Identifier
Created
Classification
Origin
08BERLIN1090
2008-08-08 16:16:00
CONFIDENTIAL
Embassy Berlin
Cable title:
CHANCELLERY DISTANCES MERKEL FROM IRANIAN
how-toVZCZCXRO6632 PP RUEHBC RUEHDE RUEHDIR RUEHKUK DE RUEHRL #1090 2211616 ZNY CCCCC ZZH P 081616Z AUG 08 FM AMEMBASSY BERLIN TO RUEHC/SECSTATE WASHDC PRIORITY 1881 INFO RUCNFRG/FRG COLLECTIVE PRIORITY RUCNIRA/IRAN COLLECTIVE PRIORITY RUEHLO/AMEMBASSY LONDON PRIORITY 9170 RUEHTV/AMEMBASSY TEL AVIV PRIORITY 0559 RUEHJM/AMCONSUL JERUSALEM PRIORITY 0141
C O N F I D E N T I A L BERLIN 001090
SIPDIS
STATE FOR P, E, EEB, EUR/EC, ISN, NEA/IR
TREASURY FOR EDDY AND KOHLER
E.O. 12958: DECL: 08/08/2033
TAGS: ETTC EPET PREL EINV ENRG ETRD IR GM
SUBJECT: CHANCELLERY DISTANCES MERKEL FROM IRANIAN
GAS-TO-LIQUIDS DEAL
REF: BERLIN 1050
Classified By: Classified By: Economic Minister-Counselor Robert Pollar
d
for reasons 1.4(b) and (d).
C O N F I D E N T I A L BERLIN 001090
SIPDIS
STATE FOR P, E, EEB, EUR/EC, ISN, NEA/IR
TREASURY FOR EDDY AND KOHLER
E.O. 12958: DECL: 08/08/2033
TAGS: ETTC EPET PREL EINV ENRG ETRD IR GM
SUBJECT: CHANCELLERY DISTANCES MERKEL FROM IRANIAN
GAS-TO-LIQUIDS DEAL
REF: BERLIN 1050
Classified By: Classified By: Economic Minister-Counselor Robert Pollar
d
for reasons 1.4(b) and (d).
1. (SBU) After initially taking a defensive stance on the
controversial sale by a German firm of gas-to-liquids
equipment to Iran (Ref),the Chancellery and CDU issued
statements clearly designed to dissociate Chancellor Angela
Merkel from the decision. On August 6, Chancellery deputy
spokesman Thomas Steg told a regularly scheduled press
conference that German firms should consider moral, as well
as legal, considerations before making such deals. "The
government is expecting some sensitivity from businesses,"
Steg stated, according to Reuters.
2. (SBU) Similar statements were cited in the August 8
issue of "Bild", the sometimes sensationalist but immensely
popular tabloid. Ruprecht Polenz (CDU),Chair of the
Bundestag's Foreign Affairs Committee, told Bild that "this
deal harms political efforts to put pressure on Iran and
its nuclear program." Eckart von Klaeden, the CDU's
foreign policy spokesperson, likewise chided the German
company in question. "Businesses have an ethical (not just
legal) responsibility, too!" he exclaimed. According to
Merkel's chief spokesperson, Ulrich Wilhelm, the deal was
"not in the spirit" of the Chancellor's policy toward
Iran.
3. C) COMMENT. It is clear that Washington's criticism
of the deal hit home. As Charge d'Affaires Koenig found in
his July 31 conversation with Wilhelm, the decision had
gone to national security adviser Heusgen and chief
economic adviser Weidmann, but it was unclear whether they
ever consulted with Chancellor Merkel herself. By broadly
implying that she was unaware of the decision, the
Chancellery and her party's foreign affairs leadership are
trying to dissociate her from an action that drew censure
from Washington, Tel Aviv, London, and elsewhere. The
problem is that the various statements beg the question, if
the contract was completely legitimate, does the government
actually expect companies to self-regulate exports? In our
experience, "Mittelstand" (SME) firms strongly reject the
argument that their business with Iran is somehow "immoral"
or "unethical." According to Chancellery and MFA sources,
the Chancellor has dissuaded very large German companies
from engaging in LNG projects in Iran, but it will be
difficult to compel the Mittelstand to comply on lesser
projects solely on moral grounds, in the absence of export
controls specifically restricting military or dual-use
products. The Embassy will continue to press German
officials on this and related points in the near
future.
TIMKEN JR
SIPDIS
STATE FOR P, E, EEB, EUR/EC, ISN, NEA/IR
TREASURY FOR EDDY AND KOHLER
E.O. 12958: DECL: 08/08/2033
TAGS: ETTC EPET PREL EINV ENRG ETRD IR GM
SUBJECT: CHANCELLERY DISTANCES MERKEL FROM IRANIAN
GAS-TO-LIQUIDS DEAL
REF: BERLIN 1050
Classified By: Classified By: Economic Minister-Counselor Robert Pollar
d
for reasons 1.4(b) and (d).
1. (SBU) After initially taking a defensive stance on the
controversial sale by a German firm of gas-to-liquids
equipment to Iran (Ref),the Chancellery and CDU issued
statements clearly designed to dissociate Chancellor Angela
Merkel from the decision. On August 6, Chancellery deputy
spokesman Thomas Steg told a regularly scheduled press
conference that German firms should consider moral, as well
as legal, considerations before making such deals. "The
government is expecting some sensitivity from businesses,"
Steg stated, according to Reuters.
2. (SBU) Similar statements were cited in the August 8
issue of "Bild", the sometimes sensationalist but immensely
popular tabloid. Ruprecht Polenz (CDU),Chair of the
Bundestag's Foreign Affairs Committee, told Bild that "this
deal harms political efforts to put pressure on Iran and
its nuclear program." Eckart von Klaeden, the CDU's
foreign policy spokesperson, likewise chided the German
company in question. "Businesses have an ethical (not just
legal) responsibility, too!" he exclaimed. According to
Merkel's chief spokesperson, Ulrich Wilhelm, the deal was
"not in the spirit" of the Chancellor's policy toward
Iran.
3. C) COMMENT. It is clear that Washington's criticism
of the deal hit home. As Charge d'Affaires Koenig found in
his July 31 conversation with Wilhelm, the decision had
gone to national security adviser Heusgen and chief
economic adviser Weidmann, but it was unclear whether they
ever consulted with Chancellor Merkel herself. By broadly
implying that she was unaware of the decision, the
Chancellery and her party's foreign affairs leadership are
trying to dissociate her from an action that drew censure
from Washington, Tel Aviv, London, and elsewhere. The
problem is that the various statements beg the question, if
the contract was completely legitimate, does the government
actually expect companies to self-regulate exports? In our
experience, "Mittelstand" (SME) firms strongly reject the
argument that their business with Iran is somehow "immoral"
or "unethical." According to Chancellery and MFA sources,
the Chancellor has dissuaded very large German companies
from engaging in LNG projects in Iran, but it will be
difficult to compel the Mittelstand to comply on lesser
projects solely on moral grounds, in the absence of export
controls specifically restricting military or dual-use
products. The Embassy will continue to press German
officials on this and related points in the near
future.
TIMKEN JR