SAG MAKES NO PROGRESS ON STALEMATE WITH IRAN

C O N F I D E N T I A L PRETORIA 004297

SIPDIS

ABUJA PLEASE PASS TO A/S FRAZER

E.O. 12958: DECL: 10/21/2015
TAGS: PARM PREL KNNP IR SF IAEA
SUBJECT: SAG MAKES NO PROGRESS ON STALEMATE WITH IRAN
DURING OCTOBER 19 LARIJANI VISIT TO SOUTH AFRICA

REF: A. SECSTATE 00578

B. PRETORIA 03814

C. PRETORIA 03791

D. PRETORIA 03267

E. PRETORIA 2984

F. PRETORIA 2963

Classified By: CDA Don Teitelbaum. Reasons: 1.4 (B&D).


1. (C) Ali Larijani, Iranian Secretary of Supreme National
Security Council (SNSC),visited South Africa October 19 for
consultations on Iran's nuclear dossier with President Mbeki
and Abdul Minty, DFA Deputy Director General and SAG
Representative on the IAEA Board of Governors. Minty told
A/DCM October 21 that bilateral discussions during the
October 19 visit to Pretoria brought no progress on resolving
the impasse over Iran's nuclear program. Minty said Larijani
reiterated Iran's desire to resolve the issue diplomatically,
but claimed the EU had broken off the negotiations. He
added that the EU and Iran were continuing to search for a
resolution through informal talks but that he understands
they had made no progress. Minty noted that the SAG and the
EU were maintaining close contacts on the state of the
EU-Iran talks. He described the Iranian officials handling
the issue as new and said they were simply rehashing old
positions: nothing new was being put forward. Expressing a
bit of exasperation, Minty said the two year dialogue was a
"stand-off." A/DCM inquired about a press report that South
Africa had repeated its offer to store Iranian uranium (Ref
D, E, F). Minty explained that this offer was originally an
IAEA proposal, and noted that the press reports were wrong,
as was often the case. (Comment: In fact, the proposal was
an Iranian initiative, see Ref F.)


2. (U) Press reports noted the SAG's abstention September 19
in Vienna at the IAEA Board meeting on a US/EU-3 resolution
referring Iran to the UN Security Council because of
noncompliance with the NPT and pursuit of a nuclear program
not exclusively for peaceful purposes. Larijani reportedly
thanked South Africa for its position in September and hoped
that Pretoria would maintain its current approach at the next
Board session in November.


3. (C) Ambassador Martin Slabben, DFA Director for Gulf
States, told PolCouns October 20 that Minty alone had handled
the "multilateral" aspects of Larijani's visit. On the
bilateral side, Slabben was thrilled by an Iranian government
decision to award a multimillion dollar cellular contract to
MTN, bumping a previously selected bidder. Notwithstanding a
potential court challenge by the dismissed bidder, Slabben
said that Iran will issue the requisite license to MTN, which
he said cost Euros 300 million. Iran's market includes 70
million people wait listed for land lines and an additional 7
million for cell phones, according to Slabben.


4. (C) Comment: Handling of Larijani's visit confirmed
Minty's strong influence over the SAG's relationship with
Iran on the latter's nuclear program and the likelihood of
continued SAG willingness to give Iran the benefit of the
doubt regarding Iran's development of nuclear technology for
"peaceful" purposes.
TEITELBAUM