BRAZIL - TBA TERROR FINANCE DESIGNATIONS

SECRET,NOFORN 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