1. Iran does not want an abrupt withdrawal of coalition forces from Iraq for fear this would lead to reshuffling the cards and redistributing power. Instead, there should be a fixed timetable for the withdrawal of U.S. and British forces from Iraqi cities and relocation at bases and camps inside Iraq, provided the Iraqi forces have reached the point at which they can provide security. The Iranians also stated that they would extend all possible assistance so that foreign forces could exit "honorably" from Iraq.
to the United States that they are willing to cooperate so the Iraq withdrawal does not look like another Vietnam scenario for the U.S. administration to deal with at home.
2. Iran is "strongly opposed to all attempts to partition Iraq or impose a federal system that allows for regional autonomy." No region should be allowed to monopolize the resources in its territory and deprive other regions of the revenues from these resources.
3. Iran wants a plan, involving the Kurds and Sunnis, drawn up to root out the transnational jihadist forces allied with al Qaeda in Iraq. Sunni tribes should also assume the responsibility of confronting jihadists, whether they are Iraqi citizens or are from other Arab and Muslim countries.
4. Iran clearly states that the negotiations over Iraq cannot be separated from other regional issues and Tehran's nuclear file.
5. Iran wants a new regional formula that would make Iraq a region of influence for Tehran.
The United States will not, according to Stratfor, let Iraq become a satellite state of Iran and Iran know this, but a Shiite government in place in Baghdad would probably suffice.
The Iranian paper outlined several key concessions it would offer the United States and Iraq's Sunni faction if its demands were met.
1. Iran would help the Iraqi government rein in the armed Shiite militias and incorporate them into the state security apparatus.
2. The de-Baathification law can be revised to allow for the rehiring of former Iraqi army personnel, the bulk of whom are tied to the Sunni nationalist insurgency. However, Iran wants assurances that former Interim Iraqi Prime Minister Iyad Allawi and other former Baathists will not be allowed to hold the position of Prime Minister when the time comes to replace current Prime Minister Nouri al-Maliki.
3. Iran would be willing to see fresh parliamentary elections, the formation of a new Cabinet and the amendment of the Iraqi Constitution to double the Sunni seats in parliament to 40 percent, with the Shia retaining 60 percent. Tehran has said nothing about what would be left for Kurdish political representation, however.
4. Iran has proposed the "fair" distribution of oil revenues in Iraq to satisfy all parties, especially those in "central Iraq," the Sunni-dominated, oil-deprived heart of the country.
According to Stratfor, “it looks as if the Kurds will get screwed again”.
The United States doesn’t want Iraq to become a proxy state of Iran. That will probably not happen. Another point brought up was that Iran does not want Iraq to be equipped with offensive military capabilities.