AMBASSADOR SCHULTE DISCUSSES IRAN WITH FM ABOUL

C O N F I D E N T I A L SECTION 01 OF 02 CAIRO 005430 SIPDIS E.O. 12958: DECL: 08/30/2016 TAGS: PREL UNSC EG IR LE IS KNNP SUBJECT: AMBASSADOR SCHULTE DISCUSSES IRAN WITH FM ABOUL GHEIT Classified By: DCM Stuart Jones for reasons 1.4(b) and (d). -------------- Summary -------------- ¶1. (C) U.S. Permanent Representative to the UN Mission in Vienna Ambassador Schulte discussed Iran's nuclear weapons program with Foreign Minister Aboul Gheit on August 28. Aboul Gheit warned Ambassador Schulte that the U.S. handling of Lebanon had strengthened Iran, that economic sanctions against Iran would not work, and that military action would spur Iran to target U.S. personnel in Iraq. Aboul Gheit said he had told Iran's Deputy Foreign Minister Mohamed Baqiri that Iran must be more flexible and transparent with its nuclear program. He also urged the U.S. to prove it is serious about the Middle East Peace Process, explaining that this would deprive Iran of the support of the Muslim world. Referring to the upcoming General Conference, Aboul Gheit pledged to support the U.S. on Iran in a manner that will not embarrass Egypt. End summary. -------------- Warning Against Sanctions -------------- ¶2. (C) Aboul Gheit told Ambassador Schulte that Egypt does not want Iran to have a military nuclear capability because then Israel would never denuclearize, and it would spark others in the region to acquire nuclear weapons. An economic embargo, he observed, will not produce results because opportunists in adjoining countries will violate sanctions. Questioning Russian and Chinese support for sanctions, Aboul Gheit said that without China's support, Iran will cast the nuclear issue as one between the West and the Muslim world. Ambassador Schulte said Russia and China are concerned about, but increasingly resigned to, endorsing targeted sanctions against Iran. The U.S. must not, Aboul Gheit urged, take military action against Iran because it would drive Iran to target oil supplies and U.S. personnel in Iraq. -------------- Peace Process is Key -------------- ¶3. (C) Aboul Gheit advised the international community to "give Iran a package that will tie their hands." Making progress on the Middle East Peace Process, he stressed, would deny Iran the support of the Muslim world. He explained that the Lebanon crisis has led millions of Egyptians to believe Iran should acquire nuclear weapons. Aboul Gheit said the U.S. must understand the depth of Arab frustration over Israel's daily humiliation of the Arab people. Iran is exploiting this frustration, Aboul Gheit noted, by working with Hamas, Hizbollah, insurgents in Iraq, and perhaps even with the Taliban. The U.S. (not the British or the French) must diffuse the tension in the region by reengaging in the Peace Process. -------------- Iran's Response to the Package -------------- ¶4. (C) Ambassador Schulte said the U.S. believes Iran has already decided to develop a nuclear weapons capability. Ambassador Schulte noted that Iran's response to the P5 1 offer reaffirmed its unwillingness to halt enrichment and indicated that regional security would need to be addressed before other matters. Aboul Gheit warned that the U.S. would lose friends if it discusses regional security with Iran without including Egypt and Jordan. He said the Secretary had agreed to include Egypt and Jordan in any future discussions with Gulf foreign ministers on Iran. Ambassador Schulte reassured Aboul Gheit that the U.S. was not interested in pursuing regional security discussions with Iran under the present circumstances. -------------- GOE Pressure on Iran -------------- ¶5. (C) Aboul Gheit said he told Iran's Deputy Foreign Minister Mohamed Baqiri in a meeting August 27 to be flexible and transparent when negotiating on its nuclear program. Ambassador Schulte asked for Egypt's support on Iran at the NAM summit and the upcoming General Conference. Noting that he (not Mubarak) will go to Cuba, Aboul Gheit agreed to support the U.S., but said "we will do this without embarrassing ourselves. We will tell (Iran) publicly what we say to them privately." Ambassador Shulte advised that the General Conference will focus on the peaceful uses of nuclear power. Aboul Gheit called the Global Nuclear Energy Partnership (GNEP) a "good project" and asked for additional information on the concept. He also thanked Ambassador Schulte for providing information on the Concept Paper on Reliable Access to Nuclear Fuel. Aboul Gheit acknowledged that the GOE tends to prolong internal studies of concepts like the GNEP and said it would be helpful if the U.S. would continue to provide background information. -------------- Additional Protocol -------------- ¶6. (C) Aboul Gheit said Egypt will not sign the Additional Protocol (AP) at this time, confirming that the obstacle is the fact that Israel is not a party to the NPT. In a separate conversation, Aboul Gheit's Disarmament Office Director Hossam Aly expressed frustration at the move to make the AP the international standard when it was originally intended to be optional. But, Aly qualified, if Israel becomes party to the NPT, Egypt would sign the AP the same day, "or even a day earlier." RICCIARDONE