Foreign Relations of the United States, 1969–1976, Volume E–15, Part 2, Documents on Western Europe, 1973–1976

299. Memorandum From the Counselor (Sonnenfeldt) to Secretary of State Kissinger¹

Washington, June 30, 1976.

SUBJECT

• Proposed FRG Agreement with Iran on Nuclear Reprocessing

The attached memo from George Vest lays out our record of objections which we have made to the Germans. The Germans have not responded to our aide mémoire or to your comments to Genscher in Bonn. Vest’s memo proposes various alternative courses of action which would attempt to forestall signature of the agreement this weekend.

You asked about German motivations. As far as I can tell they are driven by commercial and psychological reasons, since conclusion of this agreement will mean billions of dollars of export sales for the FRG. Schmidt faces considerable unemployment now. The German civil nuclear industry is faced with retrenchment because the FRG domestic market for reactors has been shrinking for the same environmental and safety reasons we face here. Thus if Schmidt is to avoid layoffs in that sector, he needs export sales to protect himself.

The Shah has been after us to commit ourselves to some sort of reprocessing deal which we have resisted.

If the FRG signs an agreement with Iran which does contemplate reprocessing, there will be a great uproar here. Ribicoff, Percy and others have written you asking you to make clear to Schmidt our objections to the sale.

Win Lord and George Vest believe that it would be important for you to meet personally with Von Staden to convey your unhappiness over the absence of meaningful prior consultations and your concern over the scope of the FRG nuclear cooperation agreement with Iran. They recall that in the case of the FRG/Brazil nuclear agreement, the FRG used to our disadvantage allegations that you were not personally involved in conveying our strong reservations about the nature of the accord. In addition, Win Lord believes that you should consider a written message to Foreign Minister Genscher confirming the US position. George Vest believes an oral representation is sufficient and a written representation by you could be criticized as inadequate.

1. Summary: Sonnenfeldt discussed the proposed FRG agreement with Iran on nuclear reprocessing.

   Source: National Archives, RG 59, Records of the Office of the Counselor, Helmut C. Sonnenfeldt, 1955–1977, Entry 5339, Box 5, Germany 1976. Secret; Eyes Only. Attached but not published is an undated memorandum from Vest. The aide-mémoire to which Sonnenfeldt refers is attached as Tab 3 to Vest’s memorandum; it is telegram 128397 to Tehran, May 25, which expresses U.S. reservations concerning the proposed FRG-Iran Nuclear Cooperation Agreement. Kissinger wrote at the bottom of Sonnenfeldt’s memorandum, “I will meet Von Staden.”