SARKOZY DISCUSSES NUCLEAR COOPERATION AND

C O N F I D E N T I A L DOHA 000045

SIPDIS

SIPDIS

E.O. 12958: DECL: 01/21/2018
TAGS: ENRG EINV PREL TRGY KNNP KPAL FR QA
SUBJECT: SARKOZY DISCUSSES NUCLEAR COOPERATION AND
SYRIA/HAMAS DURING QATAR VISIT

Classified By: CDA Michael A. Ratney, reasons 1.4 (b) and (d).


1. (C/NF) French President Nicolas Sarkozy visited Qatar
January 14-15, accompanied by Defense Minister Herve Morin,
Economy Minister Christine Lagarde and 20 French executives
as part of his regional tour aimed primarily at bolstering
French business ties with Gulf states. According to the
French DCM in Doha, however, political issues also figured in
Sarkozy's meeting with the Amir. The French DCM told charge
that the Amir pressed Sarkozy on the need to engage with, and
not isolate, Syria. The Amir reportedly said that the
alternatives to the Asad regime are worse, and that it is
important to think not only of the current Syrian government,
but the future one. Sarkozy reportedly responded that he had
been very patient with the Syrians, but his patience was
exhausted. The Amir likewise pressed Sarkozy on Hamas,
urging him to consider that Hamas was part of the social
fabric of Palestinian society, that they had participated in
elections and won, and that that any attempt to reach a
settlement that isolated Hamas was doomed to failure. The
French DCM (who was not in the meeting) said he did not
believe Sarkozy was moved by the Amir's arguments.


2. (SBU) The economic highlight of the trip was the signing
of a USD 695 million contract between Areva Transportation
and Distribution, a subsidiary of French nuclear power group
Areva, and Qatar's state electricity company Kahrama for the
supply of electrical sub-stations throughout Qatar. Sarkozy
also reportedly discussed with Qatari officials a series of
other agreements potentially worth USD 9.3 billion. Qatar
Petroleum International (QPI),the overseas subsidiary of
Qatar's state-owned energy company, signed a Memorandum of
Understanding (MOU) with Gaz de France for joint
international projects outside of Qatar, particularly gas
projects in Europe. Gaz de France recently opened an office
in Doha, after signing a liquefied natural gas (LNG)
agreement with RasGas in 2007, and has been pre-qualified by
QP to participate in bidding for offshore blocks in Qatar.


3. (C) During the visit, Electricite de France (EDF) signed
an MOU with Qatar to "discuss cooperation in the production
of nuclear power and renewable -- solar and wind --
energies." French Economic-Commercial Counselor Charles
Couffin told Econoff January 16 that EDF will probably
conduct a nuclear power feasibility study for Qatar but
cooperation is intended to help the Qataris think through the
idea of building a nuclear reactor, along with all the
power-grid connection, implementation and security problems
that nuclear power would inevitably present. He also noted
that EDF might at some point conduct an environmental impact
assessment for a reactor, though Qatar was "far from a
decision" on deciding to pursue nuclear power.


4. (C) COMMENT: If the French DCM's account is accurate,
Sarkozy held firm on two key issues near and dear to the
Amir. Meanwhile, business and trade ties between Qatar and
France are already strong and the personal attention of
President Sarkozy gives French companies an added boost in
closing energy deals with Qatar. A number of contacts have
told us of Qatar's growing interest in nuclear power and
nuclear technology, particularly in the medical field.
However, Qatar is still at an early stage of considering
anything nuclear-related, and its leaders have yet to
conceptualize a broad vision for taking advantage of nuclear
power or technology. Given the Amir's desire to look beyond
Qatar's current hydrocarbon reserves, however, we have no
doubt that Qatar will increasingly focus on reaping the
benefits of nuclear technology.

RATNEY