This document was made possible with support from Carnegie Corporation of New York (CCNY)
[Embassy Tehran]
[1 July 1975]
Ambassador Dr. Wieck[1]
RE: Cooperation of the Federal Republic of Germany with Iran in the Area of Peaceful Use of Nuclear Energy
Here: Meeting State Secretary Haunschild[2] with the President of the Atomic Energy Organization of Iran, Dr. Etemad[3]
The result of the meeting, which State Secretary Dr. Haunschild held - with me accompanying him - on 1 July 1975 with the President of the Atomic Energy Organization of Iran, Dr. Etemad, I am summarizing as follows:
State Secretary Haunschild first explained the initial history and content of the German-Brazilian negotiations concerning the peaceful use of nuclear energy. He emphasized the early consultations with the United States and noted that the U.S. had not requested changes in the agreement, and that we did not adopt any special American requests in the agreement text after finalizing the negotiations finished already in spring. The Federal Republic does consider the cooperation with Brazil as an important contribution towards the implementation of the Non-Proliferation Treaty intentions. In those agreements, Brazil has accepted all inspection requests for the technology submitted by Germany according to the Non-Proliferation Treaty and the Vienna regulations. Germany is acting towards Brazil like the United States had acted towards the Euratom[4] partners in 1958. The agreement is a way to make Brazil refrain from moving towards its own military armament in the nuclear field.
State Secretary Haunschild explained that the Federal Government is continuing the launched cooperation with lran unchanged. However, for tactical reasons it is advisable to sign the agreement at a later point during this year, this is in a few months from now. The postponement will not have any detrimental impacts on the current negotiations between the German Kraftwerk Union[5] [KWU] and Iran, and it will also not result in any delays for Iranian nuclear policy. This is because in the agreement the cooperation is essentially agreed for such projects, which are not yet ripe for decision or for which Iran wanted to keep options open out of reasons of principle (enrichment and reprocessing). Therefore he is proposing to talk again, namely in September at the occasion of the Annual Meeting of the International Atomic Energy Agency [IAEA] in Vienna, about how to proceed and potentially set up the date for the initialing respective signing [of the agreement].
Dr. Etemad thanked for the extensive information about the German-Brazilian Agreement and agreed with the suggestion to postpone the initialing and signing by a few months. It would be better not to allow this agreement to be dragged into the current heated dispute between the United States, the Federal Republic of Germany, and Brazil. Dr. Etemad also agreed with the assessment by State Secretary Haunschild that this delay will not impact the negotiations with KWU - which will probably be finalized in September 1975 - concerning the construction of two nuclear power plants, since in that case there are no government agreements required. Moving on, he explained Iranian policy pertaining to the peaceful use of nuclear energy. Some time ago Iran has decided to enter into nuclear cooperation with the Federal Republic, France, and the United States. With France, Iran has agreed on a memorandum of understanding concerning two nuclear power plants, an agreement about the establishment of a research center, as well as an agreement about becoming a shareholder of Eurodif.[6]
Regarding the Eurodif-AGREEMENTS, Dr. Etemad added that the Eurodif-INVESTMENT will be complemented by investing in Coredif[7]. For the second enrichment facility, an investment allocation of 51 percent Eurodif, 20 percent Iran, and 29 percent CEA[8] has been agreed upon. There was consent that France will keep the majority in these consortia, but will not use this majority against Iran; while Iran on its part will not block any fundamental decisions. Still difficult is an agreement with Italy, Belgium, and Spain, this is the others partners in Eurodif. Regarding the research center and the supply for the facilities, Iran is reserving the right of deciding the selection of the equipment. For the first phase, the planning is initially done by the French consulting company (Technic-atom).
In the relationship between the United States and Iran significant problems have arisen during the negotiations. Due to its geographical location, the United States are considering the Middle East as a sensitive area with regard to the potential development of local nuclear weapons. So far there has been no success by Iran to convince the United States that is has no intention of building nuclear weapons. The United States asserted that such might nonetheless still happen in case of further progress of the Indian nuclear capacity and respective developments in the Middle East. The Shah has agreed with the suggestion of Dr. Etemad not to sign an agreement given the preconditions raised by the United States. The United States have requested the provision that no reprocessing is going to take place in Iran. They also demanded that American monitoring of Iranian actions in the area of physical protection has to be accepted. For these reasons, the American-Iranian negotiations have been shelved for two months. Also, during the Shah visit[9] this issue was touched only marginally. Interrupted by a question from State Secretary Haunschild, Dr. Etemad stated that Iran is potentially willing to accept standards for physical protection developed by the IAEO, but not a bilateral monitoring.
The United States, Dr. Etemad continued, had also objected to stockpile enriched uranium (3 percent enrichment) in Iran. This demand is not understandable, as with 3 percent enrichment no nuclear weapons could be produced. Asked further, Dr. Etemad explained that the United States had floated the idea of multi-national reprocessing facilities. Such might be economically reasonable and would be politically feasible maybe in Europe; however, not in this region.
Iran is also willing to invest in the private American Enrichment Company (OEA). Yet it is unlikely this option will materialize as one might have to face export limitations.
Dr. Etemad finally stated that at the end of this year Iran will take stock of what has been achieved so far. Then it will decide on new guidelines for the development of cooperation with the partner countries.
Answering a respective question, State Secretary Haunschild then explained along general lines the results and further perspectives from the last supplier’s conference. The conference will pass non-binding recommendations: the partner countries (United States, Soviet Union, Japan, Great Britain, France, Federal Republic of Germany, and Canada) have agreed to consult the partners in case of deviations. At the German side, this is about implementing the objectives of the Non-Proliferation Treaty and to develop common standards. From the German perspective, the German-Brazilian Agreement can serve as a model for how to deal with these questions.
Dr. Etemad expressed that Iran does fear that this conference will not just serve to safeguard the Non-Proliferation Treaty but will rather develop into a monopolistic consortium with commercial goals. State Secretary Haunschild considered this concern as unwarranted and stated that the field of nuclear power plants resembles a market with extraordinary intense competition. France, Canada, and the Federal Republic of Germany are of the opinion that the buildup of nuclear capacities -while maintaining certain security standards - will be a helpful element for other countries to safeguard the Non-Proliferation Treaty situation. Japan has so far not participated in the discussion. The United States and Great Britain are restrictive, the Soviet Union is displaying a wait-and-see attitude.
Dr. Etemad expressed the thought whether maybe two or three guests from countries, to which [nuclear] know how is to be transferred, could participate in the meetings as observers. This had also happened pertaining to similar subjects at IAEA conferences. State Secretary Haunschild agreed to consider this suggestion.
At the end, Dr. Etemad opined that the United States are in a difficult situation. The American nuclear industry has no more orders. The agreement between the Federal Republic of Germany and Brazil has indicated a reasonable pathway for the future. Iran will continue to diligently monitor the developments.
State Secretary Haunschild summarized the results of the meeting as follows:
- Coordination of the further timeline for the [German-Iranian] Agreement at the IAEA Conference in Vienna in September
- Continuation of all active practical projects
- Discussion during the current conference about [nuclear-] powered ships and nuclear desalination
- Cooperation in the areas of research and education
- Providing German experts for Iranian research institutions
Furthermore, both heads of delegation agreed that one will examine a trilateral collaboration in Africa in the field of uranium exploration. Dr. Etemad mentioned a letter from the Iranian Ambassador in Bonn regarding a potential cooperation with Brazil. State Secretary Haunschild replied that so far there are no concrete projects yet in that country.
Responding to a respective question, State Secretary Haunschild confirmed that the Federal Republic is welcoming the KWU proposal for the establishment of a United Iranian Power Company to develop nuclear energy in all its aspects. Dr. Etemad noted that so far it had not been possible to review the KWU proposals.
Tehran, 1 July 1975
[1] Hans-Georg Wieck (born 1928). West German Ambassador to Iran 1974 to 1977.
[2] Hans-Hilger Haunschild (1928-2012), State Secretary in the Federal Ministry for Research and Technology from 1972 to 1987.
[3] Akbar Etemad (born 1930). President of Atomic Energy Organization of Iran 1974 to 1979.
[4] European Atomic Energy Community.
[5] Subsidiary of Siemens and AEG Corporations for nuclear power plant construction.
[6] European Gaseous Diffusion Uranium Enrichment Consortium. A multinational European consortium: https://en.wikipedia.org/wiki/Eurodif.
[7] In 1975 another consortium called Coredif with the same multinational membership as Eurodif but a different distribution of shares (Eurodif 51%, France 29% and Iran 20%) was organized to assess future nuclear demand and build a second Eurodif-type plant.
[8] Commissariat à l'énergie atomique. French Atomic Energy Commission, founded in 1945.
[9] Shah Mohammad Reza Pahlavi had visited the United States from 15 to 18 May 1975.
Haunschild and Wieck meet with Dr. Etemad. First Haunschild discusses cooperation with Brazil on peaceful uses of nuclear energy as well as other international partners. There is agreement on future plans for a IAEO Conference in Vienna in September. The continuation of all current projects, collaboration for education and research projects, and sending experts in research.
The History and Public Policy Program welcomes reuse of Digital Archive materials for research and educational purposes. Some documents may be subject to copyright, which is retained by the rights holders in accordance with US and international copyright laws. When possible, rights holders have been contacted for permission to reproduce their materials.
To enquire about this document's rights status or request permission for commercial use, please contact the History and Public Policy Program at HAPP@wilsoncenter.org.