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