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