Cablegate: Brazil - Tba Terror Finance Designations

VZCZCXRO6500
OO RUEHRG
DE RUEHBR #2466 3261337
ZNY SSSSS ZZH
O 221337Z NOV 06
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7464
RUEATRS/DEPT OF TREASURY WASHINGTON DC IMMEDIATE
INFO RUEHRG/AMCONSUL RECIFE 5910
RUEHSO/AMCONSUL SAO PAULO 8679
RUEHRI/AMCONSUL RIO DE JANEIRO 3397
RUEHBU/AMEMBASSY BUENOS AIRES 4431
RUEHAC/AMEMBASSY ASUNCION 5804
RUEHMN/AMEMBASSY MONTEVIDEO 6607
RUEAHLC/DHS WASHDC
RHEHNSC/NSC WASHDC
RUEAWJA/DOJ WASHDC

S E C R E T BRASILIA 002466

SIPDIS

SIPDIS
NOFORN

NSC FOR ZARATE
TREASURY FOR TFI - HEFFERNAN
TREASURY FOR FINCEN - SHOWELL
DHS FOR ICE - D.THOMPSON
STATE FOR S/CT - NOYES
STATE FOR WHA - D. MCCARTHY/C.CROFT
STATE FOR EB/ESC - DAS SIMONS, D.NELSON AND J.CLARK

E.O. 12958: DECL:12/17/2026
TAGS: KTFN EFIN PTER SNAR ETTC PREL ASEC BR
SUBJECT: BRAZIL - TBA TERROR FINANCE DESIGNATIONS

REF: A) BRASILIA 2420
B) BUENOS AIRES 2590
C) NELSON 11/20/06 EMAIL

Classified by Charge d'Affaires Phillip T. Chicola, Reasons 1.4
(B) and (D).

1. (S/NF) This is a coordinated message from all law enforcement
and intelligence agencies represented at post.

2. (S/NF) Post understands that Washington agencies are now
planning to delay by one week, until November 29, the
designation of nine individuals and two entities operating in
the Tri-Border Area (TBA) as terrorist financiers under E.O.
13224 (ref C). Post echoes the concerns laid out by Embassy
Buenos Aires (ref B). In Brazil's case, law enforcement
agencies at post do not have current operations that would be
endangered by a precipitous designation. Our currently strong
law enforcement and intelligence relationships nevertheless
stand to suffer from an unexplained designation action, to the
serious detriment of our operational relationships here.

3. (S/NF) Our relationships on the policy level stand to suffer
as well unless we share substantial information justifying the
designations. Should Washington agencies decide to proceed with
the designations in the near future, Post recommends that the
maximum possible amount of evidence backing up the designations
be shared. Absent a substantive justification for these
designations, Post believes the GoB will not freeze these
individuals' or organizations' assets, leaving the door wide
open for asset flight.

4. (S/NF) Finally, an immediate public designation, without
prior consultation with the GOB, will inevitably become a major
source of discord at the December 3 to 4 three-plus-one meeting
(Brazil, Argentina, Paraguay and the U.S.) in Buenos Aires. The
three-plus-one is the only regional counter-terrorism forum in
the Southern Cone conducted at a senior policy level. We will
only be able to have a productive discussion of the designations
at this forum if the GOB and GOA believe we have acted in good
faith in supplying them with information and evidence on a
government-to-government level before going public with the
designations.

CHICOLA

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