Identifier
Created
Classification
Origin
08UNVIEVIENNA395
2008-07-14 15:43:00
SECRET
UNVIE
Cable title:  

IAEA: DG CONCERNED ABOUT INDIA AGREEMENT; SEEKS

Tags:  AORC PARM MNUC TGRY KNPP KN SY IR IN 
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R 141543Z JUL 08
FM USMISSION UNVIE VIENNA
TO SECSTATE WASHDC 8197
INFO VIENNA IAEA POSTS COLLECTIVE
AMEMBASSY DAMASCUS
AMEMBASSY ISLAMABAD
AMEMBASSY MOSCOW
S E C R E T UNVIE VIENNA 000395 


E.O. 12958: DECL: 07/14/2018
TAGS: AORC PARM MNUC TGRY KNPP KN SY IR IN

SUBJECT: IAEA: DG CONCERNED ABOUT INDIA AGREEMENT; SEEKS
LEADING ROLE ON DPRK VERIFICATION

REF: A. A) STATE 72006

B. B) UNVIE 392

Classified By: Ambassador Gregory L. Schulte for reasons 1.4 b and d

S E C R E T UNVIE VIENNA 000395


E.O. 12958: DECL: 07/14/2018
TAGS: AORC PARM MNUC TGRY KNPP KN SY IR IN

SUBJECT: IAEA: DG CONCERNED ABOUT INDIA AGREEMENT; SEEKS
LEADING ROLE ON DPRK VERIFICATION

REF: A. A) STATE 72006

B. B) UNVIE 392

Classified By: Ambassador Gregory L. Schulte for reasons 1.4 b and d


1. (S) SUMMARY: Responding to ref A demarche, IAEA DG
ElBaradei assured Ambassador Schulte on July 14 that he will
continue to support the India safeguards agreement and hoped
for consensus at the August 1 Board of Governors but
indicated Pakistan could be problematic. He urged the U.S.
to highlight the agreement's positive aspects and send a
message to Pakistan that it too could one day be in a
position to benefit from such an agreement. On DPRK,
ElBaradei noted the July 12 DPRK Press Communique from the
Six Parties mention of the IAEA's role in verification and
insisted that the IAEA would have to be in the lead or have
no involvement at all. The DG assured Ambassador Schulte that
the IAEA continues to ask for more information from Syria.
He noted that samples analysis would take several months and
did not anticipate resolving the Syria issue before the
September Board. The DG did not have any update on Iran and
mentioned that he will meet with Solana in Berlin on July 15.
The DG also indicated some "cautious optimism" that the
Russian proposal on Reliable Access to Nuclear Fuel (RANF)
may become "unstuck" in the Russian bureaucracy in the near
future. The DG suggested that EU support and that of a few
developing countries, such as South Africa or Mexico, would
lend credibility to the IAEA-NTI fuel bank proposal. Turning
to the negotiations on the Technical Cooperation Fund (TCF),
he pushed the U.S. to pledge more and "stop fighting about
pocket change with the G77". END SUMMARY

--------------
INDIA
--------------


2. (S) DG ElBaradei noted the IAEA's full backing of the
India safeguards agreement and assured Ambassador Schulte
that he would continue to voice his support both publicly and
privately. Drawing on ref B, Ambassador encouraged the DG to
facilitate an early consensus decision. ElBaradei did not
have concerns about securing support from Canada, China, and
Finland, countries he had mentioned previously, but was
concerned about Pakistan. ElBaradei urged the U.S. to send a

signal to Pakistan that the India agreement could serve as a
possible precedent for other countries, including Pakistan,
assuming they "clean up their own nuclear house." ElBaradei
was also concerned that the July 18 briefing by India on the
agreement could be perceived as "defensive." He judged that
it would be inappropriate for the IAEA to be part of the
presentation. Ambassador Schulte urged ElBaradei to
reconsider this view. The DG also said there will be no
technical briefing unless specifically requested; however,
his legal staff would be available to member states to answer
questions on a bilateral basis (Note: The Secretariat had
pushed back against the Board Chair's suggestion of a
technical briefing, preferring to treat this as a routine
agreement. End note.)

--------------
DPRK
--------------


3. (S) After briefly reviewing the July 12 DPRK Press
Communique from the Six Parties mentioning the IAEA's role in
the verification process, the DG forcefully insisted on the
IAEA having the lead in verification or having no role at
all. The DG disagreed with Ambassador Schulte's observation
that verification was a shared responsibility in Libya and
reiterated his point. He welcomed Ambassador Schulte's
suggestion to have a team of experts sit down with their IAEA
counterparts to discuss the verification regime planned for
the DPRK.

--------------
IRAN
--------------


4. (S) The DG did not have any update on the Iran file but
mentioned that he would meet with Solana on July 15 in
Berlin. He did not provide details. ElBaradei said the focus
now should be on negotiation. Ambassador Schulte countered
saying that both tracks of the dual-track strategy should
proceed in tandem, as should the IAEA investigation of
weaponization.

--------------
SYRIA
--------------


5. (S) ElBaradei confirmed the IAEA investigation is


ongoing with inspectors asking follow-up questions and
waiting for responses. The DG expects results from
environmental samples taken during the June 22-24 visit
within the next few months. He doubted that the IAEA would
make much progress in the investigation by the September
Board. Ambassador Schulte reiterated our view that Syria
should be on the agenda of the September Board meeting.

--------------
RANF
--------------


6. (S) Responding to Ambassador Schulte's observation that
the UAE is interested in supporting the IAEA-NTI fuel bank,
the DG said the EU plus a few developing countries, such as
South Africa and Mexico, would also need to come on board to
lend legitimacy to the project. The DG assured Ambassador
Schulte that there would be a defined "concept" on this fuel
bank for the Board to approve. ElBaradei anticipates
countries such as Egypt and Pakistan may have reservations
about the project. He also noted that there is some
"cautious optimism" that the Russian proposal may become
"unstuck" in the Russian bureaucracy in the near future.

---
TCF
---


7. (S) The DG stressed his dissatisfaction with the lack of
agreement on the Technical Cooperation Fund (TCF) figures.
He noted the resentment he has heard from G77 members about
the major donors lack of willingness to pledge more money for
TCF while they at the same time are willing to spend money on
AIPS and on India. He advised Ambassador Schulte to "give
the G77 85 or 86 to make them happy." Ambassador Schulte
noted U.S. readiness to support 83.5 million USD in the last
TCF negotiating session and shared with the DG that the U.S.
could go as high as 84 million USD. He added that this is
the largest one time increase in TCF history, and encouraged
ElBaradei to weigh in with the G77 to facilitate compromise.
SCHULTE


NNNN




End Cable Text