US embassy cable - 04BRUSSELS4201

C O N F I D E N T I A L BRUSSELS 004201 
 
SIPDIS 
 
NOFORN 
 
DEPT FOR NEA - DAS PHILO DIBBLE, NP/RA - FITZPATRICK, S/CT- 
MILLER, EUR/ERA 
 
E.O. 12958: DECL: 09/30/2009 
TAGS: PREL, KNNP, ETTC, EAID, IR, EUN, USEU BRUSSELS 
SUBJECT: EU WANTS G8 TALKS ON IRAN BEFORE NEXT IAEA BOARD 
 
REF: A. SECTO 0019 
     B. 09/24/2004 
 
Classified By: USEU POLOFF LEE LITZENBERGER; REASON 1.4 (B,D) 
 
 
1.  (C/NF)  According to UK Mission official Karen Betts 
(strictly protect), the EU-3 are working to coordinate with 
the EU ideas for a G-8 strategy to "handle Iran between now 
and the November IAEA Board meeting." On September 29, EU 
High Rep Solana presented a draft paper to the EU-3 outlining 
specific, technical steps Iran must take regarding the 
suspension of uranium enrichment.  In parallel, the EU-3 are 
looking at possible incentives the EU could offer Iran, 
should it comply. G8 engagement, she said, is designed to 
bring Moscow on board and allow for the possibility that the 
U.S. could offer some improvement in relations with Iran.  As 
for the EU, Solana is proposing to re-start the stalled 
negotiations on a Trade and Cooperation Agreement (TCA) with 
Iran, should it suspend uranium enrichment.  Betts said the 
thinking is that, even restarted, negotiations would likely 
founder, but it is the only carrot the EU can offer at this 
time. 
 
2.  (C/NF)  The UK, Betts shared, is not completely 
comfortable with the EU-3 paper, but feels compelled to 
proceed in an effort to make clear to Iran it has one last 
chance to keep the issue from going to the UNSC.  "The 
message to Iran would be:  we need to see 100% compliance or 
it goes to the UNSC in November," said Betts.  However, the 
EU-3 are approaching the whole issue of Iran asking, "What 
price do we need to pay to get Iran to give up its nuclear 
program?"  We responded that another way to view the 
situation is that Iran's international obligations are clear, 
and Tehran should not expect to be rewarded simply for 
meeting them.  Rather than looking for carrots to offer Iran, 
we asked, has the EU considered putting Tehran on notice that 
it might impose economic sanctions -- given that the EU is 
Iran's largest trading partner -- should Iran not suspend 
enrichment?  Betts answered that while the EU has discussed 
this option, serious consideration of sanctions could only 
come under an authorizing UNSCR. 
 
3.  (C/NF) Betts said the sequencing of upcoming meetings is 
a complicating factor in managing this issue.  The EU-3 are 
hoping to convene G8 Political Directors (or, perhaps even a 
ministerial-level meeting) in the period October 11-13 to 
discuss an Iran strategy (reftel).  Unfortunately, EU 
ministers meet in a GAERC on the 11th, before the G8 will 
have held its discussion.  The EU would like to present the 
proposals to the G8 before EU ministers reach any 
conclusions.  She said the UK feels very much squeezed in the 
middle between the U.S., which wants to take a tougher line 
on Iraq, and the EU, which wants to be a bit softer. 
"Handling" Iran as an issue has become a delicate matter for 
the UK, she said.  She welcomed next week's US-EU-Canada 
trilateral discussions on Iran, and encouraged the US 
delegation to engage the Dutch on all these issues. 
 
McKinley