NUCLEAR JSCNEC LOOKING FOR MORE SUBSTANCE, BUT

UNCLAS PRETORIA 004172 SIPDIS SENSITIVE SIPDIS DEPT FOR AF/S, EEB/ESC, ISN DOE FOR T.SPERL, G.PERSON, A.BIENAWSKI, L.PARKER, M.SCOTT E.O. 12958: N/A TAGS: ENRG TRGY KNNP PREL BEXP IAEA SF SUBJECT: NUCLEAR JSCNEC LOOKING FOR MORE SUBSTANCE, BUT DELAYED TO JUNE REF: A. YOUNG-HUMPHREY-BURKART E-MAILS ¶B. PRETORIA 3674 ¶C. PRETORIA 3584 ¶1. (SBU) SUMMARY: The SAG organized an inter-agency meeting in early December to establish a common approach to advancing U.S.-South African nuclear cooperation. They determined that the SAG's highest priority is to gain signatory authority for the long-awaited bilateral Agreement on Cooperation in Research and Development in Nuclear Technology. The SAG opted to delay hosting the proposed bilateral Joint Standing Committee on Nuclear Energy Cooperation (JSCNEC) from February to June to allow sufficient time to commit to and organize preparations for the event. The SAG was unable to respond to the short-notice invitation to attend as an observer at the Global Nuclear Energy Partnership (GNEP) Steering Committee in Vienna December 11-13. The SAG is still evaluating its position vis-a-vis GNEP, so there remains an opportunity to pitch getting South Africa inside this initiative. End Summary. -------------- DFA and DME Forge Common Approach -------------- ¶2. (SBU) Department of Minerals and Energy (DME) Chief Director: Nuclear Tseliso Maqubela informed Energy Officer that DFA and DME had participated in a useful planning meeting in early December to establish a common approach to moving forward on key bilateral areas of nuclear cooperation. Maqubela had encouraged Embassy to send a diplomatic note to the DFA asking for JSNEC dates to spur the inter-agency process. Maqubela believes this diplomatic note is what prompted the DFA to seek the planning meeting with the DME. -------------- Nuclear R&D Agreement - Merry Christmas -------------- ¶3. (SBU) Maqubela told Energy Officer the "Agreement Between the Government of the United States of America and the Government of the Republic of South Africa for Cooperation in Research and Development in Nuclear Technology" was being certified at DFA and could be completed and approved by the end of the year, for possible signing early in 2008. Both he and DFA sources stressed that gaining signatory approval for this long-awaited nuclear cooperation agreement was their highest priority. Moreover, having the signed R&D agreement in hand would provide a fruitful foundation for framing the JSCNEC meeting and discussions. Maqubela said the DFA-DME team had confirmed that completing the nuclear R&D agreement was not/not in conflict with the Eskom new nuclear build process, because they involve different government players. (Note: Westinghouse is competing with Areva of France for the first tranche of nuclear power plants for state electricity supplier Eskom and is likely to win if it is left up to merit, based on its localization and technology transfer credentials. End Note.) -------------- -------------- Let's Get the JSCNEC Right: Delayed, But Empowered -------------- -------------- ¶4. (SBU) According to Maqubela, the SAG decided to delay Q4. (SBU) According to Maqubela, the SAG decided to delay the proposed JSCNEC from February to June to allow sufficient time to organize participation and determine appropriate format and topics. DFA Deputy Director: Nuclear Disarmament and Non-Proliferation Michiel Combrink separately corroborated this information to Acting Political Counselor on December 7, confirming that his top priority was to finalize the nuclear R&D agreement. DFA Deputy Director: USA Liezl Combrink also confirmed this approach to Econonomic Counselor. Maqubela said DFA would lead the JSCNEC preparations, comparable to State Department's lead from the U.S. side. He opined that postponing the meeting would avoid distraction and over-shadowing from current domestic political events. (Note: a likely reference to next week's ANC leadership elections. End Note.) Maqubela added that U.S. Ambassador to the UN Agencies in Vienna Greg Schulte and DFA Deputy Director General Abdul Minty had established an excellent working relationship for advancing bilateral nuclear cooperation. -------------- Still Pondering GNEP - Need More Time -------------- ¶5. (SBU) Maqubela informed Energy Officer that he would not be able to participate in the GNEP Steering Committee in Vienna December 11-13. He said he would have more time to work closely with USDOE and State on this and other initiatives in 2008, noting that he has been relieved of his responsibilities for consulting at Eskom on the bid for new nuclear plant build, which had occupied up to 50 percent of his time. DFA Deputy Director Michiel Combrink told Acting Political Counselor the decision not to participate as observer at this GNEP meeting was partly based on proximate timing and partly based on the need for further inter-departmental consultation to determine SAG's policy with respect to GNEP. The decision not to participate in this particular meeting was not a definitive view. Maqubela reminded Energy Officer that his office faced significant capacity constraints in handling the variety of nuclear energy issues on its plate and this affected his ability to assess GNEP. -------------- Comment - Good News, Bad News -------------- ¶6. (SBU) JSCNEC: DFA is now fully engaged and committed to working the DME-proposed JSCNEC initiative and "buys in" to the need for regular bilateral dialogue on nuclear issues. DFA advocates working with DME on a meatier framework for the JSCNEC, including potentially showcasing the long-sought bilateral nuclear R&D agreement. The SAG's decision to delay (yet again) the launching of the JSCNEC from the February date tabled during the bilateral discussions with DME in Washington last April is disappointing, but may ultimately bind the SAG to working towards a successful event at the newly mooted time-frame of June in South Africa. ¶7. (SBU) GNEP: The SAG has not said no to GNEP, but remains circumspect, given its oft-stated commitment to consider developing its capacity in the full range of the nuclear fuel cycle, including beneficiating and enriching its uranium resources, and potentially reprocessing of spent-fuel, consistent with its broader non-proliferation, minerals and energy policies. Post would welcome additional guidance and arguments from the Department and USDOE on the benefits of South Africa's participation in GNEP in order to influence the initiative from the inside. BOST