IRAN REGIONAL PRESENCE OFFICE - WINDOW ON IRAN - MARCH 25,

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SUBJECT: IRAN REGIONAL PRESENCE OFFICE - WINDOW ON IRAN - MARCH 25,
2009

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1. [S/NF] Qalibaf Planning to Deliver US Goods in Time for
Election?: The Tehran Municipality's interest in US
agricultural trade continues, but now appears driven by a more
overtly political agenda. IRPO Officer and Dubai-based regional
Ag Attache met for a second time with two UAE-based Iranian
traders representing the Tehran Municipality. Following up on
previous discussions of US wheat, the traders' new emphasis is
now on rice and oranges, and they repeatedly emphasized the
importance of having these products labeled "Made in USA" and to
have them delivered before the June election, even if the size
of the purchase is relatively modest. The political nature of
these purchases was further emphasized by the UAE-based traders
effort to distinguish their purchases from those of the IRIG
Ministry of Commerce's Government Trading Corporation (GTC),
controlled by an AN appointee; the traders said the GTC would
only be interested in expanded US trade if AN loses the election
in June and a new director takes over the GTC. Comment: The
traders did not mention whether Tehran Mayor Qalibaf was
involved in this proposed transaction. Qalibaf, operating via
the Tehran Municipality's procurement network, may plan to use
this transaction of US-origin goods to position himself as
someone who can deliver, in a material way, better US-Iran
relations. Numerous hurdles to completing the purchase and
delivery before the elections remain, including US licensing
procedures and the lack of a US-Iran phytosanitary agreement.




2. [C] Iran's Channel 3 Broadcasts Video Conflating USG Digital
Outreach and Internet Porn Ring: A well-established IRPO
contact reported that on March 20 Iran's Channel 3 ran a report
describing how intelligence agents of the Revolutionary Guard
have broken up a network of internet sites supported by the USG.
According to the report, the Farsi-language pornography and
prostitution sites were part of the State Department's efforts
to foster a velvet revolution in Iran by promoting
anti-revolutionary and anti-religious activities within Iranian
society. According to our contact, the video spliced together
commentary from a narrator, taped confessions of several men
arrested for running the sites, and clips of a young
Iranian-American man with a Department of State seal in the
background discussing USG digital outreach efforts. Our contact
noted that the report was aired at the beginning of the Nowruz
holiday, just before a popular movie was scheduled to run, thus
ensuring a large audience.




3. [C/NF] Hollywood Delegation Gets Rave Reviews: Two contacts
have told us that contrary to official IRIG castigation of
Hollywood, the delegation from the Academy of Motion Picture
Arts and Sciences was warmly received throughout Iran. One
Iranian film industry contact said that Hollywood recognition of
the Iranian film community was, he hoped, a step toward new
cooperative relationships between film makers in both countries.
IRIG officials were privately very supportive of the visit, our
contacts said. They noted that there had been no direct or
indirect effort to press the delegation for an "apology" and
that the atmosphere surrounding the visit had been completely
positive. Comment: Iranian officials are no strangers to
playing to foreign audiences when saying one thing and doing
another. The presence of these high-profile American visitors,
"300" aside, has created enormous good will and new
opportunities for supporting collaboration between U.S. and
Iranian film makers at various levels.




4. [C/NF] Iranians Appreciative of and Talking about President
Obama's Message: Most Iranian visa applicants in Dubai on March
22 and March 24 were aware of President Obama's message and were
very enthusiastic about it. Some had seen the message on
satellite television in Iran, but many had heard about the
message from friends, family, or colleagues. Young and old
applicants alike offered their appreciation for the message and
many hoped the speech would eventually yield a new relationship
between Iran and the United States. Fewer applicants were aware
of the Supreme Leader's response to the President's message -
though those that were either disappointed with its tone or
unsurprised at the reaction. One woman from Tehran, criticizing
Khamenei, complained that a message of kindness should be
reciprocated in kind. Comment: Iranians seeking visas to visit

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the United States are probably predisposed to supporting the
President and unlikely to criticize him during their visa
interview. Still, their comments are useful. Many applicants
had not seen or read the message themselves but had heard about
it, suggesting the message was a popular topic of conversation.
Most applicants were from Tehran, but those from other
locations, such as Shiraz, Esfahan, and Arak also were aware of
and supportive of the message. And many applicants were visibly
excited to be queried about the message and optimistic that
better relations may be in the offing.




5. [C/NF] Iranians See Potential Opening in Khamenei's Mashhad
Speech: Several IRPO contacts, based both inside and outside
Iran, observed that Western press characterizations of Supreme
Leader Khamenei's March 21 speech as a rebuff or rejection of
President Obama's Nowruz overture were oversimplified and
incorrect. Each contact noted a distinct change in Khamenei's
tone and remarked that when the crowd began the usual "Death to
America" chant, he stopped them, saying that this was not the
time for slogans. Our contacts, several of whom make a point of
listening to every speech by the Leader, said this was
unprecedented and a "clear signal" to Iranians that Khamenei
recognizes the importance of this opportunity and does not want
the moment to be obscured by the "usual political theater." As
one Tehran-based woman observed, "Iranians speak in nuance," and
emphatically argued that Khamenei did not rebuff President
Obama; rather, he said "you change, then we will change." (Note:
This young woman, who is from a middle class, relatively
religious family not supportive of Ahmadinejad, said she found
President Obama's message "condescending" and that while "nice
words are necessary, they are not sufficient."




6. [S/NF] Ras Al Khaimah, KRG, and Iran: During meeting with
Iranian IRPO business contact serving as advisor to Ras Al
Khaimah leadership, IRPO Officer learned that KRG officials
visit RAK often, and offered the following recent anecdote from
a visit of Iranian-Born KDP leader Massoud Barzani. During a
recent meeting with RAK leadership, Barzani began speaking
Persian with IRPO contact. Barzani reportedly said in greeting,
"We (Iranians and Kurds) are brothers of one shared root" to the
Iranian. The RAK Crown Prince, Shaikh Saud Bin Saqr al Qasimi,
asked contact to translate the exchange, and commented only
half-jokingly, "God help us".




7. [U] Window on Iran is a classified, weekly product providing
Washington policy community and Iran watcher highlights of key
developments on Iran. It is produced by the Iran Regional
Presence Office - Dubai. Please direct any questions/comments
to: Kay McGowan (mcgowanka2@state.sgov.gov) or Charlie
Pennypacker (pennypacker@state.sgov.gov).
ASGARD