NSG/INDIA - GERMAN GOVERNMENT OFFICIALS DISCUSS

C O N F I D E N T I A L BERLIN 000302 SIPDIS SIPDIS, P, T, ISN, EUR, SCA ENERGY FOR NNSA/NA-24 - SCHEINEMAN, GOOREVICH, AND KRUPA E.O. 12958: DECL: 03/09/2018 TAGS: ENRG KNNP KTIA PGOV PARM PREL IN GM SUBJECT: NSG/INDIA - GERMAN GOVERNMENT OFFICIALS DISCUSS PLANS FOR MAY 19-23 BERLIN PLENARY REF: 07 BERLIN 1751 AND PREVIOUS Classified By: EMIN Robert A. Pollard for reasons 1.4 (b) and (d). ¶1. (C) SUMMARY: ISN/NESS Director Richard Stratford and DOE/NNSA Director for International Regimes and Agreements Richard Goorevich visited Berlin March 7 to discuss Germany's plans for its upcoming presidency of the Nuclear Suppliers Group (NSG) and the May 19-23 Berlin Plenary. Discussion focused primarily on consideration of a draft policy exception on civil nuclear cooperation with India. German officials reiterated their openness to supporting efforts to forge a "suitable and acceptable" consensus within the NSG. MFA officials stated that close coordination and frequent consultation will help the Chancellery and MFA confront skepticism in the Bundestag and within the Grand Coalition government. END SUMMARY. ¶2. (U) Stratford, Goorevich, and emboffs met March 7 with Ambassador Viktor Elbling, MFA Commissioner for International Energy Policy, Globalization and Sustainable Development; Goetz Lingenthal, MFA Dual-Use Export Control Division Director; and Joerg Polster, NSG Desk Officer. As Consultative Group Chair, Goorevich held separate logistical consultations with Lingenthal, Polster, and representatives of the Economics Ministry and the Federal Office of Economics and Export Control (BAFA). ¶3. (C) Stratford told Elbling that while the Indian Government and the IAEA Secretariat remain tight-lipped about the status of negotiations on a safeguards agreement, there are indications that the IAEA might convene a special Board of Governors (BOG) meeting o/a May 5. Stratford speculated that the U.S. would likely circulate a draft NSG policy exception immediately after an IAEA announcement in order to give NSG Participating Governments (PGs) sufficient time to consider the text. Under such a scenario, the USG would request a special Consultative Group (CG) meeting before the BOG meeting to solicit comments from PGs. Following the CG meeting, the U.S. would circulate a revised text for consideration in Berlin. ¶4. (C) Elbling said that the text of the safeguards agreement will be important in terms of developing a strategy to forge consensus in the NSG. He stated Germany is "open to finding a way that is suitable and acceptable" to PGs, but will first need to review the safeguards agreement carefully. The issue is "not easy" for the German Government given the positions of the parties in the Grand Coalition and intense interest in the Bundestag, he said. The key from the Chancellery and MFA standpoint will be to balance the needs of the international nonproliferation regime with the importance of building a strategic partnership with India. Elbling acknowledged it is unlikely that India would undertake additional commitments, such as signing the Comprehensive Test Ban Treaty, but said certain Bundestag Members will push for this nonetheless. ¶5. (C) Elbling said Germany wants "positive results" from its NSG Presidency and reiterated India's importance as a strategic partner. "All the elements are there," Elbling said, "the question is how to put them together." This will not be an easy game for the German Government, he explained and stressed the need for continued close discussion on procedure and strategy. Elbling agreed with Stratford's assessment that positive statements about the India safeguards agreement from IAEA Director General ElBaradei would support German efforts to build consensus in the NSG. ¶6. (C) Elbling said it would be easier to make the case for civil nuclear cooperation with India if the issue of the moratorium on transfers of enrichment and reprocessing technology were resolved. He offered assurances that, if the India exception goes through at the Berlin Plenary, the German Government would work to promote the NSG's stability and relevance. It will also be essential, he agreed, to portray the decision as a net positive for the international nonproliferation regime. Elbling said the MFA welcomes U.S. input on how the India agreement should be reflected in the Plenary's press statement. Elbling, Lingenthal and Poster repeatedly emphasized the importance of keeping Germany in the loop on developments and the need for close coordination in the run-up to the Plenary. ¶7. (U) Mr. Stratford has cleared this message. KOENIG