ARMENIA: DEMARCHE DELIVERED -- BATTLING GLOBAL

C O N F I D E N T I A L YEREVAN 001940 SIPDIS E.O. 12958: DECL: 09/02/2014 TAGS: PREL PTER AM SUBJECT: ARMENIA: DEMARCHE DELIVERED -- BATTLING GLOBAL TERRORISM REF: STATE 187644 Classified By: DCM A.F.Godfrey for reasons 1.4 (b, d) (C) DCM delivered reftel demarche September 1 to Deputy Foreign Minister Tatul Margarian. In light of Armenia's developing relationship with Iran, we placed particular emphasis on Iran's role as the leading state sponsor of terrorism. Margarian said that Armenia's ties to Iran are developing as a matter of simple geographic necessity. Iranian President Khatami will visit Armenia, most likely during the second week of September, to conclude specific economic agreements. Margarian said that the GOAM intends to continue to conduct its relationship with Iran transparently, taking into account U.S. concerns "as much as possible." Margarian noted that at the same time Armenia is developing some economic ties with Iran, it continues to cooperate with the U.S. on strengthening border controls. EVANS