POLAND DELIVERS NON-PAPER ON ENERGY SECURITY TREATY

UNCLAS SECTION 01 OF 04 WARSAW 000312

SIPDIS

SENSITIVE

STATE FOR EUR A/S DFRIED, DAS MPEKALA, DAS MBRYZA, E,
EUR/NCE, EUR/ERA, EUR/RPM, EB/ESC
EUR/NCE FOR DKOSTELANCIK AND MSESSUMS
EB/ESC FOR SGALLOGLY AND RGARVERICK
DOE FOR LEKIMOFF
USDOC FOR 4232/ITA/MAC/EUR/JBURGESS, MWILSON, JKIMBALL
TREASURY FOR OASIA MATTHEW GAERTNER

E.O. 12958: N/A
TAGS: OPDC ENRG ECON EU PL NATO
SUBJECT: POLAND DELIVERS NON-PAPER ON ENERGY SECURITY TREATY

REF: A. WARSAW 148


B. WARSAW 175

C. WARSAW 176

SENSITIVE BUT UNCLASSIFIED -- NOT FOR INTERNET DISTRIBUTION


1. (SBU) Summary: Late Friday, February 24 the office of
Prime Minister Marcinkiewicz delivered a letter addressed to
President Bush with an accompanying non-paper outlining
Poland's proposed European Energy Security Treaty. An
unofficial translation of the letter to President Bush is
included in para 2, the english version of the non-paper in
para 3. PM Marcinkiewicz originally proposed a European
Energy Security Treaty in January following the Russian
cut-off of gas to Ukraine. Deputy Minister of Energy Naimski
broadly discussed the goals of the treaty with EUR A/S Fried
and DOD A/S Fluory during the U.S.-Poland Strategic Dialogue
meeting on January 25. This is the first detailed information
post has received on Poland's proposed treaty. End Summary.


2. (SBU) Unofficial translation of letter from Prime
Minister Kazimierz Marcinkiewicz to President George W. Bush.


BEGIN TEXT:

Your Excellency,

In relation to the currently held discussions concerning
energy security in Europe, I would like to present you with a
copy of Poland's non-paper on the Outline of the European
Energy Security Treaty.

The aim of our initiative is to enact a new and simple treaty
between the Member States of the European Union and the North
Atlantic Treaty Organization, that would give our citizens an
enhanced security of energy supplies to their homes and
companies.

I would appreciate receiving from you your comments and
opinions on this matter.

This letter, together with the attached non-paper has been
forwarded to all the Heads of Government of the European
Union and NATO.

Respectfully yours,

Kazimierz Marcinkiewicz

END TEXT.


3. (SBU) Poland's Non-Paper: Outline of the European Energy
Security Treaty.

BEGIN TEXT:

--------------
Introduction
--------------

The European Energy Security Treaty (EEST) will be the first
political instrument linking states in the area of mutual
energy security guarantees. The need for the Treaty stems
from the contemporary experiences of world interdependence,
wherein the difficulties of one country are immediately
reflected in neighboring states. The progressing
interdependence of the energy systems of European Union
Member states, emerging simultaneously with the common
electricity and natural gas markets, dramatically underlines
the need for political solidarity in this field.

The negative impact of this kind of interdependence affecting
European states was recently exemplified by disagreements
concerning supplies of natural gas between Ukraine and Russia
(2006),Belarus and Russia (2004),technical deficiencies in
the electricity systems between Switzerland and France,
resulting in a blackout in northern Italy (2003). Natural
disasters, terrorist activity and grid failures may cause
energy problems in neighboring countries. In such
situations, we need to have a mechanism that would allow us
to assist the countries affected in a fast, effective and
coordinated manner. This mechanism could be based on a
political agreement that would imply mutual security
guarantees, modeled on the guarantees at the root of the
Western European Union (provided by the modified Brussels
Treaty) as well as NATO (provided by the Washington Treaty).

The immediate aim of the EEST is to raise the level of the
Parties' energy security. This can only be achieved through
the creation of a political space, wherein all the
participating Parties would develop their own systems of
energy security (different types of power plants and
electricity transmission lines, oil and natural gas
pipelines, oil and natural gas maritime ports, storage
facilities, transmission system interconnectors, development
of renewable energy sources, capital strengthening of
domestic companies active in this field, etc.). For today,
potential political pressure exerted with the use of energy
instruments, as well as natural disasters or terrorist acts,
can fundamentally hamper or even prevent the achievement of
long term objectives.

The geographic situation and the structure of energy
consumption and production of European states determine the
kinds of dependencies to which they are subjected. Thus, we
achieve a basic synergy stemming from a shared interest in
building a system of mutual energy security. In other words,
the requirement of energy security exists regardless of
geographic situation or kinds of energy dependencies. This
is one of the most fundamental premises of the EEST.

In the mid-term, the EEST will permit steady growth of
national energy security systems, including the development
of interconnectors between the Parties, that will take place
in a political environment more stable than today.

The EEST should have the long-term goal of ensuring energy
supply stability to all the States-Parties of the EEST and to
the entire area of the EEST. The energy situation of the
Parties and the entire EEST area will be considered secure
once the Parties and the entire EEST area achieve
diversification in:

- The kinds of energy consumed and their sources;
- The kinds of energy imported and their sources;
- Physical connections to the sources of supply and sources
of energy imported.

Current international arrangements do not provide a legal
basis for the mutual granting of energy security guarantees
by states wishing to do so within a multilateral framework.
Neither the European Union, nor the European Community
provides such a basis. NATO is not properly equipped in this
respect, either: the Parties to the Washington Treaty are
required to grant each other mutual assistance in a situation
of armed attack. In this context, it is the intent of the
EEST to enhance the internal cohesion and solidarity of its
Parties in the field of their individual energy security as
well as the energy security of the entire area of the EEST.

-------------- --------------
Basic Elements for the European Energy Security Treaty
-------------- --------------


1. The EEST will refer to the right of European nations to
enjoy stable supplies of energy (FOOTNOTE 1: The UN Charter
stipulates in Art 1.3: "The Purposes of the United Nations
are: (...) To achieve international co-operation in solving
international problems of an economic (...) character..." END
FOOTNOTE.),based on market relations between economic
entities in the fields of energy provision, namely its
extraction, import, transmission and transportation, storage,
processing, distribution and trade. It will invoke the
political solidarity linking the Euro-Atlantic community.
Participation in the EEST will require a country's commitment
to cooperate in bringing assistance to a Party affected by
restrictions in energy supplies, and to build and develop the
necessary organizational and technical infrastructure
designed to permit such cooperation.


2. The EEST will be based on the rules of public
international law. It will draw on the political and legal
reality of the European Union and the North Atlantic Treaty.

The criteria of participation: the EEST will be open to all
Member States of either the European Union or NATO.

However, if not all EU Member States opted to participate in
the EEST, the EEST could be enacted in the mode of the Prum
Convention, agreed in 2005 between a limited number of
States-Parties to the Schengen system. Though not a EU
Member State, Norway participates in the latter.

The EEST formula not embracing all EU Member States would
mean that the countries initially outside the EEST could join
it at a later stage, provided that they committed themselves
"to cooperate in bringing assistance to a Party affected by
restrictions in energy supplies, and to build and develop the
necessary organizational and technical infrastructure
designed to permit such cooperation" (point1) and fulfilled
the acquis developed until then.


3. The EEST would contain a basic clause elaborating mutual
energy security guarantees, under which the Parties would be
obligated to grant each other mutual assistance in the event
of a threat to their energy security from natural or
political causes.

The Treaty commitments should contain a clause with the
Parties undertaking that a threat to the energy security of
one of them will be considered a threat to the energy
security of all of them. Consequently, in the event of a
threat to the energy security of one or more of them, the
other Parties - acting together or separately - will afford
the Parties threatened all aid and assistance at their
disposal, excluding the use of armed force.

Threat to the energy security of one of the Parties will be
understood to mean a situation wherein the limitation of
energy or energy source supplies onto its territory is not
the effect of a trade agreement freely concluded.


4. The EEST will establish a mechanism enhancing the
creation and development of an infrastructure for
transporting, transmitting and storage of energy and its
sources, allowing mutual energy security assistance in the
event of a threat. The mechanism will have the following
elements:

- It will be lined to the EU undertakings within the
Trans-European Networks - Energy (TEN-E) framework, as well
as those that may result from the development of the New
Energy Policy (NEP). Thus, the EEST will reflect EU
achievements relating to the energy markets. Furthermore,
NEP should take into account the objectives of EEST.

- There will be a small, common budget to be used for
co-financing key non-commercial elements of the
infrastructure.

- There will be commonly agreed tasks financed from public
sources of the EEST Parties and from those of private
companies contracted to fulfill particular tasks.


5. The EEST will elaborate the means of consultation and
reaction of the Parties in the event of a threat to the
energy security of one or more Parties.


6. The EEST will provide the basis for genuine
diversification of the sources, means of transportation and
kinds of energy consumed within the territory of each Party
and within the entire area of the European Energy Security
Treaty.

In order to allow for a proper policy diversifying the
Parties' sources, means of supply and kinds of energy, the
Parties - after the EEST enters into force - will adopt
appropriate security indicators that will set the levels of
maximum dependency on particular sources, means of
transportation and kinds of energy consumed and imported.

In its application, particularly in the economic field, the
EEST will not be in contradiction with the treaties
establishing the European Community, the treaty on the
European Union and the New Energy Policy. The EEST will
support its Parties in their duty to provide energy security
for their citizens; it will not pertain, however, to the
field of energy regulation. In consequence, the EEST will
not be an instrument of intervention in the energy markets,
its sources, or distribution.

The EEST will not determine the ownership of those economic
entities that its Parties entrust with the fulfillment of
Treaty commitments. the participating Parties will remain
free in this field.


7. The EEST will not infringe on the commitments of those
Parties that are simultaneously Parties to the Washington
Treaty and thus Members of NATO.


8. The EEST will lay down the ways and means of mutual
information and consultation of the Parties in the event of
emergence of threats and, in particular, on cuts or
limitations in the supply of energy and its sources.


9. The EEST will establish a system of monitoring the state
of the energy security of its Parties and of the entire
Treaty area. In doing so, it may refer to the acquis of the
New Energy Policy of the European Union.


10. The EEST will determine the goals of a system of mutual
confidence- and transparency-building measures and its
development in the relations between the countries importing
and exporting energy and its sources.


11. The EEST will determine its institutional structure,
seat, budget, ways of resolving disputes and supervision of
commitment implementation. Decisions will be taken
unanimously.

END NON-PAPER TEXT.
KULAKOWSKI