"We risk becoming the best informed society that has ever died of ignorance"
- Rubén Blades

"You can't make up anything anymore. The world itself is a satire. All you're doing is recording it"
- Art Buchwald

"It's getting exciting now, two and one-half. Think of everything we've accomplished, man. Out these windows, we will view the collapse of financial history. One step closer to economic equilibrium"
- Tyler Durden

"It is your corrupt we claim. It is your evil that will be sought by us. With every breath, we shall hunt them down."
- Boondock Saints

Wednesday, January 18, 2012

More Sharing

In honor again of PIPA/SOPA we offer you these three Classified Cables released through Wikileaks dating back as far to 2007.  The important points of reference have been highlighted.  In the midst of the anti-Iran propaganda currently being relayed through the US media, we feel it would be beneficial for our readers to see what has been spoken about Iran (even their Prez in his own words) in what were once, sealed documents.  Thanks to open sharing and the brazen balls of a few, we still have these documents to refer to.  The link in the titles will take you to the original Wikileaks document.  We leave you to draw your own conclusions, though we venture to say Cable 3 appears to go against the grain of what is being reported through US media.

Emphasis is added by CC


CABLE 1 - May 5, 2007
E.O. 12958: DECL:  5/22/2017 
TAGS: PINR PGOV PREL IR
SUBJECT: IRANIAN PERCEPTIONS OF TALKS WITH THE US (C-NE7-00968) 
 
RPO DUBAI 00000036  001.2 OF 003 
 
CLASSIFIED BY: Jillian Burns, Director, Iran Regional Presence 
Office - Dubai, Department of State. 
REASON: 1.4 (d) 
 
1.(C) Summary:  While we have not heard anything outside of 
press reporting regarding Iran's goals and strategies for the 
upcoming May 28 meeting with the US on Iraq, we have had some 
discussions with contacts regarding interlocutors and some 
positive and negative reactions to the idea of talks.  The 
choice of interlocutor will be a good indicator of who is in the 
driver's seat of policy right now.  The arrest of academic Haleh 
Esfandiari may be an effort by some to torpedo talks, although 
there is no sign yet from the Iranian side that they are 
distancing themselves from attending.  Iranian officials seem to 
be making major efforts to publicly justify Iran's 
participation, despite other signs of crackdowns on links to the 
US.  Iran may also see Esfandiari as a bargaining chip against 
the Irbil 5.  End summary 
 
2.A.(S)  WHAT, IF ANYTHING, HAVE IRANIAN OFFICIALS DISCUSSED 
THEY MIGHT BE WILLING TO OFFER OR NEGOTIATE ON DURING BILATERAL 
TALKS WITH THE US?  WHAT WILL THEY BRING TO THE TABLE?  WHAT 
ISSUES WILL NOT BE DISCUSSED OR ARE RED LINES?  WHAT ISSUES WILL 
THEY BROACH WITHOUT HESITATION? WHAT ARE THE PLANNED TOPICS OF 
DISCUSSION FOR THOSE MEETINGS? 
 
-- (U) Iranian official statements have almost uniformly 
asserted that the only topic for discussion with the US is Iraq, 
and the only reason Iran is meeting with the US is at the behest 
of the Iraqi government.  The Supreme Leader said May 16 that 
the talks would be used to "remind Washington of its failed 
duties in the conflict torn country."  He reiterated that Iran's 
policy toward the US has not changed, asking "how can one have a 
dialogue with an arrogant, bullying, expansionist an imperial 
American government, especially with its current, brazen, 
ill-mannered and boastful statesmen?"  In his weekly press 
conference May 20, Foreign Ministry spokesman Hosseini said that 
Iran is not linking the nuclear issue to US-Iran talks in Iraq. 
Official statements continue to assert that Iran will not 
consider discussing other topics than Iraq with the US until the 
US "changes its aggressive behavior" and makes "a gesture of 
goodwill."  It also continues to refuse to meet the precondition 
of suspension of enrichment necessary for talks with the P5-1. 
 
-- (S/NF) Privately, several Iranian contacts have opined that 
these public statements are meant to appease hardliners who 
repeatedly point out that ideologically, nothing has changed 
between the two countries in the last 28 years.  None of our 
sources have claimed any insider knowledge of what Iran is 
likely to raise in the May 28 talks, other than the obvious 
issue of the detained Irbil 5.  An influential source close to 
Rafsanjani reportedly told a contact that he believed that the 
release of the five was a prerequisite to US-Iran talks on Iraq 
at the ministerial level. 
 
B. (S)  WHAT TYPES OF DEBATE, IF ANY, ARE OCCURRING IN THE ELITE 
RANKS, THE SUPREME COUNCIL FOR NATIONAL SECURITY, THE EXPEDIENCY 
COUNCIL, OR THE CABINET ABOUT THE TALKS?  WHO IS FOR AND WHO IS 
AGAINST THEM?  AND WHY? 
 
-- (S/NF) Prior to the Sharm el-Sheikh talks, the same source 
close to Rafsanjani told IRPO Director that contact between US 
and Iranian foreign ministers would break a longstanding taboo 
and make other kinds of US-Iran contact easier.  Given that 
there was a degree of exchange in Egypt, albeit not substantive, 
it would appear that such contact had been sanctioned at the 
highest level.  However, the prediction that the taboo would be 
broken has not borne out, as evidenced by the arrest May 8 and 
subsequent charges against Iranian-American academic Haleh 
Esfandiari for working against the Iranian government.  Her 
arrest, as well as other problems facing Iranian-Americans, 
seems designed as a message to scare Iranians off from contact 
with the US.  At the same time, it reflects increased paranoia 
over US intentions toward the regime.  However, it cannot be 
discounted that the Iranian government may try to see Esfandiari 
mostly as a bartering chip for the Irbil 5, a view echoed by 
several contacts.  Another indication of crackdowns on 
interaction with the US, a group of Iranian documentary 
filmmakers planning to travel to the US on an IVLP visit was 
recently hauled into the Ministry of Culture and advised to turn 
down the invitation or face "difficulties." 
 
C. (S)  WHO DOES IRAN PLAN TO SEND TO THE TALKS?  WHAT ROLE, IF 
ANY, WILL AHMADI-NEJAD HAVE?  RAFSANJANI?  LARIJANI?  WHO WITHIN 
THE IRANIAN GOVERNMENT WILL DETERMINE ATTENDANCE AT THE TALKS? 
 
 
RPO DUBAI 00000036  002.2 OF 003 
 
 
-- (U) The Iranian government has not publicly confirmed who 
will represent Iran in the Baghdad talks.  A May 21 Mehr News 
article claims the Iranian Foreign Ministry intends to send its 
UN PermRep Mohammed-Javed Zarif to lead the talks.  Previous 
Iranian press pieces had speculated that the current Iranian 
Ambassador to Iraq Amir Sa'eed Iravani, Supreme National 
Security Council Undersecretary Mohammed Jafari or former 
Iranian Ambassador to Iraq Kazemi Qomi would head the 
delegation. 
 
-- (C) There appears to be division inside the government over 
who will be the Iranian interlocutor with the US -- as evidenced 
by the delay in the announcement -- which would indicate a power 
struggle over what camp gets the "credit."  In all likelihood, 
the decision will be the Supreme Leader's.  The appointment of 
Zarif would make sense in terms of his experience in dealing 
with the US, but it would be surprising in light of long-term 
efforts by Ahmadi-Nejad to sideline him for being too much in 
the pragmatic camp.  Such a choice would suggest that 
Ahmadi-Nejad has little influence on the decision. 
 
-- (S/NF) We heard more from contacts about the issue of who 
should represent the US in talks at the ministerial level than 
at the ambassadorial level.  One conservative contact close to 
former FM Velayati claimed the reason that there was no 
Secretary Rice-FM Mottaki meeting at Sharm El-Sheikh was because 
 
SIPDIS 
it was decided that Mottaki was not the right interlocutor.  The 
contact called Mottaki weak, in contrast to his predecessors FM 
Velayati and Kharrazi who he said were policy advisors as well 
as implementers.  The source claimed that Ahmadi-Nejad had 
chosen Mottaki to be his "puppet." 
 
-- (S/NF) We have heard speculation that Velayati may be 
selected to conduct talks, but it is not clear whether that 
would only be for talks at the ministerial level or also 
ambassadorial.  One source recently returned from Iran said 
there is discussion of creating a new position for Velayati 
within the government, possibly to prepare him to "take over," 
but the source close to Velayati had reportedly told him he was 
doubtful that Velayati would agree to join Ahmadi-Nejad's 
government.  The same source also told IRPO Director that 
Velayati plans to run for president in 2009 but will wait to see 
the results of the 2008 Majles elections before declaring his 
candidacy. 
 
-- (S) One source recently claimed that Supreme National 
Security Council Secretary Larijani is in a relatively weak 
position within the government (and that one of his brothers -- 
not clear which one but presumably Mohammad-Javad Larijani -- 
was more influential than him).  Larijani was described as 
independent from both the Ahmadi-Nejad group and the Rafsanjani 
group. 
 
D. (S)  WHAT WILL THEIR MARCHING ORDERS BE?  WHAT DIRECTIVES 
WILL THE PARTICIPANTS BE GIVEN AND WILL THEY HAVE ANY LATITUDE 
TO NEGOTIATE?  WHAT, IF ANYTHING, BESIDES IRAQ ARE 
THE PARTICIPANTS PREPARED TO DISCUSS? WHAT PREPARATIONS FOR 
FOLLOW-ON TALKS, IF ANY, ARE IRANIAN LEADERS MAKING? 
 
--(U) In the only public comment we have seen indicating 
willingness to broaden the agenda, Secretary of the Human Rights 
Headquarters of Iran's Judiciary Mohammad-Javad Larijani said on 
the sidelines of the World Economic Forum in Jordan May 22 that 
it is possible that Iranian and US officials could discuss 
"issues related to Iran" while in Baghdad.  While reiterating to 
IRNA that the talks are being held at the request of Iraqi 
officials on Iraq only, he did not dismiss the possibility of 
broadening the discussions if "Washington shows good will." 
 
E. (S)  WHAT ARE IRANIAN LEADERS SAYING ABOUT THEIR GOALS AND 
CONCERNS VIS-A-VIS US ENGAGEMENT?  WHAT ARE THEIR PERCEPTIONS 
ABOUT US INTENTIONS FOR THE TALKS?  WHY ARE IRANIAN LEADERS 
INTERESTED IN HOLDING DIALOGUE NOW? 
 
-- (U) Iranian officials in their public statements are framing 
their agreement to attend the talks as a sign of their good will 
and intentions towards Iraqis and a sign of US weakness.  As 
reported by PressTV, Foreign Minister Mottaki told Jordan's King 
Abdullah May 20 that Iran "will be seeking the correction of 
wrong policies the US has adopted in Iraq when the two countries 
sit down." 
 
--(S/NF) Iranians have long asserted that one of the main 
obstacles to talks with the US is the issue of who will get 
credit for eventual reestablishment of ties.  The contact close 
to Velayati recently claimed to IRPO Director that President 
 
RPO DUBAI 00000036  003.2 OF 003 
 
 
Ahmadi-Nejad's status is weakening and that his only chance of 
being reelected in 2009 is opening relations with the US.  This 
source claimed that Ahmadi-Nejad's personal ambition would 
triumph over his ideological opposition to dealing with the US. 
The same source also claimed Rafsanjani's relative strength has 
grown over the past five months.  Subsequent to this 
conversation, former nuclear negotiator Mousavian was arrested, 
and we heard that his arrest made others, including Velayati and 
Rafsanjani, very nervous.  This would indicate they do not 
believe themselves to be untouchable. 
 
Public perceptions 
------------ 
 
3.(S/NF) At the popular level, prior to the Iraq conference at 
Sharm el-Sheikh, we heard there was lots of excitement in Iran 
about prospects of Rice-Mottaki meeting, with people handing out 
sweets to celebrate.  Regarding the Baghdad talks, people seem 
to believe both governments' statements that the content will be 
restricted to Iraq, but some Iranians say they see these talks 
as a first step toward better relations.  The source close to 
Velayati told IRPO Director that most in the Iranian government 
are dying for a green light from US on engagement, motivated in 
part by the very bad state of economy.  We heard indirectly that 
a major Bazaari leader, reportedly close to the Supreme Leader 
and an informal advisor to Ahmadi-Nejad, said Iran should have 
relations with the US. 
 
4.(C) A negative note about the talks was struck by several 
civil society activists, who indicated to IRPoffs concern that 
if talks led to political deals between US and Iran, the US 
would drop the subject of human rights and democratic reform in 
Iran. 
 
5.(C) Comment:  Facing growing international pressure and 
increased blame by its own population for its economic and 
political problems, the government may see in talks on Iraq with 
the US a way to deflect domestic and international criticism and 
project a more pragmatic image.  It may hope that positive 
traction in talks will help forestall stepped-up UNSC sanctions 
against it.  It may also genuinely hope that such talks will 
lead to broader engagement.  However, the charges against 
Esfandiari could indicate an effort by opponents in Iran to 
torpedo any kind of engagement with the US.  The arrest very 
likely indicates Iran will continue its internal crackdown on 
civil society and view with suspicion any links with the US -- 
other than any in which it directly participates. 

DAVIS 
BURNS
CABLE 2 - May 10, 2007
E.O. 12958: DECL:  5/10/2017 
TAGS: PREL IR ECON EFIN ETRD
SUBJECT: IRANIANS COMPLAIN INTERNATIONAL FINANCIAL MEASURES IMPACTING 
ORDINARY PEOPLE 
 
REF: RPO DUBAI 0030 
 
RPO DUBAI 00000033  001.2 OF 002 
 
CLASSIFIED BY: Jillian L. Burns, Director, Iran Regional 
Presence Office, Dubai, UAE. 
REASON: 1.4 (d) 
 
1.(C) Summary.  Iranians are complaining to IRPO that 
international pressure to isolate Iran is hurting the people 
more than the government.  According to anecdotal information, 
Iranians reportedly have difficulty opening letters of credit to 
import goods, including non-sensitive goods not covered by 
sanctions.  One former Iranian official told us that Arabs tell 
him the US wants to shut down all Arab-Iran trade, including 
foodstuffs, as well as contact with Iranian society.  Iranian 
businesses, as well as Emirati, are allegedly halting major 
construction projects in Iran, laying off thousands of employees 
from companies, and slowing business decisions due to political 
uncertainty.  An Iranian claimed she recently lost her job 
working for an American company in Dubai after a new "company 
policy" came out against employing Iranians.  An 
Iranian-American complains he cannot pay his US bills on-line as 
his US-based bank no longer allows Internet access to accounts 
from an Iranian internet service provider.  While it is not 
possible to assess the authenticity of all these claims -- and 
the roots of these problems are doubtless more complex than the 
causes cited -- the complaints are becoming common enough to 
document as a factor influencing Iranian public opinion.  End 
Summary. 
 
2.(C) Over the last two months, IRPO contacts have repeatedly 
claimed that new sanctions and financial restrictions on Iran, 
as well as increased pressure on countries to stop "business as 
usual" with Iran, have had a greater negative impact on the 
Iranian people and "legitimate" business than on the government. 
 (Comment:  Reftel details how Iranians also blame their 
economic problems on domestic policy as well as external 
pressure.  End comment.)  A former high level Iranian official 
claimed Arabs have told him they believe the US is pushing their 
countries not to have any trade, business, and interaction with 
Iranian society -- not just with the Iranian government -- and 
not only asking to stop sales of sophisticated material to Iran, 
but also "chocolates and dry milk."  An Iranian student said his 
government benefits from this period of political uncertainty as 
it drives up oil prices, but that ordinary Iranian nationals -- 
both inside and outside Iran -- are suffering the consequences 
of new measures against Iran. 
 
Letters of credit 
------------------ 
 
3.(C) A Dubai-based Iranian financial advisor relayed a 
second-hand account of a Dubai-based Iranian businessman who had 
to fly to Taiwan to meet with banking officials after they 
stopped a letter of credit (LC) he had opened to export 
toothbrushes from China to Iran.  Reportedly, the businessman 
was eventually able to re-open his LC after spending "unneeded" 
time and money to clear up the matter.  The financial advisor 
also claimed that on a recent trip to Iran, she noticed that the 
quality of medicines and basic foodstuffs has declined as 
Iranian merchants turn to the black market and to "cheap Chinese 
knockoffs" to secure basic needs.  In her opinion, merchants are 
turning to the black market because it is increasingly difficult 
to find banks that will support letters of credit, even for 
legitimate trade.  One businessman in Dubai alleged in February 
that the cost of LCs increased on average by 3-5%.  A major 
Dubai-based tea trader told IRPoff that his company lowered the 
quality of tea exported to Iran to offset increased operating 
costs triggered by financial measures on Iran. 
 
Stalled projects and lay-offs 
--------------------------------- 
 
4.(C) Contacts report that the stalled business climate in this 
period of political uncertainty is triggering higher 
unemployment.  Over the past year, Iranian business owners have 
told IRPoffs that they have had to lay off large numbers of 
employees and were holding off on new investment during this 
period of rising international tensions.  A hotel owner 
complained that foreigner tourists were no longer coming to 
Iran, only a few foreign businesspeople, and he has had to lay 
off large numbers of staff.  The Iranian-American cited above 
said an American-educated Iranian friend of hers recently had to 
sell his house in Iran to buy a car to use as a taxi in order to 
make ends meet.  She also claimed a young US-educated family 
 
RPO DUBAI 00000033  002.2 OF 002 
 
 
friend recently overdosed on heroin after returning to Iran and 
not finding work. 
 
5.(C) An Iranian-American said her brother-in-law recently had 
to lay off 2,000 employees in Iran after financing to develop a 
LNG conversion facility on Kharg Island -- northwest of the port 
of Bushehr -- "dried up."  She said the Iranian government was 
not able to finance the project.  (Note.  The contact did not 
indicate whether the original financing had come from a foreign 
source.  Endnote.)  The Iranian-American claimed that according 
to her relative, the private construction sector in Iran is only 
operating at 20% capacity and that public companies are only 
operating at 10% capacity.  Separately, an employee of 
Dubai-based Al-Futtaim Group said that the company recently 
suspended plans to build several branches of the French 
hypermarket Carrefour in Iran due to political uncertainty. 
 
6.(C) Expat Iranians also blame USG pressure against Iran for 
problems they are experiencing.  An Iranian contact claimed to 
IRPoff that US-headquartered Emerson in Dubai terminated the 
employment of an Iranian friend because a new company policy did 
not allow it to employ Iranians.  (Note:  this claim is 
unconfirmed.  Endnote)  An Iranian working in Dubai complained 
that his real estate project in Abu Dhabi was stalled after an 
American company refused to sell him construction materials 
because he is Iranian, despite the fact that the final 
destination for the goods was the UAE.  (Comment:  The contact 
appears to come from a reputable company with a long history in 
the UAE; however, there could, of course, be other reasons that 
the US company is refraining from doing business with him.  End 
comment) 
 
Impacts on Iranian account holders in US banks 
--------------------------------------------- ------------ 
 
7.(C) Several Iranians have complained that Bank of America 
reportedly no longer allows electronic bank transfers when 
account holders access their accounts from an Iran-based 
internet service provider.  An Iranian-American who travels back 
and forth to Tehran complained that he could not pay his 
California phone and water bills while in Iran.  An Iranian 
student at a US university told IRPoff that he fears he could 
default on his credit card bill while home in Iran over the 
summer since he will not be able to transfer funds from his Bank 
of America checking account to pay his US credit card. 
 
8.(C) Comment:  We stress that these reports are anecdotal; 
Iranians may also be blaming outside factors for problems of bad 
luck, poor business practices, and bad macroeconomic policies. 
Nonetheless, these comments are also an indicator of the kind of 
"common wisdom" circulating in Iranian business circles and 
beyond about the impact of US-led financial measures efforts. 
Most of the complaints appear to center around increasing 
reluctance from the international community to do business with 
Iran rather than any concrete measure from UNSCR 1737 and 1747. 
Iranians also tend to lump all measures together as "sanctions," 
which would indicate we have more work to do on the public 
diplomacy front, particularly regarding what actions we are 
asking of other countries regarding trade with Iran, to offset 
the notion that we are targeting the Iranian people.  President 
Ahmadi-Nejad will reportedly meet with the Iranian Business 
Council in Dubai while in the UAE May 13-14; presumably, such 
business concerns will also be raised with him.  End comment. 
BURNS

CABLE 3 - February 3, 2010

E.O. 12958: DECL: 2020/02/03 
TAGS: PREL CASC PGOV PARM IR
SUBJECT: IRAN: AHMADINEJAD FIRESIDE CHAT MENTIONS NUCLEAR ISSUE, US HIKERS 
 
CLASSIFIED BY: Alan Eyre, Director, Iran Regional Presence Office; 
REASON: 1.4(B), (D) 
 
1. (C) SUMMARY: In a February 2 nationally televised talk that 
dealt mostly with economic issues, President Ahmadinejad mentioned 
(almost in passing) that he himself saw no problem with the IAEA 
proposal for the Tehran Research Reactor (TRR) fuel, i.e. Iran 
exporting 3.5 percent enriched uranium in a non-simultaneous 
transfer, i.e. with 20 percent uranium being delivered later - an 
exact translation of his comments being "even if we put our 3.5 
percent fuel at their disposal, there isn't a problem." 
Ahmadinejad did note though that the IAEA TRR proposal 'caused a 
stir' in Iran, and an initial examination of his remarks in context 
seems to indicate that he was not  announcing any IRIG acceptance 
of the IAEA TRR deal, but instead speaking hypothetically on the 
consequences of accepting the IAEA TRR deal.   Such an 
interpretation accords with the fact that with the expiration of 
the IRIG 'deadline' for the West to accept its TRR nuclear offer, 
last night he repeated his January 24 assertion that he intends to 
announce 'good news' on the nuclear front next week (his exact 
January 24 statement being: "during the 'Ten Days of Fajr' I will 
announce good news concerning producing 20 percent nuclear fuel"). 
Separately, Ahmadinejad said that discussions were taking place 
that could lead to an exchange of the three detained US hikers in 
exchange for Iranian citizens being held in the US for export 
violations.  END SUMMARY. 
 
2. (U) On February 2 President Ahmadinejad gave a live night-time 
nationally televised talk to the nation. Self-congratulatory if not 
triumphalist in tone, most of it dealt with seeking to assuage 
popular concerns over his administration's implementation of the 
controversial Targeted Subsidies Bill recently enacted into law. 
However, the two relatively small sections of his speech that 
caught the attention of the Western press dealt with nuclear issues 
and with the issue of the three imprisoned US hikers.  A rough 
translation of President Ahmadinejad's comments on these two issues 
follows. [NOTE: The Persian text of his comments was taken from his 
official website; other coverage of his speech seems to have only 
minor variations.  IRPO comments in hard brackets]. 
 
3. (SBU): AHMADINEJAD ON NUCLEAR ISSUES 
 
...In nuclear matters, they sanctioned us and didn't give us any 
parts, but now what is the state of our nuclear condition? Good 
news in that regard will be announced next week. 
 
...Comparing four years ago to now shows where we've reached in our 
nuclear situation. Four years ago we'd opened the Esfahan nuclear 
plant...our enemies didn't accept this, making a big fuss and 
issuing resolutions. 
 
...For three and a half years they were saying that Iran must not 
have the fuel cycle; then they said come let's negotiate, then they 
said suspend for three months and then resume, and with the passage 
of time they backed down. 
 
...Now you can see where we've arrived. We are enriching uranium 
and even have the capability to produce 20 percent enriched fuel. 
They all know this; the talk is now over us coming and cooperating 
and exchanging [i.e. Iran's LEU for 20 percent fuel]. 
 
...Some have accepted the proposals of interaction and [fuel] 
exchange and some, including the British and the Zionist regime, 
were uncomfortable with this suggestion. They said: if the matter 
becomes one of interacting [with Iran], it's all over, i.e. they 
thought if Iran engages in nuclear cooperation with the main 
countries producing nuclear fuel, what would the Zionists do! And 
they were very angry with this suggestion [of interaction with 
Iran]. Some also unconsciously sided with them. 
 
DUBAI 00000029  002 OF 003 
 
..In our opinion there is no problem with exchange [i.e. fuel 
exchange] but some of them [foreign parties] have behaved 
incorrectly, which has caused negotiations and exchanges to fall 
behind. Some were saying that if we bring 20 percent fuel to Iran, 
Iran will build an atomic bomb and I answered them saying that we 
are brave enough such that if we want to build an atomic bomb we'll 
say it: we're not like you who seek to conceal your goals. We 
explicitly say that we are opposed to you. 
 
...They [foreign parties? the enemy?] know that we are very 
advanced but they propagandize, to which we respond that if you 
honestly come forward we will cooperate with you. Lately they've 
sent messages and some of their concerns were right; because if a 
factory wants to produce 20 percent fuel it must change its 
production line and stop its production. 
 
...Our colleagues proposed that there be an exchange of 3.5 percent 
fuel for 20 percent fuel carried out in three stages and the 
opinion of the foreign parties was that this was not possible from 
a technical viewpoint, and this was true. The foreign parties even 
suggested that the 3.5 percent fuel stay in Iran, we [i.e. the 
foreign parties] will sign a contract, we'll produce 20 percent 
fuel and then later do an exchange with you [i.e. with Iran]. 
 
[ NOTE: The following part of his speech seems to be the genesis of 
Western press stories about Iran accepting the IAEA TRR deal:] Even 
if we put our 3.5 percent fuel at their disposal [i.e. ship it out 
before getting a simultaneous exchange of 20 percent fuel] there 
isn't a problem.  Of course some inside Iran raised a fuss and said 
they [foreign parties] will take our fuel and not give any back. We 
replied that if they don't give it [20 percent fuel] to us, what 
happens, whose words will be proved correct? If they [i.e. the 
foreign parties] don't act according to their obligations it will 
be proven that they can't be trusted and the hands of the IAEA and 
those who signed the contract will be exposed and our hands will be 
free to do our own work [i.e. presumably to continue enrichment 
themselves]. If they don't interact with us [i.e. don't live up to 
their word] the international environment will change in our favor. 
 
Therefore, they want to cooperate with us, and other than those two 
countries I mentioned [Israel & UK], we have no problems.  From the 
beginning we had no fight to pick; it was they who picked a fight. 
Nuclear fuel is our right; at first they made a fuss, but now they 
want to cooperate with us. 
 
They can come and build 20 nuclear power stations for us; Russia, 
France and the US can come and sign contracts and build power 
plants: it is both in our interest and in their interest. Of course 
if they don't come eventually we ourselves will reach the point 
where we build [nuclear] power stations: our nation will not stop. 
We need 20,000 megawatts of nuclear-generated electricity; if they 
cooperate they will profit and we will reach our goals and if they 
don't cooperate our nation will not wait for them and will meet our 
own needs. 
 
We are prepared to cooperate with any nation other than the UK and 
the Zionist regime on the nuclear issue provided that our nation's 
strategic interests are met. On the nuclear issue... they came and 
caused problems and for four to five years we had serious 
issues...but the Iranian nation stood firm. Now we have passed that 
phase and the matter is basically settled and now the issue is one 
of cooperation and we will cooperate within the framework of the 
Iranian nation's interests and there is no problem. 
 
All of these packages of proposals took form due to the nuclear 
pretext; when the nuclear issue goes away the subject of dialogue 
changes and slowly the path opens for broader cooperation on 
 
DUBAI 00000029  003 OF 003 
 
various issues. 
 
4. (SBU) AHMADINEJAD ON US HIKERS: 
 
Those Americans who were detained violated [the law] and entered 
our country illegally. Later, it became clear in reports that they 
knowingly entered our borders and knew what they were doing. I said 
I'd help and talked with the Judicial Branch but the behavior of 
some American officials ruined this [i.e. my initiative]. There are 
a large number of Iranians in prison and they have kidnapped some 
of our citizens from other countries and taken them and by 
pressuring other governments have arrested a great number of our 
citizens and convicted them in America. 
 
This is very bad and it limits what we can do, both us and the 
Judicial branch. But there are discussions [taking place] can lead 
to an exchange. We don't want to have people in prisons. They 
violated the law and [illegally] crossed our borders, their crime 
is clear but those Iranians who are in US prisons haven't done any 
apparent crime, i.e. they are not guilty, or at least it hasn't 
been announced to us and they have been several years in prison 
without a court and trial. The Americans have taken Iranian 
citizens for no reasons and said to them that they [the detained 
Iranians] wanted to export goods to Iran but there are no documents 
or proof for their acts [and in any case] is it a crime to export 
goods? 
 
5. (C) COMMENT:  Contrary to some Western press stories, it doesn't 
seem [to IRPO at least] that President Ahmadinejad sought to stake 
out any new position with his nuclear comments last night.  Such an 
interpretation accords with the fact that with the expiration of 
the IRIG 'deadline' for the West to accept its TRR nuclear offer, 
he repeated his assertion last night that he still intends to 
announce 'good news' on the nuclear front next week, the 
presumption being that such news will relate to enriching to 20 
percent (NOTE: On January 24, President Ahmadinejad told reporters 
that "during the 'Ten Days of Fajr' I will announce good news 
concerning producing 20 percent nuclear fuel"). Indeed, 
Ahmadinejad's comments last night seem to reflect what we already 
know: while he himself supported the IAEA TRR deal, other powerful 
factions within Iran opposed it.  One well-placed IRPO contact with 
connections to Iran's nuclear industry said he had heard from a 
knowledgeable source that the main reason Iran rejected the IAEA 
TRR deal was due to the resistance of key IRGC leadership to the 
idea of exporting the lion's share of Iran's enriched uranium 
abroad, since it saw this uranium as an important component of its 
strategic power.  Regardless of the veracity of such a claim, it 
seems unlikely from President Ahmadinejad's remarks that Iran has 
changed its official position on the TRR deal.  END COMMENT. 
EYRE