ITALY TELLS IRAN TO ACCEPT EU3 PACKAGE

C O N F I D E N T I A L SECTION 01 OF 02 ROME 001856 SIPDIS NOFORN SIPDIS E.O. 12958: DECL: 05/30/2016 TAGS: PREL PTER PHUM EUN KNNP IR IT SUBJECT: ITALY TELLS IRAN TO ACCEPT EU3 PACKAGE ROME 00001856 001.2 OF 002 Classified By: Acting Pol M/C Jonathan Cohen for reasons 1.4 (b) and (d ) ¶1. (C/NF) Summary. On June 22, visiting EUR/WE Office Director Kathy Allegrone discussed Iran, Syria, Iraq, and UN Security Council reform with MFA Political Director Giulio Terzi. On June 21 in Rome, Italian FM D'Alema told visiting Iranian FM Mottaki to accept the EU3 package and that Italy, despite the economic losses it would suffer should sanctions be imposed on Iran, would stay firm with the international community's efforts. On Syria, Terzi agreed on the need to be cautious about engaging with Damascus. On Iraq, Terzi said the MFA was studying options for the Dhi Qar PRT and ways to expand police training under NATO. Finally, Terzi expressed concerns about the African position on UNSC reform, urging the U.S. not to raise the UNSC membership ceiling. End summary. Iran Readout -------------- ¶2. (C/NF) In a June 22 meeting with visiting EUR/WE Office Director Kathy Allegrone, Acting Political Minister Counselor and PolOff, MFA Political Director Giulio Terzi, who attended FM D'Alema's June 21 dinner with Mottaki, said there was nothing dramatically new or different in the Iranian position (the Iranians expressed their "usual refrain"),but sensed a change in attitude, describing the Iranians as "more forthcoming." Mottaki reportedly told his MFA interlocutors Tehran is considering the package of incentives presented by Solana, which Mottaki called "extremely interesting," and expect to provide a detailed response by mid-August. Because Iran intends to answer "every chapter" of the proposal, more time is needed for interdepartmental discussions. Terzi thought the Iranians were waiting for the outcome of the July G-8 Summit before answering, but may wait until the UN General Assembly in September to try to draw support there from the NAM. ¶4. (C/NF) Terzi said he believed the Iranians are honestly reviewing the package. He added that Italy's Ambassador to Iran, Roberto Toscano, also present at the dinner, believed the American initiative had left a strong impression in Tehran, resulting in a significant interagency debate, though Terzi was quick to add that this did not necessarily mean there were splits among Iranian leaders. His sense was that Mottaki was a player on this issue, and not "on the sidelines." ¶5. (C/NF) Terzi said D'Alema encouraged the Iranians to accept the Solana package, pointing out that Iran has a unique opportunity to regain the confidence of the international community and improve Iran's international standing. Acceptance could help move the issue back into the hands of the IAEA and perhaps eventually lead to recognition of Iran's right to pursue nuclear power for peaceful purposes. By accepting the package, Iran has nothing to lose. Mottaki reportedly did not counter D'Alema's remarks but instead seemed to be "absorbing them," Terzi said. ¶6. (C/NF) Allegrone asked for clarification on D'Alema's June 21 statement to the press, in which he said, "the prospect of Iran's isolation by the international community or even sanction is definitely alarming" for Italy. Terzi said D'Alema was telling the Iranians that, as their biggest trading partner in Europe, Italy would suffer under sanctions but was willing to pay this price for non-proliferation. Terzi said the Iranians were trying to "play the card of opening a new channel" of discussions, but D'Alema made it clear that there is a united platform on the Iranian nuclear issue, Italy is part of that platform, and no other channel was possible. Syrian Interest in Europe Visit -------------- ¶7. (C/NF) On Syria, Terzi said that a ministerial-level Syrian official was looking to visit European capitals, and Italy was exploring whether the idea had merit. Italy's impression was that Syria was cooperating on the Hariri investigation. Allegrone made clear that Italy should not engage in dialogue, that the Syrian press was quick to play up any foreign visits as proof that their standing in the international community was improving, and that there was no change in the need for consistent international pressure on Syria. They must not be given an alternative path. She recommended DG for the Middle East Riccardo Sessa touch base with Washington on this issue. Terzi agreed on the need to ROME 00001856 002.2 OF 002 be extremely cautious and said he would discuss with Sessa. He was unaware and disturbed that this had already been in the press, saying it was important not to give the Syrians the impression that there was any "room for maneuver." Iraq -- Italy Exploring PRT and Police Options -------------- - ¶8. (C/NF) On Iraq, Terzi said the MFA is looking at how to expand police training under NATO's umbrella and would discuss with the French. Italy also urged the UN to do more in the provinces on infrastructure, stressing that more UN involvement would allow Italy to do more through the UN. Allegrone raised the Italian PRT in Dhi Qar, which Terzi said Italy was still discussing with the UK and the U.S. -- "we're working a lot on it." (Note. Acting Political Minister-Counselor and PolOff met later that day with MFA Iraq Task Force Director De Martino and Task Force Officer Stucci, who confirmed that Italy is still seeking viable options for the PRT. End note.) UNSC Reform -------------- ¶9. (C/NF) Terzi raised UNSC reform, saying that Italy, along with others in the Unity for Consensus and China, is watching the issue closely. Italy remains particularly concerned regarding the prospects of African support for the G4 position, which could block the UN reform process, and would be very concerned if the U.S. raised its ceiling for UNSC expansion. He said Italy is not "worried" for the moment, but its position will change for the worse if the ceiling is raised and/or the African position mergers with the G4. This would "block the whole machinery of reform." SPOGLI