IRAN PRESS/NUCLEAR: IRAN SEEKS GRADUAL NUCLEAR FUEL EXPORT,

UNCLAS SECTION 01 OF 02 RPO DUBAI 000466 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PGOV PREL PARM IR SUBJECT: IRAN PRESS/NUCLEAR: IRAN SEEKS GRADUAL NUCLEAR FUEL EXPORT, SIMULTANOUS TO RECEIVING REACTOR FUEL FROM ABROAD DUBAI 00000466 001.2 OF 002 ¶1. (U) As of 1600 hours (Tehran time) October 29, no Iranian official has made any substantive public comments on Iran's response to the IAEA draft proposal to provide fuel to the Tehran Research Reactor (TRR),although IRIG IAEA Representative Ali Asghar Soltanieh has been quoted in the Iranian press as saying the following: -The Islamic Republic of Iran will continue the Vienna negotiations with a positive outlook. - [on the contents of Iran's response to the Vienna Proposal]: Iran's economic and technical considerations concerning the circumstances of providing fuel to the TRR must be taken into account. AHMADINEJAD: VIENNA A TEST -------------- ¶2. (U) In October 29 comments in Mashhad, Ahmadinejad said that providing fuel for the TRR "can be an opportunity for evaluating the honesty of some people, some countries and the IAEA." He said the IAEA was assuming its true and legal role in nuclear cooperation, for helping independent nations with nuclear technology and advancement, and for healthy nuclear relations among governments." Ahmadinejad said he welcomed fuel exchanges, technical cooperation and building [nuclear] power stations and reactors, adding, "we expect other governments to act according to their existing nuclear commitments and contracts where it has been 30 years since we have paid money and which have been stopped since the start of the Revolution." FUEL EXPORT GRADUAL, SIMULTANEOUS -------------- -------------- ¶3. (U) October 29 morning Iranian press had few stories on Iran's response to the Vienna proposal that indicated Iran would seek gradual delivery of its own 3.5 percent enriched uranium abroad (as opposed to sending it abroad all at once, simultaneous to receiving 19.75 percent enriched fuel from abroad: ¶A. "DETAILS OF IRAN'S ANSWER TO THE VIENNA DRAFT PROPOSAL" ('Javan News' :a conservative daily): Summary: Iran's response to the IAEA draft proposal to provide fuel for the Tehran Research Reactor (TRR) would "accept the general framework." However, Iran would propose two changes that would help '"eliminate Iran's serious concern about any type of breaking of commitments by the other side," since Iran has not been assured by receiving "the necessary guarantees for returning Iran's fuel in the form of the fuel needed by the TRR," and there is precedence for assuming bad faith from the other party. These two changes would be: - - GRADUAL DELIVERY: Any type of delivery of low enriched uranium (3.5 percent) from Iran to the other side of the deal will be gradual, as opposed to all at once. -- SIMULTANEOUS EXCHANGE (SWAP): Secondly, Iran will carry out any type of swap of 5 percent fuel for 19.75 percent fuel simultaneously, i.e. Iran's delivery of any low-enriched uranium will take place simultaneous to receiving highly enriched fuel DUBAI 00000466 002.2 OF 002 for its Tehran Research Reactor. ¶B. "THE WEST'S CONSTERNATION IN RESPONSE TO IRAN'S SUGGESTED CHANGES ( Kayhan News: ardline conservative daily) Summary: The West has clearly stated in the previous days that in presenting this [IEAE] proposal it had no other goal than to cause Iran to export 75 percent of its stored enriched uranium. As several Majlis members have stated, Iran will not empty its nuclear fuel reserves especially given that there is no guarantee that any fuel leaving Iran would be returned. Experts in Tehran say that if the provision of Tehran's nuclear fuel is gradual and simultaneous [with the receipt of TRR fuel], this proposal can be looked at positively. EYREAE