date:2006-10-25T17:33:00
source:Embassy Wellington
origin:06WELLINGTON834
destination:VZCZCXYZ0031 OO RUEHWEB DE RUEHWL #0834/01 2981733 ZNY
CCCCC ZZH O 251733Z OCT 06 FM AMEMBASSY WELLINGTON TO RUEHC/SECSTATE
WASHDC IMMEDIATE 3415 INFO RUEHBJ/AMEMBASSY BEIJING IMMEDIATE 0321
RUEHBY/AMEMBASSY CANBERRA IMMEDIATE 4580 RUEHJA/AMEMBASSY JAKARTA
IMMEDIATE 0032 RUEHKL/AMEMBASSY KUALA LUMPUR IMMEDIATE 0146
RUEHLO/AMEMBASSY LONDON IMMEDIATE 0144 RUEHMO/AMEMBASSY MOSCOW
IMMEDIATE 0153 RUEHOT/AMEMBASSY OTTAWA IMMEDIATE 0270 RUEHUL/AMEMBASSY
SEOUL IMMEDIATE 0222 RHEHAAA/NATIONAL SECURITY COUNCIL WASHDC
IMMEDIATE RUEKJCS/OSD WASHINGTON DC IMMEDIATE RUCNDT/USMISSION USUN
NEW YORK IMMEDIATE 0073 RHHMUNA/CDR USPACOM HONOLULU HI IMMEDIATE
RHHJJAA/JICPAC HONOLULU HI IMMEDIATE

C O N F I D E N T I A L WELLINGTON 000834

SIPDIS

SIPDIS

STATE FOR D (FRITZ), EAP/FO, EAP/RSP, AND EAP/ANP
NSC FOR VICTOR CHA
OSD FOR ISD/JESSICA POWERS
PACOM FOR J01E/J2/J233/J5/SJFHQ

E.O. 12958: DECL: 10/25/2016
TAGS: KNNP, PREL, PARM, NZ, KN
SUBJECT: UNSCR 1718: NEW ZEALAND SEEKS GUIDANCE AS IT
PUSHES AHEAD

REF: A. WELLINGTON 814

B. STATE 172816
C. WELLINGTON 798
D. WELLINGTON 778

Classified By: DCM David J. Keegan,
for reasons 1.4(b) and (d)

1. (SBU) This message contains an action request, at
paragraph 8.

2. (C) Summary: In 15 recent speeches, NZ leaders have
condemned North Korea's nuclear test and urged the DPRK to
return to the six-party talks. The leaders are also pushing
their ministries to implement UNSCR 1718 as soon as possible.
Five GNZ agencies are reviewing current laws and policies to
see what is needed. The agencies would appreciate learning
how the US intends to implement the resolution, especially:
1) how we will define luxury goods, 2) which controlled items
we believe should be included, 3) whether we will offer
indemnity to banks that wrongly freeze assets, 4) which
family members will be covered under our travel ban on
N.Korean officials, and 5) the definition of banned
"services" related to controlled items. The officials would
also appreciate our read-out on whether interdictions will be
implemented through PSI or other means. They stress that
these questions are not impeding their progress, and that GNZ
should be able to fully implement the UNSCR 1718 by the
year's end. End Summary.

--------------------------
GNZ IS WITH THE PROGRAM...
--------------------------

3. (C) On October 24, Pol-Econ Counselor met at the Ministry
of Foreign Affairs and Trade with Tara Morton, Legal Advisor;
Carolyn Schwalger, Senior Policy Officer, North Asia
Division; Gabrielle Rush, Deputy Director Americas Division
(and Legal Advisor); and Cecilia Warren, Policy Officer,
Non-proliferation Division. The officials reported that GNZ
is working hard to implement UNSCR 1718. Following a meeting
last week, they and counterparts from Customs, Police,
Justice, and Immigration are reviewing what is needed,
including through consultations with U.S., Australian, and
other like-minded officials.

4. (C) Once their review is complete, the officials will
send a memo to Foreign Minister Peters asking him to instruct
the Parliamentary Council Office (PCO) to draft legislation
to implement the sanctions under New Zealand's UN Act. In
reality, PCO is already aware of the resolution and is in
close contact with the working level officials conducting the
review, so the drafting should move very quickly. Once
drafted, relevant Ministries will sign off on the legislation
and it will be submitted to Cabinet, asking they adopt the
measures by Executive Council (i.e. without Parliamentary
approval). The legislation will then be published in the New
Zealand Gazette. Legislation normally enters into force 28
days after being published in the Gazette, but because of
this resolution's urgency GNZ will seek to waive this rule to
allow the measures to take effect immediately. The MFAT
officials believe the sanctions will be in place by the end
of the year.

---------------------------------------
...BUT SEEK SOME SPECIFICS IN KEY AREAS
---------------------------------------

5. (C) According to the MFAT legal advisors, most of the
resolution should be easy to implement, as it invokes Article
7 and is similar to other UN resolutions that GNZ has already
put into place. But as they review the UNSCR 1718 text, GNZ
officials have a few questions on UNSCR's provisions. They
would appreciate USG views on the following:


a) Regarding paragraph 8A (1) and (2): GNZ is monitoring the
Sanctions Committee debate on which military and controlled
items should be included. They believe it is highly likely
that NZ already bans trade in any items likely to end up on
the final list. What do we believe the final list should
include?

b) Regarding paragraph 8A (3): GNZ is disappointed that the
Sanctions Committee did not define luxury goods, and
officials wonder how we intend to implement this provision.
Will we define luxury items as anything other than essential
food and medicines, or do we have something more specific in
mind? On this and all items covered by 1718, GNZ vastly
prefers specific lists as these offer more certainty to both
Customs and exporters.

c) GNZ will look to the Sanctions Committee for guidance on
which family members will be covered under the travel ban on
N.Korean leaders, but would also appreciate our views. In
reality, New Zealand already screens very closely all DPRK
visa applications, but border officials especially would
appreciate a detailed list of names. They also would like as
much biographic information as possible about those covered,
to help avoid cases of mistaken identity.

d) Regarding the financial assets freeze, New Zealand
understands Australia will provide indemnity to banks if they
accidentally freeze assets of individuals not covered by the
sanctions. As they debate whether to take similar measures,
GNZ officials would appreciate learning whether we intend to
offer indemnity to US banks. There are now over 15,000 South
Koreans in New Zealand, and GNZ anticipates local banks may
make errors because so many Korean names are similar.

e) Regarding paragraph 8C, GNZ is unfamiliar with the
definition of "services" related to controlled items, and
would appreciate any clarification we could provide.

6. (C) The GNZ also wonders how others in the region believe
UNSCR 1718-related interdictions should be handled, and would
greatly appreciate our views as well as any read-out we can
share of the Secretary's and other USG discussions on this
question with regional counterparts.

-----------------
ON THE FAST TRACK
-----------------

7. (C) The MFAT officials say that PM Clark, Ministers
Peters and Goff, and other senior officials have made clear
their expectation that GNZ working level officials must make
implementation of UNSCR 1718 their top priority. The
officials say they cannot recall a time in recent memory when
the senior level has been so engaged on a UN sanctions issue.
They believe this is due to New Zealand's stated commitment
to non-proliferation, to the fact that North Korea is much
closer to home than other sanctioned countries, and to the
issue's strong geo-political implications.

8. (C) Comment: GNZ also no doubt also sees implementation
of UNSCR 1718 as a way to demonstrate to A/S Hill and other
USG officials New Zealand's willingness to stand together
with the United States. But whatever the case, commitment at
the leaders', senior, and working levels is palpable. We
will continue to monitor GNZ's implementation of the
resolution as it moves ahead. We would also appreciate
guidance on GNZ's questions as related in paras 5-6. End
Comment.
McCormick