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Cablegate: Response to Possible Incorporation of Joint

VZCZCXRO8181
OO RUEHLH RUEHPW
DE RUEHC #5243/01 3031525
ZNR UUUUU ZZH
O P 291516Z OCT 08
FM SECSTATE WASHDC
TO RUEHIL/AMEMBASSY ISLAMABAD IMMEDIATE 7216
INFO RUEHKP/AMCONSUL KARACHI PRIORITY 6468
RUEHLH/AMCONSUL LAHORE PRIORITY 8083
RUEHPW/AMCONSUL PESHAWAR PRIORITY 2341
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
RHEHNSC/NSC WASHINGTON DC PRIORITY 1928

UNCLAS SECTION 01 OF 02 STATE 115243

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: ECON EFIN KNNP PARM PTER IR PK
SUBJECT: RESPONSE TO POSSIBLE INCORPORATION OF JOINT
IRANIAN-PAKISTANI SHIPPING LINE

REF: A. A) STATE 104496
B. B) STATE 69339
C. C) STATE 94723

1. (SBU) This is an action request. Please see paragraph
three.

------------------
SUMMARY/BACKGROUND
------------------

2. (SBU) Recent press reports suggest that Pakistan is
considering the establishment of a joint shipping line with
Iran to boost maritime cooperation and trade. Due to recent
public exposure of Iran,s use of its primary shipping line,
the Islamic Republic of Iran Shipping Line (IRISL), for
proliferation activities, it would make sense for Iran to
work around the increased scrutiny of IRISL by using its
other shipping lines for proliferation-related shipments.
For this reason, Washington strongly urges Pakistan to end
any discussions with Iran on a joint shipping line, as Iran
may now use other shipping lines for proliferation activities.

-------------------------
OBJECTIVES/ACTION REQUEST
-------------------------

3. (SBU) Washington requests Embassy Islamabad approach
appropriate Pakistani officials in the foreign affairs and
finance ministries, and other appropriate government
agencies, including those responsible for shipping and
customs activities, to discuss this issue. Post should
pursue the following objectives, and may draw from the
information in REFTELs on the designation of IRISL and its
subsidiaries.

-- Inform Pakistan of Iran,s established history of using
its primary shipping line, the Islamic Republic of Iran
Shipping Line (IRISL), for proliferation-related purposes
(REF B, C).

-- Note that IRISL was specifically mentioned in operative
paragraph 11 of UNSCR 1803 (REFTEL), which called upon
States, in accordance with national legal authorities and
consistant with international law, to inspect the cargoes
going to or from Iran, of aircraft and vessels, at their
airports and seaports, owned or operated by Iran Air Cargo
and IRISL, provided there are reasonable grounds to believe
that the aircraft or vessel is transporting goods prohibited
under UNSCR 1803 and UNSCRs 1737 and 1747.

-- Inquire whether IRISL or any subsidiaries or affiliates of
IRISL are involved in the proposed joint venture.

-- Advise Pakistan that any Pakistani joint venture with
IRISL or any other UNSCR-designated entity could subject
those entities involved with such joint ventures to
designation under E.O. 13382 (REF A). (Note: Six of IRISL,s
joint ventures designated under E.O. 13382 on September 10,
2008 are in countries outside of Iran. End note.)

-- Convey that as international scrutiny of IRISL has
increased, there is a likelihood that Iran may use its other
shipping lines for its proliferation activities. Pakistan
does not want to provide Iran with an additional means to
facilitate proliferation.

-- Urge Pakistan to end discussions with Iran to establish a
joint shipping company and to reconsider expanding trade ties
with Iran.

------------------
REPORTING DEADLINE
------------------

4. (U) Please report delivery of the U.S. non-paper and
any response. Please slug replies for ISN, T, SCA, TREASURY,
and NEA/IR. Please use SIPDIS caption on all responses.

----------------
POINT OF CONTACT
----------------

STATE 00115243 002 OF 002

5. (U) Washington point of contact for follow-up
information is Kevin McGeehan, ISN/CPI, (202) 647-5408,
mcgeehankj@state.sgov.gov.

6. (U) Department thanks Post for its assistance.
RICE

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