VZCZCXYZ0000
RR RUEHWEB

DE RUEHBS #0233/01 0571825
ZNY CCCCC ZZH
R 261825Z FEB 10
FM AMEMBASSY BRUSSELS
TO RUEHC/SECSTATE WASHDC 0061
INFO RUCNIRA/IRAN COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHDC
RUEKJCS/SECDEF WASHDC

C O N F I D E N T I A L BRUSSELS 000233 
 
SIPDIS 
 
STATE FOR EUR/WE, EUR/ERA, T, NEA, ISN/CPI:KMCGEEHAN, 
JCHALMERS AND ISN/RA:RNEPHEW 
 
E.O. 12958: DECL: 02/26/2020 
TAGS: KNNP MNUC PARM EWWT IR BE
SUBJECT: IRAN'S URANIUM PROGRAM, EU SANCTIONS AND IRISL 
ACTIVITIES IN PORT OF ANTWERP 
 
REF: A. SECSTATE 15979 
     ¶B. SECSTATE 16219 
     ¶C. BRUSSELS 381 
 
Classified By: ACTING POL/ECON COUNSELOR ROBERT KIENE FOR REASONS 1.4 ( 
B) AND (D) 
 
¶1. (C) SUMMARY: On February 25, Acting PolEconCouns and 
PolIntern met with Werner Bauwens, the Belgian MFA's Special 
Envoy for Disarmament and Nonproliferation, regarding ref A 
and B demarches.  Bauwens said Belgium regards Iran's 
insistence on moving forward with a higher level of uranium 
enrichment as a violation of Iran's international 
commitments, highly provocative, and useless as a practical 
matter for any purpose other than weapons production.  He 
said that the EU is currently discussing the technical issues 
involved in possible new sanctions.  Bauwens said the EU will 
wait until the UNSC imposes its sanctions, which he believes 
will be fairly light, and then issue its own sanctions which 
will be much more onerous.  He believes that new sanctions 
should address and impact Iranian interests directly related 
to nuclear proliferation and not be linked to political or 
human rights concerns, especially in the eye of the Iranian 
public.  Bauwens said that Belgium is aware of the insurance 
issues surrounding the Islamic Republic of Iran Shipping 
Lines (IRISL) and the UK's ban on its companies doing 
business with the company.  This information has been 
forwarded to the Port of Antwerp for review.  He said that 
the Belgian company Antares, formerly the IRISL subsidiary 
IRISL Benelux, has been fully acquired by the Belgian company 
Ahlers.  He reluctantly admitted that Antares continues to 
provide services to IRISL, as do other Belgian companies in 
the port of Antwerp.  END SUMMARY. 
 
IRANIAN URANIUM ENRICHMENT & POSSIBLE EU SANCTIONS 
--------------------------------------------- ---- 
 
¶2. (C) Acting PolEconCouns deliverd ref A demarche and 
non-papers to Bauwens.  Buwens said that Iran's move to 
enrich uraniumto the 20% level is a clear violation of its 
commitments to the UN and IAEA.  Iran's step is very 
provocative, and comes at a time when the world needs of 
signal of Iran's willingness to cooperate.  The practical 
uselessness of the enrichment process, in view of Iran's lack 
of capacity to fabricate reactor elements, indicates Iran's 
real intent.  The history of clandestine operations and 
intelligence reports about the real nature of Iran's nuclear 
program make it impossible to trust Iran, he said.  He said 
he never thought that the time President Obama gave Iran to 
negotiate in good faith would produce results. 
 
¶3. (C) Bauwens said that the EU foreign ministers confirmed 
the dual track approach to Iran's nuclear program in a 
meeting this week, but given the lack of success on the 
negotiations track, has begun to discuss sanctions.  The EU 
wants to give priority on imposing sanctions to the UNSC, 
where a concensus of the P5 will be necessary.  This will 
show the matter is truly of global concern.  He mentioned 
Catherine Ashton's recent trip to Moscow, and said that she 
had received contradictory messages from the Government of 
Russia about its support for sanctions.  President Medvedev 
seemed to be on board, he said, but FM Lavrov seemed to 
believe that outreach to Iran was still necessary.  In the 
end, he thinks, Russia will not want to put the brakes on a 
consensus.  China is a much bigger problem, he said, 
especially in light of recent tensions between the United 
States and China.  Bauwens said that while a P5 consensus is 
not possible now, March would be a good time to try for one, 
because in April Lebanon will become the chair of the UNSC 
and will be unlikely to support a resolution. 
 
¶4. (C) Bauwens said that as the U.S. and EU consider new 
sanctions against Iran, they should try to keep them targeted 
on proliferation activities, and avoid the appearance of 
linkage to human rights or domestic Iranian politics.  A 
message that the nuclear program is unacceptable is 
necessary, but when and how to intervene should be carefully 
considered in order to prevent a strong, adverse domestic 
reaction in Iran, he said.  Sanctions should be as firmly 
based in international law as possible, because the Iranians, 
no less than the Russians, take a formalistic approach to 
such matters.  As examples of appropriate linkages, Bauwens 
mentioned banks, the Revolutionary Guards, insurance 
companies and the Iranian national bank.  In the end, he 
said, Belgium is willing to go "quite a long way" on 
sanctions, but wishes that great care be taken in what is 
said and how the sanctions are imposed.  He said that 
 
technical discussions are now getting under way in the EU 
about the shape of new sanctions.  The Belgians have been 
urging the EU to get going on such discussions since 
December, because they want the EU to be ready to announce 
measures it will take immediately after the UNSC announces 
its own.  He expects any UN sanctions to be the result of the 
least common denominator of negotiations, but the EU 
sanctions to be much tougher.  Belgium, he said, wants EU 
sanctions to be fair to all member states and not impact the 
economy of any states disproportionately.  "We are not afraid 
to pay," he said, "but all others in the EU should pay as 
well."  Another concern, Bauwens added, is that sanctions the 
EU may impose should be implementable and enforceable by 
national customs and other trade officials with reasonable 
effort. 
 
IRISL INSURANCE PROBLEMS AND PORT OF ANTWERP 
-------------------------------------------- 
 
¶5. (C) Acting PolEconCouns delivered ref B demarche and non 
paper to Bauwens.  Bauwens said he is aware of the IRISL 
fleet's difficulties in finding insurance and that the UK and 
Bermuda governments have banned port operators from dealing 
with the Iranian company.  Bauwens said that before Belgium 
would take similar action, Antwerp port officials and 
companies will have to evaluate the situation and the 
consequences of a ban on dealing with IRISL.  Post intends to 
discuss the situation with officials in Antwerp. 
 
¶6. (C) Bauwens reconfirmed that the Belgian company Ahlers 
has completed its takeover of IRISL's subsidiary in Belgium, 
IRISL Benelux (ref C).  IRISL Benelux is under the same USG 
sanctions as its parent company, IRISL.  Bauwens said that 
IRISL has no remaining financial interest in its former 
subsidiary, now known as "Antares".   He added that Ahlers 
has tried to set up "a Chinese wall" between IRISL and 
Antares.  Bauwens had no information about whether Ahlers 
and/or Antares have made an application to the State 
Department to remove IRISL Benelux/Antares from the list of 
IRISL subsidiaries subject to USG sanctions.  Bauwens was not 
comfortable talking about existing arms-length commercial 
relations between Antares and IRISL, although he did admit 
that Antares provides services to IRISL, as do other 
companies operating in Antwerp. 
 
GUTMAN 
.