UAE CABINET APPROVES PLAN TO ASSESS DEVELOPMENT OF PEACEFUL

UNCLAS SECTION 01 OF 03 ABU DHABI 000371

SIPDIS

SENSITIVE
SIPDIS

DEPARTMENT FOR ISN/NESS, NEA/ARP, NEA/PPA
DEPARTMENT OF ENERGY FOR NNSA and Office of Nuclear Energy

E.O. 12958: N/A
TAGS: ENRG KNNP AE
SUBJECT: UAE CABINET APPROVES PLAN TO ASSESS DEVELOPMENT OF PEACEFUL
NUCLEAR ENERGY

REF: A) ABU DHABI 299, B) ABU DHABI 238, C) ABU DHABI 147, D) ABU
DHABI 45


1. (U) This cable contains suggested press points in para 6.


2. (SBU) Summary: On March 23, the UAE cabinet formally set out a
policy memorandum on the potential development of nuclear energy.
If the UAE develops nuclear power, it will formally renounce
domestic reprocessing or enrichment capabilities in favor of a
secure external fuel supply, according to the articulated policy.
The UAE is committed to working with the international community and
UAE officials tell us they have the blessing of UAE Foreign Minister
Sheikh Abdullah bin Zayed Al-Nahyan to negotiate an MOU and a
Section 123 Agreement with the U.S. The UAE is evaluating USG
comments to its proposed changes to the draft MOU shared earlier and
hopes to finalize it shortly as well as to have initial comments on
the draft 123 text received during its peaceful nuclear cooperation
discussions with the USG (ref a). End summary.


3. (U) On March 23, the UAE cabinet formally approved a memorandum
on potential development of peaceful nuclear power. The UAE will
establish a Nuclear Energy Implementation Office, as recommended by
the IAEA, with an initial capital of approximately USD 100 million.
The UAE cabinet's policy statement renounces any intention to
develop a domestic enrichment and/or reprocessing capability in
favor of long-term arrangements for the secure external supply of
nuclear fuel. The UAEG also commits to ratifying various
international instruments both with regard to evaluation of nuclear
energy and with regard to any decision to establish a program. The
policy statement also noted that the UAE "hopes to establish a new
model via which non-nuclear states may explore and potentially
deploy nuclear energy with the full support of the international
community." The UAE will enlist assistance at both the government
to government level and from the IAEA and other appropriate
organizations. The statement was prominently carried in the UAE's
March 24 English and Arabic language newspapers.


4. (SBU) The UAE policy statement is the executive summary of the
UAE's "White Paper" as modified after international consultations.
The UAE has added commitments to create effective mechanisms for
public information and engagement as well as a commitment to ratify
the IAEA Protocol to Amend the Vienna Convention on Civil Liability.
It also modified the statement on participation in the
IAEA-initiated multilateral fuel-assurance network to "supporting
international efforts to develop a network of multi-lateral fuel
assurances." Executive Affairs Authority Director of Economic
Affairs David Scott told Econchief that the UAE was still finalizing
the full policy plan for publication. It had completed the English
language version but was "tweaking" the Arabic translation. He
stated that UAE Foreign Minister Sheikh Abdullah bin Zayed Al-Nahyan
had approved moving forward with negotiating international MOUs with
various supplier countries and that he hoped to be able to finalize
the draft U.S. - UAE MOU and send comments back on a draft Section
123 Nuclear Cooperation Agreement shortly.


5. (U) Begin Text of Policy Memorandum:

Policy of the United Arab Emirates on the Evaluation and Potential
Development of Peaceful Nuclear Energy
-------------- --------------

Recent analysis of future domestic electricity demand and supply
conducted by official UAE entities has concluded that peaceful
nuclear power-generation represents an environmentally promising and
commercially competitive option which could make a significant
contribution to the UAE's economy and future energy security.
Accordingly, the UAE intends to establish a Nuclear Energy
Implementation Organization (NEPIO) as recommended by the IAEA, and
is proceeding to evaluate the establishment of a peaceful nuclear
program that would make the potential benefits of nuclear power
available to the people of the UAE.

To make clear its intentions with regard to nuclear power, the
government of the UAE has prepared and formally endorses the
following policy statement as a reflection of its views on the
potential establishment of a peaceful civilian nuclear energy
program.


1. The UAE is committed to complete operational transparency.


2. The UAE is committed to pursuing the highest standards of
non-proliferation.


3. The UAE is committed to the highest standards of safety and
security.


4. The UAE will work directly with the IAEA and conform to its

ABU DHABI 00000371 002 OF 003


standards in evaluating and potentially developing a peaceful
nuclear energy program.


5. The UAE hopes to develop any peaceful nuclear power capability in
partnership with the governments and firms of responsible nations,
as well as with the assistance of appropriate expert organizations.


6. The UAE will approach any domestic nuclear power program in a
manner that best ensures long-term sustainability.

The policies and actions described in this document are of two
kinds: those that will be implemented as part of the UAE's ongoing
evaluation of nuclear energy and those which would be undertaken
only in the event that the UAE opts to build nuclear facilities
within its borders.

Through the adoption and implementation of these policies and
actions, the government of the UAE hopes to establish a new model
via which non-nuclear states may explore and potentially deploy
nuclear energy with the full support of the international community.



Commitments related to the ongoing evaluation of nuclear energy
-------------- --------------

- Ratifying additional international non-proliferation instruments,
including the IAEA Additional Protocol to the Safeguards Agreement
and the IAEA Amendment to the Convention on Physical Protection.

- Adopting the NSG Export Guidelines.

- Enlisting assistance at the government-to-government level and
requesting technical cooperation from the IAEA and other
international bodies.

- Establishing a NEPIO with a capitalization of AED 375 million
(roughly USD 100 million) to evaluate and potentially implement a
peaceful nuclear energy program within the UAE.

- Constituting an international advisory board made up of recognized
experts in various fields related to the nuclear energy sector.

- Creating effective mechanisms for public information and
engagement.

- Ratifying international nuclear safety instruments, including the
IAEA Convention on Nuclear Safety and IAEA Joint Convention on the
Safety of Spent Fuel Management.

- Promoting the principles outlined in this document within the Gulf
Cooperation Council-IAEA nuclear initiative.


Commitments to be undertaken in conjunction with any decision to
move forward with the establishment of a peaceful domestic nuclear
energy program
-------------- --------------

- Renouncing any intention to develop a domestic enrichment and/or
reprocessing capability in favor of long-term arrangements for the
secure external supply of nuclear fuel.

- Favoring and supporting the development of future technologies and
designs that are resistant to proliferation.

- Designing a detailed and phased implementation plan to translate
stated UAE policy into practical arrangements.

- Developing robust security infrastructure to accompany any nuclear
power program from inception to commercial operation of facilities
and beyond.

- Enlisting assistance at the government-to-government level and
requesting technical cooperation from the IAEA, WANO and other
appropriate expert organizations.

- Offering joint venture arrangements to foreign investors for the
construction and operation of future nuclear power plants.

- Deploying only advanced third-generation light water reactors
(LWR) offering enhanced safety features.

- Introducing a comprehensive national legal framework covering all
aspects of nuclear law, including safety, security,
non-proliferation, liability and regulatory and commercial aspects.


ABU DHABI 00000371 003 OF 003



- Establishing an independent, vigilant and effective regulatory
authority empowered to enact the highest standard of regulation and
safety controls across the sector.

- Ensuring that any operating organizations implement the highest
standards of safety management.

- Ratifying international nuclear liability instruments, including
the IAEA Vienna Convention on Civil Liability for Nuclear Damage,
the IAEA Protocol to Amend the Vienna Convention on Civil Liability,
and the IAEA Convention on Supplementary Compensation.

- Developing programs for training and human resource development
and instituting appropriate funding mechanisms.

- Developing a comprehensive waste management system that reflects
the highest standard of international practice and which does not
include domestic reprocessing, and instituting mechanisms for the
funding of waste and decommissioning liabilities.

- Supporting international efforts to develop a network of
multi-lateral fuel assurances, possibly including a "last resort"
fuel bank, which would provide insurance against nuclear fuel supply
interruption for states with no indigenous enrichment facilities.

End Text


6. (U) Post proposes the following press guidance to indicate USG
support for the UAE's activities.

- The U.S. strongly supports the United Arab Emirate's interest in a
fully transparent nuclear power program.

- The U.S. had the opportunity to work with the UAE as it developed
its policy and found the proposed approach to be carefully
considered.

- We especially commend the UAE's renunciation of any intention to
develop a domestic enrichment and/or reprocessing capability in
favor of long-term arrangements for the secure external supply of
nuclear fuel.

- We also commend the UAE for its support for international efforts
to develop a network of multi-lateral fuel assurances, possibly
including a "last resort" fuel bank to provide insurance against
nuclear fuel supply interruption.

- We look forward to seeing the UAE's final detailed program and to
cooperating with the UAE as it moves forward with evaluating and
potentially developing a peaceful nuclear program.

Quinn