DELIVERED COMMENTS ON UAE NUCLEAR POWER WHITE PAPER

C O N F I D E N T I A L ABU DHABI 000147

SIPDIS

SIPDIS

DEPARTMENT FOR NEA/ARP, ISN/RA AND ISN/NESS

E.O. 12958: DECL: 02/01/2018
TAGS: KNNP PREL PARM ECON AE
SUBJECT: DELIVERED COMMENTS ON UAE NUCLEAR POWER WHITE PAPER

REF: SECSTATE 10779

Classified By: Martin Quinn, Charge d'Affaires a.i., for reasons 1.4 (b
& d)


1. (SBU) On February 3, Econchief and TDY PolEconoff met
with David Scott, Abu Dhabi Executive Affairs Authority
Director of Economic Affairs; Hamad Al-Kaabi, Executive
Affairs Authority (and MFA); Ali Al-Frayhat, General Counsel
for the Executive Affairs Authority; Mohammed Al-Hamadi, GM
of the Federal Electricity and Water Authority; and Stephen
Scalet, Executive Affairs Authority to discuss USG comments
on the draft UAE white paper and to welcome February 7-8
consultations in Washington (reftel).


2. (C) Econchief conveyed reftel comments and the strong U.S.
support for the UAE's interest in a fully transparent nuclear
power program. Econchief also passed a copy of the USG
non-paper. The UAEG representatives welcomed both USG
support and the specific comments. Their initial response
was positive. Scott explained that the intent of the
language regarding full-scope safeguards was to give all
parties comfort that the UAE would not work with nations that
were not reliable members of the nuclear non-proliferation
community. The UAEG did not intend to exclude nuclear
weapons states such as the U.S. or France as suppliers. He
expressed his appreciation for the suggested alternative
formulation. With regard to the white paper's commitment to
setting up a funding mechanism for training, the UAE side
explained that the intent was to guarantee that funding would
continue for the life of any nuclear program. They stated
that they recognized there would be significant up front
costs in developing trained personnel and were committed to
taking that step. Scott noted that the UAE did plan to bring
in international partners to operate any plants on a joint
venture model, which could help address the limited UAE
national human resources issue, at least initially.


3. (SBU) The UAE side suggested four topics for the agenda:

-- The UAE has reviewed the Global Nuclear Energy Partnership
(GNEP) principles, which were discussed during Secretary of
Energy Bodman's visit, and would like to discuss those
further. The UAE thinks these principles are consistent with
the UAE's policy of renouncing enrichment and would like to
discuss the procedures involved with GNEP.

-- The UAE will be interested in involving U.S. industry in
the planning process and during implementation. The UAEG
understands that there are areas of cooperation that can go
forward absent a 123 agreement, but would like to better
understand the process involved in negotiating a 123
agreement. (Note: Although they did not specifically
request this, post also recommends a brief discussion on the
scope of cooperation that U.S. companies can engage in
without such an agreement. End note.)

-- The UAE would like to discuss appropriate channels of
communication moving forward. (Note: Embassy has suggested
that -- at least initially -- Embassy Abu Dhabi serve as the
main point of contact. End note.)

-- The UAE side would like to brief on its work with Thorium
Power, the consultant which helped with the road map.


4. (SBU) The UAE delegation expressed appreciation for USG
discretion with regard to the draft white paper. They
expressed hope that once the UAE publicly launches its white
paper/road map, the USG will be as supportive as possible in
its media/public discussions on the subject.
QUINN