United States Senate WASHINGTON, DC 20510 February 1, 2011 His Excellency Dr. Guido Westerwelle Vice Chancellor and Federal Minister for Foreign Affairs of the Federal Republic of Germany Werderscher Markt 1 10117 Berlin Dear Minister Westerwelle: We write to express our grave concer with the continued financial support of Iran’s nuclear proliferation activity by Europiiisch-Iranische Handelsbank (EIH) in Hamburg and urge the German government take immediate action to end these practices. In September, the United States sanctioned EIH, citing its role as a key financial lifeline for Iran and its facilitation of Iran's proliferation activities. EIH is one of Iran’s few remaining, access points to the European financial system. ‘The bank has and continues to conduct transactions on behalf of entities under U.S. and EU sanctions, including Bank Mellat, a designated supporter of the Atomic Energy Organization of Iran (AEOI). The AEOI reports directly to the Iranian president and is the main Iranian organization for research and development of nuclear technology. We know Germany shares intemnational concerns about the Iranian regime, including its nuclear program, support for terrorism, and human rights abuses. The sanctions passed by the EU this summer sent a strong message to Iran that we will not allow its illicit behavior and violations of Security Council resolutions to go unanswered. Yet, the continued operation of EIH allows the Iranian regime to skirt the sanctions and undercut their effectiveness. Under U.S. law any financial institution that continues to conduct business with EIH may itself be barred from accessing the U.S. financial system. Companies that continue to conduct trade with Iran via EIH also face potential sanctions in the U.S., including restrictions on exports to the U.S. and access to U.S. capital markets, The threat of a nuclear armed Iran is undeniable and we must make sanctions as strong as possible to deny Iran the economic means to develop those weapons. Europiisch-Iranische Handelsbank must halt these practices or be closed immediately. We look forward to your prompt attention to this issue and to working with you to combat illicit financial activity and promote a safe and transparent global financial system. Sincerely, R. LautenbergMP put ‘Senator Al Franken NKaratene E Autiibrand Bvt. Cane : ir. Senator Kirsten E. Gillibrand Derry Mocan ‘Senator Jerry Moran i aw FSi. tor Barbara Boxer Senator Mark Kirk Le Senator Scott P. Brown