UPDATE REQUESTED: AGREEMENT FOR COOPERATIONS

C O N F I D E N T I A L ANKARA 007390 SIPDIS E.O. 12958: DECL: 12/12/2015 TAGS: ECON ENRG KNNP PARM TRGY TU SUBJECT: UPDATE REQUESTED: AGREEMENT FOR COOPERATIONS CONCERNING PEACEFUL USES OF NUCLEAR ENERGY REF: A. ANKARA 2397 ¶B. ANKARA 3789 ¶C. ANKARA 6248 ¶D. ANKARA 7023 Classified By: Deputy Chief of Mission Nancy McEldowney, reason 1.4 b/d . ¶1. (U) This is an Action Cable. See para 8. ¶2. (U) Summary: The Government of Turkey continues to seek information concerning the status of the ratification of the Agreement for Cooperation Concerning the Peaceful Uses of Nuclear Energy. The lack of any information is having a negative effect on the participation of U.S. industry involvement in possible construction of nuclear power plants in Turkey. GOT officials have already spoken to representatives from companies in France, Canada and South Korea and have are in the process of scheduling meetings with Russian representatives. End Summary. ¶3. (U) The Government of Turkey continues to seek information concerning the status of the ratification of the Agreement for Cooperation Concerning the Peaceful Uses of Nuclear Energy. This Agreement, originally signed in July 2000, has been awaiting ratification by the United States. The Republic of Turkey completed its ratification of the Agreement on January 14 and formally notified the Embassy in April, at the same time requesting information concerning the United States ratification (ref a). No formal response to this request has been provided to the GOT. The lack of this Agreement was a factor in the failed attempt for early return of highly enriched uranium fuel assemblies earlier this year and the inability of the GOT to include U.S. firms in their planning for possible future nuclear power plants (ref b). ¶4. (C) During a late September 2004 visit, U/S Joseph discussed the Agreement for Cooperation Concerning Peaceful Uses of Nuclear Energy informing representatives of the Government of Turkey that he was aware of the hold-up on the agreement and noted that it must be approved by the U.S. Congress to allow U.S. companies to participate in the Turkish market. U/S Joseph also noted that the Agreement should move forward to Congress soon after the agreed progress on nonproliferation efforts occurred (ref c). ¶5. (C) In early December, a team led by the State Department visited Turkey to discuss nonproliferation issues (ref d). It is believed by the GOT that sharing of information during this visit fulfilled the conditions stated by U/S Joseph and cleared the way for the Agreement to move forward to Congress. ¶6. (U) During a December 8 discussion with EXBS Advisor, Turkish Atomic Energy Authority (TAEK) President Okay Cakiroglu inquired into the status of the United States ratification process of the Peaceful Uses Agreement. Cakiroglu reiterated that Turkey is proceeding with its plans to investigate and construct several nuclear power plants and stated that he has already had meeting with representatives from France, Canada and South Korea. He also was planning to meet with Russian representatives. Cakiroglu stated again that Westinghouse and GE have what he feels are the best fit for the needs of Turkey, however he cannot discuss this with them without the Agreement. Cakiroglu added that the future energy needs of Turkey does not allow them to delay the investigation into nuclear power due to the length of time for construction and other issues. He is hopeful that the United States will move forward with ratification of the Agreement as they have done for other countries. ¶7. (U) The Turkish press reported on December 13, that the GOT is planning to announce by the end of January its decision to construct 3-5 nuclear power plants capable of producing 5,000 Megawatts of power. Various options for funding are being explored including private sector, initial public offer (IPO) or through syndicated loans. A source close to the government is quoted as saying that Turkey might build five nuclear plants. ¶8. (U) Action request: Post requests status of the ratification process for the Agreement for Cooperation between the Republic of Turkey and the United States of America concerning Peaceful Uses of Nuclear Energy, including the expected timing for ratification, and reiterates its request for talking points addressing the delay. WILSON