Identifier
Created
Classification
Origin
06BERLIN3030
2006-10-18 16:57:00
CONFIDENTIAL
Embassy Berlin
Cable title:  

GERMAN MFA BRIEFING ON FUEL CYCLE INITIATIVE

Tags:  ETTC KNNP MNUC PARM PREL TRGY IAEA GM 
pdf how-to read a cable
VZCZCXYZ0022
PP RUEHWEB

DE RUEHRL #3030/01 2911657
ZNY CCCCC ZZH
P 181657Z OCT 06
FM AMEMBASSY BERLIN
TO RUEHC/SECSTATE WASHDC PRIORITY 5694
INFO RUEHLO/AMEMBASSY LONDON PRIORITY 7556
RUEHFR/AMEMBASSY PARIS PRIORITY 8078
RUEHTC/AMEMBASSY THE HAGUE PRIORITY 1083
RUEHOT/AMEMBASSY OTTAWA PRIORITY 0923
RUEHBY/AMEMBASSY CANBERRA PRIORITY 0631
RUEHMO/AMEMBASSY MOSCOW PRIORITY 1654
RUEHKL/AMEMBASSY KUALA LUMPUR PRIORITY 0073
RUEHSA/AMEMBASSY PRETORIA PRIORITY 0219
RUEHBR/AMEMBASSY BRASILIA PRIORITY 0251
RUEHBU/AMEMBASSY BUENOS AIRES PRIORITY 0183
RUEHBS/USEU BRUSSELS PRIORITY
RUEHUNV/USMISSION UNVIE VIENNA PRIORITY 0228
C O N F I D E N T I A L BERLIN 003030 

SIPDIS

SIPDIS

DEPT FOR T, ISN, AND EUR

E.O. 12958: DECL: 10/16/2016
TAGS: ETTC KNNP MNUC PARM PREL TRGY IAEA GM
SUBJECT: GERMAN MFA BRIEFING ON FUEL CYCLE INITIATIVE
PROPOSAL

REF: A. BERLIN 2976


B. UNVIE 741

Classified By: EMIN Robert F. Cekuta for reasons 1.4
(b) and (d).

C O N F I D E N T I A L BERLIN 003030

SIPDIS

SIPDIS

DEPT FOR T, ISN, AND EUR

E.O. 12958: DECL: 10/16/2016
TAGS: ETTC KNNP MNUC PARM PREL TRGY IAEA GM
SUBJECT: GERMAN MFA BRIEFING ON FUEL CYCLE INITIATIVE
PROPOSAL

REF: A. BERLIN 2976


B. UNVIE 741

Classified By: EMIN Robert F. Cekuta for reasons 1.4
(b) and (d).


1. (C) German MFA Deputy Office Director for Nuclear
Nonproliferation and International Energy Dietrich Becker
briefed Global Affairs officer October 17 on FM Steinmeier's
proposed Fuel Cycle Initiative. The initiative, first
presented at the IAEA General Conference in September (ref
B),proposes creating an extraterritorial commercial
enrichment center under the supervision of the IAEA (ref A).
Becker said the goal of the initiative is to create an
attractive and less expensive alternative for countries that
are considering pursuing enrichment technology. Becker
stressed the German proposal would work against the spread of
enrichment technology and prevent technology transfer by
operating the plant as a black box. Becker said a key
objective of the German proposal is to address the concerns
of "countries that might not trust the West."

--------------
International Reaction
--------------


2. (C) Becker described German outreach efforts to date,
noting most countries had responded as expected:

-- Argentina reacted negatively, stating any step toward
multilateralization of the fuel cycle plays into the hands of
those who want countries to renounce enrichment. Despite its
opposition, Argentina said it would not oppose the initiative
if there was overwhelming support from other countries.

-- Brazil also reacted negatively, but said it would not
oppose it in the face of overwhelming agreement and support.
Brazil expressed interest in bidding to provide technology
needed to construct the plant should the proposal be adopted.

-- South Africa reacted positively and expressed interest in
hosting the extraterritorial enrichment facility.

-- Malaysia reacted negatively, but did not provide a
detailed response.

-- Russia expressed interest, but stopped short of endorsing
the proposal. (Note: Becker acknowledged the German
proposal is a potential competitor with Russian President
Putin's proposal for an International Fuel Cycle Center.
Becker said while Germany agrees the primary advantage of the
Russian proposal is its short startup timeframe, it does not
yet see Russia as a reliable provider of fuel. Becker also
cited German concerns that Russian technology might not meet
minimum safety and environmental standards. Becker said
Germany would not publicly criticize the Russian proposal,
but does not see it as a feasible alternative. End Note)

-- Australia and Canada both expressed interest in the
proposal but noted the issue of flag rights would have to be
addressed.

-- France reacted positively.

--------------
Germany Seeks U.S. Input / Role
--------------


3. (C) Becker said Germany will continue to refine the
proposal in close consultation with the UK and the
Netherlands (Germany's URENCO partners). Becker noted German
Embassy officials had briefed the Department on the proposal
and said Germany stands ready to discuss all details and
address U.S. concerns. Becker said Germany hopes the United
States will "backstop" German efforts to advance the proposal
in much the same way it consulted on and supported EU-3
negotiations with Iran.


4. (C) Becker conceded the proposal would likely require
giving the IAEA -- which would have responsibility for
supervising the extraterritorial enrichment facility --
authority to control exports of low-enriched uranium. Becker
suggested the IAEA BOG or General Conference might agree on
criteria that mid-level IAEA officials would use to determine
whether to approve export of low-enriched uranium to a
country that had signed a contract with the plant. Becker
said mechanisms would have to be established for BOG
intervention in the event a country violates the criteria.
Becker added Germany is open to discussing alternatives and
reiterated the plant would not export weapons-grade uranium
or enrichment technology.
KOENIG