NETHERLANDS/IAEA: DUTCH WANT MORE DELIBERATION ON

C O N F I D E N T I A L THE HAGUE 000672 SIPDIS E.O. 12958: DECL: 08/05/2018 TAGS: PREL PARM IAEA NL IN SUBJECT: NETHERLANDS/IAEA: DUTCH WANT MORE DELIBERATION ON INDIA PROPOSALS REF: A. UNVIE 443 ¶B. UNVIE 437 ¶C. THE HAGUE 585 Classified By: Political-Economic Counselor Andrew C. Mann for reasons 1.5(b,d) ¶1. (C) SUMMARY: The Dutch do not expect to be able to approve a proposal on India during the Nuclear Suppliers Group (NSG) meeting in late August -- the Dutch need a proposal to review, and more time to review it. At the August 1 meeting of the IAEA Board of Governors (BoG),the Dutch supported Austria's intervention to resolve uncertainties and ensure an "adequate" safeguards agreement. END SUMMARY. ¶2. (C) LOOKING FOR DETAILS, TIME TO DELIBERATE BEFORE NSG ACTION: On August 6, Dutch MFA Senior Advisor for Nonproliferation and Nuclear Affairs Ceta Noland told poloff that the Dutch are "not looking forward to another general discussion" on India at the August 21-22 NSG plenary meeting. The Dutch are "waiting on a proposal." On the substance of the proposal, suspension of the agreement in the event of a nuclear test is an essential element for the Dutch. The Netherlands "cannot accept an NSG agreement without a clause on nuclear testing." The export prohibitions of the Hyde Act and the 123 agreement should also be part of the NSG proposal. On the timing for consideration of the NSG proposal, the Dutch are unlikely to be ready to approve it in August. FM Verhagen only returns from vacation on August 18, and the Dutch parliament also wants to consider the measure. The British and French have demarched the Dutch for expedited approval, but the Dutch are not ready to act. ¶3. (C) SUPPORTING AN "ADEQUATE" SAFEGUARDS AGREEMENT: According to Noland, the Netherlands joined Austria's joint statement at the IAEA BoG on August 1 because the India agreement was not a "standard agreement" and the Dutch therefore needed clarification on two key issues. First, in the preamble, the Dutch believe that India's option to take "corrective measures" does not mean India can suspend the agreement due to a lack of fuel. Second, in article 4, the link between safeguards and another key agreement also does not provide a basis for termination of the agreement. On the first matter, Noland expressed surprise that although the Dutch and others asked about the meaning of "corrective measures," India and the IAEA secretariat "refused to answer," and U.S. representatives said "we don't know." The Dutch believe that the DG's interpretation of corrective measures -- that the lack of fuel does not provide grounds for a total suspension of the agreement -- needed to be "on the record" in order to create an "adequate" safeguards agreement. Culbertson