BRAZIL VIEWS ON DEMARCHE ON CONVENTION ON SUPPLEMENTARY

UNCLAS BRASILIA 000822 SIPDIS PLEASE PASS TO IO, IO/T, ISN/NESS Richard J.K. Stratford; and DOE/MNSA Adam Scheinman, Richard Goorevich, and Melissa Krupa E.O. 12958: N/A TAGS: KNNP TRGY ENRG KSTC IAEA PARM BR SUBJECT: BRAZIL VIEWS ON DEMARCHE ON CONVENTION ON SUPPLEMENTARY COMPENSATION FOR NUCLEAR DAMAGE (CSC) REF: STATE 054213 This cable is sensitive but unclassified. Please protect accordingly. Not for internet distribution. ¶1. (SBU) On 12 June 2008, EST officer delivered ref talking points and non-paper to Minister Santiago Mourao, Head of the Division of Disarmament and Sensitive Technologies for Brazil's Foreign Ministry. Minister Mourao indicated that Brazil was already part of a civilian nuclear liability convention included in the 1963 Vienna convention, which Brazil became party to in 1993, and did not see a reason for the additional Convention on Supplementary Compensation for Nuclear Damage (CSC). Mourao stated that the Vienna Convention already indicated how liability will be impinged on governments to cover civilian damages. ¶2. (SBU) Mourao did not envision Brazil ratifying the CSC in the near future. From Brazil's point of view, it will take a long time to get enough countries on board for the CSC to come into effect. Mourao also did not foresee participation by American firms in Brazil's nuclear energy industry because Brazil's nuclear sector is a state monopoly and there is no political will to move in the direction of opening up the nuclear market. In addition, the nuclear industry is still viewed with suspicion by the Brazilian public. Mourao further explained that while these factors impede a present agreement to the CSC, he could not rule out future participation as a possibility. Mourao spoke of the nuclear renaissance and agreed that there would be potential benefit for Brazil of having increased competition in the nuclear sector. ¶3. (SBU) Mourao agreed to read ref paper and contact EST with any questions or comments. EST will follow up with Mourao and will advise. SOBEL