EU WANTS G8 TALKS ON IRAN BEFORE NEXT IAEA BOARD

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