US embassy cable - 04BRUSSELS5396

S E C R E T SECTION 01 OF 03 BRUSSELS 005396 
 
SIPDIS 
 
DEPT. FOR T, NP, NEA/NGA AND EUR/ERA 
 
E.O. 12958: DECL: 12/22/2014 
TAGS: KNNP, PARM, PREL, PINR, IR, IAEA, EUN, USEU BRUSSELS 
SUBJECT: EU/IRAN: WMD REP GIANNELLA READOUT ON TALKS, PATH 
AHEAD FOR EU3-IRAN DIALOGUE 
 
REF: A. LAIDLAW-TREMONT-PELZ E-MAILS 12/17/04-12/21/04 
 
     B. BERLIN 4190 
     C. LONDON 9265 
 
Classified By: USEU Poloff Van Reidhead for reasons 1.4 (b)(d) 
 
1. (S) Summary: In a meeting to review the EU3,s efforts 
with Iran December 21, EU WMD Rep Annalisa Giannella said she 
was generally pleased with the process but questioned whether 
the EU-3 could achieve its goals without eventual US 
involvement.  She said that neither the December 13 
ministerial meeting nor the December 17 Nuclear Working Group 
meeting were substantive, although the latter served as a 
useful ice-breaker with Naseri, the new GOI representative to 
the Nuclear Group.  She also described the new roles created 
for EU staffers, including herself and Council DG Robert 
Cooper, now that the EU-3 had expanded to include HiRep 
Solana, and painted a picture of the schedule ahead.  End 
Summary. 
 
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PLEASED WITH PROCESS BUT SKEPTICAL ON OUTCOME 
--------------------------------------------- 
 
2. (S) WMD Rep Annalisa Giannella said she was pleased that 
the EU3-Iran dialogue had resulted in the suspension of 
Iranian enrichment activities, but wondered how long it could 
last, since neither the GOI nor the EU-3 1 (now including 
HiRep Solana) were willing to shift their red lines.  She 
said the EU-3's demand for the permanent cessation of all 
enrichment activities was non-negotiable, and that no other 
"objective guarantee" would suffice.  At the same time, she 
has never heard a single Iranian interlocutor even hint at 
the possibility of giving up the sacred "right" to develop 
and maintain a nuclear fuel cycle.  The talks are buying 
time, she said, but for how long?  She said that while the 
Iranians were talking with the Europeans, their sights were 
clearly set on Washington, and she doubted durable solutions 
could be found without US participation.  She also passed us 
a December 21 AFP article that quotes Iranian negotiator 
Moussavian as saying it was "important" for the EU and US to 
stay in consultation on Iran.  We reminded Giannella that the 
problem was not with the US but with Iran and its long 
history of broken promises.  Giannella agreed, but doubted 
whether the GOI would make a strategic decision come clean 
until the US was somehow involved in the dialogue. 
 
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SOLANA AS ADVISOR AND BRIDGE 
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3. (SBU) Giannella said that in general, HiRep Solana will 
attend any EU3 ministerial-level meetings with Iran and will 
serve as an advisor and bridge between the EU-3 and the 
EU-25.  Giannella (whose formal title is "Personal 
Representative of the High Representative for WMD") and 
Council DG Robert Cooper will represent Solana on the 
EU3-Iran Steering Committee.  External Relations Deputy DG 
Fernando Valenzuela and/or Mideast Director Christian Leffler 
will represent the Commission. 
 
4. (C) Giannella will also serve as Coordinator for the three 
EU3-Iran Working Groups.  The EU representatives to the 
Nuclear Working Group are Giannella staffers Dr. Stephan 
Klement and Jean-Claude Brunet.  Klement is a nuclear policy 
specialist who was with the IAEA before joining Giannella's 
office earlier this year.  Brunet is a security policy expert 
detailed to Giannella's office from the French MFA.  Brunet 
and Policy Unit Iran Advisor Bjorn Larrson are the 
representatives to the Political and Security Working Group. 
The Commission's Leffler will lead the Technology and 
Economic Development Working Group with participation from 
others in the Commission as appropriate.  We have very good 
working relationships with all of these people and consider 
them capable and cooperative. 
 
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DECEMBER 13 MINISTERIAL AND WORKING GROUPS PLENARY 
--------------------------------------------- ----- 
 
5. (S) Giannella's readout of the December 13 EU3-Iran 
ministerial meeting tracked closely with refs (B) and (C). 
Describing the event as a "tete-a-tete" between Rohani and 
the Europeans, she said Rohani rejected outright any hint 
that the "objective guarantee" being sought by the EU-3 could 
only be achieved by means of a total cessation of enrichment 
activities.  Instead, Iran insisted that its "rights" under 
the NPT could not be infringed.  Beyond such posturing, 
nothing of substance was discussed, she said. 
 
6. (S) Giannella said that during the introductory working 
groups plenary following the ministerial, the GOI delivered 
an oral list of the topics they wanted to discuss in each of 
the three working groups.  Reading from her notes, she said 
these were: 
 
Nuclear Group: 
  1. objective guarantees 
  2. peaceful applications, including: 
      a) nuclear fuel supplies ("can't rely on tricky 
Russians") 
      b) joint projects (not defined) 
 
Political and Security Group: 
  1. sustained partnership on regional issues 
  2. cooperation on counter-terrorism 
  3. security assurances (Note: we took this as code 
     for US engagement) 
  4. nuclear weapons free zone in the Middle East 
  5. export controls 
  6. defense relations, including: 
      a) counter-narcotics 
      b) counter-terrorism 
      c) conventional defense cooperation 
 
Technology and Economic Development: 
  1. easing EU export restrictions 
  2. technical assistance 
  3. financial assistance 
  4. energy 
  5. trade liberalization 
 
7. (S) According to Giannella, the EU-3 did not respond to 
the list and the rest of the meeting was consumed by more 
Iranian posturing and unsubstantive discussions. 
 
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DECEMBER 17 NUCLEAR GROUP MEETING 
--------------------------------- 
 
8. Giannella's readout of the first meeting of the Nuclear 
Working Group in Geneva on December 17, which she attended, 
tracked almost verbatim with those provided by German, French 
and British officials (ref A).  She described the meeting as 
an "ice-breaking" session and said they did not discuss 
cessation or objective guarantees.  She echoed others in 
saying she was generally pleased with Naseri and thought him 
much more businesslike and reasonable than the "theatrical" 
Zefari. 
 
9. (S) Giannella said the EU-3 asked for a paper from the 
Iranians explaining their reasons for wanting a 6000-megawatt 
nuclear energy capacity by 2020 (which she thought 
unrealistic).  The GOI agreed to deliver the paper at the 
next Nuclear Group meeting scheduled for January 17 in 
Geneva.  The Iranians also said they needed a light water 
research reactor in order to produce medical isotopes and to 
train new engineers.  Giannella said the Iranians wanted to 
discuss restrictions on European exports and, incredibly, 
also asked for a tour of European nuclear energy facilities, 
but the EU-3 did not respond.  She commented that one of the 
most frustrating aspects of negotiating with the Iranians was 
that they always sought to maintain a facade of equality, as 
though they should be treated with the same trust and respect 
as any other "responsible" state.  Giannella said the 
Iranians also complained a lot about the Russians and said 
they needed a more reliable source of fuel that would not 
squeeze them for extra profit or political gain. 
 
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SCHEDULE OF MEETINGS 
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10. (S) Giannella expected the working groups to meet on a 
roughly monthly basis.  In principle they will convene in 
Geneva (or maybe Vienna) in order to create a neutral 
atmosphere and to ensure maximum participation on the 
European side.  The Steering Committee will meet quarterly; 
the first will convene in March in Tehran.  The Political and 
Security Working Group met for the first time December 21 in 
Geneva (we do not yet have a readout), and the Nuclear Group 
will next meet on January 17 in Geneva.  Before then, 
European experts will make a "fact-finding" visit to Iran to 
explore the research reactor sought by the GOI (Giannella 
Staffer Dr. Stephan Klement will participate for the 
Council).  Giannella did not know where things stood with the 
Technology and Economic Development group. 
 
McKinley