VZCZCXRO9388
PP RUEHBC RUEHDBU RUEHDE RUEHDIR RUEHFL RUEHKUK RUEHKW RUEHLA RUEHROV
RUEHSR
DE RUEHUNV #0432/01 1921203
ZNY CCCCC ZZH
P 111203Z JUL 07
FM USMISSION UNVIE VIENNA
TO RUEHC/SECSTATE WASHDC PRIORITY 6651
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY 0048
RUCNIRA/IRAN COLLECTIVE PRIORITY
RUCNDT/USMISSION USUN NEW YORK PRIORITY 0879

C O N F I D E N T I A L SECTION 01 OF 02 UNVIE VIENNA 000432 
 
SIPDIS 
 
SIPDIS 
 
C O R R E C T E D  C O P Y (SUBJECT LINE) 
 
DEPT FOR NEA, IO 
 
E.O. 12958: DECL: 07/09/2017 
TAGS: PREL IAEAK IR
SUBJECT: AMBASSADOR ADDRESSES IRAN CONFERENCE 
 
UNVIE VIEN 00000432  001.5 OF 002 
 
 
Classified By: Ambassador Gregory L. Schulte, Reasons 1.5 b, d 
 
¶1. (C) Summary :  Ambassador Schulte delivered the keynote 
speech at a July 6-8 conference on Iran in Liechtenstein and 
addressed criticism of U.S. policy on Iran,s nuclear 
program.  He defended P5 Plus 1 demands for a suspension of 
uranium enrichment as a starting point for negotiations. 
Also in attendance, Iranian Deputy FM Araqchi revisited 
well-worn Iranian themes, though he distanced himself 
slightly from Iranian President Ahmadi-Nejad outside of his 
formal remarks.   All participants looked to U.S.-Iranian 
talks on Iraq as a confidence building measure.  Indeed, many 
argued that movement on Iraq was a prerequisite to any 
progress on the nuclear front.  Araqchi told a third party 
that Iran would appreciate a credible US denial that it is 
not fomenting unrest among ethnic and other groups in Iran. 
End Summary. 
 
¶2. (U)  Ambassador Schulte addressed a July 6-8 conference on 
Iran hosted by the Liechtenstein Institute for Self 
Determination and the Woodrow Wilson School at Princeton 
University. Other notable attendees included Iranian Deputy 
FM Araqchi, former German FM Fischer, former Austrian and 
Swiss Ambassadors to Iran, former Saudi Ambassador to the US 
Prince Turki al-Faisal, and academics, think tank scholars, 
and former US policymakers. The conference focused on the 
domestic situation in Iran, regional implications of Iran,s 
nuclear activities, Iran,s nuclear ambitions, and ideas for 
solving the &crisis8 over Iran,s nuclear activities. 
Ambassador Schulte gave a keynote address that discussed 
Iran,s nuclear ambitions and the status of Iran,s 
cooperation with the IAEA. 
 
¶3. (SBU)  Several scholars made strong arguments that Iran,s 
focus on nuclear technology, especially in the face of 
current international opposition, made little economic sense. 
One participant noted that a study cited by Araqchi that had 
stipulated nuclear power would be necessary for Iran,s 
electricity needs was unfounded today. Although many 
countries, including Iran, started nuclear power programs 
decades ago because it was thought to be more cost-efficient, 
governments have since discovered that the costs of nuclear 
power occur at the end of reactor life rather than at the 
front end of a nuclear power program. She argued that the 
natural gas Iran flares off alone could provide Iran 
electricity for 50 years. Thus, if Iran was really after the 
provision of electricity, it has other, more cost-efficient 
options. 
 
¶4. (SBU) A number of participants were critical of what they 
saw as the US-driven precondition that Iran suspend 
enrichment activities prior to negotiations. The Ambassador 
reminded participants that this is a P5 1 strategy and not a 
US strategy and that it is a lack of confidence that has led 
the Security Council to make suspension a requirement. An 
Iranian-American scholar from a Washington think tank 
defended the P5 1 precondition. He argued that dropping the 
requirement now would be perceived in Tehran as the result of 
Iran,s strategy of non-cooperation and would strengthen the 
position of the hardliners. 
 
¶5. (SBU) Araqchi,s keynote address revisited similar Iranian 
themes of Iran,s rights under the NPT, its growing 
electricity demands, its need for a self-sufficient nuclear 
fuel production capability, its willingness to sit down to 
the negotiating table without preconditions, and that Iran is 
not pursuing nuclear weapons. He claimed that nuclear weapons 
would not help Iran because if Iran used one bomb against 
Israel, Israel would use hundreds of bombs against Iran. 
During the discussion, Araqchi distanced himself slightly 
from Iranian President Ahmadi-Nejad and his rhetoric. He said 
that Ahmadi-Nejad,s &wiping Israel off the map8 comment is 
completely unrelated to the nuclear issue and that it is not 
true in the literal sense. He then said that &maybe we don't 
like Ahmadi-Nejad, but he was elected democratically.8 He 
also said that he is &sure8 that Russia does not plan to 
provide fuel for Bushehr. 
 
¶6. (C)  Although many participants opposed Iran,s current 
nuclear activities and believed Iran was pursuing at least a 
nuclear weapons option, of the notable European participants, 
only Fischer was strongly critical of Iran,s current lack of 
cooperation. Several advocated US concessions on direct talks 
with Iran, and Prince Turki advocated the US sponsoring a UN 
Security Council resolution on a Middle East Nuclear Weapons 
Free Zone. A number of scholars thought that the US should 
take the military option off the table, and at least one 
participant gave a detailed argument for why a US military 
strike is highly unlikely.  Some argued that, for various 
 
UNVIE VIEN 00000432  002.5 OF 002 
 
 
reasons, a military strike is unlikely in the next year and a 
half, but that "a war with Iran would be the first war of the 
next Administration." 
 
¶7. (SBU)  All participants favored the continuation of U.S. 
talks with Iran on Iraq and saw this as an area of mutual 
interest.  The group consensus seemed to be that it would be 
impossible to get an agreement on the nuclear issue as a 
singular issue.  Several suggested that the US and Iran use 
talks on Iraq as a confidence building measure and eventually 
expand the talks to deal with additional issues, including 
the nuclear issue.  Araqchi called aside one participant and 
said that Iran would appreciate a credible US denial that 
Washington is not fomenting unrest among ethnic and other 
groups in Iran such as Jundallah. 
 
¶8. (C)  The conference director made several attempts to get 
the Ambassador and the Iranian MFA official to directly 
engage. The Ambassador declined. 
 
¶9. (C) Comment: The Austrian Ambassador to Iran characterized 
Araqchi as "one of the most talented members of the Iranian 
MFA," Indeed, his presentation came across as thoughtful and 
responsive and avoided the stridency of some Iranian 
Ambassadors, such as Ambassador Soltinieh in Vienna.  His one 
slip was to say that Iran would "pay any price to protect its 
pride."  We should watch to see if Araqchi becomes a regular 
spokesman for Iraqi policies. It won't make our job easier. 
SCHULTE