APPROACHES TO EAST ASIAN COUNTRIES ON IRAN

C O N F I D E N T I A L STATE 129873 SIPDIS E.O. 12958: DECL: 12/10/2018 TAGS: EFIN IR IS KNNP PREL XE SUBJECT: APPROACHES TO EAST ASIAN COUNTRIES ON IRAN FINANCIAL PRESSURES REF: A. TEL AVIV 2664 ¶B. STATE 125441 ¶C. STATE 125658 Classified By: NEA AS David Welch, reasons 1.4 b and d ¶1. (U) This is an action request. Please see paragraph 6. ¶2. (C) OBJECTIVES: To thank Israel for its interest in coordinated demarches to East Asian countries on increasing financial pressures on Iran, to provide an update on our current coordinated demarches with the UK, France, Germany and Italy (the EU4) and to inform Israel that the U.S. believes that the EU-4 1 process is the most effective means for demarching East Asian countries on Iran financial pressures at this time. ¶3. (C) BACKGROUND: We appreciate Israel,s interest in more closely coordinating approaches to East Asian capitals regarding the importance of increasing financial pressures on Iran. Israel has long been a strong advocate of such pressures, and has regularly shared with the USG (and others) its own intelligence and policy proposals for increasing financial pressure on Iran. NEA, ISN and EEB meet regularly with members of the Israeli embassy in Washington to share information and to discuss possible courses of action to maintain pressure on Iran. ¶4. (C) BACKGROUND, CONTINUED: In related efforts, the United States is currently engaged with France, Germany, the United Kingdom and Italy (the EU-4) in an effort to prompt the implementation of the strongest possible national sanctions measures on Iran in response to its noncompliance with its international obligations. These measures focus on four key areas: Iran's access to the international financial system, insurance/re-insurance services, oil/gas deals and investment (both financial and technological),and sensitive/dual-use items. We are in the process of conducting joint demarches with the EU-4 on these areas to a list of countries including Malaysia and South Korea (Reftel B). This group will likely go on to demarche other East Asian countries as well. We have briefed the Israeli embassy in Washington on this effort. ¶5. (C) BACKGROUND, CONTINUED: While we appreciate Israel,s suggestion of joint demarches, we believe that the EU-4 1 group is the most effective arrangement for jointly demarching other countries at this point. Setting up a parallel framework for joint demarches could detract from the message of the likeminded group. We expect to continue to coordinate and share information with Israel, including sharing the results of our demarches and providing thorough updates on the activities of the likeminded group. ¶6. (C) ACTION REQUEST: Using the background in paragraphs 3-5 post is requested to respond to Israel,s offer with appreciation and with a promise of continued information-sharing and close coordination of efforts on Iranian financial pressures. However, post should refrain from agreeing to joint demarches with Israel at this time. Reiterate to Israel our dedication to preventing Iran from obtaining a nuclear weapons capability, the seriousness of our efforts to increase pressure on Iran to trigger a strategic recalculation on it nuclear program, and our underlying commitment to Israel,s security. ¶7. (U) Points of contact for this cable are Sonata Coulter (EEB/ESC, 202-647-5027, CoulterSN@state.sgov.gov),Anthony Ruggiero, (ISN/CPI, 202-647-5181, RuggieroAJ@state.sgov.gov), and Sarah Groen (NEA/IR, 202-647-2498, GroenSL@state.sgov.gov). RICE