VZCZCXYZ0005
OO RUEHWEB

DE RUEHLO #2600/01 2881904
ZNY SSSSS ZZH (CCY ADE8E2AD MSI4508-695)
O 141904Z OCT 08
FM AMEMBASSY LONDON
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0073
INFO RUCNIRA/IRAN COLLECTIVE PRIORITY
RUEAWJA/DEPT OF JUSTICE WASHDC PRIORITY

S E C R E T LONDON 002600

 NOFORN SIPDIS 

C O R R E C T E D COPY CAPTION DOJ FOR OIA/CRIMINAL DIVISION E.O. 12958: DECL: 10/14/2018 

TAGS: CJAN PINS PREL PTER GE FR IT IR UK

 SUBJECT: IRAN: UK CURRENT POSTURE -- FCO FORMAL AND INFORMAL VIEWS REF: EMBASSY LONDON "DAILY" ITEM E-MAILED TO DEPT OCTOBER 9 

Classified By: Political Counselor Rick Mills for reasons 1.4 (b) and ( d)

¶1. (S) Please see Department information request at paragraph4.

 ¶2. (S/NF) Summary: Foreign and Commonwealth Office working contacts told London Iran Watcher (Poloff) October 14 that: -- Foreign Secretary Miliband pressed his Chinese counterpart to have China re-engage in the P5 1, with little result; -- Latest E-4 consultations: deep German caution, but UK will continue to pursue pressure at every level on Iran; -- HMG is stepping up pressure, including at PM-Chancellor level, on Germany to cooperate against Kish Island-based EIH bank, and requests any USG available information in support (see para. 4 below.) -- The Australian Government told FCO that Australia will incorporate all EU listings into Australian law, and is examining Saderat for listing; and -- provided updates on pending Tajik extradition case and Iran's demands for extradition to Iran of Fowzi Nejad. End Summary. 

Miliband Pressed China, with Little Result ------------------------------------------

¶3. (S/NF) FCO XXXXXXXXXXXX told Poloff Foreign Secretary Miliband had called the Chinese Foreign Minister October 10 to press for a P5 1 PolDirs' consultation by October 17; XXXXXXXXXXXX said the Chinese response had been lukewarm. In XXXXXXXXXXXX personal view, U.S. and HMG will probably be forced to rely on the "National Measures/Coalition of the Willing" exercise, among Berlin, Paris, Rome, London and Washington to move forward any new sanctions on Iran. XXXXXXXXXXXX further commented that getting German agreement on anything meaningful will be "pulling teeth," and suggested some governments (though, XXXXXXXXXXXX was crystal clear, not HMG) will see the period of transition between U.S. administrations as a time to go slow and exercise caution until clear USG leadership on Iran emerges. 

UK Request for USG Info on EIH Bank -----------------------------------

¶4. (S/NF) FCO Iran Coordination Group Multilateral Team Leader Will Gelling on October 14 gave Poloff a request, which he said he might also appear in intel channels, for any information USG may have on Iranian Bank EIH, headquartered on Kish Island. Gelling said HMG is pushing Germany on this bank with a view to an EU listing; Gelling said PM Brown may soon call Merkel about it. Gelling said EIH is thought to finance significant trade with Iran; Germans are pushing back, citing inadequacy of UK evidence to date under UNSCR criteria. Gelling said German objections might possibly, though not definitely, be overcome given sufficient evidence. (Comment: The initials EIH may stand for Europaisch Iranische Handelsbank, AG. End comment). Any Department feedback on this HMG request by October 16 much appreciated.

 E-4 Deliberations Oct 13 ------------------------

¶5. (S/NF) Gelling said that at the October 13 "E4" (UK, Germany, France, Italy, plus EU's Cooper) Political Directors meeting, chaired by Stanzel, the German list of prerequisites for German support on new measures against Iran was extensive, and rendered, in Mark Lyall Grants' view, as reported by Gelling, any prospect for joint E4 progress "difficult with these conditions." In addition to rigorous compliance with all UNSCR elements, the Germans, according to notes on the meeting prepared for Grant, which Gelling showed Poloff, insisted on agreement not only among all 27 EU governments but also among a significant number of non-western governments outside the EU. Gelling commented such conditions in effect nullify the point of the E-4/"Coalition of the Willing" exercise. 

Australia to Incorporate EU Iran Listings -----------------------------------------

¶6. (C) Gelling also told Poloff that Australian reps on October 13 told FCO that Canberra will incorporate all EU designations on Iran into Australian domestic law; Gelling added that UK and Australia are also discussing what Gelling said is the "very likely" prospect of Australia designating Bank Saderat. 

Tajik Extradition: No Change ----------------------------

¶7. (C) FCO Bilateral Team Officer Helen Teasdale told Poloff there is "no change" on the status of the extradition of Iranian ex-Ambassador Tajik, whose file "remains on the Home Secretary's desk" for decision. 

1980 Hostage-Taker To Remain in UK ----------------------------------

¶8. (C) Regarding Fowzi Badavi Nejad, the lone surviving terrorist from the May 1980 Ahwazi separatists' attack on the Iranian Embassy in London, who released from UK prison last week on parole after serving 27 years of a life sentence, Teasdale said Iran has formally objected, and the UK demurred, at HMG's refusal to deport him to Iran. Teasdale explained there is no Iran-UK extradition treaty, the UK has never extradited anyone to Iran, and it is unlikely Tehran will provide the reassurances on non-imposition of the death penalty which, according to Teasdale, UK courts would absolutely require before permitting an extradition. Visit London's Classified Website: XXXXXXXXXXXX LEBARON