BELGIAN MFA EXPANDS ON IRNA REPORT OF ALLEGED

C O N F I D E N T I A L BRUSSELS 002748 SIPDIS SIPDIS E.O. 12958: DECL: 08/31/2017 TAGS: ETRD ETTC EPET IR BE SUBJECT: BELGIAN MFA EXPANDS ON IRNA REPORT OF ALLEGED BELGIAN INTEREST IN INCREASING INVESTMENTS IN IRAN REF: BRUSSELS 2735 Classified By: Charge d'Affaires Wayne Bush, reasons 4 b/d. ¶1. (C) MFA Director for Multilateral Affairs Jean-Arthur Regibeau called post on Aug. 31 to clarify and provide additional information to Reftel on the August 28 Islamic Republic News Agency (IRNA) report that MFA Undersecretary Jan Grauls said in a visit to Tehran that Belgian small- and medium-sized companies (SMEs) should expand ties with Tehran and that 10 percent of foreign investments made in Iran in the past two years were Belgian. Regibeau said he had discussed the report with Grauls before calling. ¶2. (C) Without denying the statement attributed to Grauls in favor of increased SME economic ties, Regibeau noted that the IRNA report was solely Iranian-sourced. Grauls' sudden visit to Tehran focused on the release of a Belgian national being held hostage by bandits (reftel). The bandits are demanding release of the chief bandit's brother who is serving life in Belgium for murder. Regibeau noted that Grauls himself had made no statements to the press. ¶3. (C) The source of the report would appear to be a member of Iran's Chamber of Commerce (NFI) with whom Grauls met. Regibeau commented that Iran's private sector is suffering from Iran's image and likely saw the opportunity to show that investment is alive. However, the timeframe for the alleged Belgian investments in Iran was inaccurate in IRNA's report: Belgium represented ten percent of western investments in Iran in 2004, not presented as IRNA stated, but prior to UNSC sanctions. Belgium's commercial profile in Iran at that time consisted of two investments made that year. One was that referred to in the IRNA report, a SME joint venture to outfit an oil tanker. ¶4. (C) Regibeau noted that Belgium today receives a third of its petroleum from Iran. It is therefore a valuable commercial relationship in the oil sector. (Comment: We have reported previously on Belgium's concern about Russia's ability to cut oil supplies to Europe and the possible effect such an action would have here. End comment.) ¶5. (C) Grauls underscored in his meetings with Iranian officials that Iran "must take responsible political attitudes" if it wants to have better relations with the world, Regibeau reported. In particular, Grauls had cited Iranian President Ahmedjinadad's positions on Israel and its nuclear development as "unacceptable." BUSH .