S&T VICE MINISTER ON CONVERSION OF VIETNAM'S REACTOR AND

UNCLAS SECTION 01 OF 02 HANOI 002163

SIPDIS

STATE FOR EAP/MLS; EB; EB/ESC/IEC (GALLOGLY)
USDOE FOR MENDELSOHN and NNSA BOLSHINSKY

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: KNNP ENRG TRGY KIPR VM
SUBJECT: S&T VICE MINISTER ON CONVERSION OF VIETNAM'S REACTOR AND
REMOVAL OF FRESH FUEL


HANOI 00002163 001.2 OF 002


THIS CABLE IS SENSITIVE BUT UNCLASSIFIED. DO NOT POST ON THE
INTERNET

Ref: A) State 134613 B) State 134577 C) Hanoi 2102


1. (SBU) Summary. During an August 23 meeting with Science and
Technology Vice Minister (VM) Tran Quoc Thang, the Ambassador
strongly encouraged Vietnam to approve DOE's proposal for converting
the Dalat experimental reactor's fuel from highly enriched uranium
to low enriched uranium. He pushed for prompt conclusion of the two
related agreements on assistance and implementation before President
Bush's visit in November. While VM Thang expressed full support for
the conversion project, he said he still has to address concerns
about timing and safety and also must defend it before the National
Safety Council. The MFA is also reviewing the two proposed
agreements. The Ambassador also reiterated our hope that Vietnam
will sign the IAEA Additional Protocol and urged the VM to ensure
that Vietnam incorporates strong implementing IPR guarantees into
the new intellectual property law's implementing regulations. End
summary.

Dalat Reactor Conversion
--------------


2. (SBU) The Ambassador called on Vice Minister Tran Quoc Thang of
the Ministry of Science and Technology (MOST) on August 23 to
deliver Ref A's points regarding the conversion of Vietnam's
research reactor and removal of Russian-origin fresh and spent fuel
under proposed nonproliferation assistance agreements. He also
delivered the English text and the Embassy's informal Vietnamese
translation of the related letter (Ref B). The Ambassador
underscored the scientific as well as political importance of
agreeing on the conversion project and concluding the two required
agreements prior to President Bush's visit in November.


3. (SBU) The Vice Minister described favorably the several previous
meetings MOST has had with the U.S. Department of Energy (DOE).
MOST supports the conversion program and wants to see it realized as
soon as possible. The Ministry needs to consider more carefully two
issues, however, he explained. First, MOST is still working to
develop a comprehensive plan for the fuel conversion project.
Second, they need to address safety issues concerning the timing of
the conversion and the transportation of the fuel rods. MOST had
wanted to carry out the conversion project in September since eight
of the 114 fuel rods will have reached the end of their normal
use-life at that time. That timeline is no longer practical. In
addition, MOST is exploring how to transport safely the fuel rods
between Ho Chi Minh City and Dalat. The airport in Dalat is too
small to accommodate Russian aircraft. Ground transportation is
also problematic because of the poor conditions of the winding
roads, as well as the mountainous terrain. MOST needs to present
the project before the National Safety Council and defend and
justify the project. This could prove difficult, Thang predicted.
In the meantime, the MFA is reviewing the two proposed agreements on
assistance and implementation.


4. (SBU) The Vice Minister reiterated that he supports support the
conversion program because it is fully in line with Vietnam's
strategy for the peaceful use of nuclear energy. He called the
Ambassador's visit a lucky coincidence because he will use the
meeting in presenting his case for the proposal. He pledged to
continue to work hard on the conversion project and promised that
his ministry will have more contact with DOE before President Bush's
visit. The VM also promised to reply to the letter contained in Ref

B.


5. (SBU) The Ambassador encouraged VM Thang to consider the
possibility of other options. For example, is the September date
for the swap out of the fuel rods fixed or can it be postponed?
Also, are there alternative ways to address the transportation
issue, such as using a different type of aircraft? Lastly, the
Ambassador again emphasized the absolute requirement for the
conclusion of the two agreements put forth by DOE in order to
cooperate with the United States on these projects. He noted that
the signing of the two agreements before the President's November
visit could also be seen as a major step forward in our cooperation.
We should continue working to finalize those agreements as soon as
possible.

IAEA Additional Protocol
--------------


7. (SBU) The Ambassador also reiterated U.S. interest in seeing
Vietnam sign the International Atomic Energy Agency Additional
Protocol to demonstrate its commitment to combating nuclear

HANOI 00002163 002.2 OF 002


proliferation (Ref C). He noted that APEC members had agreed on the
importance of signing the Additional Protocol at the APEC Santiago
Leaders Meeting in 2004. He offered U.S. assistance to aid
Vietnam's consideration of the Additional Protocol, if needed.
Thang said he was assigned by the GVN to be in charge of researching
and drafting the Additional Protocol. MOST is still studying issues
involved, such as resources, personnel and legal issues, he
concluded.

Intellectual Property Rights
--------------


8. (SBU) Lastly, the Ambassador raised MOST's role in coordinating
the drafting of implementing regulations for the new intellectual
property (IP) law and making sure they are consistent with WTO
commitments and in place before WTO accession. The Vice Minister
replied that the new intellectual property law came into effect on
July 1 and acknowledged the GVN still has a lot to do to prepare
decrees that will provide guidance on the law. MOST is working hard
on this implementation. By the end of the year, he predicted that
some of the implementing decrees on this subject will be published.
What is difficult is having a legal framework that is both suitable
to the conditions of Vietnam and also compatible with international
practice. Intellectual property issues are complicated for
developing countries, VM Thang noted.

MARINE