ITER: SPAIN DEMARCHED ON ITER FINANCING

C O N F I D E N T I A L MADRID 004788 SIPDIS DEPARTMENT FOR EUR/ERA, EUR/WE, STAS, EAP/J, AND OES/SAT; PASS TO DEPARTMENT OF ENERGY (MCSLARROW AND ORBACH) E.O. 12958: DECL: 12/21/2014 TAGS: PREL TRGY SP EUN SUBJECT: ITER: SPAIN DEMARCHED ON ITER FINANCING REF: A. SECSTATE 268243 ¶B. MADRID 4486 AND PREVIOUS Classified By: ESTHOFF KEN FORDER PER 1.4 (B/D) ¶1. (C) ESTHOFF passed Ref A points and letter December 20 to Science Ministry Technology Policy Director General Carlos Alejaldre Losilla, reiterating U.S. support for Japan's ITER proposal, noting U.S. concerns regarding lack of clarity in the EU's ITER proposal, and underscoring our commitment to the six-party framework. Alejaldre, who reaffirmed Spain's strong commitment to the six-party framework, said he viewed developments over the past four weeks (i.e., since he had last met with ESTHOFF to discuss ITER -- see Ref B) as a mixture of good and bad news. ¶2. (C) As for the bad news, Alejaldre said he was starting to doubt whether the EU could seal a deal with Japan based on the Japanese host/no-host proposal. He attributed his growing doubts to alleged Japanese intransigence. On the positive side of the ledger, Alejaldre said that he believed incoming Commissioner Potocnik was less pro-French than his predecessor and more committed to the six-party framework. ¶3. (C) Alejaldre indicated that he was virtually certain that the EU's Competitiveness Council would miss its December 31 deadline for an ITER decision (noting that late December in Europe was like August -- nothing gets done). He said that the Council would next meet on March 7-8 and that Spain understood that the EU's complete financing package would be released at that meeting. That said, Alejaldre thought Commissioner Potocnik would respond to DOE Deputy Secretary McSlarrow's letter early next year and that the response would address the U.S.'s concerns by previewing the general parameters of the EU ITER financing scheme. MANZANARES