TURKEY: STATUS OF 123 AGREEMENT WITH TURKEY

C O N F I D E N T I A L ANKARA 002652 SIPDIS SIPDIS EUR/PRA FOR FRIEDT, EUR/SE FOR MALIK, ISN/CPI: FOLEY AND RUSSELL, ISN/ECC ACHURCH, NJOHASON, DOE FOR PENTOLA AND COLAHAN E.O. 12958: DECL: 10/24/2017 TAGS: ENRG KNNP MNUC PREL TU SUBJECT: TURKEY: STATUS OF 123 AGREEMENT WITH TURKEY REF: ANKARA 2024 AND PREVIOUS Classified By: DCM Nancy McEldowney, Reasons 1.4 (b) and (d) ¶1. SUMMARY: (C) GOT officials are certain to ask Energy Secretary Bodman about the status of US ratification of the SIPDIS Agreement on the Peaceful Uses of Nuclear Energy (123 Agreement) during his November 15-20 visit to Turkey. Turkish officials insist that ratification is necessary to reinvigorate bilateral nonproliferation cooperation and would be a welcome sign of USG interest in supporting Turkey's efforts to meet its energy needs. We recommend Secretary Bodman be in a position to inform the GOT that the agreement has been forwarded to Congress. END SUMMARY. ¶2. (C) The GOT is eager for US ratification of the 123 Agreement, which was initialed by the GOT and the USG in July 2000, and is deeply frustrated by lack of US ratification so far (reftel). The Turkish parliament ratified the agreement in January 2005. Since then, senior GOT officials have repeatedly urged US ratification of the agreement and stressed that the lack of such an agreement is impeding Turkey's ability to move forward on a number of important bilateral energy and nonproliferation initiatives. The Foreign Ministry, the Turkish Atomic Energy Authority (TAEK), and Turkish National Police and Customs have all linked progress on the 123 Agreement with GOT receptivity to DOE/NNSA's Second Line of Defense proposal to upgrade the nuclear detection portal monitor system located at Turkey's borders, the DOE's Sister Labs Program, the exchange LEU for HEU reactor fuel, and Turkey's participation in the nuclear fuel assurances program. ¶3. (C) GOT officials have also explicitly linked finalization of the Nonproliferation Cooperation (EXBS) Agreement with progress on the 123 Agreement. The EXBS agreement is designed to strengthen Turkey's ability to counter the threat of proliferation of WMD and their delivery systems, as well as to prevent the transfer of advanced weapons and dual-use items that could threaten regional peace and stability. Once finalized, the EXBS agreement will allow the USG to provide state-of-the-art equipment and training to, and share best-practices with a broad spectrum of GOT entities responsible for strategic trade controls and border security. Parliament ratified the EXBS Agreement in January and the president subsequently signed implementing legislation, but officials have told us they will not take the final procedural step necessary to allow the agreement to come into force until the MFA receives a clear indication from us that the 123 Agreement is moving to ratification. ¶4. (C) Our submission of the 123 Agreement for ratification would also serve to convince the GOT of our genuine interest in supporting GOT efforts to develop energy alternatives that would not involve investing in Iran's energy sector. Turkish officials argue that, while it understands USG concerns regarding Iran, Turkey has real energy demands that must be met and the USG has not given Turkey any alternatives for assured sources of energy. The 123 Agreement would facilitate more intensive bilateral discussions concerning Turkey's plans to develop nuclear energy. US energy firms, already active in Turkey, would stand to benefit from ratification of the 123 Agreement. Conversely, continuing absence of US ratification could undermine their ability to develop a strong market presence in Turkey as it seeks to expand nuclear energy production. Visit Ankara's Classified Web Site at http://www.state.sgov.gov/p/eur/ankara/ WILSON