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### Viewing cable 07BRASILIA752, BRAZIL: ADDITIONAL INFORMATION ON IRANIAN

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07BRASILIA752 | 2007-04-27 18:41 | 2011-07-11 00:00 | CONFIDENTIAL | Embassy Brasilia

`

    VZCZCXRO9930
    OO RUEHRG
    DE RUEHBR #0752/01 1171841
    ZNY CCCCC ZZH
    O 271841Z APR 07
    FM AMEMBASSY BRASILIA
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 8785
    INFO RUEHAC/AMEMBASSY ASUNCION PRIORITY 6049
    RUEHBO/AMEMBASSY BOGOTA PRIORITY 4200
    RUEHBU/AMEMBASSY BUENOS AIRES PRIORITY 4724
    RUEHCV/AMEMBASSY CARACAS PRIORITY 3672
    RUEHGT/AMEMBASSY GUATEMALA PRIORITY 0342
    RUEHLP/AMEMBASSY LA PAZ PRIORITY 5304
    RUEHPE/AMEMBASSY LIMA PRIORITY 3439
    RUEHMN/AMEMBASSY MONTEVIDEO PRIORITY 6850
    RUEHOT/AMEMBASSY OTTAWA PRIORITY 1029
    RUEHPU/AMEMBASSY PORT AU PRINCE PRIORITY 0187
    RUEHQT/AMEMBASSY QUITO PRIORITY 2206
    RUEHSG/AMEMBASSY SANTIAGO PRIORITY 6196
    RUEHRG/AMCONSUL RECIFE PRIORITY 6565
    RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 4272
    RUEHSO/AMCONSUL SAO PAULO PRIORITY 9722
    RUEKJCS/SECDEF WASHDC PRIORITY
    RHEHNSC/NSC WASHDC PRIORITY
    RUMIAAA/USCINCSO MIAMI FL PRIORITY
    RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
    RUEAIIA/CIA WASHDC PRIORITY

` `

    C O N F I D E N T I A L SECTION 01 OF 02 BRASILIA 000752

    SIPDIS

    SIPDIS

    E.O. 12958: DECL: 01/11/2017
    TAGS: PREL BR
    SUBJECT: BRAZIL:  ADDITIONAL INFORMATION ON IRANIAN
    PRESENCE AT ARMS SHOW

    REF: BRASILIA 705

    Classified By: POLITICAL COUNSELOR DENNIS HEARNE. REASONS: 1.4 (B)(D).

    ¶1. (C) Per reftel, Mission officers have received additional
    and sometimes conflicting information in recent days on the
    events surrounding the closing of the Iranian Defense
    Industries (DIO) stand at the Latin American Air and Defense
    (LAAD) show in Rio on 16-17 April, following the realization
    by the Brazilian government and event organizers that the DIO
    display was in violation of UNSCR 1747 strictures.
    Specifically, it has been difficult for mission officers to
    determine the nature of Brazilian government intervention in
    the affair, i.e., did the Brazilian foreign or defense
    ministeries actually order the closing of the stand directly
    or engage with the Iranian Government at any time, or stand
    back and leave the closing of the DIO booth to the show's
    UK-based events organizing firm, Reed Ltd.?

    ¶2. (C) PolCouns has been in contact with British Embassy DCM
    Hugo Shorter throughout the DIO-related events, and received
    from Shorter on 27 April what we believe is the most detailed
    accounting of the episode attainable.  The key points of
    Shorter's account follow:

    --Shorter said that he was contacted by phone at around 1800
    on Monday, 16 April, by an official of the Reed events
    organizing company who was in Rio preparing for LAAD's
    official opening on 17 April.  The Reed executive was alarmed
    to find an Iranian DIO stand preparing to open at LAAD, a
    violation of UNSCR 1747.   Shorter was clear in saying that
    this alert from the Reed man in Rio was the first information
    the British Government had received on Iranian participation
    in LAAD.

    --Shorter immediately contacted the Brazilian Ministry for
    External Relations (MRE) about the development.  MRE
    Assistant Secretary for International Organizations (and new
    UN Permrep-designate) Maria Luiza Viotti called Shorter back
    around 2000 in the evening and stated: (1) the MRE had been
    unaware of the Iranian presence at LAAD, (2) Brazil's
    Ministry of Defense had been informed that evening by MRE and
    the Brazilian Chief of Defense Staff had indicated the
    Iranian stand would be shut down.

    --On the morning of 17 April, Shorter was contacted by Reed
    and told Reed directors had ordered the immediate closing of
    the Iranian stand.  Shorter said it was his understanding
    that Reed had taken the action based on corporate decisions
    and contact from the Brazilian Defense Ministry.  (Note:  We
    have heard similar accounts from the French and Israeli
    ambassadors here, though they indicate a more passive MRE
    role vis-a-vis Reed in ordering the closing of the DIO stand.
     End note.) Shorter said the British Embassy Defense attache
    was at LAAD and reported that some DIO models and brochures
    remained out on the floor when the show opened at 1000 am,
    but the DIO stand had its electricty shut off and "CLOSED"
    signs posted on it before noon, and was clearly out of
    commission shortly thereafter.

    --During the day on April 17 Shorter spoke twice with Maria
    Narazeth Farani, Chief of Staff to Foreign Minister Amorim.
    He asked whether the MRE had protested the issue to the
    Iranian Government or taken any additional action.  Farani
    told Shorter adamantly that the GOB had fulfilled its
    obligations under the UNSCR by contacting its Defense
    Ministry and the event organizer to order the closing of the
    DIO stand.   Shorter subsequently learned from MRE senior
    contacts that Brazil's ambassador in Tehran had been called
    in by the GOI to hear its official protest at being invited
    to an event and then being shut down, but the GOB Ambassador

    BRASILIA 00000752  002 OF 002

    had noted that any invitation had been issued well before
    UNSCR 1747 and the GOI must have been aware of the
    resolution's ramification.  Iran's ambassador in Brasilia
    also met with MRE officials to lodge a protest.  Both
    diplomatic actions were at the Iranians' initiative, not the
    GOB's, Shorter noted.

    --In a follow-up meeting on 27 April with Santiago Mourao,
    the director of the MRE's Directorate for Arms Control and
    Sensitive Technology, Shorter asked whether the GOB had taken
    or would pursue any action on seizures of DIO assets.  Mourao
    said Brazil's Central Bank financial crimes investigations
    unit (COAF) had not located any DIO financial assets in
    Brazil.  With regard to the models and brochures at the DIO
    stand in Rio, Mourao said these were regarded as financially
    inconsequential by the GOB, and had not been seized.  Mourao
    said the GOB may forward a report on the assets to the UN
    sanctions committee.

    --Mourao stoutly defended GOB responses in the case, saying
    the GOB had worked to shut down the DIO stand as soon as it
    was aware of its presence at LAAD.  He said the Iranians
    should be held responsible for the event, but also noted the
    GOB had no indication the GOI had deliberately staged the
    event to provoke or embarrass Brazil.  The GOB's positions on
    Iran's nuclear program are well-known and documented at the
    IAEA and the UN, and Iran could have been under no illusion
    that the GOB would not honor UNSC requirements, Mourao said.

    --In sum, Shorter said the foreign ministry clearly had not
    blocked the closing of the DIO stand,  though its actions in
    coordinating the closure perhaps could have been more direct
    and proactive, and it has taken no action on asset seizures.

    Chicola

`