(S) LETTER FROM SECRETARY CLINTON REGARDING 2003

S E C R E T STATE 017311 SIPDIS E.O. 12958: DECL: 02/18/2019 TAGS: ETTC MASS OPDC PARM PREL AM SUBJECT: (S) LETTER FROM SECRETARY CLINTON REGARDING 2003 ARMENIAN ARMS PROCUREMENT FOR IRAN (S/ES:200903425) REFS: A. 08 YEREVAN 1051 B. 08 STATE 13440 ¶C. YEREVAN 657 AND PREVIOUS Classified by Secretary of State Hillary Rodham Clinton, Reasons 1.4 (b),(c),and (d). ¶1. (U) Please deliver the following letter from Secretary Clinton to President Sargsian. There will be no signed original. Embassy Yerevan is requested to report response. ¶2. (Secret/Rel Armenia) Begin Letter: Dear Mr. President: Thank you for your recent message of congratulations to President Obama. Armenia is an important friend of the United States. This Administration looks forward to expanding its cooperation and strengthening the ties between our countries' citizens and governments. We stand at the edge of historic opportunities to advance peace and prosperity in Armenia and the entire region through a peaceful settlement of the Nagorno-Karabakh conflict and normalization of Armenia's relations with Turkey. You have shown great courage in pursuing difficult compromises on these issues and in inviting Turkish President Gul to Yerevan last summer. This Administration is committed to doing everything possible to help Armenia and its partners realize these profound opportunities. I also appreciate Armenia's efforts to promote stability in Afghanistan, as well as in Iraq and Kosovo. I realize these were difficult decisions that carried significant political risk for the Government of Armenia. Your country once again demonstrated its friendship and commitment to peace by taking these steps. I am deeply concerned, however, that the positive and historic momentum outlined above could be undermined by a serious export control issue that several State Department officials have raised with you. I am referring to Armenia's role in helping Iran to acquire weapons that were transferred to Shiite militants in Iraq, which were then used to kill at least one U.S. solider and wound six others. United States law requires us to consider whether these weapons transfers provide a basis to impose U.S. sanctions on Armenia. If sanctions are imposed, penalties could include the cutoff of U.S. assistance to Armenia and certain export and procurement restrictions. The United States would prefer not to be forced to take this step. We therefore welcome your willingness to finalize a written memorandum of understanding that reaffirms your government's intention to take steps to ensure that such transfers do not recur. We are willing to work with you to address your government's concerns about specific elements of the draft memorandum we have provided to you. However, I must stress that only a robust memorandum would provide the United States with a potential basis not to impose sanctions. It is important for us to receive your signature of the memorandum by March 1 to ensure that we can factor your commitment to stronger export controls into our decision on whether we must impose sanctions. This has been a difficult issue for both our governments. It is my sincere hope that by working together quickly we can forge a positive outcome that strengthens our relations and allows us to realize the historic opportunities that lie before us. Sincerely, Hillary Rodham Clinton End text. CLINTON