VZCZCXRO0129
PP RUEHAG RUEHAST RUEHBC RUEHDA RUEHDE RUEHDF RUEHDIR RUEHFL RUEHHM
RUEHIHL RUEHIK RUEHKUK RUEHKW RUEHLA RUEHLN RUEHLZ RUEHPOD RUEHPW
RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHIT #0538/01 2940958
ZNR UUUUU ZZH
P 200958Z OCT 08 ZDK DUE TO NUMEROUS SVCS
FM AMCONSUL ISTANBUL
TO RUEHC/SECSTATE WASHDC PRIORITY 8518
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCNDMI/HUMANITARIAN DEMINING COLLECTIVE
RUCNIRA/IRAN COLLECTIVE
RUCNRAQ/IRAQ COLLECTIVE
RUEHGB/AMEMBASSY BAGHDAD 0083
RUEAIIA/CIA WASHDC
RUEKJCS/DIA WASHDC
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK
RUEPGAB/MNF-I C2X BAGHDAD IZ
RHEHNSC/NSC WASHDC
RUEUITH/ODC ANKARA TU
RUEKJCS/SECDEF WASHDC
RHEHAAA/WHITE HOUSE WASHDC

UNCLAS SECTION 01 OF 02 ISTANBUL 000538 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ENRG IR IZ PGOV PREF PREL TU
SUBJECT: IRAN PRESSES FOR GREATER ENERGY COOPERATION WITH 
IRAQ AT ISTANBUL MEETING 
 
REF: A. 07 ISTANBUL 1015 
     ¶B. 07 BAGHDAD 3817 
     ¶C. BAGHDAD 94 
     ¶D. ANKARA 1754 
 
ISTANBUL 00000538  001.2 OF 002 
 
 
 ¶1.  (SBU) Summary. At an Iraq Neighbor's Process Energy 
Working Group (WG) meeting in Istanbul on October 11, Iranian 
Secretary of the Iran-Iraq Economic Development Headquarters 
Hassan Danaeifard said that Iran is eager to help Iraq 
"overcome its current obstacles."  (Non-Iranian issues 
discussed at the WG reported septel.) Danaeifard told the WG 
representatives Iran has contributed greatly to Iraq's 
reconstruction and plans to continue assistance through the 
international "Said Sharm al-Shaikh" process.  Danaeifard 
said Iran plans to provide up to 1320 Megawatts of 
electricity to Iraq, and detailed Iran's provision in 2007 of 
243,028 tons of fuel oil, 256,565 tons of kerosene, and 4,206 
tons of tar.  He also mentioned medical and other assistance 
Iran is provided to Iraqi refugees.  End summary. 
 
------------------------------------- 
Iranian Energy Exports to Iraq 
------------------------------------- 
 
¶2. (SBU) Danaeifard detailed Iran's current and future energy 
assistance toward Iraq, which will include up to 1,320 
Megawatts (MW) of electrical generation.  Currently, 550 MW 
of electricity is being sent via tie-line from four locations 
in Iran:  1) Shalamche-Basra (300 Mw),  2)Sar pole zahab 
Khaneqeyn (200 Mw),  3) Piranshahr region (10 Mw), and the 4) 
Panjwein region (40 Mw).  Three additional routes are being 
developed, from 1) Kermanshah-Dyaleh (400 Mw), 2) Paveh-Seyed 
Sadeq (150 Mw), and 3) Mahabad-Soran (100 Mw). 
 
¶3. (SBU) Danaeifard said Iran also provided Iraq with vast 
amounts of refined petroleum products.  According to his 
statistics, Iran exported 243,028 tons of fuel oil, 256,565 
tons of kerosene, and 4,206 tons of tar to Iraq in 2007 
through the Khosravi, Mehran, and Pavizkhan border crossings. 
Surprisingly, Daneifard offered no update on the status of 
Iran's proposal to build a pipeline from Basra to Iran's 
Abadan refinery.  Falah Al-Amiri, the Iraqi Director General 
of SOMO appreciated these fuel shipments to Iraq; however he 
said Iran needs to increase these exports.  Iran has only 
provided half of its contractual amounts of kerosene (ref B), 
and Al-Amiri "urged" Iran to fulfill its obligation. 
 
-------------------------------------- 
Other Iranian Assistance to Iraq 
-------------------------------------- 
 
¶4. (SBU) Iran has also committed 1 billion USD in loans to 
Iraq with minimum interest rates to develop Iraq's 
infrastructure, according to Danaeifard (ref C). In addition 
Danaeifard said Iran has already built medical clinics in 
Baghdad, Najaf, and Sadr City, and is nearly half way through 
building a hospital in Najaf.  Furthermore, he said Iraq and 
Iran signed an agreement for Iran to build 22 schools in 
Iraq, and the Khoramshahr - Shalamche rail project is 
expected to open by the end of 2008. Danaeifard boasted Iran 
provided over 8,000 truckloads of humanitarian donations to 
Iraq over the last four years. This could increase to 2,500 
trucks a day if Iraq opens its border and relaxes customs and 
visa requirements, according to Danaeifard. 
 
¶5. (SBU) Danaeifard claimed 62,590 Iraqis -- over 30,000 from 
Baghdad alone -- entered Iran as refugees since 2004 due to 
poor security conditions in Iraq, and, "due to security 
issues and reasons at home," they do not intend to return to 
Iraq.  Danaeifard, also said 9,600 Iraqis came to Iran 
seeking serious long-term medical attention for conditions 
such as for cardio-vascular or respiratory problems. Iran 
also cares for 13,500 Iraqis injured by violence, according 
to Danaeifard. 
 
--------- 
Demining 
--------- 
 
ISTANBUL 00000538  002.3 OF 002 
 
 
 
¶6. (SBU) Danaeifard called on Iraq to demine the Shalamche 
region, especially a 25 km long border area near the border 
town of Shalamche in Iran's south-western Khuzestan province 
that extends 200 meters into Iraq.  (Comment: Shalamche's 
minefields remain a dangerous legacy of the 1980-88 Iran-Iraq 
war, and still cause occasional mine-related injuries and 
deaths, according to Iranian press reporting. The region is 
also near a number of Iran's oilfields. End Comment.) 
Danaeifard stated Iran is ready to provide assistance to 
demine the remaining minefields in that area of Iraq. 
 
------- 
Comment 
------- 
 
¶7.  (SBU) Daneifard clearly intended for his presentation to 
underscore Iran's recurring claim that it, among Iraq's 
neighbors, is taking the most significant steps to help 
provide needed energy supplies, and other humanitarian goods 
and services, to Iraq.  "Iran seeks to solve the obstacles 
Iraq is facing.  We have undertaken these significant 
measures to help our brothers."  The Iraqi delegation replied 
that "Brothers need to fulfill their obligations" casting 
some skepticism on Daneifard's remarks. 
WIENER