JOINT DEMARCHES ON INCREASING DIPLOMATIC PRESSURE

C O N F I D E N T I A L CAIRO 002457 SIPDIS E.O. 12958: DECL: 12/02/2018 TAGS: EFIN PREL KNOP MNUC IR EG SUBJECT: JOINT DEMARCHES ON INCREASING DIPLOMATIC PRESSURE ON IRAN REF: A. SECSTATE 125551 ¶B. SECSTATE 127061 Classified By: DCM Matt Tueller for reasons 1.4 (b and d) ¶1. On December 2 DCM joined with UK, German, French and Italian counterparts to deliver reftel Iran demarches to MFA Deputy Minister Wafa Bassim. By prior agreement, UK DCM took the lead in presenting the non-paper and talking points on financial pressure on Iran (ref A) and Italian DCM presented the points on discouraging energy deals (ref B). ¶2. Ambassador Bassim responded with a summary of GOE's Iran policy. Egypt strongly supports the diplomatic approach of applying pressure and restricting normalization with Iran. Egypt and Iran are far apart on issues of strategic import. Egyptian efforts to address those issues with Iran have not been met with positive signals or a reciprocal response. At the same time, while not pleased with Iran's negative role in the region, Bassim noted that Egypt as a matter of principle would not deny the right of any country to pursue peaceful use of nuclear power. ¶3. Responding specifically to the two sets of talking points, Ambassador Bassim said that there was little financial interaction between Egypt and Iranian entities and no energy deals of any significance. She promised to pass the points on to appropriate finance and energy offficials to ensure Egyptian banks and energy concerns looked rigorously at any dealings with Iran. SCOBEY