From: <a href="http://www.aftenposten.no/spesial/wikileaksdokumenter/article3994463.ece">Aftenposten</a><br>
Date: 1.7.2009
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S E C R E T BERN 000273 
DEPT FOR ISN/RA (J.ALLEN-CLOSE), NEA/IR, EUR/PRA, AND EUR/AGS (Y.SAINT-ANDRE),
NSC FOR JEFF HOVENIER, DEPT OF JUSTICE BRUCE SWARTZ 
E.O. 12958: DECL: 06/30/2019
TAGS: IR, MNUC, PARM, PHUM, PREL, PTER, KWAC, ECON, ETRD, EINV, SZ
SUBJECT: SWITZERLAND SHUTTING DOWN COLENCOS BUSINESS WITH IRAN 
REF: 08 BERN 464 
Classified By: CDA L.Carter for reasons 1.4(b) and (d) 

1. (S) Summary: Swiss Minister for Economics and Trade Doris
Leuthard called CDA in to advise that the Swiss Federal
Councilors had decided in a special session to shut down
Swedish firm Colencos commercial activities in Iran. The
Minister also reaffirmed the commitment of the Swiss
government to accept several detainees from Guantanamo Bay for
resettlement in Switzerland. Minister Leuthard made it clear
that these two activities were linked to the achievement of a
political settlement in the case of Swiss banking giant, UBS.
The US court is scheduled to hear arguments in the civil case
on July 13 and it is clear that the GOS hopes a settlement can
be reached before the hearing date. End Summary.

2. (S) Minister Leuthard began the meeting by describing
todays special session of the Federal Council which was
focused on what steps the Swiss government could take to
advance a political solution of the UBS case. The Council
considered action on the Colenco case, long advocated by the
USG and a major topic during the February meeting between
Secretary Clinton and Foreign Minister Calmy Rey, was one
proactive measure the Swiss government could take in this
direction. Since action in this case falls under the purview
of Minister Leuthard, she was tasked to take immediate action
to shut down Colencos operations and to notify the USG. The
additional information that the USG experts provided to the
GOS on June 25th was pivotal in providing the Swiss with
adequate actionable intelligence to make a legal finding that
Colenco is violating the sanctions on Iran. Leuthard confirmed
that the information we provided tracked with the findings of
the Swiss intelligence services. The Swiss now consider that
Colenco is not fulfilling their requirements under the dual
use provisions of Swiss law. Leuthard also advised that they
have notified the Swedish government of their intent to go
forward with official action against Colenco.

3. (S) Colenco was not able to adequately defend their
activities in Iran by a deadline set by the Swiss government.
Leuthard stated that Colenco will be formally told to cease
their activities in Iran on July 2. She further opined that
should the government or other conditions relating to
proliferation change for the better in Iran, Colenco may be
able to resume their activities in the future. She emphasized
that this shut-down was a "suspension". She promised to
provide us with a written copy of the Colenco decision.
 
4. (S) Leuthard then turned the topic of discussion to Swiss
willingness to accept several detainees from Guatanamo for
resettlement and encouraged us to provide as much data as
possible quickly so that the Swiss could move forward. CDA
advised that more bio and medical data had been received today
and was being delivered via a separate channel.

5. (S) At this point, Leuthard emphasized that these two
actions were "elements showing that Switzerland is committed
to resolving all issues between our countries." To bring home
the point, she reiterated that this resolve extended
especially to finding a political solution to the UBS case.

CARTER 
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