUTTLE