GERMAN NONPROLIFERATION PRIORITIES INCLUDE G-8

C O N F I D E N T I A L BERLIN 002976

SIPDIS

SIPDIS

DEPT FOR T, ISN, SCA, AND EUR

E.O. 12958: DECL: 10/10/2016
TAGS: ETTC KNNP MNUC PARM PREL TRGY KGIT IAEA IN GM
SUBJECT: GERMAN NONPROLIFERATION PRIORITIES INCLUDE G-8
GLOBAL PARTNERSHIP AND PROMOTING FUEL CYCLE INITIATIVE

REF: A. UNVIE 741


B. BERLIN 2934 AND PREVIOUS

C. BERLIN 2506

Classified By: Global Affairs Counselor Donald R. Shemanski
for reasons 1.4 (b) and (d).


1. (C) Summary: German MFA Office Director for Nuclear
Nonproliferation, International Energy, and Nuclear Energy
Policy Thomas Meister told Global Affairs Counselor October 6
that Germany is still in the process of formulating
nonproliferation priorities for its G-8 Presidency, but will
focus in part on advancing the G-8 Global Partnership Against
the Spread of Weapons and Materials of Mass Destruction.
Meister said Germany would also use FM Steinmeier's new fuel
cycle initiative to foster discussion within the
international community on providing incentives for countries
to voluntarily choose not to pursue enrichment and
reprocessing. Meister said Germany would like the IAEA and
EU to play more significant roles in the Global Initiative
Against Nuclear Terrorism. On civil nuclear cooperation with
India, Meister said Germany would like to see India take
concrete steps to demonstrate its commitment to
nonproliferation. End Summary.

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G-8 Nonproliferation Planning Underway
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2. (C) Meister said Germany is working internally to
formulate nonproliferation priorities for its G-8 Presidency,
but speculated that any nonproliferation initiatives would
fall under the umbrella of Germany's broader disarmament
agenda. Meister said Germany will focus in part on
completing a mid-term review of the G-8 Global Partnership
Against the Spread of Weapons and Materials of Mass
Destruction. Noting some countries have not yet moved beyond
completion of initial memoranda of understanding, Meister
said Germany will work to energize partners to fulfill
commitments made in 2002. Meister said Germany is pleased
with its progress to date on Global Partnership projects to
modernize Russia's infrastructure for the physical protection
of nuclear materials and construction of facilities for the
secure storage of reactor compartments removed from
decommissioned Russian nuclear submarines.

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FM Steinmeier's Fuel Cycle Initiative
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3. (C) Meister said Germany will also focus on advancing FM
Steinmeier's new fuel cycle initiative. Steinmeier first
proposed the initiative in a September 18 article in the
German newspaper "Handelsblatt." Meister explained the
proposal is meant to complement the Six-Country Concept for a
Multilateral Mechanism for Reliable Access to Nuclear Fuel
proposed by the USG, UK, France, the Netherlands, Russia, and
Germany (ref A). The German proposal envisions the creation
of an enrichment plant to be operated under the supervision
of the IAEA in a small extraterritorial area which would be
under IAEA control. The IAEA would invite bids to construct
an enrichment plant on the territory, which would be run on a
commercial basis and operate as a competitor in the world
market. As the sole condition of delivery, the IAEA would
require states to guarantee the fuel supplied would be used
for peaceful purposes, subject to safeguards. The German
proposal calls for the plant to be operated as a black box to
prevent technology transfer.


4. (C) Meister said the extraterritorial nature of Germany's
fuel cycle initiative would address NAM concerns about
Western countries' involvement in earlier enrichment and
reprocessing proposals. The German initiative would not
require countries to cancel their own enrichment programs,
but would provide a less expensive alternative to pursuing
enrichment on their own. Meister said the proposal was not
specifically related to Iran, but would help to avoid similar
situations in the future. Meister conceded the German
proposal is an ambitious exercise and noted its primary
intent is to foster further discussion on providing
incentives for countries to voluntarily choose not to pursue
enrichment and reprocessing.


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Global Initiative
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5. (C) Meister said Germany welcomes the Global Initiative to
Combat Nuclear Terrorism (GI) and expressed appreciation for
the September visit of a U.S. delegation to German to
introduce the Initiative (ref B). Meister said a primary
goal of the German interagency review of GI draft documents
currently underway is to ensure the Initiative adds value to
the international nonproliferation regime. Meister noted the
GI is, in many ways, similar to the Proliferation Security
Initiative (PSI). Meister reiterated Germany's commitment to
PSI, but said important philosophical differences have not
yet been resolved. Meister stated Germany would like to see
the IAEA participate in the GI as more than an observer. As
with PSI, Meister said, Germany would suggest a greater role
for the EU.

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Civil Nuclear Cooperation with India
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6. (C) Meister said Germany remains skeptical that civil
nuclear cooperation with India will strengthen the
international nonproliferation regime and would like India to
demonstrate its commitment to nonproliferation by agreeing to
a moratorium on fissile material production or signing the
CTBT. He noted Germany is watching developments in Congress
closely and looks forward to a planned briefing on Indian
actions and views on the margins of the October NSG
Consultative Group meeting in Vienna. (NOTE: Meister will
head the German delegation to the NSG Consultative Group
meeting. END NOTE). Meister said Germany and India have a
strong relationship, citing bilateral efforts to expand trade
and build a strategic partnership on energy and other issues.
Meister noted Germany and India signed a defense cooperation
agreement in early September. The agreement reportedly calls
for joint training, technology transfers, and co-production
of high-tech military hardware.

TIMKEN JR