VZCZCXRO6054
PP RUEHAG RUEHBC RUEHDE RUEHDIR RUEHKUK RUEHROV
DE RUEHMD #0177 0330908
ZNY CCCCC ZZH
P 020908Z FEB 07
FM AMEMBASSY MADRID
TO RUEHC/SECSTATE WASHDC PRIORITY 1752
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUCNIRA/IRAN COLLECTIVE PRIORITY
RUEHBJ/AMEMBASSY BEIJING PRIORITY 0660
RUEHBY/AMEMBASSY CANBERRA PRIORITY 0849
RUEHIL/AMEMBASSY ISLAMABAD PRIORITY 0288
RUEHKL/AMEMBASSY KUALA LUMPUR PRIORITY 0028
RUEHMO/AMEMBASSY MOSCOW PRIORITY 0781
RUEHNE/AMEMBASSY NEW DELHI PRIORITY 0121
RUEHOT/AMEMBASSY OTTAWA PRIORITY 2712
RUEHKO/AMEMBASSY TOKYO PRIORITY 0671
RUEHPT/AMCONSUL PERTH PRIORITY 0006
RUEHLA/AMCONSUL BARCELONA 2411

C O N F I D E N T I A L MADRID 000177

SIPDIS

SIPDIS

E.O. 12958: DECL: 02/01/2017
TAGS: PREL ETTC IR SP ENRG
SUBJECT: ILSA: SPANISH MFA ALREADY IN TOUCH WITH REPSOL

REF: A. MADRID 174

¶B. STATE 12713

Classified By: DCM Hugo Llorens for reasons 1.4 (b) & (d).

(C) As part of a broader discussion on February 1 (ref A),
DCM presented MFA Political Director Rafael Dezcallar with
ref B points on USG concerns with Shell and Repsol's proposed
LNG project in Iran. DCM noted the Iran-related visits of
Treasury DepSec Kimmit and Ambassador Schulte and the recent
Moratinos-Secretary conversation in which the USG and GOS had
agreed on the importance of a united front on Iran. He said
that in this context, Washington would be concerned by the
news that Spanish firm Repsol would be investing in Iran.
Dezcallar said that the GOS had already had a frank
discussion with Repsol to make Repsol aware of the issues
involved and the potential consequences if the investment
went forward. Dezcallar mentioned that no deal was imminent
and no final decision was required of the Shell-Repsol
consortium until early 2008, implying there was considerable
time to kill the initiative. He also said that it is
important to use a balanced approach to Iran in order to
maintain the broad support for UNSCR 1737. Embassy plans to
follow up directly with Repsol as well as with other parts of
the GOS.
Aguirre