SAUDI NUCLEAR POWER PROPOSALS: MORE BARK THAN BITE

C O N F I D E N T I A L SECTION 01 OF 03 RIYADH 002292

SIPDIS

SIPDIS

DOHA FOR SRICE

E.O. 12958: DECL: 11/19/2017
TAGS: ENERG PGOV PREL SA
SUBJECT: SAUDI NUCLEAR POWER PROPOSALS: MORE BARK THAN BITE

REF: RIYADH 2264

Classified By: Charge D'Affaires David Rundell for reasons
1.4 b, d, and e

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Summary
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1. (C) In a November 13 meeting, the Ministry of Foreign
Affair's (MFA) Naif Al-Sudeiry, Deputy Director of
International Organizations, told us that Foreign Minister
Prince Saud al Faisal's recent proposal to set up a body to
provide uranium to Iran through a consortium arrangement was
essentially a trial balloon, and he did not believe a formal
proposal had been provided to the Iranians. He told us the
Iranians had rebuffed the Saudi proposal. At this point, the
uranium proposal appears to be largely political, with no
specific Saudi program or technology behind it.
Interlocutors from the King Abdulaziz Center for Science and
Technology (KACST) confirmed that Saudi Arabia has no
on-going nuclear power research program, and explained their
role as the KSA's regulator for the limited medical and
industrial use of radioactive materials which do occur.

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Enriched Uranium Bank Trial
Balloon Shot Down
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2. (C) MFA Deputy Director Sudeiry told Energy Attache that
the Saudi proposal was similar to proposals from the EU and
the U.S. Senate to form an international uranium bank. He
stated FM Prince Saud, to the best of his knowledge, had
never formally submitted an official proposal to the Iranians
regarding the uranium consortium. Instead, he believed
Prince Saud had floated his proposal to the Iranians solely
through the press. He stated the Iranians had rejected the
initiative anyway in much the same manner, via the French
press agency.

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GCC Nuclear Power Study to be Announced
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3. (C) Sudeiry indicated the GCC had carried out a
feasibility study on the integrated production of nuclear
power and desalinated water, and there likely would be an
announcement on the study at the upcoming GCC Summit in Doha
from December 3-4. He indicated the study was the conclusion
to a series of three meetings with the International Atomic
Energy Agency (IAEA),with which the GCC was cooperating on
its potential nuclear power program. Sudeiry assessed that
it is still 'very early" to know if the GCC will decide to
move ahead with nuclear power, and he believes it largely
depends on the price of oil. He noted that Saudi Arabia was
fully committed to working within the IAEA framework on any
nuclear initiative. Sudeiry also confirmed that Saudi Arabia
currently does not have a nuclear power development program,
and the nuclear power discussion is largely policy-oriented
at this point. Were Saudi Arabia to press ahead on
developing nuclear power, he believes a new national
authority might be created to oversee the program, and a new
ministry formed to implement it.

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KACST: Technical Advisor Only
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4. (SBU) In a November 14 meeting with HH Prince Dr. Turki
bin Saud bin Mohamed al Saud, Vice President for
Research Institutes, KACST, and Dr. Khaled Abdulaziz El-Issa,
Director of the Nuclear Research Institute, KACST,
they stressed that KACST plays a purely technical,
policy-neutral role. They were adamant that KACST does not
provide policy advice, noting, for example, that evaluating
the relative merits of different energy options to
meet the KSA's growing demands would be outside of their

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competency, stating government economists would undertake
such work. Prince Turki and Dr. El-Issa concurred with the
MFA's Sudeiry that Saudi Arabia has no active nuclear
power development program.

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On-Going Nuclear Research Programs
in Saudi Arabia
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5. (SBU) Prince Turki and Dr. El-Issa laid out the general
scope of nuclear activities in the KSA, and
KACST's role in regulating use of radioactive materials.

--KACST currently regulates and sets standards for all
nuclear activities in the country. For example, KACST
regulates
the use of radioactive materials in the oil industry, medical
industry, and factories. El-Issa noted KACST had
recently hosted a workshop on the safe use and control of
radioactive materials.

--KACST has an Atomic Energy Research Institute, one of seven
research institutes within KACST.

-At Riyadh's King Faisal hospital, the country's leading
specialist hospital, there is limited on-site production of
radioactive materials for medical purposes, which are used
immediately. The materials degrade quickly, usually
within two hours.

--In Jeddah, there is a nuclear engineering department within
King Abdulaziz University.

In previous meetings with Senate Staffer Brad Bowman and Pol
Off Sheehan, Dr. El-Issa has stated:

--Saudi Arabia is not pursuing a nuclear program of any type
at this time, and has no nuclear energy capability
now. It approves of a country,s right to pursue peaceful
nuclear power. El-Issa estimated Saudi Arabia was 15
years away from being able to develop nuclear power.

--Saudi Arabia,s technical research in the nuclear area is
not very advanced, and less than 100 people are employed in
the research sector.

--If and when Saudi Arabia chooses to develop nuclear power,
KACST would have an oversight managerial role.
The Ministry of Power might implement the actual program.

--Saudi Arabia has three stations for the detection of
ambient radiation, part of a cooperative
worldwide radiation detection program.

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Comment
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6. (C) We see the GCC nuclear power proposals, including FM
Prince Saud's recent consortium proposal, largely as
politically driven at this point. These proposals are
probably designed to influence Iran,s behavior, while
leaving the door open for the GCC to develop civilian nuclear
power in the future. The announcement does not reflect a
well-developed nuclear energy research program on the ground
in Saudi Arabia. Additionally, we do not see Saudi Arabia
investing large resources in the nuclear option at this
point. The GCC civilian nuclear proposals probably are
designed for the GCC to demonstrate to Iran that nations in
the region can obtain reliable access to enriched uranium by
working with the international community through approved
mechanisms, and that they can do so faster than Iran can,
working on its own and against the international community.
This would potentially allow the Gulf states to lead the way
for Iran out of the current impasse in a non-confrontational
manner, and to call Iran,s bluff on potential military use
of uranium.

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RUNDELL