Cable Viewer

Currently released so far... 3955 / 251,287

### Articles

Brazil Sri Lanka United Kingdom Sweden Editorial United States Latin America Egypt Yemen Jordan

### Browse latest releases

2010/11 2010/12 2011/01 2011/02
2010/11/28 2010/11/29 2010/11/30
2010/12/01 2010/12/02 2010/12/03 2010/12/04 2010/12/05 2010/12/06 2010/12/07 2010/12/08 2010/12/09 2010/12/10 2010/12/11 2010/12/12 2010/12/13 2010/12/14 2010/12/15 2010/12/16 2010/12/17 2010/12/18 2010/12/19 2010/12/20 2010/12/21 2010/12/22 2010/12/23 2010/12/24 2010/12/25 2010/12/26 2010/12/27 2010/12/28 2010/12/29 2010/12/30
2011/01/01 2011/01/02 2011/01/04 2011/01/05 2011/01/07 2011/01/09 2011/01/10 2011/01/11 2011/01/12 2011/01/13 2011/01/14 2011/01/15 2011/01/16 2011/01/17 2011/01/18 2011/01/19 2011/01/20 2011/01/21 2011/01/22 2011/01/23 2011/01/24 2011/01/25 2011/01/26 2011/01/27 2011/01/28 2011/01/29 2011/01/30 2011/01/31
2011/02/01 2011/02/02 2011/02/03 2011/02/04 2011/02/05 2011/02/06 2011/02/07 2011/02/08 2011/02/09 2011/02/10 2011/02/11

### Browse by creation date

66 72 73 75 79 86 88 89 90 00 01 02 03 04 05 06 07 08 09 10
1966/12
1972/02 1972/08
1973/04
1975/03
1979/08
1986/05
1988/01
1989/12
1990/01 1990/07 1990/08
2000/06 2000/09 2000/11
2001/02 2001/03 2001/07 2001/10
2002/02 2002/03 2002/11
2003/03 2003/04 2003/05 2003/06 2003/07 2003/08 2003/09 2003/10 2003/11 2003/12
2004/01 2004/02 2004/03 2004/04 2004/05 2004/06 2004/07 2004/08 2004/09 2004/10 2004/11 2004/12
2005/01 2005/02 2005/03 2005/04 2005/05 2005/06 2005/07 2005/08 2005/09 2005/10 2005/11 2005/12
2006/01 2006/02 2006/03 2006/04 2006/05 2006/06 2006/07 2006/08 2006/09 2006/10 2006/11 2006/12
2007/01 2007/02 2007/03 2007/04 2007/05 2007/06 2007/07 2007/08 2007/09 2007/10 2007/11 2007/12
2008/01 2008/02 2008/03 2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12
2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12
2010/01 2010/02

### Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z
Embassy Athens Embassy Asuncion Embassy Astana Embassy Asmara Embassy Ashgabat Embassy Ankara Embassy Amman Embassy Algiers Embassy Addis Ababa Embassy Accra Embassy Abuja Embassy Abu Dhabi Embassy Abidjan Consulate Amsterdam American Institute Taiwan, Taipei
Embassy Bujumbura Embassy Buenos Aires Embassy Budapest Embassy Bucharest Embassy Brussels Embassy Bridgetown Embassy Bratislava Embassy Brasilia Embassy Bogota Embassy Bishkek Embassy Bern Embassy Berlin Embassy Belgrade Embassy Beirut Embassy Beijing Embassy Banjul Embassy Bangkok Embassy Bandar Seri Begawan Embassy Bamako Embassy Baku Embassy Baghdad Consulate Barcelona
Embassy Copenhagen Embassy Conakry Embassy Colombo Embassy Chisinau Embassy Caracas Embassy Canberra Embassy Cairo Consulate Curacao Consulate Casablanca Consulate Cape Town
Embassy Dushanbe Embassy Dublin Embassy Doha Embassy Djibouti Embassy Dhaka Embassy Dar Es Salaam Embassy Damascus Embassy Dakar Consulate Dubai
Embassy Freetown
Embassy Guatemala Embassy Gaborone
Embassy Harare Embassy Hanoi Consulate Hamburg
Iran RPO Dubai Embassy Islamabad Consulate Istanbul
Embassy Jakarta Consulate Jerusalem Consulate Jeddah
Embassy Kyiv Embassy Kuwait Embassy Kuala Lumpur Embassy Kinshasa Embassy Kigali Embassy Khartoum Embassy Kampala Embassy Kabul
Embassy Luxembourg Embassy Luanda Embassy London Embassy Lisbon Embassy Lima Embassy Lilongwe Embassy La Paz Consulate Lagos
Mission USNATO Embassy Muscat Embassy Moscow Embassy Montevideo Embassy Monrovia Embassy Minsk Embassy Mexico Embassy Maputo Embassy Manama Embassy Managua Embassy Malabo Embassy Madrid Consulate Munich Consulate Montreal Consulate Monterrey
Embassy New Delhi Embassy Nassau Embassy Nairobi Consulate Naples
Embassy Ouagadougou Embassy Ottawa Embassy Oslo
Embassy Pristina Embassy Pretoria Embassy Prague Embassy Port Au Prince Embassy Phnom Penh Embassy Paris Embassy Paramaribo Embassy Panama Consulate Peshawar
Embassy Quito
REO Basrah Embassy Rome Embassy Riyadh Embassy Riga Embassy Reykjavik Embassy Rangoon Embassy Rabat Consulate Rio De Janeiro Consulate Recife
Secretary of State Embassy Stockholm Embassy Sofia Embassy Skopje Embassy Singapore Embassy Seoul Embassy Sarajevo Embassy Santo Domingo Embassy Santiago Embassy Sanaa Embassy San Salvador Embassy San Jose Consulate Strasbourg Consulate Shenyang Consulate Shanghai Consulate Sao Paulo
Embassy Tunis Embassy Tripoli Embassy Tokyo Embassy The Hague Embassy Tel Aviv Embassy Tehran Embassy Tegucigalpa Embassy Tbilisi Embassy Tashkent Embassy Tallinn
USUN New York USEU Brussels US Mission Geneva US Interests Section Havana US Delegation, Secretary UNVIE Embassy Ulaanbaatar
Embassy Vilnius Embassy Vienna Embassy Vatican Consulate Vladivostok
Embassy Windhoek Embassy Wellington Embassy Warsaw
Embassy Yerevan Embassy Yaounde
Embassy Zagreb

### Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
AS AF AM AR AG AMGT ASEC AE AORC AJ AFIN AU APER ABUD ATRN AEMR ACOA AEC AO AX AMED ADCO AODE AFFAIRS AC AL ASIG ABLD AA AFU ASUP AROC ATFN AGMT
BK BR BRUSSELS BL BM BX BU BO BE BH BTIO BEXP BIDEN BY BA BG BF BB BC BBSR BILAT
CH CU CO CBW CLINTON CASC CE CJAN CVIS CMGT CI CIA CG CF CN CS CAN COUNTER CIS CA CM CONDOLEEZZA COE CR CY CD CTM COUNTRY CLEARANCE CPAS CWC CT CKGR CB CACS COM CDG CJUS CARSON COUNTERTERRORISM CACM CDB CV
DR DA DHS DOE DEA DK DJ DISENGAGEMENT DS DOD DEAX
EUN EFIN ECON EAID ENRG EPET ER EIND EAGR ETRD ETTC EU ECIN EAIR ELAB EG EINV ECPS EFIS EI EINT EZ EMIN ET EC ENVR ES ECA EWWT ELTN EN EXTERNAL EINVETC ENIV EINN ENGR EUR ESA ENERG EK ELECTIONS ECUN EINVEFIN ECIP EINDETRD EUC EREL
FR FINR FAO FTAA FREEDOM FI FARC FBI FJ FMLN
GG GM GH GE GV GT GR GTIP GOI GCC GAZA GZ GA GTMO
HILLARY HA HR HUMAN HO HYMPSK HU HURI HK
IR IS IZ IPR IT INRB IAEA IRAJ IN INRA INRO IO IC ID IIP ITPHUM IV IWC IQ ICTY ISRAELI IRAQI ICRC ICAO IMO IF ILC IEFIN INTELSAT IL IA IBRD IMF ITALY ITALIAN INTERPOL
JO JA JOSEPH JP JOHNNIE JUS JAMES
KTFN KOLY KDEM KCRM KWBG KPAL KISL KPAO KUNR KCOR KJUS KGHG KIPR KDRG KMDR KAWK KSCA KS KN KIRF KIRC KU KBIO KE KNNP KZ KHLS KG KACT KGIC KRAD KCOM KMCA KV KHDP KTIP KVPR KDEV KWMN KSPR KTIA KHIV KPRP KAWC KCIP KCFE KOCI KPKO KTDB KMRS KFRD KLIG KBCT KICC KGIT KSTC KPAK KNEI KSEP KPOA KFLU KNUP KNNPMNUC KOMC KO KTER KSUM KHUM KRFD KBTR KDDG KWWMN KFLO KSAF KBTS KPRV KMPI KNPP KNAR KWMM KERG KFIN KTBT KCRS KRVC KR KPWR KWAC KMIG KSEC KIFR KDEMAF KGCC KPIN KNUC KPLS
LE LY LU LG LH LI LO LOG LT
MOPS MASS MAPP MCAP MNUC MARR MU MO MY MTCRE MA MG MASC MX MCC MZ ML MEPP MK MTRE MP MIL MDC MTCR MAR MEPI MRCRE MI MT MR MQADHAFI MD MAPS MUCN MPOS MOPPS
NU NL NATO NIPP NO NG NI NPT NE NS NAR NZ NPG NK NSG NA NT NASA NGO NP NATIONAL
OVIP OEXC OPRC ODIP OFDP OIIP OPDC OREP OTRA OSCE OAS OPIC OECD OPCW OSCI OTR OVP OFFICIALS OSAC
PARM PREL PGOV PINR PHUM PTER PK PL PREF PE PBTS PKFK PO PINS PHSA PGOF PROP PARMS PA PM PMIL PTERE POL PF PALESTINIAN PY PGGV PNR POV PAK PAO PFOR PHALANAGE PARTY PNAT PROV PEL PGOVE POLINT POLITICS PEPR PSI PINT PSOE PU POLITICAL PARTIES PBIO PECON POGOV PINL
QA
RS RU RW RP RO RIGHTS RICE ROBERT RF RFE REGION
SOCI SP SR SA SCUL SNAR SENV SY SO SU SW SF SG SMIG SL SN SHUM SZ SYR ST SANC SC SAN SIPRS SK SH SI STEINBERG
TU TX TC TS TRGY TI TIP TBIO TR TSPA TH TT TW TERRORISM TO TFIN TD TSPL TZ TPHY TK TNGD
UK UNSC UNGA USEU UG USUN UY US UZ UP UNO UNMIK UN UE UNESCO UAE UNEP USTR UNHCR UNDP UNHRC USAID UNCHS UNAUS UV
VT VE VZ VM VTPREL VN
WA WI WMO WTRO WTRQ WHO WWARD WB WBG WTO
XF XA XT XM XY XG XC XH XL XZ XW XR XD XS XK
YM YI YE
ZI ZP ZK ZF ZB ZANU ZOELLICK ZR ZU ZA

### Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

### Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page Contact us on IRC

courage is contagious

### Viewing cable 09REYKJAVIK202, GOVERNMENT RECONSIDERS AMOUNT OF TAX FOR ENERGY USE

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:

- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09REYKJAVIK202.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09REYKJAVIK202 | 2009-11-13 17:05 | 2011-01-13 05:05 | CONFIDENTIAL | Embassy Reykjavik

`

    VZCZCXYZ0000
    PP RUEHWEB

    DE RUEHRK #0202/01 3171721
    ZNY CCCCC ZZH
    P 131721Z NOV 09
    FM AMEMBASSY REYKJAVIK
    TO RUEHC/SECSTATE WASHDC PRIORITY 4215
    INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
    RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
    RHEHNSC/NSC WASHDC PRIORITY
    RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY

` `

    C O N F I D E N T I A L REYKJAVIK 000202

    SIPDIS

    TREASURY FOR MYERS AND NORTON
    NSC FOR HOVENIER
    COMMERCE FOR DERSTINE

    E.O. 12958: DECL: 11/10/2019
    TAGS: ECON EFIN IC PGOV PREL
    SUBJECT: GOVERNMENT RECONSIDERS AMOUNT OF TAX FOR ENERGY USE

    REF: A. REYKJAVIK 191
         ¶B. REYKJAVIK 176

    Classified By: CDA SAM WATSON FOR REASONS 1.4 (B) AND (D)

    ¶1. (C) SUMMARY: Recent actions by the government of Iceland
    (GOI), including a proposal to introduce a significant energy
    tax in the 2010 budget bill (reftel B), have raised concerns
    about the current environment for foreign investors.
    Implementing significant tax increases ex-post-facto, for
    example, could disadvantage American companies currently
    operating in Iceland and significantly hinder Iceland's
    ability to attract needed foreign direct investment (FDI).
    Over the past few weeks, the Charge d'Affaires (CDA) has
    conveyed such concerns to various high-ranking members of the
    GOI including: representatives in the offices of the Prime
    Minister and President as well as the Ministers of Economic
    Affairs, Environment, Finance, Foreign Affairs and External
    Trade, and Industry.  GOI officials appear to understand the
    message and assured CDA that Iceland wants to take steps
    necessary to attract FDI while also taking into consideration
    the nation's fiscal challenges.  Now the GOI has, in fact,
    walked back the proposed energy tax and is engaging industry
    leaders in the process.  END SUMMARY.

    The Aluminum Industry
    ---------------------
    ¶2. (C) The aluminum industry has been one of the more vocal
    opponents of several recent GOI actions and expressed concern
    that the GOI wants to kick it out of the country.  In recent
    months, government decisions have resulted in the cessation
    of plans to build a smelter in Bakki and a delay in
    construction of a new smelter in Helguvik. Plans to expand a
    third smelter in Straumsvik are also being called into
    question.  In addition, the first draft of the 2010 budget
    bill proposed implementing an energy tax of one ISK per kWh
    (0.8 cents) for electricity usage. This proposed tax has
    generated anger among many businesses, but particularly the
    aluminum industry because it chose to locate in Iceland for
    the low power costs and it accounts for about 80% of the
    country's electricity consumption.  Executives from the two
    American-owned aluminum smelters, Alcoa and Century Aluminum,
    expressed concern to CDA that such action could violate their
    existing investment agreements and significantly reduce the
    companies' profitability.  They estimate the tax at one ISK
    per kWh would create an additional expense of 13.2 billion
    ISK ($106 million) per year.  Equally troubling, said
    aluminum representatives, is that they first learned about
    the proposed tax in the newspaper.  Communication with the
    government, they complained, has been virtually non-existent
    since the new government (with the pro-environment
    anti-aluminum Left Greens as a partner) took control earlier
    this year.

    ¶3. (C) GOI officials across the board, including the Minister
    of Environment Svandis Svavarsdottir, have told CDA that they
    do not want the aluminum companies to leave Iceland.  All
    recognize the importance of this sector as one of the
    country's largest employers and largest export industries.
    (Note: the aluminum industry accounts for almost 42 percent
    of exported goods and 29 percent of overall export revenues
    for Iceland.  End note.)  Their size and importance is one
    reason the aluminum industry should not be excluded from
    rebuilding the country, said Minister of Industry Katrin
    Juliusdottir.  Minister of Finance, Steingrimur Sigfusson,
    also acknowledged that it would be healthy for some aluminum
    projects to go forward as they would create additional jobs
    and revenue for the state.  (Note: the Minister of Finance
    was referring to continuation of projects already under way -
    construction of a new smelter for U.S. company Century
    Aluminum and expansion of the Swiss-Canadian Alcan smelter.
    End note.)

    Justification for Tax Increase
    ------------------------------
    ¶4. (C) The Minister of Economic Affairs, Gylfi Magnusson,
    told CDA that increasing tax revenue is essential to close
    the fiscal gap and stimulate the economy.  He noted that the
    tax base has eroded in the last year, especially in the
    corporate sector.  Aluminum companies argue that the proposed
    energy tax of one ISK per kWh (0.8 cents) targets the
    industry unfairly and will force the businesses to cut back
    on operations.  (Note: this tax would apply to all consumers
    of electricity, not just the aluminum industry.  Aluminum
    companies, however, would shoulder the majority of the tax
    burden since they utilize about 80% of the nation's
    electricity.  End note.)  Minister of Industry Juliusdottir,
    however, asserted that the GOI will not allow taxes to
    suffocate industries.  She and other Ministers told CDA that
    the one ISK per kWh (0.8 cents) mentioned in the first draft
    of the budget had merely been an example, but was too high.
    As of November 9, the GOI is proposing a tax of 12 aurar (0.1
    cents) per kWh. (Note: Reykjavik households pay about seven
    to eight ISK (about six cents) per kWh for electricity, and
    the aluminum companies pay undisclosed lower amounts.  Energy
    prices for aluminum firms differ based on agreements signed
    with the government.  End note.)  Finance Minister Sigfusson
    reiterated that all must share the burden of rebuilding the
    economy, and while aluminum companies may not be happy about
    it the GOI hopes the final solution will be considered fair.
    Foreign Minister Skarphedinsson assured CDA that he was
    working to broker a compromise that would enable the firms to
    continue to operate in Iceland and not close off potential
    future investment into the country.

    Future Direction
    ----------------
    ¶5. (C) The GOI recognizes the importance of creating a more
    comprehensive, standardized environment to attract FDI.
    Minister of Industry Juliusdottir told CDA that she intends
    to create a clearer, more general framework for FDI rather
    than negotiating with companies on a case-by-case basis.
    Investors should know what to expect, she said, regarding the
    legal environment, financial environment and taxation.
    Simultaneously, Minister of Finance Sigfusson is working on
    creating a long-term vision for the country's future
    development.  He acknowledged the need to harmonize
    incentives and the duration of investment agreements, and is
    considering introducing possible deductions for new
    investment and incentives for start-up periods.  Last week,
    Sigfusson introduced two bills to parliament providing
    incentives for Icelandic high tech and research and
    development companies.

    Comment
    -------
    ¶6. (C) GOI officials understand the importance of FDI in
    rebuilding the nation's economy.  Though the government has
    been slow to implement changes to create an attractive
    investment climate, it recognizes that steps need to be taken
    to attract, or keep, investment.  Plans to create a clearer,
    comprehensive framework for FDI and to introduce incentives
    are two examples.  In addition, as CDA stressed in meetings
    with the Ministers, it is important that key industry players
    be included in process.  The government appears to have
    accepted the notion as several aluminum representatives, who
    earlier approached the Embassy in frustration after being
    kept out of the discussions, recently thanked the Embassy for
    getting them a seat at the table and nudging the government
    away from the initial tax proposal.  The reduction of the
    proposed energy tax from one ISK (0.8 cents) to 12 aurar (0.1
    cents) resulted from consultative talks between the GOI and
    the Association of Icelandic Employers, of which the aluminum
    companies are the largest members.  While current plans and
    proposals are still subject to change, the ideas under
    consideration and initiation of dialogue are steps in the
    right direction for U.S. firms.  End comment.
    WATSON

`