DOE DEPUTY SECRETARY DISCUSSES NEW NUCLEAR ENERGY

S E C R E T SECTION 01 OF 02 BEIJING 003095

SIPDIS

STATE FOR EAP/CM-BRAUNOHLER, EAP/CM
STATE FOR OES DAS MIOTKE
STATE FOR S/SECC-STERN, S/P-GREEN
USDOE FOR NUCLEAR ENERGY/MCGINNIS
USDOE FOR NNSA/SCHEINMAN, GOOREVICH, WHITNEY
STATE PASS TO NUCLEAR REGULATORY COMMISSION (DOANE)
USDOE FOR INTERNATIONAL/YOSHIDA, BISCONTI, HUANGFU
USDOE FOR INTERNATIONAL
NSC FOR HOLGATE

E.O. 12958: DECL: 11/12/2019
TAGS: ENERG ECON ETTC TRGY KNNP IAEA KTIA CVIS CH
SUBJECT: DOE DEPUTY SECRETARY DISCUSSES NEW NUCLEAR ENERGY
FRAMEWORK WITH JAPAN'S AEC, CABINET OFFICE

REF: BEIJING 2978

Classified By: ESTH Counselor Brent Christensen. Reason 1.4 (b) and (d)


1. (S) SUMMARY: Department of Energy (DOE) Deputy Secretary
(DEPSEC) Daniel Poneman met privately with Keisuke TSUMURA,
the Parliamentary Secretary for Science and Technology in
Japan's Cabinet Office, and Shunsuke KONDO, the Chairman of
Japan,s Atomic Energy Commission (AEC),on the margins of
the Global Nuclear Energy Partnership (GNEP) Ministerial
meeting in Beijing on October 23. The two sides discussed
the U.S. proposal to construct an enhanced international
framework for civil nuclear cooperation, including
cradle-to-grave nuclear fuel management and supply services
so that countries can access nuclear power without increasing
the risks of proliferation. The proposal also calls for a
renaming of GNEP to the International Nuclear Energy
Framework (INEF). Japanese officials said more discussion was
needed to ensure fair and equitable business models were
established for commercial fuel cycle providers. Tsumura
also asked DEPSEC to confirm that the U.S. proposal would not
impact Japan's fuel cycle and reprocessing activities. END
SUMMARY.


2. (S) Following DEPSEC's opening remarks and an explanation
of the U.S. Administration's thinking on nonproliferation and
the future of GNEP, Tsumura responded by noting that Japan's
new Administration hopes to construct an even stronger
partnership regarding nuclear-related issues; nevertheless,
Tsumura expressed concern over how the U.S. proposal will be
implemented and asked the DEPSEC to confirm that there will
be no impact on Japan's fuel cycle and reprocessing
activities. The DEPSEC reiterated that efforts to enhance and
rename GNEP would not affect Japan's fuel cycle and made
clear that no one was asking Japan to reconsider
reprocessing, as a 1993 U.S. proposal had done.


3. (S) Japanese officials also asked for more specifics
regarding proposed business models for fuel cycle activities
and stated that commercial opportunities should be divided
equitably among fuel cycle providers. The DEPSEC said that
multiple commercial suppliers will be essential to providing
a sense of security to countries concerned with reliable
access to fuel supplies, but ultimately it is the
responsibility of governments to secure and protect "used
fuel" and ensure public safety. Therefore, individual
governments must strongly state their intent to take
responsibility over the long term--particularly the back-end
of the fuel cycle--to reassure private fuel providers that
they do not have to worry about what to do with the fuel when
it is used up. Tsumura acknowledged the need for strong
government involvement and said he looked forward to
discussing the results of a U.S. blue ribbon panel, which the
DEPSEC said will be convened soon to devise new ways of

BEIJING 00003095 002 OF 002


thinking about fuel cycle and reprocessing activities.
HUNTSMAN