ITALY ON IRAN'S PASTEUR INSTITUTE: NOTHING

C O N F I D E N T I A L ROME 002256 SIPDIS NP/CBM, INR/SPM, EUR/WE E.O. 12958: DECL: 05/09/2012 TAGS: PARM PREL ETTC ETRD IR IT UN SUBJECT: ITALY ON IRAN'S PASTEUR INSTITUTE: NOTHING HAPPENING CONFIDENTIAL PAGE 02 ROME 02256 091415Z REF: (A) STATE 75112 (B) STATE 83621 CLASSIFIED BY: CLASSIFIED BY ECOUNS KAREN MILLIKEN; REASON 1.5 B/D. ¶1. (C) SUMMARY. ITALY AND IRAN HAVE BROKEN OFF NEGOTIATIONS THAT HAD BEEN AIMED AT LENDING ITALIAN KNOW-HOW TO VACCINE PRODUCTION EFFORTS AT IRAN'S PASTEUR INSTITUTE. THE ITALIAN MFA REPORTS THAT IRAN BALKED AT THE STRINGENT INSPECTION PROVISIONS ITALY INSISTED BE INCORPORATED INTO ANY GOI-GOI AGREEMENT ON POINT. MFA HAS SEEN NO SIGN THAT IRAN IS INCLINED TO RECONSIDER ITS REJECTION OF THE PROVISIONS, AND ITALY THEREFORE CONSIDERS THE MATTER CLOSED. END SUMMARY. ¶2. (C) INSPIRED BY SWITZERLAND'S CONCLUSION LAST YEAR OF A MEMORANDUM OF UNDERSTANDING WITH IRAN (REF A) CONTEMPLATING SWISS EXPORTS AND TECH-TRANSFERS TO IRAN'S PASTEUR INSTITUTE ( IPI),ITALY UNDERTOOK TO NEGOTIATE ITS OWN MOU WITH IRAN, MFA NONPROLIFERATION COORDINATOR UGO DE MOHR TOLD ECONOFF ON MAY 8. DE MOHR SAID THE NEGOTIATIONS DIDN'T GET FAR BECAUSE, EVEN THOUGH THERE WAS "100 PERCENT CERTAINTY" THAT IPI WOULD PRODUCE ONLY BONA FIDE VACCINES, ITALY INSISTED ON INCLUSION OF VERY RIGOROUS GUARANTEES, INCLUDING RANDOM INSPECTIONS OF ALL FACILITIES BY ITALIAN EXPERTS, AND IRAN BALKED. WHEN IRAN COUNTERED WITH A PROPOSAL FOR A LESS INVASIVE SET OF GUARANTEES, ITALY REPLIED, PER DE MOHR, THAT ITS ORIGINAL DEMANDS WERE NON-NEGOTIABLE, AND THE TALKS BROKE OFF. ¶3. (C) HAD THE MOU TALKS SUCCEEDED, DE MOHR SAID, THE TWO GOVERNMENTS WOULD HAVE MOVED ON TO NEGOTIATION OF AN MOU ANNEX DETAILING THE FACILITIES INVOLVED AND INSPECTION CONFIDENTIAL PAGE 03 ROME 02256 091415Z MODALITIES AND, FINALLY, TO THE SPECIFICATION OF ITALIAN TECHNOLOGIES AND TECHNICIANS TO BE MADE AVAILABLE TO IRAN. WITH THE ACTUAL TALKS NEVER MAKING IT THROUGH THE MOU PHASE, DE MOHR DOESN'T SEE THE IDEA BEING RESURRECTED NOTWITHSTANDING CONTINUING INTEREST ON THE PART OF ITALIAN INDUSTRY. SEMBLER CONFIDENTIAL > 2002ROME02256 - Classification: CONFIDENTIAL