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