AMBASSADOR BLEICH CALL ON ENERGY MINISTER FERGUSON

UNCLAS SECTION 01 OF 02 CANBERRA 001057

SENSITIVE
SIPDIS

STATE FOR EEB MONOSSON, S/SECC STERN, WHITE HOUSE FOR CEQ
SUTLEY, DOE FOR SANDOLOW

E.O. 12958: N/A
TAGS: ENRG ECON SENV ETRD AS
SUBJECT: AMBASSADOR BLEICH CALL ON ENERGY MINISTER FERGUSON


1. (SBU) Summary: Energy, Resources and Tourism Minister
Ferguson told Ambassador Bleich during an initial courtesy
call that Australia is "in lockstep" with the U.S. on energy
policy, technology goals, and views on climate change.
Ferguson sees Australia, a major liquefied natural gas (LNG),
coal, and uranium producer, as a key energy security
guarantor for East and South Asia. Australian policy makers
will have to deal with potential shortfalls in renewable
energy and clean coal technology development by seriously
considering nuclear power in the future. Ferguson suggested
strengthening work under the International Renewable Energy
Agency (IRENA) and believes that shaping the emerging UN
technology partnership into a useful body will require close
coordination. Australia recognizes U.S. efforts to deal with
problems in the work-study visa pilot program and appreciates
steps to improve the bilateral tourism relationship. End
Summary.


2. (SBU) Ambassador Bleich and DCM Clune met with Energy,
Resources and Tourism Minister Martin Ferguson and Department
of Resources, Energy and Tourism Deputy Secretary Drew Clarke
on November 27. In a brief but cordial meeting, the
Ambassador and Ferguson shared views on priorities for the
U.S.-Australia energy and technology relationship, climate
challenges, nuclear energy, and tourism. Ferguson
highlighted his role as the point man for clean energy and
technology development in the GOA's effort to combat climate
change.


GORGON PROJECT KEY TO TIES WITH NEIGHBORS
--------------


3. (SBU) Ferguson noted that he and the Ambassador would both
be present at the December 1 groundbreaking ceremony for the
Gorgon LNG project off Australia's northwest coast. Gorgon,
at A$37 billion, is the largest-ever foreign investment in
Australia, led by a consortium of Chevron, Exxon Mobil, and
Shell. The Ambassador said that LNG was a critical interim
step in the drive to a lower-carbon future. Ferguson agreed
and said that work with the companies on the project had
generally gone very well. Gorgon was one of the projects
that would secure Australia's energy relationships not just
with China and Japan, but India and South Korea as well. The
abundance of LNG, coal and uranium now makes Australia a key
energy security player for these countries, Ferguson said.

RENEWABLE ENERGY DEVELOPMENT
--------------


4. (SBU) Ferguson turned to U.S.-Australia cooperation on
clean energy technology development, characterizing existing
work with DOE and other USG agencies as very strong. He
pointed to planned January 18-20 high-level consultations
with DOE as an example of coordination and mutual benefit.
Ferguson plans to attend those talks and to meet with DOE
QFerguson plans to attend those talks and to meet with DOE
Secretary Chu. Ferguson said work by the International
Renewable Energy Agency (IRENA) would be critical in
developing technologies that could help against climate
change and provide developing counties, especially Pacific
Island states, a pathway for sustainable development.
Ferguson added that the proposed UN technology partnership
coming out of Copenhagen would need to be carefully shaped to
provide real outcomes, and cooperation between the U.S. and
Australia had been excellent so far.

NUCLEAR POWER NOT ON THE TABLE, YET
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CANBERRA 00001057 002 OF 002




5. (SBU) Ambassador Bleich asked if Australia's current
policy on nuclear energy might change, especially if pressure
for action on climate change continues to mount. Ferguson
said in his own view the recent expansion in uranium
development in Australia reflected a shift in willingness to
consider nuclear energy. Ferguson said he personally
supported the U.S.-India nuclear agreement and the PM had
been careful in recent comments in Parliament to leave the
door open for uranium exports to other countries, including
India. In his view, a deal to supply India with nuclear fuel
could be reached in 3-5 years. Nuclear power would not be on
the agenda under this Parliament. At the same time, Ferguson
said he had counted a large number of things that have to go
right technologically to meet Australia's renewable and clean
coal energy goals. Describing the challenge of developing
base-load renewable energy as "quite worrying," Ferguson said
policymakers would have to address the question of
alternatives - nuclear most notably - if any of the other
technologies failed to develop commercially quickly enough.

TOURISM
--------------


6. (SBU)Turning to tourism, Ferguson recognized that work was
being done to fix problems associated with the work-study
visa pilot program. The U.S. is an important tourist market
for Australia, and education exports are a major employer and
source of revenue. Recent problems with India over treatment
of students in Australia appeared to be working out. The
Ambassador said he had consulted closely with Under Secretary
for Public Diplomacy McHale on the pilot program, and,
although there were some tough legal questions that had to be
resolved, there was no better way to strengthen the
relationship than to have young students traveling to each
country. Ferguson thanked the Ambassador for his effort, and
said he was always a phone call away for any issues that did
come up in the relationship.

BLEICH