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