CONSULTATIONS WITH INCOMING FRENCH EU PRESIDENCY

C O N F I D E N T I A L SECTION 01 OF 05 UNVIE VIENNA 000368

SIPDIS

E.O. 12958: DECL: 06/26/2018
TAGS: AORC PARM MNUC KNPP ETTC KSTC SNAR KCOR
SUBJECT: CONSULTATIONS WITH INCOMING FRENCH EU PRESIDENCY

REF: BRUSSELS 943

Classified By: Charge d'affairs Geoffrey R. Pyatt for reasons 1.4 b and
d

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Summary
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1. (C) On June 24 Mission discussed upcoming issues for
Vienna-based international organizations with the French
Mission, the next EU Presidency. France welcomed early
consultation with the U.S. and outlined priorities for its
Presidency, focusing on those relevant to Vienna
organizations: energy, climate change and immigration. With
regard to IAEA, there were no major divergences with the EU
on non-proliferation issues. France noted that the inclusion
of an agenda item / report on Syria in the September Board
would be necessary to coalesce EU support for blocking
Syria's Board candidacy at the General Conference. The EU
was anxious not to repeat the divisive debate of the last two
General Conferences on Middle East Safeguards and was giving
preliminary consideration to Egyptian and Arab League texts.
The U.S. urged early Board action on an eventual India
Safeguards agreement, but the French, while supportive in
their national position, were not sure that they could
deliver the EU as a whole. On Reliable Access to Nuclear
Fuel (RANF),the French were likewise supportive of funding
for the NTI-IAEA fuel bank but stressed the need to present
the EU Council with a "clear concept." Looking ahead to the
November TACC, France expected the Secretariat to fully apply
UNSCR restrictions on technical cooperation with Iran. EU
experts were also meeting in early July to consider an
overhaul of IAEA technical cooperation programs. Mission
discussed the way ahead on 20/20, the French suggesting that
we focus on discrete areas within the Agency's mandate. The
French indicated that there was not yet EU agreement on AIPS
funding, which would be considered at the July 7 special
Board meeting.


2. (SBU) France underlined the importance of the Hague Code
of Conduct and CTBTO to the EU, and noted that Cyprus's
exclusion remained a "real problem" for Wassenaar. For
UNODC, France cited immigration and identity theft as
important issues and sought to address drug demand and supply
reduction in operational terms in the UNGASS working group.
It could not support a voluntary assessment scale for UNODC.
At UNCITRAL, the French sought to ensure consistency of EU
and UNCITRAL rules and continued to support an ad hoc working
group on working methods. France also noted the first EU
statement in COPUOS calling for a voluntary code of conduct
on safety in outer space. End summary.

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US-EU Coordination
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3. (SBU) Ambassador Schulte, DCM and UNVIE Counselors met
informally with French Mission counterparts on June 24 to
preview areas of cooperation for the French EU Presidency in
Vienna-based organizations. Drawing on themes in reftel,
Ambassador Schulte sought close and early coordination with
the EU, and noted the need to identify issues before they
become fixed positions. French Ambassador Deniau welcomed
early consultation with the U.S., acknowledging that that it
was difficult to change EU common positions once adopted. He
outlined four priorities for the French Presidency, energy,
climate change, immigration and defense policy, with all but
the latter relevant to Vienna organizations. In addition to
advancing Common Security Policy, France also will seek to
improve EU efficiency in formulating positions and regretted
that the G-77 sometimes seem more adept than the EU.

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IAEA
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Budget - 20/20 issues
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4. (SBU) Nuclear Counselor reviewed the host of
non-proliferation, energy, 20/20 and funding issues on the
agenda for upcoming Board meetings and the October General

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Conference. For the July 7 Special Board meeting, Deputy
Counselor believed there were the outlines of a deal on AIPS
and the Technical Cooperation Fund target. French Counselor
noted some reservations on AIPS funding among EU member
states, observing that this was still a matter of discussion
not consensus. Looking ahead to the September Board and
General Conference, Deputy Counselor suggested U.S.-EU
consultations in July on a strategic approach to 20/20 report
recommendations. DCM related that the DG's senior advisor
had admitted to him that the Secretariat had no idea what to
do with the 20/20 agenda item in the September Board, which
could cause mass confusion. Deniau recommended that we not
tackle 20/20 as a whole but focus on discrete slices of the
Agency's mandate, such as technical cooperation or
safeguards, and Ambassador Schulte wholly agreed. Nuclear
Counselor also flagged upgrading the Safeguards Analytical
Laboratory as a difficult issue given funding implications
but noted that we have not yet seen a proposal from the
Secretariat.

Non-Proliferation-Syria
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5. (C) Nuclear Counselor did not expect any major differences
with the EU on non-proliferation issues in the September
Board, including on Iran, DPRK and expected agenda items on
Syria and Libya. He observed that Syria was bound to be
problematic and DPRK developments could be of interest. The
French speculated, based on press reports, that the
Secretariat may report on the AQ Khan Network at the
September Board, but could provide no further context.


6. (C) Counselor also raised the prospect of Syria's Board
candidacy necessitating a vote in the GC if an alternative
were not found within the MESA group. (Note: The French noted
the possibility of Kazakhstan as an alternative. End note.)
The U.S. would let the word out about calling for a vote if
Syria was the MESA group candidate, he advised. Deniau
opined that a report on Syria and agenda item for the
September Board would help coalesce EU member support for any
effort to block Syria's candidacy. However, France was not
sure that the Secretariat would put Syria on the agenda for
September, though several Board members, including South
Africa and Morocco, had asked for a report at the June Board
meeting. French DCM also questioned the mechanics of a GC
vote and whether the entire slate of Board candidates would
be subject to a vote or specific seats. Nuclear Counselor
noted that the GC rules of procedure allow any motion to be
brought.

Middle East Safeguards
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7. (C) Ambassador Schulte stressed the importance of the EU
stance in the Middle East GC debate and how the EU stays
together in managing the issue (Note: Ireland broke EU
consensus in the last GC on this issue. End note). Deniau
advised that the EU wanted to "get out of the strange
position" it found itself in, and to avoid the divisions of
last two General Conferences. To that end, the EU was
consulting early with Egypt and the Arab League and giving
preliminary consideration to the draft texts each had
circulated. Ambassador Schulte questioned whether the EU was
prepared to play a mediation role on this issue, but Deniau
deferred, noting that it would depend on the EU position.

Reliable Access-Nuclear Energy
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8. (C) Nuclear Counselor also noted the importance of
Reliable Access to Nuclear Fuel (RANF),a Presidential
initiative, which the U.S. hoped to actualize with a concrete
proposal by the fall. Asked about the EU stance on the
NTI-IAEA fuel bank, Deniau questioned whether this proposal
was ready, whether the "concept" was clear and what exactly
the U.S. had agreed to fund. Nuclear Counselor noted that
the U.S. had agreed to the basic concept of the fuel bank,
though the details had not been worked out. Ambassador
Schulte reported that the Secretariat had provided the EU
with a fuel bank "concept paper" in Brussels, which the DG
agreed to share with the U.S.


9. (SBU) Deniau advised that Paris was in favor of EU funding

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for the NTI-IAEA fuel bank proposal, which was under
discussion in the EU. However, France needed a concrete
concept to bring to the Council that specified, for example,
if it would be a virtual or real fuel bank, a reserve supply
or not, though Paris had no strong preference. Nuclear
Counselor noted that we were pushing the Secretariat to be
clearer about its intentions.


10. (SBU) French Counselor noted that the Secretariat was
preparing two reports on Nuclear Energy for the September
Board; though it was unclear any decision would be required.
As current chair of the Friends of Nuclear Energy, France
could only speak in a national capacity and asked about any
prospect for a common EU position on nuclear energy; Deniau
responded "Euratom" was just that. (Note: It would seem that
France will continue to chair the Friends, though French
Counselor did not answer directly. End Note.)

India
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11. (C) Deniau was skeptical about the possibility of a
special Board meeting to consider the India Safeguards
agreement over the course of the summer, taking into
consideration that the five-week review period put us into
August. Nuclear Counselor noted it could be sooner given
that the review period only applied to undefined "significant
documents" but Deniau questioned if there was a reason to
force the issue. Ambassador Schulte queried whether an EU
position on the India Safeguards agreement could be useful to
bring along Austria and Ireland. Deniau advised that the EU
will try to find common ground, but failing that would revert
to national positions.


12. (C) DCM underscored the need for quick and bold Board
action on the India Safeguards agreement. France, he noted,
had played a significant role in shaping the approach to
India over the last five years. PM Singh's bold decision,
prompting a political crisis in Delhi in advance of the G-8,
deserved an equally bold Board response. The U.S. hoped for
quick action on an agreement if tabled in July, and cautioned
that anything less than a clear welcome by the Board would
send the wrong signal to those in Delhi debating the
country's future role. Deniau responded that France was
convinced but he could not speak for the entire EU.

Technical Cooperation - Iran
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13. (C) Nuclear Counselor raised the issue of dealing with
technical assistance to Iran in the November TACC and Board
meeting. Deniau expected that the Secretariat would censure
Iran's projects ahead of time in accordance with UNSCR
provisions and not bring questionable projects to the TACC.
UNSCRs were not yet in effect in November 2006 during the
last biennial authorization of the technical cooperation
program, Ambassador Schulte noted in agreement. Both the U.S.
and France would consult with the Secretariat on this issue
ahead of the November TACC.


14. (SBU) The EU was also giving thought to a global overhaul
of IAEA technical assistance and planned an experts meeting
in early July on the subject. Experts would examine
qualitative aspects of TC projects and evaluative indicators
of their utility. The TC Director for Coordination would be
invited. France agreed to brief the U.S. on this expert
discussion. Ambassador Schulte suggested that the Program of
Action for Cancer Therapy (PACT) could be a model for other
TC projects, including partnerships with other agencies and
the private sector. Revamping TC was also part of the 20/20
process, he noted.

Other issues
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15. (SBU) Mission also flagged other upcoming IAEA issues,
including the campaign for Director General, Israel's request
to become a WEOG member and influencing NAM positions. The
incoming French Presidency took note of these issues but had
no substantive comment at this time.

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Export Controls: Wassenaar and HCOC

UNVIE VIEN 00000368 004 OF 005


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16. (SBU) Msnoff briefed on U.S. views for the future of the
Wassenaar Arrangement (WA),including expansion to the
greater Middle East region. She welcomed French support at
the May General Working Group for the U.S. proposal to invite
the UAE to a post-Plenary briefing following the December
2008 Plenary Meeting. Although the U.S. also supported
Cyprus's participation in WA, she cautioned that the divide
over this issue should not detract from the substantive work
of the WA and complicate the October General Working Group
and December Plenary. She hoped that the French Presidency
could help keep this from becoming a divisive issue at either
event. Deniau responded that the Cyprus issue was a "real
problem" as it was not acceptable to exclude an EU member
from Wassenaar.


17. (SBU) French Counselor underlined the strong EU consensus
in support of the Hague Code of Conduct (HCOC),which it
viewed as an important and effective instrument. Deniau
seconded this view, making an emphatic appeal for U.S.
support of HCOC. He observed that Hungary's incoming HCOC
Chairmanship gives the issue added impetus in the EU context.
Noting that President Sarkozy's remarks at Cherbourg called
for HCOC universalization, Deniau underlined that France is
"expecting the Administration to look at it seriously."
Mission explained that HCOC is dealt with out of Washington
and agreed to relay this message.

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CTBTO
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18. (SBU) French Counselor also highlighted the importance of
CTBTO entry into force as a priority for the next three EU
Presidencies, France, the Czech Republic and Sweden. France
expressed concerns about the G-77 position on freezing the
establishment of more international monitoring stations
(IMS). Looking at the IMS map, French DCM noted the need for
more IMS stations in the Middle East, a point on which the
U.S. generally agreed. The French delegation also noted
"global agreement" on the upcoming contract extension for
Executive Secretary Tibor Toth.

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UNODC
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Drugs and Crime
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19. (SBU) According to the French, the EU rejects
legalization of drugs as an option. They emphasized that
demand and supply reduction should be integrated in
operational terms in the ongoing working group review of the
drug resolution of the 1998 UN General Assembly Special
Session (UNGASS). French Mission noted that they were
preparing papers for each of the working groups.


20. (SBU) France cited immigration as a priority for their
Presidency. They intend to work through the UNTOC (also
known as the Palermo Convention). France also noted its
interest in identity theft and working this issue through the
convention. Mission noted that this would be a debate theme
for the next Crime Commission (April 2009).

Working Group on Finance and Governance
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21. (SBU) France and the EU (like all major donors to the
UNODC),want to improve the dialogue between UNODC and member
states, and between donor countries and recipient countries.
However, France does not wand a formalized structure which it
believes could be vulnerable to G-77 pressure. France is
also opposed to indicative or voluntary assessment scale,
because its government cannot know from year to year how much
it could contribute to UNODC.

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UNCITRAL
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22. (SBU) The EU does not play a formal coordinating role in

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UNCITRAL, and the 11 EU states that are UNCITRAL members are
sometimes at loggerheads on certain issues. However, the
French will work to ensure that UNCITRAL rules do not
conflict with EU rules. The French also want an ad-hoc
working group to consider the working methods of UNCITRAL, an
issue currently being debated at the UNCITRAL Commission
meeting in New York.

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COPUOS
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23. (SBU) France made a statement in the last session of
COPUOS on behalf of the EU, announcing the intention to
propose a "code of conduct" for outer space. They noted that
this was the first time an EU statement had been delivered in
the Committee. (Note: The proposed code would aim to reduce
the risk of collisions, minimize debris, and enhance mutual
understanding between space-faring nations. The objectives
of the code would be to promote implementation of existing
outer space agreements, to develop best practices for traffic
management, and to strengthen mutual understanding and
confidence between space-faring nations by improving
communication and consultation. The code would be voluntary
and non-binding. EU member states have worked at the expert
level on a draft text, which the EU hopes to present soon to
relevant international bodies, including COPUOS. End Note.)
France also noted continuing informal bilateral consultations
with the US on the sustainability of space operations, which
it hopes
to introduce as an agenda item in COPUOS in 2009. (Note:
This is an initiative of the former French chairman of
COPUOS. End Note.)


PYATT