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Viewing cable 08DUSSELDORF21, REGIONAL CHAMBER OFFICIALS CONTINUE TO PUSH BACK ON IRAN

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Reference ID Created Released Classification Origin
08DUSSELDORF21 2008-04-23 14:11 2011-08-24 01:00 UNCLASSIFIED Consulate Dusseldorf
VZCZCXRO5764
OO RUEHAG RUEHBC RUEHDE RUEHDIR RUEHKUK RUEHLZ
DE RUEHDF #0021 1141411
ZNR UUUUU ZZH
O R 231411Z APR 08
FM AMCONSUL DUSSELDORF
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0136
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCNIRA/IRAN COLLECTIVE
RUCNFRG/FRG COLLECTIVE
RHMFIUU/DEPT OF JUSTICE WASHINGTON DC
RUEHDF/AMCONSUL DUSSELDORF 0152
UNCLAS DUSSELDORF 000021 
 
SIPDIS 
 
SIPDIS 
 
PASS:  P, T, E, EEB, NEA/IR, ISN, EUR/AGS 
 
E.O. 12958: N/A 
TAGS: EFIN ECON PTER PGOV KNNP ETTC MNUC PREL IR GM
SUBJECT: REGIONAL CHAMBER OFFICIALS CONTINUE TO PUSH BACK ON IRAN 
SANCTIONS 
 
REF: BERLIN 333 
 
Sensitive but Unclassified -- Not for Internet Distribution 
 
1.  (SBU) As part of the Mission's ongoing dialogue with the 
German business community on Iran-related issues, EMIN, CG and 
Pol/Econoff met with a senior Duesseldorf Chamber of Commerce 
(IHK) official on April 17, who expressed "fear" that the German 
government and the Federal Agency of Economics and Export 
Controls (BAFA) are "overreacting" on sanctions.  Expressing 
doubt that sanctions will ever influence Iranian behavior, the 
official stated that they "affect German businesses more."  EMIN 
countered that the U.S. and Germany have been pursuing a 
dual-track approach towards Iran since 2006 and that economic 
sanctions are an important tool that supplements our ongoing 
diplomacy efforts. 
 
2.  (SBU) The official, alluding to recent (inaccurate) German 
press reports that claim the USG looks the other way when 
American firms trade with Iran, noted that the Chamber wants to 
see all firms held to the same standard.  Exceptions to current 
rules, he said, create an uneven playing field.  EMIN responded 
that the USG investigates every allegation of a U.S. company 
illegally doing business in Iran -- including through 
foreign-owned subsidiaries -- and appreciates leads from all 
sources.  Although the U.S. does not exercise extraterritorial 
control over foreign-owned subsidiaries of U.S. companies, a 
U.S. parent company could be held accountable if it knowingly 
permitted a subsidiary to engage in trade of prohibited goods 
with Iran.  EMIN requested that the Chamber contact the Mission 
with any information on U.S. businesses that appeared to be in 
violation of U.S. laws and regulations so that the case can be 
investigated. 
 
3.  (SBU) Comment: These remarks reflect a rather widespread, 
and misguided, sentiment among small and medium sized 
enterprises in Germany, of whom the Chamber of Commerce 
Duesseldorf represents a significant number.  In March, EMIN 
engaged in a two-hour discussion on Iran sanctions with the 
German (federal) Chamber of Commerce in Frankfurt, in which 
representatives of German companies working in Iran trotted out 
similar arguments and allegations.  As in this case, we rarely 
hear of any concrete evidence (other than that consumer goods 
with American logos are available in some Iranian shops), and 
have never received any leads, despite actively soliciting them. 
 Chamber officials are focused first and foremost on protecting 
market share and employment levels in their district, and 
Iranian trade is a significant factor for some of their members. 
 Our sense is that this segment of the business community does 
not feel that they should be responsible for implementing 
foreign policy.  Mission Germany and ConGen Duesseldorf continue 
to engage the business community to address misperceptions and 
to sensitize them to the threat posed by a nuclear-armed Iran. 
 
4.  (U) This message was coordinated with Embassy Berlin. 
 
BOYSE