RUSSIAN MIGS AND REACTORS

C O N F I D E N T I A L RANGOON 000147

SIPDIS

STATE FOR EAP/BCLTV
USCDR PACOM FOR FPA

E.O. 12958: DECL: 02/02/2013
TAGS: KNNP PARM MARR BM IAEA BNUC RU
SUBJECT: RUSSIAN MIGS AND REACTORS

REF: 02 RANGOON 942

Classified By: COM Carmen Martinez. Reason: 1.5 (d).


1. (C) Summary: Russia now has the only bilateral military
and technical cooperation agreement with Burma, according to
a Rangoon-based Russian diplomat. A draft agreement for the
sale of a 10 megawatt research reactor was approved by the
Russian government last year and is now under study by the
GOB. Twelve MIG-29s have also been delivered though they
remain bare of weapons packages. End Summary.

Military and Technical Cooperation Agreement


2. (C) A Russian emboff told Poloff on January 30 that
Russia is the only country that has a military and technical
cooperation agreement with Burma. Supposedly, that agreement
was worked up to provide a framework for the sale of the
nuclear reactor. A first set of consultations under the
agreement was held in Russia in 2002. The next set will take
place in Rangoon this year.

Nuclear Reactor


3. (C) Russia has approved a "draft agreement" for the sale
of a 10 megawatt research reactor to Burma, but has still not
received a response from the GOB, which has been studying the
agreement since last year. The Russian officer believes that
money is the problem; the GOB does not have the $150 million
that would be required to complete the whole project.
Nevertheless, it is locked in to working with Russia. Six
hundred Burmese students (350 in 2001 and 250 in 2002) have
already been sent to Moscow for training on all aspects of
uranium mining and processing, and on reactor operation and
research. Once trained on Russian reactors, they're not
going to be able to work on anything else.


4. (C) As for uranium, the Russian said that the Burmese have
identified four deposits and sent samples to Pakistan for
assessment last year. Reportedly, the assessment was
positive; the ore is suitable for processing into reactor
fuel. However, it is still not clear how much uranium is
available in each site. For that, some further geological
investigations will be necessary.


5. (C) Asked why the GOB would want to spend $150 million of
money they don't have on a reactor, the emboff said that he
believed the GOB's ultimate objective was to become an
exporter of reactor fuel "in 10 to 20 years." In any case,
he insisted that the reactor (a 10 megawatt, light water
system) was not suitable for the production of weapons. He
also said that the North Koreans were not involved in the
reactor project. The North Koreans wanted to sell Burma two
submarines, he said, adding that he did not think they were
looking to transfer any nuclear technology.

MIG-29s


6. (C) The Burmese have taken delivery of 12 MIG-29s, but
have not paid anything other than the initial down payment,
according to the Russian. The remaining payments have been
rescheduled over four years. Nevertheless, Russia is ready
to be patient. MIG-29s have an operational life of about 40
years, and the GOB will require spare parts, training,
maintenance, and upgrades for as long as they maintain their
MIG fleet. In other words, the Russians feel they have the
Burmese hooked and are content to wait for payment on the
original purchase, so long as that purchase continued to
throw up opportunities for further sales. Reportedly, the
MIG-29s are so far bare of any weapons packages. The Russian
Emboff speculated that they may have some political value to
the GOB, as indicators of the GOB's long-term ambitions for
the air force, but right now were essentially useless as
weapons of war. (DAO note: Some MIG-29 training is in
process. The Burmese are also reportedly negotiating with
Ukraine for air-to-air missiles though there are no confirmed
reports of deliveries as yet.)
Martinez