AUSTRIA EXPECTS NO MATERIAL EU RESPONSE TO IAEA

C O N F I D E N T I A L VIENNA 000286 SIPDIS SIPDIS E.O. 12958: DECL: 02/28/2023 TAGS: KNNP MNUC PARM IR IAEA AU SUBJECT: AUSTRIA EXPECTS NO MATERIAL EU RESPONSE TO IAEA REPORT REF: (A) STATE 19694 (B) STATE 18857 Classified By: Econ/Pol Counselor Dean Yap. Reason: 1.4(b) and (d) ¶1. (U) Econ/Pol Counselor met 2/28 with MFA Acting Disarmament Director Benedict and IAEA Office Director Launer to discuss the follow-up to the Feb. 22 and 25 briefings on Iran-IAEA developments. Launer agreed with the U.S. assessment that Iran's stance is not credible and that further action is required in the UN. ¶2. (C) Emboff asked what next steps Austria expected in the EU, noting that the French proposal for autonomous sanctions remains on the table. Launer argued that the French proposal had been made based on the premise that the UNSC would be unable to agree on another sanctions resolution. This was no longer the case; therefore, Austria saw no need for further EU action. E/P Counselor pointed out that the French proposal had also been made in the expectation that, even if a UNSCR were adopted, it would be relatively weak; and that Austria had always maintained that non-proliferation was a pillar of its foreign policy. Given these factors, the U.S. would hope for a more positive Austrian position on EU sanctions. ¶3. (C) Launer then said that the decision on sanctions was not made by the Disarmament office, but by the Middle East office and Economic Section. It was their view, he said, that EU sanctions would simply create a vacuum into which non-European firms would move. This was a view shared by several EU member states and he saw, therefore, no prospect for EU action on autonomous sanctions. Kilner