Identifier
Created
Classification
Origin
07PARIS4574
2007-11-26 18:04:00
CONFIDENTIAL
Embassy Paris
Cable title:  

FRENCH, BRITISH SHARE CONCERNS ON CHINESE IRAN

Tags:  EFIN ETTC PARM CM IR FR 
pdf how-to read a cable
VZCZCXRO5727
OO RUEHAG RUEHROV
DE RUEHFR #4574 3301804
ZNY CCCCC ZZH
O 261804Z NOV 07
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1254
INFO RUCNMEM/EU MEMBER STATES IMMEDIATE
RUEHAD/AMEMBASSY ABU DHABI IMMEDIATE 0201
RUEHBJ/AMEMBASSY BEIJING IMMEDIATE 1596
RUEHKL/AMEMBASSY KUALA LUMPUR IMMEDIATE 0275
RUEHNE/AMEMBASSY NEW DELHI IMMEDIATE 1161
RUEHDE/AMCONSUL DUBAI IMMEDIATE 0095
RUEATRS/DEPARTMENT OF TREASURY WASHDC IMMEDIATE
RUEHBS/USEU BRUSSELS IMMEDIATE 2136
C O N F I D E N T I A L PARIS 004574 

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E.O. 12958: DECL: 11/16/2017
TAGS: EFIN ETTC PARM CM IR FR
SUBJECT: FRENCH, BRITISH SHARE CONCERNS ON CHINESE IRAN
INVESTMENTS


Classified By: ECON MINCOUNS SETH WINNICK FOR REASONS 2 B AND D

C O N F I D E N T I A L PARIS 004574

SIPDIS

SIPDIS

E.O. 12958: DECL: 11/16/2017
TAGS: EFIN ETTC PARM CM IR FR
SUBJECT: FRENCH, BRITISH SHARE CONCERNS ON CHINESE IRAN
INVESTMENTS


Classified By: ECON MINCOUNS SETH WINNICK FOR REASONS 2 B AND D


1. (C) Summary. On the margins of the annual OECD
Executive Committee meetings on November 12, A/S Sullivan
met with UK FCO Director for Global and Economic Issues
Scott Wightman and subsequently with French MFA DG for
Economic Affairs Christian Masset. The principal subject of
their discussions was limiting foreign investment in the
Iranian energy sector. End Summary.

Meeting with UK Director Wightman
--------------


2. (C) The United States seeks to discourage investments in
the Iranian energy sector, stated Sullivan. He noted that
reporting shows that Germany fears China, Malaysia,
and India will replace Western investment, if it
is withheld. He emphasized the need for concerted
action in the form of a joint message, perhaps from
the United States, France, UK, and EU, to China and others
that now is not the time for business as usual with regard to
concluding of large-scale investment deals in the energy
sector, given the delicate state of diplomatic negotiations.


3. (C) FCO Director Wightman responded positively. He
pointed out that Prime Minister Gordon Brown and Foreign
Secretary wanted to find ways to increase pressure on

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Iran. Although Shell is interested in investing, it seeks
to avoid finding itself in a position where it must make a
binding commitment. Wightman recommended seeking a meeting
with the FCO's Antony Phillipson, who has primary
responsibility for Iran sanctions. [Note: Phillipson was
unavailable on November 12 and 13, when A/S Sullivan was in
London.]

Meeting with French Director General Masset
--------------


4. (C) In a separate meeting, D/G Masset confirmed that the
GOF shares U.S. concerns that increased investment or trade
by Chinese, Indian and Malaysian firms was
counterproductive. Referring to the GOF's ongoing dialogue
with French firms and demarches in EU capitals to
discourage European investment in Iran, Masset said that
France is also pressing for further measures in Brussels,
such as increasing the number of EU "designations" of
Iranian financial institutions. The MFA and the Elysee are
looking closely at how to raise the issue with China,
particularly in the context of President Sarkozy's November
25 state visit there. Masset said he would insert USG
concerns into the preparatory discussions. The GOF's
initial analysis, he said, shows that Chinese "backfilling"
is more possible in the oil sector but, despite greater
technological challenges, could possibly occur in the
natural gas sector. Noting GOF concern over the many
companies who continue to exploit Dubai as an avenue for
financial transactions, he asked about USG actions on this
front. He also inquired as to the status of Congressional
proposals relating to divestment from Iran and provisions
that would allow waivers.


5. (C) A/S Sullivan said that the USG remains very vigilant
regarding financial flows to Iran via Dubai, both through
OFAC and terrorism finance-specific monitoring as well as
through multilateral bodies such as the Financial Action
Task Force. Although the joint Rice-Paulson announcement
of additional measures against Iran received strong support
in Congress, he said, certainly any new announced
investment in Iran by China or others would certainly
provoke intensified debate on foreign investment in Iran.


6. (C) A/S Sullivan has not cleared this message.

Please visit Paris' Classified Website at:
http://www.state.sgov.gov/p/eur/paris/index.c fm


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