Identifier
Created
Classification
Origin
08PARIS1986
2008-10-29 18:40:00
CONFIDENTIAL
Embassy Paris
Cable title:  

FRENCH MFA ECON DIRECTOR ON ENERGY SECURITY

Tags:  ENRG ECON PREL FR 
pdf how-to read a cable
VZCZCXRO8347
RR RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHFR #1986/01 3031840
ZNY CCCCC ZZH
R 291840Z OCT 08
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC 4680
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RHEHNSC/NSC WASHINGTON DC
C O N F I D E N T I A L SECTION 01 OF 02 PARIS 001986 

SIPDIS

E.O. 12958: DECL: 10/29/2018
TAGS: ENRG ECON PREL FR
SUBJECT: FRENCH MFA ECON DIRECTOR ON ENERGY SECURITY

Classified By: Econ Counselor Stuart Dwyer for reasons 1.4 (b) and (d)

C O N F I D E N T I A L SECTION 01 OF 02 PARIS 001986

SIPDIS

E.O. 12958: DECL: 10/29/2018
TAGS: ENRG ECON PREL FR
SUBJECT: FRENCH MFA ECON DIRECTOR ON ENERGY SECURITY

Classified By: Econ Counselor Stuart Dwyer for reasons 1.4 (b) and (d)


1. (C) Summary: In a 10/28 meeting MFA Economic Affairs
Director Christian Masset provided an informal reaction
to points contained in the President,s 10/21 letter to
President Sarkozy on energy security issues. Masset
said French and U.S. thinking was broadly in line on key
issues. The French intended to boost the EU,s
"political presence" in Central Asia during its
presidency to encourage a supply shift towards European
markets. France was "not giving up" on Nabucco, though
finding sufficient production volumes remained a
challenge. Sarkozy,s Georgia diplomacy had boosted EU
credibility in the region in a way that might increase
leverage with suppliers. Turkey remains a challenge and
would have to prove it could be a "responsible hub" with
appropriate tariffs and related policies. France
supports opening the energy chapter in Turkish accession
talks, but Cyprus has blocked the process. End summary.

Boosting the EU,s Caspian Basin Profile
- - - - - - - - - - - - - - - - -


2. (C) MFA Economic Affairs Director Christian Masset
told EMIN October 28 that French thinking on energy
security issues and the Caspian Basin is "fundamentally
in line" with that of the United States. The French EU
presidency had set out to boost the EU,s political
profile in Central Asia, in part to draw energy supplies
from other potential markets towards Europe. High-
profile visits (in advance of, and during, the
presidency),conferences and the September Central Asia
ministerial in Paris were all intended to push in that
direction. The European Council conclusions of October
16 -- including a call for a meeting with Caspian Basin
and key transit countries during the Czech EU presidency
-- reflected French thinking (though, Masset said, in
somewhat "milder" language required for consensus).


3. (C) France and the EU have an ongoing dialogue with
Azerbaijan and Turkmenistan to encourage those countries
to "do business with the West," Masset said. President
Sarkozy,s diplomacy during the Georgia crisis had
boosted EU credibility in the region, he thought, and
would be helpful to that process.


4. (C) France continues to support development of the
Nabucco pipeline. Although production volumes remain a
challenge, Masset said France was not giving up on
Nabucco, and Europe needed to rearticulate its interest
in the project. Turkey would be a critical piece of the
puzzle and would have to prove it could be a
"responsible hub," with appropriate tariff and other
policies. Opening the energy chapter in EU accession
negotiations -- which France favored -- could be helpful
on that score, but Cyprus was blocking the process.
Masset suggested the United States, with its influence
in the region, could play a constructive role in cutting
through the Turkey/Cyprus knot.

Solidarity
- - - - - -


5. (C) "Solidarity" was also a key feature of France,s
approach to EU energy security. France had encouraged
insertion in the 10/16 Council conclusions of a request
for the Commission to study options for improving gas
interconnections, notably in the Baltic States. Georgia
was a wake-up call and had given this process a renewed
sense of urgency. In addition, France was promoting
"solidarity mechanisms" to ensure all member states had
access to oil and gas reserves in the face of supply
disruptions. Options might include creation of actual
reserve stocks, or identifying swing volumes in existing
contracts that could be designated for "solidarity"
purposes in a crisis. Germany had resisted, Masset said,
fearing it would end up footing a bill. But the 10/16
Council had resulted in an invitation to the Commission
to develop proposals. France also wanted to continue work
on boosting capacity of LNG shipments.

Interdependence With Russia
- - - - - - - - - - - - - -


6. (C) Developing an effective relationship of
"interdependence" with Russia was the final, critical
piece of France,s approach to EU energy security, Masset
noted. The GOF hoped that current circumstances --
falling energy prices and a Russian economy heavily
impacted by the financial crisis -- might encourage GOR
interlocutors away from a zero-sum, "rapport de force"
approach to the energy relationship. Energy would be part

PARIS 00001986 002 OF 002


of Partnership and Cooperation Agreement negotiations,
tentatively scheduled to begin at the November 14 summit.
Discussions on ongoing investments and exploration of
possible joint projects in the energy field would also be
on the table.
STAPLETON