DEMARCHE TO SPAIN ON DESIGNATIONS OF IRANIAN

C O N F I D E N T I A L MADRID 002040 SIPDIS SIPDIS FOR S, ISN, T, EUR, EAP AND NEA E.O. 12958: DECL: 10/26/2012 TAGS: PREL KNNP IR PARM EFIN SP SUBJECT: DEMARCHE TO SPAIN ON DESIGNATIONS OF IRANIAN ENTITIES AND INDIVIDUALS-CORRECTED COPY REF: REF: STATE 148605 Classified By: Deputy Chief of Mission, Hugo Llorens, Reason: 1.5 (b) a nd (d) ¶1. (C) On 10/26/07, DCM spoke with Ministry of Foreign Affairs Secretary of State Bernadino Leon about the new IRAN sanctions. Leon was quite aware of Secretary Rice's and Secretary Paulson's 10/25/07 press conference from media SIPDIS reports. He said that Spain supported U.S. leadership in dealing with Iran's possible acquisition of nuclear weapons and understood and supported the additional sanctions adopted by the U.S. Leon emphasized that Spain was in full compliance with UNSCRs 1737 and 1747. He added that the Spanish government had successfully discouraged several promising commercial deals with IRAN that arguably were not covered by the resolutions so that Spain was implementing the spirit, as well as the letter, of the resolutions. Leon said that he would study the non-paper and fact sheet carefully. He noted that in the coming days and weeks, Spain would be conferring with EU partners on additional sanctions against Iran, and that the EU consultations would include the U.S. and other UN members. Leon said that he would be pleased to talk to the Ambassador and DCM about this matter in the coming weeks. DCM also raised this issue with Alvaro San Martin, Chief of Staff to Ministry of Finance Secretary of State David Vergara. San Martin appreciated the critical importance of the U.S. action, and that it would be raised to the ministerial level. On 10/25/07, Second Vice President and Finance Minister Pedro Solbes was in parliament defending the budget. Reftel non-paper and fact sheet were delivered to the Ministry of Foreign Affairs and the Ministry of Finance on 10/25/07. We also provided the documents to Ministry of Industry, Tourism and Trade Secretary of State Pedro Mejia on 10/26/07. Mejia has the lead within the GOS for coordinating IRAN financial sanctions. ¶2. (C) In the coming weeks, Ambassador/DCM will seek additional information on GOS views on this matter with Foreign Minister Moratinos, Second Vice President and Finance Minister Pedro Solbes, and Secretary of State Pedro Mejia. Mejia's role in this will be critical because, as a practical matter, he has the lead in terms of developing the details of Spain's position on IRAN financial sanctions, as well as the application of the sanctions. AGUIRRE