IRAN: MFA SAYS GERMANY SHIFTS POSITION, SUPPORTS

S E C R E T BERLIN 001660

SIPDIS, P, EUR/CE, NEA/IR, EUR/ERA FOR GIAUQUE, ISN, EEB
FOR COULTER

E.O. 12958: DECL: 12/12/2018
TAGS: PREL KNNP MNUC EFIN PGOV GM IR EU
SUBJECT: IRAN: MFA SAYS GERMANY SHIFTS POSITION, SUPPORTS
TOUGH NEW EU DESIGNATIONS

REF: A) USEU TODAY DECEMBER 10 B) GAYLE (LONDON) -
NEA/IR E-MAIL DECEMBER 10-11

Classified By: CDA John Koenig for reasons 1.4(b)/(d)


1. (S) SUMMARY: In a significant change of position on
Iran sanctions, a senior German MFA official told CDA
December 11 that senior MFA officials had decided that
Germany would support a much stronger application of new
sanctions (including on banks) against Iran at a December 17
experts-level EU meeting (ref A). According to MFA Chief of
Staff Stephan Steinlein, Germany is ready to agree to an
expansive list of Iranian entities to be designated for their
support of IRIG proliferation activities, but to defer entry
into force until early next year. This would allow for
planned EU meetings with Iranian officials to take place and
to maximize the psychological impact of new sanctions on the
Iranian government, he said. According to working-level
contacts, Germany is actively lobbying EU member countries
prior to the December 17 meeting but is unsure how willing
member states outside the E4 are to sign off on the proposed
list at the meeting. END SUMMARY.


2. (S) MFA Chief of Staff Steffen Steinlein told CDA
December 12 that, in a meeting earlier that day, senior MFA
officials, including State Secretary Reinhard Silberberg, had
decided that Germany would support much stronger application
of sanctions (including on the financial sector) against
Iran. Steinlein added that Germany is willing to agree "to a
great deal" at the December 17 EU expert-level meeting next
week, during which Member Countries will review a list of
proposed Iranian entities for designation. However, Germany
does not want to see immediate implementation (COMMENT: Given
that expert-level agreement is only the first step in the EU
approval process, implementation within the short-term seems
unlikely. END COMMENT). Steinlein explained that Germany
wants to wait for the results of the planned meeting between
EU Director General Robert Cooper and Iranian Supreme
National Security Council Deputy Ali Bagheri, as well as the
results of other potential contacts with Iran. Germany wants
to maximize the psychological effect on the Iranian regime
that the introduction of such far-reaching sanctions could
achieve, added Steinlein.


3. (C) Steinlein's comments reflected a clear change in
German thinking, as working-level MFA contacts only a day
earlier were evaluating the designation proposals much more
conservatively. EmbOffs and visiting Germany Desk Officer
Peter Schroeder met December 10 with MFA Iran Unit Chief
Andreas Krueger and Iran Desk Officer Adrian Pollmann.
According to Krueger, the E-4 (UK, France, Italy, and
Germany) has proposed new entities/individuals for additional
annexes to be discussed at the December 17 EU experts
meeting. Krueger noted that the E-4 members are themselves
not unified on the names submitted and are "still
coordinating." When asked what standards Germany is applying
to the proposed entities, Krueger said they are evaluating
the proposed names based on two criteria: that a clear
proliferation connection exists (a criterion proposed by the
French, he said); and that evidence of the entity's activity
would stand up in court. Krueger added that the European
legal system's philosophy on designations writ large has
shifted the burden of evidentiary proof further to the
governments (NOTE: Krueger was referring to the European
Court of First Instance's decision to strike down the EU
Council designation of the People's Mujaheddin (PMOI). END
NOTE.)


4. (C) Krueger noted that France is aiming for, and Germany
supports, quick passage through the EU decision-making
process, but Krueger was unsure that the other 23 member
countries would be willing to sign off immediately at the
experts-level meeting. Germany is actively lobbying EU
member countries prior to December 17, particularly the
skeptics, to give the proposals due diligence and
consideration, he said, adding that he is also talking
"daily" with other E-4 members.
Koenig