UNCLAS REYKJAVIK 000116

SIPDIS

SIPDIS

SENSITIVE

STATE FOR EUR/NB JMAHER AND OES JFIELD
USDOC FOR NOAA/NMFS WHOGARTH AND JMCCARTY
COPENHAGEN FOR ESTH HUB

E.O.12958: N/A
TAGS: SENV EFIS IWC IC
SUBJECT: PM CALLS ICELANDIC WHALING AN EXPERIMENT, SIGNALING END TO
COMMERCIAL QUOTAS

REFS: A) 06 Reykjavik 407 B) 06 Reykjavik 400 C) 06 Reykjavik 388


1. (SBU). Summary: The Icelandic government is publicly backing away
from its October 2006 decision to reestablish commercial whaling.
The outspokenness of prominent business figures -- worried about the
image of Iceland --coupled with international pressure to stop
whaling seems to be having an effect on the government's thinking.
The lack of a market for fin whale meat is adding to the growing
public sentiment that although whaling is still an Icelandic
sovereign right, it's a "stupid idea." A jubilant environmentalist
told post "we are winning the fight" and expects that the commercial
whaling quota will not be renewed after this whaling season. He is
pushing for Iceland's commissioner to make this announcement at the
upcoming International Whaling Commission meeting, conveniently
slated for after the parliamentary elections in May 2007. End
Summary.


2. (SBU) In October 2006, the Government of Iceland decided to allow
commercial whaling again, issuing a quota for nine fin whales and 30
minkes, of which seven fins and one minke have been killed (Ref C).
In his most recent public comments on the issue, Prime Minister Geir
Haarde said during an April 16 interview with Reuters that, "what
happened last year was an experiment." Haarde said a number of
factors, including global public opinion, the negative effect on
tourism and especially whether there is a market for whale meat,
would all have to be considered before a new decision is made.


3. (SBU) This echoed what Foreign Minister Valgerdur Sverrisdottir
said at the Federation of Icelandic Trade (an influential lobby
group) on February 16; although Sverrisdottir is convinced that
whaling by Iceland is justified, she could not disregard the
warnings that have been raised about possible negative impact of
whaling on Icelandic commercial interests. She further commented
that the GOI would review carefully the impact commercial whaling
would have on the nation's image and business interests before any

decision will be taken on further whaling. Minister of Fisheries
Einar Gudfinnsson continues to zealously defend commercial whaling
in the media but has conceded that if there is no market for whale
products then commercial whaling is effectively over.

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Business Community Loudly Opposes Whaling
--------------

4. (SBU) Since the October decision, the business community has
protested that the decision will harm Iceland commercially by
hurting Iceland's image. The Chairman of the Whale Watching
Association, a strong influence in the tourism sector, said, "This
is a direct strike against the tourist industry in Iceland...killing
large whales will have a very stark image abroad." At the Icelandic
Chamber of Commerce annual meeting on February 7, whaling became the
unscheduled main issue of discussion. Harsh criticism came from two
of the most powerful businessmen in Iceland, Jon Asgeir Johannesson
of Baugur Group and Lydur Gudmundsson of Exista investment firm.

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Fin Whale Meat Unsold
--------------

5. (SBU). The media reports that the meat from the seven fin whales
killed last fall has not been sold and is sitting in storage.
Speculation is that tests for the meat's mercury and chemical
content have not been finished and the Environment and Food Agency
of Iceland was unable to confirm to post when the results would be
released. Iceland's Chief Veterinarian told us that the procedures
to actually export the meat are not clear and this further
complicated the matter.

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Environmentalist Cautiously Hopeful
--------------

6. (SBU). Environmentalist Arni Finnsson told Econoff on April 18
that the Prime Minister's remarks to foreign media clearly indicated
the Icelandic government was ready to change its position on
commercial whaling and not reissue the commercial quota. Finnsson
said public perception is changing and cited a March 22 Gallup poll
his NGO commissioned which found 40 percent of the public unhappy
with commercial whaling. He summarized the public's attitude as
whaling remains a sovereign right but without economic justification
it is a "stupid idea" to pursue. Finnsson, while caveating by
knocking his knuckles on the wood table, said "we are winning the
fight" against further whaling in Iceland. He believes the
commercial quota will not be renewed after expiration in August but
that the decision on this season's whaling will not be rescinded.


7. (SBU) Finnsson shared his desire that Iceland make a public
announcement on not renewing the commercial quota at the upcoming
International Whaling Commission (IWC) meeting in Anchorage. He
called it a win-win for Iceland to make such an announcement under
the media spotlight and asked that our IWC Commissioner suggest this
idea to the Icelandic Ambassador in Washington beforehand.


8. (SBU) Comment: We agree with Finnsson that unless the fin whale
meat can be sold at a profit it is unlikely the government will
renew the commercial quota. By timing an announcement of this
decision at the IWC meeting, which occurs two weeks after
parliamentary elections here, the GOI would avoid any question of
whaling influencing the elections.

CAMPBELL