SARKOZY INTENDS TO OFFER SAUDI ARABIA PEACEFUL

S E C R E T RIYADH 000037

SIPDIS

SIPDIS

WHITE HOUSE FOR SPENCER GEISSINGER AND MELISSA BENNETT, NSC
FOR ELLIOT ABRAMS, NICK RAMCHAND, STATE FOR NEA/AS DAVID
WELCH AND DAS GORDON GRAY,

E.O. 12958: DECL: 01/06/2018
TAGS: OVIP PREL PINR FR SA
SUBJECT: SARKOZY INTENDS TO OFFER SAUDI ARABIA PEACEFUL
NUCLEAR TECHNOLOGY

REF: 07 RIYADH 02454

Classified By: Deputy Chief of Mission Michael Gfoeller for reasons 1.4
(b) and (d).


1. (S/NF) SUMMARY. French President Nicholas Sarkozy will
arrive in Saudi Arabia January 15 and depart the next day.
French Embassy contacts have confirmed that Sarkozy will
discuss the transfer of peaceful nuclear technology to Saudi
Arabia and may present a formal offer to be signed during the
visit. Post suggests that the USG considers discussing a
Peaceful Nuclear Partnership agreement with the highest
levels of the Saudi government at the earliest possible date.
END SUMMARY.


2. (S/NF) French President Nicholas Sarkozy will arrive in
Riyadh at 1600 January 13, overnight and depart at 1430
January 14. Sarkozy is scheduled to meet and dine with Saudi
King Abdullah bin Abdulaziz Al Saud, overnight in the King's
Palace, address the Shura Council, meet with the French
business community, and lunch with Crown Prince Sultan bin
Abdulaziz Al Saud. Contacts in the French Embassy report
that Sarkozy will focus on ways to counter Iran's regional
threat, including the offer of nuclear technology and
equipment to Saudi Arabia. This offer is intended to
demonstrate that nuclear technology is available for peaceful
purposes without an independent nuclear development program.



3. (S/NF) French Embassy contracts confirm that other agenda
items include various "educational, cultural and commercial
issues", but Iran and nuclear power will be the main issues
for Sarkozy. We fully expect that Sarkozy will advocate for
French commercial interests. These include: 20 billion
dollars worth of border protection programs, Saudi Airline's
widebody aircraft purchase valued at between 7 and 15 billion
dollars and the 13 billion dollar Saudi Naval Expansion
Program (SNEP II). In each instances French firms are
competing against one or more American firms, including
Raytheon, Boeing, Lockheed Martin and General Dynamics.

4.(U) Post welcomes any information Embassy Paris could
provide regarding Sarkozy's agenda in Saudi Arabia.


5. (S/NF) Comment. The French have already agreed to
assist Libya with their nuclear power program. The Saudis
see considerable economic logic is saving oil for export
while producing electricity with nuclear power. As noted in
reftel para 15, post believes that maximum US influence and
control over any Saudi nuclear program can be obtained
through the negotiation of a Peaceful Nuclear Partnership
(PNP) agreement similar to that recently signed with Jordan.


6. (S/NF) The announcement of Saudi French nuclear
cooperation would not reduce the value of our own PNP
agreement. If the Saudis do decide to build nuclear power
plants, they will no doubt build more than one of them.
International cooperation in the nuclear power field could
well end up divided like that given to the Saudi Navy where
the Americans equip and support the Persian Gulf Fleet while
the French do the same for the Red Sea Fleet. Moreover the
prospects of American firms, such as GE or Westinghouse,
bidding on Saudi nuclear power projects would be increased by
a PNP agreement. End Comment
FRAKER