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PP RUEHAG RUEHAST RUEHBC RUEHDA RUEHDBU RUEHDE RUEHDF RUEHDIR RUEHFL
RUEHIK RUEHKUK RUEHKW RUEHLA RUEHLN RUEHLZ RUEHNP RUEHPOD RUEHROV
RUEHSK RUEHSR RUEHTRO RUEHVK RUEHYG
DE RUEHC #4469/01 1481145
ZNR UUUUU ZZH
P R 281132Z MAY 09
FM SECSTATE WASHDC
TO RUEHAK/AMEMBASSY ANKARA PRIORITY 8606
RUEHRL/AMEMBASSY BERLIN PRIORITY 1426
RUEHBM/AMEMBASSY BUCHAREST PRIORITY 1545
RUEHUP/AMEMBASSY BUDAPEST PRIORITY 6721
RUEHPG/AMEMBASSY PRAGUE PRIORITY 0217
RUEHSF/AMEMBASSY SOFIA PRIORITY 3283
RUEHVI/AMEMBASSY VIENNA PRIORITY 8294
RUEHBS/USEU BRUSSELS PRIORITY
INFO EUROPEAN POLITICAL COLLECTIVE
IRAN COLLECTIVE
RUEHKB/AMEMBASSY BAKU 8579
RUEHAH/AMEMBASSY ASHGABAT 1142
RUEHTA/AMEMBASSY ASTANA 2547
RUEHDM/AMEMBASSY DAMASCUS 7190
RUEHGB/AMEMBASSY BAGHDAD 6278

UNCLAS SECTION 01 OF 02 STATE 054469 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EPET ENRG ECON PREL
SUBJECT: DEMARCHE REQUEST:  U.S. POSITION ON IRAN AS A 
SOURCE OF GAS IN NABUCCO ISA 
 
REF: BUCHAREST 306 
 
¶1.  (SBU) SUMMARY AND ACTION REQUEST:  Washington has 
reviewed the draft of the Nabucco Inter-State Agreement (ISA) 
and shares the concerns expressed by Romania in reftel.  As 
currently written, the ISA defines "Initial Entry Points" 
through which gas would enter the Nabucco Project as being 
the Turkish borders with Georgia, Iraq and Iran; 
conspicuously deferring a decision to include gas crossing 
"any other point at the eastern or southern Turkish border," 
i.e, from Armenia or Syria.  There are no caveats regarding 
inclusion of gas from Iran in Nabucco.  So long as Iran 
refuses to comply with its UNSC, IAEA, and NPT 
responsibilities, the United States remains opposed to 
inclusion of gas from Iran into Nabucco or any other project. 
 We understand the next negotiating session on this text will 
take place in Vienna on Thursday, May 28.  Action Request: 
Posts are requested to demarche appropriate European 
Commission and host government officials using the talking 
points in paragraph 3 to note U.S. concerns about the current 
draft and to support changes to the ISA along the lines of 
those suggested by Romania.  END SUMMARY AND ACTION REQUEST. 
 
¶2.  (SBU) The current draft ISA includes the following point: 
 (7) Initial Entry Points shall mean the starting points of 
the Nabucco Project at the Turkish/Georgian, Turkish/Iranian, 
and/or Turkish/Iraqi borders in the Republic of Turkey at a 
point on those borders to be selected by Nabucco 
International Company and, subject to agreement by the 
Nabucco Committee in consultation with Nabucco International 
Company, any other point at the eastern or southern Turkish 
border." 
 
¶3.  (SBU) Begin Talking Points: 
 
-- The United States remains opposed to the inclusion of gas 
from Iran in any Southern Corridor energy project.  We have 
frequently made this view known to supporters of these 
projects, including the Nabucco Pipeline and the 
Turkey-Greece-Italy Interconnector.  The United States does 
not support the Trans-Adriatic Pipeline because Swiss firm 
EGL signed a contract in Tehran to fill half of that 
pipeline's capacity with Iranian gas. 
 
-- We have reviewed the draft Nabucco Inter-State Agreement 
(ISA) and we object to language in the ISA that defines one 
of the "Initial Entry Points" for gas to enter the Nabucco 
Project as at the Turkish/Iranian border; clearly implying 
that gas from Iran is currently considered a potential source 
of gas for Nabucco.  This reference is without any caveats 
making the use of Iranian gas conditional upon Tehran 
fulfilling its international commitments. 
 
-- The use of such language in a high-profile international 
agreement sends the wrong message to Iran at a time when it 
continues to defy its international obligations.  We are 
serious about our efforts to engage Iran, but we are also 
serious about the need to maintain current pressure on Iran 
to comply with its UNSC, IAEA, and NPT responsibilities. 
 
-- The reference to the inclusion of Iranian gas does not 
advance the international community's efforts to reach a 
diplomatic solution with Iran.  We anticipate your country 
will discourage any energy deals with Iran that would 
undermine these efforts. 
 
-- If the current language regarding Iran is included in the 
final approved version of the ISA, the United States will 
make its objections to this clause known. 
 
-- The U.S. Department of State closely reviews information 
about oil and gas deals with Iran in light of the Iran 
Sanctions Act. 
 
STATE 00054469  002 OF 002 
 
 
 
-- The United States understands that ISA negotiators have 
discussed various approaches to define "Initial Entry Points" 
under the ISA.  The United States strongly supports an 
approach that limits the definition of "Initial Entry Points" 
for the Nabucco Project to sites on Turkey's borders with 
Georgia and Iraq.  The U.S. remains open to the possibility 
that this definition could include a provision for subsequent 
agreement among States Parties, at a later stage of the 
project, to select starting points at other sites on Turkey's 
eastern or southern border, without reference to any other 
specific State. 
 
-- This approach leaves open the possibility of gas flowing 
into Nabucco from Iran if there is positive progress with 
Iran and it fulfills its international commitments. 
Likewise, gas could also flow from Armenia and Syria if 
future circumstances make these options politically and 
economically feasible. 
 
-- (If pressed)  If limiting the definition of initial entry 
points to sites on Turkey's borders with Georgia and Iraq 
proves unacceptable, the U.S. can accept a formulation in 
which the phrase  "Initial Entry Points" is defined solely by 
reference to the eastern and southern borders of Turkey, 
without reference to any other specific State. 
 
End Talking Points. 
CLINTON