AMBASSADOR RICE MEETS SWISS AMBASSADOR TO IRAN

C O N F I D E N T I A L SECTION 01 OF 02 USUN NEW YORK 001018

SIPDIS

E.O. 12958: DECL: 11/03/2019
TAGS: PGOV PREL UNSC IR
SUBJECT: AMBASSADOR RICE MEETS SWISS AMBASSADOR TO IRAN

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Classified By: Ambassador Susan E. Rice for reasons 1.4 (b) and (d).


1. (C) Summary. Ambassador Rice on November 3 met with Livia
Leu Agosti, the Swiss Ambassador to Iran, to discuss the
status of American citizens detained in Iran, Iran's internal
political dynamics, and Iran's nuclear file. Leu said she
visited the three detained American hikers before she left
Iran and found them in good physical health, but she said
that the detention was psychologically difficult on them.
Leu said that after the elections in June the entire
political structure had weakened but that the Islamic
Revolutionary Guard Corps (IRGC) had strengthened. This
political weakening was brought on, in part she said, because
of the decreased stature of the Supreme Leader who broke with
his traditional role and became too involved in the political
process. With regard to the nuclear issue, Leu said that the
views of the political elites are divided, and despite the
Supreme Leader's support for President Ahmadinejad, the
President has strong internal foes who will try to stymie any
successes. Leu advised that the U.S. should engage Iran with
face-saving options to move the negotiations forward. End
Summary.


2. (C) Ambassador Rice on November 3 met with Livia Leu
Agosti, the Swiss Ambassador to Iran, at the request of the
Swiss Perm Rep to the UN, Peter Maurer, who also attended the
meeting. Ambassador Rice opened by thanking the Swiss
Ambassador for her country's support to American citizens
detained in Iran. Leu said she had visited the three
detained American hikers in Evin Prison before she left Iran
and found them in good physical health, but she said that the
detention was psychologically difficult on them. She stated
that they are kept in isolation from one another and allowed
some time outside but have no contact with each other.
Maurer remarked that he had visited Evin Prison when he
served as a human rights ambassador and said that foreign
detainees and political prisoners stay in the "VIP section"
of the prison, which is reasonably clean, not overly crowded,
and "made for television." Leu said, however, that she was
not allowed to visit them in their cells. Responding to
Ambassador Rice's question on how to interpret the Iranians'
intentions, Leu judged that some Iranian officials had gone
missing overseas and suspect a U.S. hand in their
disappearance. The detention of the hikers, in her view, was
political and meant to gain leverage. With regard to missing
Amcit Robert Levinson, Leu judged that it is difficult to
ascertain what the Iranians know about his disappearance, but
Levinson's background in the FBI and accusations by the
Iranians of his involvement in smuggling have made details
hard to come by.


3. (C) Regarding internal politics, Leu said that after the
elections in June the entire political structure had weakened
but that the Islamic Revolutionary Guard Corps (IRGC) had
strengthened. This political weakening was brought on, in
part she said, because of the decreased stature of the
Supreme Leader who broke with his traditional role as a quiet
arbiter and became too involved in the political process.
She said that many in Iran believe his refusal to back down
from his endorsement of June of Ahmadinejad as President was
the biggest mistake of his career. Moreover, she said there
are rumors of his ill health and advanced prostate cancer and
that his demise would lead to even greater instability.


4. (C) On the nuclear issue, Leu said the views of the
political elites are divided. She opined that paradoxically
Ahmadinejad is the most interested in advancing diplomatic
relations with the U.S. The Supreme Leader, she said, wishes
to keep his options open but he authorized Ahmadinejad's
nuclear negotiator Jalili to "test the waters" in Geneva.
However, Ahmadinejad has strong internal foes, such as Ali
Larijani, the Speaker of Parliament and former lead nuclear
negotiator. She said officials such as Larijani have no
interest in seeing Ahmadinejad succeed, particularly on an
issue as important as U.S.-Iranian relations. Ambassador
Rice stated the U.S. fears that this internal bickering could
lead to more delays in successfully concluding the nuclear
file.


5. (C) Leu advised that the U.S. offer face-saving
alternatives to the nuclear negotiations, which she said were
not minor details but crucial to make the negotiations move
forward. She said if the EU3 3 package the negotiations with
face-saving provisions, it will be easier to advance on
substance. The Iranians cannot be seen as begging for U.S.
cooperation, and therefore some "diplomatic engineering"
should take place to show them success. Right or wrong, she
said, the Iranians feel as if they have been pushed into a
corner, and she judged the proposal of Iranian FM Mottaki to
establish a technical committee to review the proposal as an

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attempt to give the Iranians a face-saving initiative of
their own. Ambassador Rice said the EU3 3 will not allow for
an interminable debate and that all 1,200 kgs of LEU must
leave Iran by year's end and not in batches. Moreover, she
said the Iranians should respond before the next IAEA Board
of Governors' meeting, scheduled for November 26, 2009.


6. (C) Ambassador Rice asked Leu and Maurer about their
earlier meeting with Iranian Perm Rep Mohammad Khazaei.
Maurer said he complained that Chase Bank constantly hassles
him about his account and money transfers and that he needed
greater flexibility as a diplomat to travel.
Rice