SENATOR SPECTER CHALLENGES AUSTRIA ON IRAN

C O N F I D E N T I A L SECTION 01 OF 02 VIENNA 000083 SIPDIS SIPDIS DEPARTMENT FOR EUR/AGS (HIRONIMUS) AND NEA/IR. E.O. 12958: DECL: 01/09/2018 TAGS: PGOV PREL KNNP PARM ETRD OREP AU IR SUBJECT: SENATOR SPECTER CHALLENGES AUSTRIA ON IRAN SANCTIONS VIENNA 00000083 001.2 OF 002 Classified By: Charge d'Affaires Scott Kilner for reasons 1.4 (b) and ( d) ¶1. (C)Summary: In a sometimes confrontational meeting with Senator Arlen Specter, senior Austrian MFA officials emphasized that the UN must remain the focal point of diplomacy vis-a-vis Iran and that an international consensus involving both Russia and China was imperative. Maintaining ties with Iran will be more effective in influencing its behavior than attempting to "strangle" the regime in Tehran, according to these officials. They interpreted the recently publicized National Intelligence Estimate (NIE) as supporting this stance. A sanctions scheme that is too aggressive would have the effect of rallying the Iranian people in support of Ahmadinejad. Additionally, the economic interests of the involved countries must be considered, stated the officials, alluding to Austria's desire to diversify its energy suppliers. Senator Specter directly challenged Austrian arguments at several points in the discussion. End summary. DIPLOMACY: UN-FOCUSED AND CONSENSUS-BASED -------------- ¶2. (C)On December 31, Senator Arlen Specter (R-PA), accompanied by Charge and PolOff notetaker, met with Ambassador Thomas Mayr-Harting, MFA Political Director, and Ambassador Ferdinand Trauttmansdorff, director of the MFA's International Law Division, to discuss Austria's position on sanctions and ties with Iran. Specter began by questioning whether any UN policies could stop Iran from developing nuclear weapons and speculated that perhaps action outside the UN framework would be necessary to force Iran from its nuclear ambitions. Mayr-Harting replied that Austria strongly believed the UN must be the focal point of diplomacy with Iran. He cited the work of the EU-3 in supporting UN Resolutions 1696 and 1747, and stated that Austria supports EU initiatives that promote the work of the UN. He added that good communications and coordination with the U.S. also remain important. Specter interjected and asked pointedly whether a military option should be considered. Although there was not a complete consensus on every detail, even among the EU-3, Mayr-Harting responded, there is an absolute consensus that the situation needs to be handled through diplomatic means. He pointed to the recently publicized NIE as evidence that the current sanctions regime and surveillance measures are having the desired effect in shaping Iranian behavior and averred that the international community should continue along this path. REJECTION OF "UNILATERAL" SANCTIONS -------------- ¶3. (C)While the USG aims to place additional sanctions on Iran, Specter stated, the critical factor was how tough others would be in implementing their own sanctions. Mayr-Harting responded by strongly rejecting the application of sanctions above and beyond those mandated by the UN Resolutions and emphasized repeatedly the necessity of maintaining consensus within the UN, including Russia and China. ¶4. (C)Trauttmansdorff added that from a domestic political standpoint, trying to convince a skeptical Austrian public to accept broad sanctions would be extremely difficult to achieve as well. Mayr-Harting predicted that a sanctions regime that attempted to strangle Iran economically would prove counter-productive by rallying the Iranian people, bringing them together in support of the regime in Tehran. He suggested that the international community avoid unnecessarily antagonizing Iran and turning the current standoff into a "West versus Iran" debate. He noted that Austria is one of the few Western countries that has experienced sanctions directly, having been the target of EU "sanctions" in 2000 due to the inclusion of Haider's Freedom Party (FPO) in the governing coalition. That experience gives Austria a particular understanding of sanctions' psychological impact on the population. CONTINUED TIES WITH IRAN -------------- ¶5. (C)Specter suggested limiting contacts and trade with Iran as a means to influence its behavior and halt its nuclear weapons program. Mayr-Harting argued that Austria should maintain its existing contacts with Iran as a means of promoting moderation within that country. By allowing continued ties, Trauttmansdorff added, Austria helps to strengthen the moderate forces in Iran and create a level of dialogue conducive to compromise and diplomacy. Furthermore, by allowing interactions between peoples, we are able to view firsthand what is transpiring domestically within Iran. VIENNA 00000083 002 OF 002 Trauttmansdorff also argued that his experience as Ambassador to Egypt taught him how important pride is in the Middle East. Unless you give Iran a way to save face, they will never give in. ENERGY SECURITY -------------- ¶6. (C)In response to a question by Senator Specter regarding OMV, Mayr-Harting said that economic interests could not be ignored. The Austrian government, he maintained, is not permitted to interfere with the day-to-day operations of OMV, a private company, in its private dealings with Iran as long as they do not violate international law or EU measures. Specter interjected, "Why can't you stop them?" noting also that the GoA still owns 31% of OMV shares. Mayr-Harting replied to the Senator's question with vague references to domestic legal constraints on the government's power to censure private firms. Mayr-Harting also made the case for including Iranian gas in the planned Nabucco pipeline. While 60 percent of Austria's gas supplies originate from Russia, "Putin is not always a reliable partner," he admitted. Therefore, from the perspective of energy security, Mayr-Harting argued for diversification and stated that it was not realistic to expect Austria to develop both a non-Russian and non-Iranian energy policy. ¶7. (U)CODEL Specter did not clear this cable. Kilner