Journalicious Dots from Switzerland

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 COLENCO’S 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 TradeDoris Leuthard called CDA in to advise that the Swiss FederalCouncilors had decided in a special session to shut downSwedish firm Colenco’s commercial activities in Iran. TheMinister also reaffirmed the commitment of the Swissgovernment to accept several detainees from Guantanamo Bayfor resettlement in Switzerland. Minister Leuthard made itclear that these two activities were linked to theachievement of a political settlement in the case of Swissbanking giant, UBS. The US court is scheduled to heararguments in the civil case on July 13 and it is clear thatthe GOS hopes a settlement can be reached before the hearingdate. End Summary.

¶2. (S) Minister Leuthard began the meeting by describingtoday’s special session of the Federal Council which wasfocused on what steps the Swiss government could take toadvance a political solution of the UBS case. The Councilconsidered action on the Colenco case, long advocated by theUSG and a major topic during the February meeting betweenSecretary Clinton and Foreign Minister Calmy Rey, was oneproactive measure the Swiss government could take in thisdirection. Since action in this case falls under the purviewof Minister Leuthard, she was tasked to take immediate actionto shut down Colenco’s operations and to notify the USG. Theadditional information that the USG experts provided to theGOS on June 25th was pivotal in providing the Swiss withadequate actionable intelligence to make a legal finding thatColenco is violating the sanctions on Iran. Leuthardconfirmed that the information we provided tracked with thefindings of the Swiss intelligence services. The Swiss nowconsider that Colenco is not fulfilling their requirementsunder the dual use provisions of Swiss law. Leuthard alsoadvised that they have notified the Swedish government oftheir intent to go forward with official action againstColenco.

¶3. (S) Colenco was not able to adequately defend theiractivities in Iran by a deadline set by the Swiss government.Leuthard stated that Colenco will be formally told to ceasetheir activities in Iran on July 2. She further opined thatshould the government or other conditions relating toproliferation change for the better in Iran, Colenco may beable to resume their activities in the future. Sheemphasized that this shut-down was a “suspension”. Shepromised to provide us with a written copy of the Colencodecision.

¶4. (S) Leuthard then turned the topic of discussion toSwiss willingness to accept several detainees from Guatanamofor resettlement and encouraged us to provide as much data aspossible quickly so that the Swiss could move forward. CDAadvised that more bio and medical data had been receivedtoday and was being delivered via a separate channel.

¶5. (S) At this point, Leuthard emphasized that these twoactions were “elements showing that Switzerland is committedto resolving all issues between our countries.” To bringhome the point, she reiterated that this resolve extendedespecially to finding a political solution to the UBS case.

CARTER

XTAGS: XTAGIR, XTAGMNUC, XTAGPARM, XTAGPHUM, XTAGPREL, XTAGPTER, XTAGKWAC, XTAGECON, XTAGETRD 09BERN273