CZECH REPUBLIC COMMITTED TO UNSC IRAN SANCTIONS

C O N F I D E N T I A L SECTION 01 OF 02 PRAGUE 000883 SIPDIS SIPDIS STATE FOR EUR/NCE, EUR/ERA, NEA/IR, EEB/ESC, ISN/RA PARIS FOR USOECD E.O. 12958: DECL: 07/26/2017 TAGS: KNNP PARM EFIN ETRD OECD EUN UNAUS IR EZ SUBJECT: CZECH REPUBLIC COMMITTED TO UNSC IRAN SANCTIONS IMPLEMENTATION REF: A. STATE 101574 ¶B. STATE 81876 ¶C. STATE 81875 ¶D. STATE 69315 ¶E. PRAGUE 788 Classified By: CDA Michael Dodman for Reasons 1.4 B & D ¶1. (C) SUMMARY AND COMMENT: The Czech Republic remains fully committed to pressuring Iran to give up its nuclear program and to fully implementing UNSCRs 1737 and 1747. At the same time, based on signs that Iran is finally willing to accept that Radio Liberty/Radio Farda broadcast from the Czech Republic will not cease, the two countries are exploring the possibility of normalizing relations after ten years of strain. Post believes these efforts are in line with the overall EU strategy to engage Iran while maintaining strong pressure on the nuclear issue. The GOCR plans to submit its UNSCR 1747 implementation report but is waiting for the EU to issue a Directive on Iran sanctions that reportedly seeks to go beyond UNSCR 1747. The Czech Republic is deferring to Brussels on responding to the USG request for additional information on export credit and exporting financing for Iran at the OECD. END SUMMARY AND COMMENT. -------------- -------------- Trying to Normalize Bilateral Relations with Iran -------------- -------------- ¶2. (C) A/Pol-Econ Counselor delivered ref A demarche to MFA UN Department Deputy Director Ivan Pinter, MFA UN Department Head of Non-Proliferation and Disarmament Unit Pavel Klucky, and to MFA Middle East and Africa Department Head of Unit Pavel Koblizka July 27. Koblizka assured that the Czech Republic is "totally committed" to continuing international pressure on Iran's nuclear activities and that "there should be no doubt" about Czech willingness to implement UNSCRs 1737 and 1747. ¶3. (C) Bilaterally, as evidenced by MFA Director General Helena Bombasova's recent visit to Iran (ref E) and FM Schwarzenberg's positive press statements, the Czechs are trying to normalize relations with Iran. Because Radio Liberty/Radio Farda broadcasts out of the Czech Republic, Czech-Iranian relations has been severely strained for the past ten years. As a result, the Czechs do not/not have an Ambassador in Tehran; the Czech mission remains small and headed by the Charge d'Affaires. The Czechs are now taking "small and careful" steps to improve its relations with Iran, although such improvements are relative and no where near other EU countries' relations with Iran. When asked why the Czechs were seeking to normalize relations now, Koblizka said that Iran had never previously shown any signs of goodwill, but they now seem resigned to the fact that Radio Farda is never leaving the Czech Republic. Koblizka assured that human rights and nuclear issues remain an essential part of any bilateral dialogue the Czechs have with Iran, and that any normalization in relations with Iran would not take away from the Czech Republic's full commitment to UNSC-imposed sanctions. -------------- -------------- Sanctions Implementation, Export Credits, Export Denial Information -------------- -------------- ¶4. (SBU) Klucky explained that while the GOCR submitted its implementation report for UNSCR 1737 as fast as possible as a signal to the UN Iran Sanctions Committee of the GOCR's full support, the Czech Republic is waiting to submit its report for UNSCR 1747 until the EU issues its Directive for Iran sanctions. Klucky says that the Commission wants to go even further than the UNSCR 1747, but did not know about the expected timing of such a Directive. Per ref D, the Czech Republic is willing to participate in sharing Iran export denial information and welcomes the USG-proposed mechanism to consolidate export denial information with interested states. The Czech point of contact is the State Office for Nuclear Safety. ¶5. (SBU) In response to refs B and C, MFA Multilateral PRAGUE 00000883 002 OF 002 Economic Affairs Department Jaroslava Jeslinkova told emboff that the GOCR is deferring to Brussels in responding to the USG request for additional information on export credits and export financing for Iran through the OECD. Contacts at the Czech Export Bank explained that the GOCR does not have any problems with not extending credits to Iran since there is negligible trade between the two countries since Iran is essentially boycotting the Czech Republic due to the Radio Farda issue. -------------- Potential Aircraft Sale to Iran -------------- ¶6. (SBU) The Ministry of Industry and Trade (MPO) confirmed press reports that Czech company Aircraft Industries was planning to sell ten L-410 twin-prop passenger aircraft to Iran. Contract negotiations are reportedly in advanced stages, and MPO working level contacts believe that because L-410s are civilian aircraft, a license would not be required for sale to Iran. Nevertheless, MPO agreed to inquire about the deal directly through Aircraft Industries. Aircraft Industries initially purchased the L-410s in 2005 from another Czech company, Let Kunovice, which went bankrupt in March 2004. According to the Czech Customs Administration, there have not been any exports of any type of aircraft to Iran between January 1, 2004 and May 30, 2007. Both MFA UN Department and the Middle east Department are now aware of this potential deal and will monitor its development. DODMAN