O 262214Z NOV 08
FM SECSTATE WASHDC
TO AMEMBASSY KUALA LUMPUR IMMEDIATE 
AMEMBASSY SEOUL IMMEDIATE 
INFO AMEMBASSY BERLIN IMMEDIATE 
AMEMBASSY LONDON IMMEDIATE 
AMEMBASSY PARIS IMMEDIATE 
AMEMBASSY ROME IMMEDIATE

UNCLAS STATE 125658 
 
 
E.O. 12958: N/A 
TAGS: KNNP MNUC PARM IR
SUBJECT: COORDINATED DEMARCHE ON IRAN WITH EUROPEAN 
LIKEMINDED 
 
REF: STATE 125441 
 
¶1.  (U) This is an action request.  Please see paragraph 5. 
 
¶2.  (SBU) OBJECTIVE: To participate in a joint demarche with 
France, Germany, Italy, and the United Kingdom to the 
Republic of Korea and Malaysia regarding the implementation 
of national sanctions measures on Iran. 
 
¶3.  (SBU) BACKGROUND:  Since July 2008, the United States has 
been engaged with France, Germany, and the United Kingdom in 
an effort to prompt the implementation of the strongest 
possible national sanctions measures on Iran in response to 
its noncompliance with its international obligations.  This 
effort was motivated in part by the resistance of Russia and 
China to additional UN Security Council sanctions.  Our goal 
has been two-fold: 1) to assemble a "menu of options" for 
national measures that could be pursued by likeminded states; 
and, 2) to use these options to prompt other states to take 
action against Iran in order to create the greatest possible 
pressure on Iran.  Italy joined the group in October 2008 and 
there are now plans to conduct outreach to Canada, Australia, 
Japan, South Korea, the Netherlands, and Denmark starting on 
12 December 2008. 
 
¶4.  (SBU) BACKGROUND CONT:  In furtherance of our overall 
objectives, France, the UK, Italy, and Germany have proposed 
a joint demarche on Malaysia and South Korea to convey views 
on measures to prevent Iran's access to the international 
financial sector and oil/gas business relationships and 
relevant technology.  These measures and points ) provided 
below and in REF A ) have been agreed upon by the likeminded 
group, which has indicated interest in doing so between 24 
November and 2 December 2008. 
 
¶5.  (SBU) ACTION REQUEST:  Using the background in paragraphs 
3-4 and points contained in REF A, Posts are requested to 
conduct a joint demarche to the Republic of Korea and 
Malaysia at the highest appropriate levels.  Washington 
defers to Posts with respect to the logistics of this 
demarche and coordination with French, German, Italian, and 
UK Posts in capitals.  In conveying this demarche, Posts 
should provide copies of the non-paper provided in paragraph 
¶6. 
 
¶6.  (SBU) NON-PAPER ON CONVENTIONAL ENERGY RELATIONSHIPS 
 
-- Major new deals with Iran, especially those involving 
investment in Iran's oil and gas sectors, undermine global 
efforts to compel Iran's compliance with its international 
obligations. 
 
-- Such deals suggest to the Iranian regime that the 
international community is willing to take a "business as 
usual" approach with respect to its relations with Iran, 
despite Iran's continuing pursuit of a nuclear weapons 
capability and failure to cooperate fully with the 
International Atomic Energy Agency (IAEA). 
 
-- They also undermine the P5 1's June 2008 offer of enhanced 
economic and energy engagement as an inducement for Iranian 
compliance, impeding efforts to achieve a diplomatic solution 
to international concerns. 
 
-- Companies should ask themselves whether they want to do 
business with a country already under sanctions from three 
UNSC Chapter 7 resolutions, sanctions that were reaffirmed by 
the UN Security Council on 27 September 2008 with the 
unanimous adoption of UNSCR 1835. 
 
-- The business and reputational risk presented by engaging 
in such deals with Iran is significant, as a result of its 
defiance of international normative standards of behavior. 
Iran's credit risk rating has gone up, and many banks have 
stopped issuing letters of credit to companies seeking to do 
business with Iran. 
 
-- We encourage your government to discourage domestic firms 
from entering into new energy investments with Iran. 
 
END NON-PAPER 
 
¶7.  (SBU) Post is requested to report any substantive 
response by 2 December 2008.  Richard Nephew (ISN/RA, 
202-647-7680, NephewRM@state.sgov.gov) and Sonata Coulter 
(EEB/TFS, 202-647-5027, CoulterSN@state.sgov.gov) are the the 
Department's POCs for this activity. 
 
 
RICE