U/S BURNS DISCUSSES INDIAN NUCLEAR DEAL AND IRAN

C O N F I D E N T I A L SECTION 01 OF 02 VIENNA 001058

SIPDIS

FOR ISN, T, TREASURY, IO, INR, EUR/AGS, AND NEA

E.O. 12958: DECL: 07/20/2018

TAGS: PREL EUN ETTC PARM PINR KNNP PHUM IR AU
SUBJECT: U/S BURNS DISCUSSES INDIAN NUCLEAR DEAL AND IRAN
SANCTIONS WITH AUSTRIANS

Classified by: Ambassador David F. Girard-diCarlo for reasons
1.4 (b) and (d).


1. (C) Summary: Austrian FM Plassnik and State Secretary
Winkler told U/S Burns in Vienna July 18 that they were
encouraged that Burns would attend the July 19 meeting in
Geneva with Javier Solana, other members of the P-5 1, and
Iran. They also said they were pleased by press reports
indicating the U.S. might open an interests section in
Tehran. Burns emphasized the need to advance both paths of
the P-5 1 dual-track strategy including diplomacy and
sanctions. He pressed the EU to adopt the hardened UNSCR
1803 package thismonth, and underscored that the USG has made
no decision on an interests section in Tehran. In response,
on th EU's consideration of UNSCR 1803-related measures,
Winkler stressed that the GOA preferred to limit sanctions to
measures related to non-proliferation. Plassnik said
relations with Iran were especially important for Europe in
light of Europe's dependence on Russian oil and gas. She
also discussed the status of women in the Middle East.


2. (C) Summary (cont'd.) U/S Burns met the same day with
Austrian State Secretary Winkler to urge support for
completion of the U.S.-India Civil Nuclear Cooperation
Initiative and to discuss developments on Iran. Winkler told
Burns Austria would prefer delaying a governmental decision
on the India initiative until after Austria,s national
elections on September 28. On the August 1 IAEA Board of
Governors consideration of India,s safeguards agreement,
Winkler said Austria was leaning toward supporting a
consensus approval but hoped Pakistan would not force a vote.
It would be difficult for Austria to vote for the agreement
in the run-up to elections. (Note: Winkler implied Austria
might abstain if Pakistan forced the matter to a vote. End
Note.) Burns noted we were pressing Pakistani leadership
about their unhelpful efforts in Vienna and would continue to
do so. End Summary.

GOA Hopeful for Iran Breakthrough
--------------


3. (U) Plassnik said she was pleased that Burns would take
part in the July 19 talks in Geneva with Iranian chief
nuclear negotiator Saeed Jalili. She said she was also
encouraged by reports that the U.S. might establish an
interests section in Tehran. She averred that cutting off
dialogue was bad policy and would never be effective. She
was hopeful for a breakthrough.

U/S Burns Emphasizes Dual Track
--------------


4. (C) Burns emphasized that the USG takes seriously both
elements of the dual track approach to Iran -- sanctions and
diplomacy. His participation in the Geneva talks is a
one-time only event meant to signal that the U.S. is
committed to working toward a diplomatic solution. He said
the EU sent Iran a strong message by announcing designations,
including on Bank Melli, one week after HighRep Solana's June
visit to Tehran. Now, Burns noted, the EU is considering
new, tougher measures for implementing UNSCR 1803. This is
an EU decision, but if the EU were to reach agreement on
these measures it would strengthen the diplomatic track, he
said. Burns said no decision had been made on an interests
section in Tehran, though it was an "interesting idea."


5. (C) Winkler said Austria is a strong advocate for full
implementation of all UNSCRs. However, the GOA believes that
sanctions on Iran should remain focused on measures related
to non-proliferation, he said. Austrian PolDir Mayr-Harting
averred that if the EU sticks to UNSCR 1803, it could reach a
consensus very quickly, but many EU members oppose going
beyond the resolution. Winkler added that it was important
that the EU, and the broader international community, be
united in its approach to Iran.

Austrian FM Raises Energy Concerns
--------------


6. (C) Plassnik said relations with Iran were particularly
important for Europe from an energy perspective. Pointing to
a map of regional oil pipelines, she stressed that Europe has
too few alternatives to Russian oil and gas. She said the
Russians were exploiting their leverage over Europe; she
recalled that when Austria assumed the EU presidency in 2006,
the Russians sent a none-too-subtle message by cutting off

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gas supplis to Ukraine, which impacted Austria and the rest
of Europe.

Status of Women in Middle East
--------------


7. (U) Plassnik said the status of women in the Middle East
was a pertinent issue that affected the region's relationship
with the West. The role of women in Middle Eastern societies
is constrained by both religious and secular traditions, she
said. Plassnik averred that Europe, and Austria in
particular, could play an important role in leading a
dialogue on the issue. She noted that the GOA had held a
conference on women's empowerment in the Middle East in May
2007, which Secretary Rice and Senior Advisor Tahir-Kheli
attended.

India Nuclear Deal
--------------


8. (C) In a July 17 meeting with DCM, Political Director
Mayr-Harting explained that Austria,s position on the
initiative,s NSG timeline boiled down to a hard quid-pro
quo: If the United States wanted a faster-than-normal
timeline, then it should be ready to accept conditions in an
NSG exception. India, likewise, should be flexible in its
NSG position. Burns made clear we would push for a clean
exception. We were also prepared to engage NSG partners in a
serious and high-level debate on condition questions. We
felt our partners needed to seize on the window of
opportunity we had been presented to welcome India into the
global nonproliferation mainstream. Our partners should
consider all matters related to the initiative in the broader
context of their future relationships with India, as well.


9. (C) Mayr-Harting stressed that India's "take it or leave
it" attitude toward the safegaurds agreement and the NSG
exception was not helpful. The Indians seem to feel that
they made difficult concessions while negotiating the
Initiative with the U.S., and were now unwilling to give any
more ground. The NSG is not a "rubber stamp;" its members
need to have a substantive discussion, and might well add new
conditions. In fact, Mayr-Harting said, the U.S. Congress
had enshrined in the Hyde Act several conditions that the NSG
might revisit, along with new ideas as well. Austria,s
political situation, Mayr-Harding concluded, demanded that
the government show that it had "added something" to the
agreement that would advance non-proliferation worldwide.
Girard-diCarlo