CHEMICAL WEAPONS CONVENTION (CWC): DISCUSSIONS ON

UNCLAS SECTION 01 OF 03 THE HAGUE 002431

SIPDIS

STATE FOR T, AC/FO, AC/CB, NP/CBM, L/ACV, VC/CCB
SECDEF FOR OSD/ISP
JOINT STAFF FOR DD PMA-A FOR WTC
WINPAC FOR FOLEY
COMMERCE FOR GOLDMAN (BIS)
NSC FOR CHUPA

E.O. 12958: N/A
TAGS: PARM PREL CWC
SUBJECT: CHEMICAL WEAPONS CONVENTION (CWC): DISCUSSIONS ON
RUSSIAN CHEMICAL WEAPONS DESTRUCTION (CWD) ASSISTANCE

THIS IS CWC-94-03.


1. SUMMARY: ON THE MARGINS OF OPCW EXECUTIVE COUNCIL
(EC)-34, U.S. DELOFFS PARTICIPATED IN MEETINGS RELATED TO
RUSSIAN CWD ASSISTANCE. U.S. DEPARTMENT OF DEFENSE (DOD) REP
ANNOUNCED DOD PLANS TO OBLIGATE AN ADDITIONAL $60.3 MILLION
FOR SHCHUCH'YE CHEMICAL WEAPONS DESTRUCTION FACILITIES (CWDF)
CONSTRUCTION BY THE END OF THIS MONTH. SHE ALSO EMPHASIZED
THE URGENT NEED FOR ADDITIONAL INTERNATIONAL ASSISTANCE TO
DESTROY THE NERVE AGENT-FILLED ARTILLERY MUNITIONS STORED AT
SHCHUCH'YE (PLANOVY) AND KIZNER. FOR THE FIRST TIME, FRANCE
EXPRESSED INTEREST IN SUPPORTING THE SHCHUCH'YE PROJECT UNDER
THE G-8 GLOBAL PARTNERSHIP (GP). ITALY INTENDS TO PROVIDE
360 MILLION EUROS TO DESIGN AND CONSTRUCT A NEUTRALIZATION
FACILITY AT POCHEP. CZECH REPUBLIC PLANS TO CONTRIBUTE 60
THOUSAND EUROS TO SUPPORT THE ELECTRICAL SUBSTATION PROJECT
AT SHCHUCH'YE. SWITZERLAND OUTLINED PLANS TO PROVIDE 17
MILLION SWISS FRANCS OVER SIX YEARS TO RUSSIAN CWD. END
SUMMARY.

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DONORS MEETING
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2. ON 22 SEPTEMBER, SUSAN RYAN, OFFICE OF THE SECRETARY OF
DEFENSE, COOPERATIVE THREAT REDUCTION (CTR) POLICY, AND
ROBERT MIKULAK, STATE ARMS CONTROL BUREAU, PARTICIPATED IN
THE DONORS COORDINATION MEETING, CHAIRED BY AMBASSADOR AREND
MEERBURG, DUTCH MINISTRY OF FOREIGN AFFAIRS (MFA). OTHER
PARTICIPANTS INCLUDED: CANADA, CZECH REPUBLIC, EUROPEAN UNION
(EU),FRANCE, GERMANY, ITALY, JAPAN, POLAND, RUSSIAN
FEDERATION (RF),SWITZERLAND, AND THE UNITED KINGDOM (UK).
THE PURPOSE OF THE MEETING WAS TO EXCHANGE INFORMATION AMONG
CURRENT AND POTENTIAL DONORS.


3. RUSSIAN PARTICIPATION. RUSSIAN MUNITIONS AGENCY (RMA)
DIRECTOR-GENERAL (D-G) KHOLSTOV THANKED DONORS FOR THEIR
CONTRIBUTIONS TO RUSSIAN CWD EFFORTS. HE STATED THAT
CONSTRUCTION OF THE SECOND DESTRUCTION (DRILL, DRAIN, AND
NEUTRALIZE) BUILDING AT SHCHUCH'YE IS UNDERWAY. IN RESPONSE
TO A PREVIOUS REQUEST BY MEERBURG, KHOLSTOV PRESENTED AN
OVERVIEW OF THE RUSSIAN CWD PROGRAM. HIS BRIEFING INCLUDED:
ORGANIZATIONAL CHART; PRINCIPAL CWD ACTIVITIES; STEPS TO
BEGIN CONSTRUCTION OF A CWDF; PROJECTED SCHEDULE FOR
DESTRUCTION OF CATEGORY 1 CHEMICAL WEAPONS; AND PHOTOGRAPHS
RELATED TO THE CWDF SITES AT GORNIY, SHCHUCH'YE, AND
KAMBARKA. THE EU, FINLAND, GERMANY, AND THE NETHERLANDS HAVE
CONTRIBUTED TO GORNIY. KHOLSTOV PRESENTED PHOTOGRAPHS OF
RECENT PROGRESS AT SHCHUCH'YE AND CITED THE UK, ITALY,
CANADA, NORWAY, AND THE EU AS CONTRIBUTORS TO THE INDUSTRIAL
INFRASTRUCTURE AT SHCHUCH'YE. SITE PREPARATIONS AT KAMBARKA
ARE UNDERWAY. THE FEASIBILITY STUDY FOR MARADYKOVSKIY HAS
BEGUN. THE LEONIDOVKA FEASIBILITY STUDY HAS BEEN APPROVED.
THE "JUSTIFICATION OF INVESTMENT" FOR THE POCHEP FACILITY HAS
BEEN DEVELOPED. (NOTE. MEERBURG REQUESTED A COPY OF THE
BRIEFING AND ACCOMPANYING TEXT FOR DISTRIBUTION TO MEETING
PARTICIPANTS. U.S. REPS WILL PROVIDE THIS INFORMATION TO
INTERESTED PARTIES WHEN IT BECOMES AVAILABLE. END NOTE.)


4. RUSSIAN 2004 CWD FUNDING. THE CANADIAN REP, CITING A 19
SEPTEMBER 2003 INTERFAX ARTICLE ABOUT PROJECTED INSUFFICIENT
2004 RUSSIAN FUNDS FOR CWD, ASKED HOW THIS POTENTIAL DECREASE
IN FUNDING WOULD AFFECT THE CWDF CONSTRUCTION SCHEDULE.
KHOLSTOV REPLIED THAT BUDGET PLANNING FOR 2004 HAS JUST BEGUN
IN THE DUMA. HE IS TRYING TO OBTAIN "MAXIMUM" FUNDING FOR
CWD AND VOWED THAT THE 2004 BUDGET "WILL NOT BE LESS THAN THE
2003 BUDGET" FOR CWD.


5. U.S. ASSISTANCE. SUSAN RYAN ANNOUNCED THAT ON 17
SEPTEMBER 2003, KHOLSTOV SIGNED AN AMENDMENT TO A CTR CWD
IMPLEMENTING AGREEMENT THAT, ONCE SIGNED BY DOD, WOULD ALLOW
THE U.S. DOD TO OBLIGATE $60.3 MILLION IN PRIOR-YEAR CTR
FUNDS FOR SHCHUCH'YE CWDF CONSTRUCTION ACTIVITIES. (DOD
SIGNED THE AMENDMENT ON 24 SEPTEMBER.) RYAN EMPHASIZED THAT
THIS PLUS-UP WOULD RESULT IN THE U.S. HAVING OBLIGATED OVER
HALF OF THE TOTAL COST OF $887.3 MILLION FOR THE CTR
SHCHUCH'YE CWDF PROJECT. SHE ALSO HIGHLIGHTED THE CWDF
CONSTRUCTION PROGRESS OVER THE PAST SIX MONTHS AND THE URGENT
NEED FOR ADDITIONAL INTERNATIONAL ASSISTANCE TO FUND
INDUSTRIAL INFRASTRUCTURE PROJECTS COSTING A TOTAL OF OVER
$110 MILLION THAT ARE CRITICAL TO THE SUPPORT AND OPERATION
OF THE CWDF.


6. CANADA. CANADA, UNDER THE GP, PLANS TO PROVIDE
APPROXIMATELY $24 MILLION TO CONSTRUCT THE RAILROAD BETWEEN
THE PLANOVY STORAGE FACILITY AND THE SHCHUCH'YE CWDF. CANADA
ALSO PLANS TO JOIN THE UK TO FUND PART OF THE SECOND
DESTRUCTION BUILDING AT SHCHUCH'YE (TOTAL ESTIMATED COST OF
CONSTRUCTION, TRAINING, AND SYSTEMIZATION IS $175 MILLION).
IN ADDITION, CANADA WILL CONSIDER FUNDING ENHANCED PHYSICAL
SECURITY AT LEONIDOVKA AND IS AWAITING MORE DETAILED
INFORMATION FROM RMA. CANADA PLANS TO USE INITIALLY THE UK
AGREEMENT WITH THE RF AS THE FUNDING MECHANISM BUT INTENDS TO
ESTABLISH ITS OWN BILATERAL AGREEMENT ON CWD ASSISTANCE WITH
THE RF. SMITH NOTED THAT CANADA AND NUCLEAR THREAT
INITIATIVE (NTI) HAVE EXCHANGED LETTERS IN PREPARATION TO
RECEIVE NTI'S PLEDGE OF $1 MILLION TO FUND PART OF THE
RAILROAD PROJECT AT SHCHUCH'YE. HE ALSO STATED THAT ON 20
OCTOBER 2003, CANADA INTENDS TO JOIN THE INTERNATIONAL
SCIENCE AND TECHNOLOGY CENTER (ISTC) IN MOSCOW. (NOTE. SEE
PARAGRAPH 22 FOR ADDITIONAL INFORMATION ABOUT CANADIAN
ASSISTANCE. END NOTE.)


7. UK. USING PREVIOUSLY ALLOCATED FUNDING, THE UK,
PARTNERED WITH NORWAY, EU, AND CZECH REPUBLIC, IS PROVIDING
EQUIPMENT (COSTING ABOUT FOUR MILLION BRITISH POUNDS) AN
ELECTRICAL SUBSTATION THAT WILL SUPPORT THE SHCHUCH'YE CWDF.
THE UK ALSO IS SERIOUSLY CONSIDERING PARTIAL FUNDING OF THE
SECOND DESTRUCTION BUILDING AT SHCHUCH'YE. SPECIFICALLY, THE
UK PROBABLY WOULD FUND THE SECOND METAL PARTS FURNACE AT A
COST OF ABOUT $4 MILLION.


8. ITALY. ITALY, UNDER THE GP, INTENDS TO PROVIDE 360
MILLION EUROS TO FUND THE DESIGN AND CONSTRUCTION OF THE
NEUTRALIZATION FACILITY AT POCHEP. A BILATERAL AGREEMENT
WITH THE RF WILL BE SIGNED IN EARLY NOVEMBER 2003. ITALIAN
REP TRACCI URGED OTHER DONORS TO FUND SIMILAR FACILITIES AT
LEONIDOVKA AND MARADYKOVSKIY.

9. FRANCE. FRANCE WILL CONTRIBUTE A TOTAL OF 1 MILLION EUROS
IN 2003 AND 2004 FOR ENVIRONMENTAL MONITORING AT GORNIY.
FRANCE IS INTERESTED IN PROVIDING SIX MILLION EUROS FOR
ENVIRONMENTAL MONITORING AT THE SHCHUCH'YE CWDF. FRENCH REP
LEVAL ALSO REQUESTED A COPY OF THE "SHOPPING" LIST OF
AVAILABLE INDUSTRIAL INFRASTRUCTURE PROJECTS AT SHCHUCH'YE.
(NOTE. SEE PARAGRAPHS 20 AND 21 FOR ADDITIONAL INFORMATION
RELATED TO FRENCH ASSISTANCE. END NOTE.)


10. SWITZERLAND. THE SWISS ARE WORKING WITH THE RF TO
CONCLUDE A BILATERAL AGREEMENT TO PROVIDE 17 MILLION SWISS
FRANCS OVER SIX YEARS FOR CWD ASSISTANCE. SWISS-FUNDED
PROJECTS INCLUDE: UP TO 470 THOUSAND EUROS FOR "HEALTH
MONITORING" AT SHCHUCH'YE; IMPLEMENTATION OF PUBLIC OUTREACH
(GREEN CROSS) OFFICES AT LEONIDOVKA, MARADYKOVSKIY, AND
POCHEP; AND, WORKING WITH THE DUTCH ON A PROJECT FOR
KAMBARKA. (NOTE. ON THE MARGINS SWISS REP INDICATED THAT A
DEFINITIVE DECISION ABOUT FUNDING SHCHUCH'YE INDUSTRIAL
INFRASTRUCTURE WOULD BE FORTHCOMING. END NOTE.)


11. GERMANY. GERMANY REITERATED ITS PLANS TO PROVIDE 24
MILLION EUROS IN 2003 FOR "TECHNICAL EQUIPMENT" FOR KAMBARKA.


12. JAPAN. JAPAN REITERATED THAT IT PLANS TO PROVIDE GP
ASSISTANCE ONLY FOR THE DISMANTLEMENT OF RUSSIAN NUCLEAR
SUBMARINES.


13. EU. THE EU INTENDS TO PROVIDE FOUR MILLION EUROS FOR
EQUIPMENT AT KAMBARKA.

14. CZECH REPUBLIC. THE CZECHS HAVE COMMITTED 60 THOUSAND
EUROS TO FUND EQUIPMENT RELATED TO THE ELECTRICAL SUBSTATION
PROJECT AT SHCHUCH'YE. CZECH REPUBLIC PLANS TO USE THE UK
AGREEMENT WITH THE RF AS PRAGUE'S FUNDING VEHICLE. ACCORDING
TO STEFKOVA, THE AGREEMENT SHOULD BE SIGNED IN ABOUT ONE
MONTH.


15. NETHERLANDS. THE DUTCH CONTINUE TO CONSIDER A RUSSIAN
PROPOSAL TO PROVIDE POWER FOR KAMBARKA.


16. POLAND. POLISH REP PASTUREJ REITERATED HIS PLEA FOR
INTEREST IN FUNDING POLAND'S TECHNOLOGY FOR SAFELY PROCESSING
ARSENIC-CONTAINING WASTE FROM LEWISITE DESTRUCTION.


17. OPCW PARTICIPATION IN DONORS COORDINATION MEETINGS.
DURING THE SUMMER MEERBURG INFORMED MEETING PARTICIPANTS OF A
REQUEST TO INVITE A REPRESENTATIVE FROM THE TECHNICAL
SECRETARIAT (TS) TO THE DONORS MEETINGS. (OVER THE PAST

SIPDIS
SEVERAL YEARS, THE U.S. HAS OPPOSED PREVIOUS ATTEMPTS TO
INCLUDE THE TS IN DONORS' COORDINATION FORA.) US REP MIKULAK
NOTED THAT THE TS PARTICIPATES IN A VARIETY OF CWD MEETINGS,
SUCH AS THE INFORMAL DESTRUCTION MEETINGS PRIOR TO EACH EC
AND THE NONPROLIFERATION DISARMAMENT COOPERATION INITIATIVE
(NDCI) CONFERENCES. HE EXPLAINED THAT IT IS IMPORTANT TO
PRESERVE THE CHARACTER OF THE DUTCH-LED DONORS MEETINGS BY
INVITING ONLY DONORS AND POTENTIAL CONTRIBUTORS. ITALY
CONCURRED WITH THE U.S. POSITION. MEERBURG AGREED TO RETAIN
THE CURRENT INVITEES.


18. NEXT DUTCH-LED DONORS MEETING. THE NEXT DUTCH-LED
DONORS MEETING WILL BE IN THE HAGUE ON 1 DECEMBER 2003.


19. INTERNATIONAL CWD CONFERENCES IN 2004. JAMES HARRISON,
UKMOD, ANNOUNCED THAT THE NEXT NDCI CONFERENCE WILL BE HELD
ON 4-5 MARCH IN LONDON. HE ALSO STATED THE UKMOD-HOSTED CWD
CONFERENCE WILL CONVENE DURING THE WEEK OF 22 MAY IN ST.
PETERSBURG, RUSSIA.

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SIDE MEETINGS
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20. FRANCE. ON 23 SEPTEMBER, HENRI LEVAL MET RYAN TO DISCUSS
POTENTIAL FRENCH CONTRIBUTIONS, UNDER THE GP, TO SHCHUCH'YE.
LEVAL EXPLAINED THAT FRANCE IS INCLINED TO ASSIST WITH
PROJECTS THAT ARE MORE RELATED TO CHEMICAL WEAPONS
DESTRUCTION ITSELF. FRANCE HAS NO EXPERIENCE IN RUSSIA CWD,
THEREFORE, IS UNCERTAIN ABOUT HOW TO ASSIST THE RF WITH ITS
CWD. FRANCE WOULD CONSIDER PROVIDING BETWEEN 50-100 MILLION
EUROS OVER 10 YEARS UNDER THE GP FOR RUSSIAN CWD. FRANCE
INTENDS TO PROVIDE SIX MILLION EUROS IN 2003 AND 2004 FOR
ENVIRONMENTAL MONITORING AT SHCHUCH'YE. FURTHERMORE, FRANCE
IS INTERESTED IN FUNDING INDUSTRIAL INFRASTRUCTURE PROJECTS
AT SHCHUCH'YE. LEVAL INDICATED THAT FRANCE WOULD REQUEST
CONSULTATIONS WITH U.S. EXPERTS ON SHCHUCH'YE ASSISTANCE
AFTER PARIS HAS FURTHER CONSIDERED POTENTIAL PROJECTS. RYAN
NOTED THAT A LETTER, ENCOURAGING FRENCH GP ASSISTANCE FOR
SHCHUCH'YE, FROM DOD TO THE FRENCH MINISTRY OF DEFENSE MAY BE
FORTHCOMING.


21. FRENCH INSIGHTS ABOUT KIZNER. DURING MARCH 2003 DONORS
MEETINGS, FRANCE HAD INDICATED SERIOUS INTEREST IN HELPING TO
FUND SECURE TRANSPORTATION OF INTACT CHEMICAL WEAPONS FROM
THE KIZNER STORAGE FACILITY TO THE SHCHUCH'YE CWDF. LEVAL
SUBSEQUENTLY VISITED KIZNER (DURING PAK'S TENURE AS RMA D-G)
AND NOTED WITH INTEREST THAT THE RUSSIANS NEVER MENTIONED
THAT THE U.S. WAS PROVIDING PHYSICAL SECURITY IMPROVEMENTS TO
THE KIZNER FACILITY. (IN MARCH 2003, RYAN TOLD LEVAL THAT
DOD WAS PROVIDING ABOUT $10 MILLION IN CTR ASSISTANCE TO
UPGRADE KIZNER'S PHYSICAL SECURITY.) ON 1 JULY 2003, RMA
DEPUTY D-G KULEBYAKIN TOLD LEVAL THAT RMA WAS NO LONGER
INTERESTED IN FRENCH ASSISTANCE WITH THE TRANSPORTATION OF
KIZNER STOCKS. LEVAL WAS SURPRISED BUT COMMENTED TO RYAN
THAT HE FELT RMA ONLY WANTED FRANCE'S MONEY AND DID NOT WANT
TO WORK IN A COOPERATIVE MANNER.


22. UK AND CANADA. UK REPS MENTIONED THEIR INTENTION TO
PURSUE NORWAY FOR CWD ASSISTANCE UNDER THE GP. CANADIAN REP
INDICATED A STRONG POSSIBILITY THAT CANADA MAY BE ABLE TO
CONTRIBUTE A SURPLUS $1.5 MILLION IN ITS 2003 BUDGET FOR
EQUIPMENT TO SUPPORT THE SHCHUCH'YE CWDF. THE SURPLUS FUNDS
WILL EXPIRE ON 31 MARCH 2004. RYAN PROMISED TO PROVIDE
FUNDING SUGGESTIONS. CANADIAN AND UK REPS PLAN TO MEET WITH
CTR EXPERTS NEXT MONTH IN OTTAWA TO CONDUCT FURTHER
DISCUSSIONS RELATED TO SHCHUCH'YE.


23. JAVITS SENDS.
SOBEL