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Viewing cable 10LUANDA85, FOREIGN MINISTRY TAKES ON BOARD RISKS ASSOCIATED WITH

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Reference ID Created Released Classification Origin
10LUANDA85 2010-02-27 21:56 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Luanda
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