GERMAN EXPECTATIONS FOR MID-NOVEMBER IAEA REPORT

C O N F I D E N T I A L BERLIN 002029 SIPDIS SIPDIS STATE FOR P, T, ISN, NEA, EUR E.O. 12958: DECL: 11/05/2017 TAGS: KNNP MNUC PARM IAEA AORC PGOV PREL GM SUBJECT: GERMAN EXPECTATIONS FOR MID-NOVEMBER IAEA REPORT ON IRANIAN IMPLEMENTATION OF THE WORK PLAN REF: A. STATE 151038 ¶B. BERLIN 2007 Classified By: Political Counselor Jeffrey Rathke for reasons 1.4 (b) and (d). ¶1. (C) Emboffs delivered ref A demarche November 5 to MFA Nonproliferation Divison Desk Officer Hellmut Hoffmann, IAEA Desk Officer Martin Langer, and Nuclear Nonproliferation Desk Officer Joerg Polster. Hoffmann expressed appreciation for the information and noted that Germany had received a similarly detailed document outlining UK criteria for a "positive outcome" to the IAEA report. While it is appropriate for Board of Governors member states to establish their own benchmarks, Hoffmann said, it is also important to recognize "philosophically" that IAEA technical experts - vice BOG member states - have been tasked with assessing Iranian implementation of the Work Plan. He said Germany has full confidence in the IAEA to do its work. Hoffmann expressed a preference for "guiding questions" and stressed the need to avoid "micro-managing" the process. He noted ElBaradei's dislike for other countries taking initiative to define the criteria for success. "We must make clear that Iran, not the IAEA, is the target," Hoffmann stated. ¶2. (C) Langer downplayed expectations for the mid-November report, stating the Work Plan's timeline commits Iran to address P-1/P-2 centrifuge-related issues by the end of November and to resolve all open questions by the end of the year. Given the Work Plan's timeline, Langer said, the most ElBaradei will be able to say is that Iran is making progress. Hoffmann said Germany will review the IAEA report carefully after its release, adding "if it seems Iran is getting ready to talk, it would be wrong to create the impression we do not welcome it." ¶3. (C) Hoffmann - who attended the November 2 P5 1 meeting in London with German PolDir Volker Stanzel - noted Kislyak's assertion that the October 25 U.S. designations had extraterritorial implications and that the timing of the announcement "undercut" Russian FM Lavrov's visit to Tehran. Hoffmann said German legal experts are also reviewing the question of whether the U.S. designations have extraterritorial effects. (NOTE: In a follow-on discussion November 6, MFA International Financial Policy Desk Officer Claudia Schuett said MFA legal and economic experts concluded on the basis of OFAC internet guidance that the U.S. designations do not have extraterritorial implications. END NOTE.) ¶4. (C) Regarding prospects for EU autonomous sanctions, Hoffmann noted the October GAERC conclusions commit the EU to take steps "in support of the UN process." Hoffmann acknowledged the U.S. designations also support the UN process but said the timing of the announcement was construed by some in Germany and elsewhere as an attempt to dictate the terms of a third UNSCR. Hoffmann noted the EU's 1737/1747 implementing measures also go beyond the requirements of the UNSCRs, but added there was a "much longer time lapse" between the UNSCRs and the U.S. designations. Hoffmann reiterated Germany's preference for "relatively low-key" efforts to encourage German companies to cut business ties with Iran (see ref B). He claimed the Iranian regime has taken note of Germany's actions and asserted that the German informal approach was the best way to "bring the business community along." Hoffmann said the German Government hopes other EU member states will follow Germany's lead. TIMKEN JR