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Cablegate: Foreign Ministry Takes On Board Risks Associated With

VZCZCXRO5128
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHLU #0085 0582156
ZNR UUUUU ZZH
R 272156Z FEB 10
FM AMEMBASSY LUANDA
TO RUEHC/SECSTATE WASHDC 0015
INFO SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHINGTON DC

UNCLAS LUANDA 000085

SENSITIVE
SIPDIS
ISN/RA RICHARD NEPHEW, ISN, T, AND NEA/IR

E.O. 12958: N/A
TAGS: PGOV PREL PINR ENRG EPET ETTC IN IR KNNP MNUC PARM
EFIN, AO
SUBJECT: FOREIGN MINISTRY TAKES ON BOARD RISKS ASSOCIATED WITH
SONANGOL'S REPORTED INVESTMENT IN IRAN

REF: A. STATE 2957; B. STATE 15979; C. STATE 15554; D. LUANDA 39

1. (SBU) In separate meetings at the Foreign Ministry on
February 24, Ambassador Mozena relayed U.S. concerns regarding
developments in Iran (Refs A, B, and C) to the Director for Middle
East and African Affairs Amb. Nelson Cosme and to Director Americas
Balbina Malheiro Dias da Silva. Mozena shared with both that the
U.S. has seen reports that state oil company Sonangol has signed an
agreement to participate in a USD 7.5 billion investment in
developing Iran's oil sector (Ref A). Mozena said Sonangol's
participation in such a venture would raise serious concerns under
the Iran Sanctions Act, making clear that a Sonangol investment of
this nature could trigger the Iran Sanctions Act, which would have
negative consequences. Mozena urged that the Angolan government
communicate these concerns to Sonangol soonest and make clear to
Sonangol not to proceed with these investments. Both Cosme and Da
Silva took Mozena's message onboard and committed to ensuring that
our concerns were relayed to Sonangol. Although this demarche had
earlier been conveyed to the Ministry of External Relations (Ref
D), the Ambassador sought to underscore the importance of this
issue to the U.S. and the potential negative consequences for the
relationship if Sonangol were to proceed with significant
investment in the Iranian oil sector. The Ambassador will elevate
the issue further during his March 1 meeting with MIREX Minister of
State Gamboa.

2. (SBU) Ambassador Mozena shared with both Cosme and Da Silva
U.S. concerns over the recent Iranian decision to enrich uranium to
20 percent. Mozena stressed that such enrichment was not an
effective or timely manner for achieving Iran's stated objective of
procuring medical isotopes. Thus, the U.S. has concerns about
Iran's true motivations for enriching the uranium. Mozena assured
both interlocutors that the U.S. stood ready to work with Iran in a
constructive fashion to ensure that Iran's needs for medical
isotopes were met. Cosme was familiar with the issue and queried
to clarify that the U.S. was indeed prepared to help Iran acquire
medical isotopes. He and Da Silva both took on board the U.S.
position on the matter.

3. (U) Ambassador also informed both Cosme and Da Silva of
recent U.S. decisions to implement sanctions against one individual
and four entities related to Iran's Islamic Revolutionary Guard
Corps. Mozena explained that the individual and entities were
sanctioned for their activities in support of proliferation and
terrorism. Both Cosme and Da Silva took the Ambassador's message
without comment.

4. (SBU) COMMENT: Post will continue to underscore to the GRA
at the highest possible levels that any Sonangol investment in the
development of Iran's oil industry would raise serious concerns
with possible negative consequences under the Iran Sanctions Act,
concerns that could be magnified in the future should additional
legislation currently under consideration become law. END COMMENT
MOZENA

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