June 14, 2006 Special Dispatch No. 1185

Iranian Sources Publish Highlights of E.U. Proposal of Incentives to Iran

June 14, 2006
Iran | Special Dispatch No. 1185

On June 6, 2006, E.U. foreign policy chief Javier Solana arrived in Tehran and delivered a proposal by the five permanent U.N. Security Council members and Germany (the "5+1") to Iran Supreme National Security Council Secretary 'Ali Larijani.

The content of the proposal was not made available to the public, but was published by the Iranian Kayhan [1] and Jomhour-e Eslami [2] dailies and by the Iranian news agency Aftab. [3] All three sources noted that the content of the E.U. proposal had been published by the ABC television network; however, MEMRI's research has found no English version of the proposal.

It should be noted that the U.S. has announced that it was giving Iran until June 29, 2006 to officially respond to the proposal.

The following are excerpts from the introduction to the incentives package offered by the E.U. to Iran, and the entire text of the package, according to the Iranian news agency Aftab:

From the Introduction

"...According to the agreement [with] the Europeans, it has been decided that until the date of the declaration of an official Iranian position, the content of the proposal will not be released to the public...

"As the president of Iran said, Europe has asked us not to publish the details of the report. The text of the proposal by the 25 E.U. countries to Iran, that also won the support of the U.S. and the [U.N.] Security Council members, was given to Ali Larijani.

"While Iran is examining the European proposal, and while it was decided that this content would not be released by the U.S. and Iran, on Tuesday the ABC News network published the full text of the European proposal... [The following is the text of the proposal]:

"Highlights of the E.U. Proposal of Incentives to Iran

"- [The E.U. ] hereby affirms Iran's inalienable right to use nuclear energy for peaceful purposes, in accordance with Article Four of the NPT and in accordance with the international safeguards agreements, and also undertakes to provide diplomatic support for developing a civilian nuclear program.

"- [The E.U.] will actively support activity connected to Iran's civilian nuclear program, including the construction of new light water reactors in Iran via a joint project in the framework of the IAEA, and in accordance with its laws.

"- [The E.U. agrees] to halt discussion of Iran's nuclear portfolio in the U.N. Security Council, if negotiations are restarted.

"Iran's Obligations

"- [Iran] undertakes to examine the issues [the discussion of which] has been postponed, and all [issues that constitute] a global concern, by means of [Iran's] full cooperation with the IAEA.

"- [Iran] will completely halt all activity connected to uranium enrichment and production, and undertakes to continue this commitment during the negotiations.

"- [Iran] will renew implementation of the Additional Protocol [to the NPT].

"- The scope of future cooperation [between Iran and the international community] will be determined in negotiations based on a long-term agreement.

"The International Community Will Carry Out the Following Actions:

*"Nuclear Cooperation

"- Iran has the right to obtain nuclear energy.

"- [The international community will] affirm its [Iran's] inalienable right to use nuclear energy for peaceful purposes, in accordance with Article Four of the NPT and in accordance with the international safeguards agreements, along with diplomatic support for the development of a civilian nuclear program [for Iran].

"- [There will be] negotiations and implementation of a nuclear cooperation agreement between Iran and Europe.

"- [Iran will be provided with] light water reactors.

"- With regard to Iran's program to produce nuclear energy for peaceful purposes: [Europe will] actively support] building new light water reactors in Iran, via a joint project in the framework of the IAEA, and in accordance with its laws, [including] the use of modern technology, along with permission for the passage of goods for this purpose.

*"Economic Cooperation

"- International investment and trade [with Iran].

"- Support for [Iran's] full membership in international organizations, including the World Trade Organization, and establishment of a framework for increasing direct investment in and trade with Iran (including agreements for economic and commercial cooperation with the E.U.).

*"Civilian Aeronautics Industries

"- Civilian aeronautic cooperation (including an option [for Iran] to purchase civilian planes), and to lift restrictions [placed on] Iran regarding the repair of these [Western-] made planes, and in this way to Iran will have the opportunity to acquire a fleet of new planes for conveying passengers.

*"Energy Cooperation

"- Creation of long-term strategic Iran-E.U. energy cooperation: development and rehabilitation of [Iran's] oil and gas [industry]; scientific and technical cooperation in traditional [industrial] activities; expansion of Iran's energy infrastructure; building an international pipeline; and [cooperation] in renewable energy sources and energy efficiency.

*"Advanced Technology Cooperation

"- Cooperation in advanced technology and in the other areas of nuclear energy research and development subject to agreement.

"- Proposal of a comprehensive package of research and development cooperation, to include the possible construction of light water research reactors and particularly regarding the production of radioactive isotopes, basic nuclear applications, and medical and agricultural research.

*"[Nuclear] Fuel Guarantees

"- [The international community will provide Iran with] guarantees anchored in law, the main points of which are:

"- [Iran will] participate as a member in the Center for [Nuclear] Fuel Cycle Reprocessing in Russia, which will enrich all the UF6 - uranium fluoride - produced by the UCF [uranium conversion facility] power station at Isfahan.

"- [The international community will] establish a [nuclear] fuel bank to assure Iran of a supply of nuclear fuel for five years, with the participation of the IAEA and under its supervision.

"- French and American ideas regarding guarantees anchored in the mechanism for the fuel proposal will be implemented.

*"Reexamination of Legally Extending [Issues under Discussion in the IAEA]

"- A long-term agreement, with attention to joint efforts, with the aim of creating international trust in order to reexamine the agreement in all its aspects, as follow:

"- The IAEA will confirm that all the issues [under discussion] and all [the issues that constitute] a global concern, have been removed [from the agenda] and it is assured that there is no longer any activity, [no] unknown nuclear materials, or [no] conversion of nuclear material in Iran.

"- Iran will present [proof that] any kind of new nuclear activity is connected to definite and valid economic principles and is being carried out within the framework of reinforcing [Iran's] program for producing civilian nuclear energy.

"- The IAEA and the U.N. Security Council will decide that Iran's commitments have been met and that the international trust concerning the absolutely peaceful nature of Iran's civilian nuclear program has been restored.

*"Diplomatic [Understandings]

"- Regional security cooperation.

"- Support for the establishment of a regional intergovernmental organization, to include the countries of the region and other countries interested in advancing the level of cooperation and dialogue on security issues in the Persian Gulf, with the aim of creating security agreements in the region and cooperation on important security issues in the region, including guarantees of political power and territorial integrity.

"- Creating a WMD-free Middle East.

"- Support for the aim of creating a zone free of WMDs and free of middlemen transferring this kind of weapon to the Middle East.

"Possible Measures to Be Taken in Case of Iranian Non-Cooperation

"In the event that Iran does not cooperate with the international community, we [i.e. the 5+1] take it upon ourselves [to act] in order to influence the resolutions of the international community and to choose from among the options on the following list, according to Article 41 of Chapter Seven of the U.N. Charter [the chapter which enables sanctions on rogue states]:

*"Options to Be Considered for Iran's Nuclear and Ballistic Missile Program

"- Sanctions on the export [to Iran] of commodities and of technology connected to these programs.

"- Expropriation of the property of and trade sanctions on organizations and individuals connected to Iran's nuclear and missile programs.

"- Sanctions on travel and on issuing visas to officials in this context.

"- Cancellation of technical cooperation with the IAEA.

"- Sanctions on industrial investment connected to these activities.

"- A ban on enrolling Iranian students in faculties with a connection to nuclear or ballistic activity.

*"Political and Economic Sanctions

"- Reduction and elimination of cooperation between the sides.

"- No visas granted to Iranian representatives and high-ranking officials.

"- Expropriation of the property of individuals and organizations cooperating with Iran or maintaining a close relationship with it.

"- Sanctions on Iranian weapons.

"- Sanctions on exporting unique products to Iran of the oil and gas variety [i.e. refined products].

"- Sanctions on investing in and cooperating with Iran in special areas.

"- Non-support for Iran's request for membership in the World Trade Organization.

"- Sanctions on investments and cooperation in special areas in Iran.

"- Blocking the capital of Iranian financial institutions.

"- Reduction of governmental support for guarantees for credit for trade and export to Iran."

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