UK SUPPORTIVE OF INTERNATIONAL NUCLEAR FUEL BANK

C O N F I D E N T I A L LONDON 001371 NOFORN SIPDIS E.O. 12958: DECL: 06/09/2019 TAGS: ENRG TRGY KNNP IAEA UK SUBJECT: UK SUPPORTIVE OF INTERNATIONAL NUCLEAR FUEL BANK CONCEPT, BUT HAS CONCERNS REGARDING PROPOSALS REF: SECSTATE 57598 Classified By: Acting Economic Minister Counselor Mark Johnson for reasons 1.4 (b) and (d) ¶1. (C/NF) In response to reftel demarche, Jon Knight (strictly protect) at the UK Foreign and Commonwealth Office (FCO) told Emboffs on June 9 the UK Government supports discussing the nuclear fuel bank concept at the June 15-18, 2009 International Atomic Energy Agency (IAEA) Board of Governors meeting in Vienna. He added the UK and U.S. positions on the international nuclear fuel bank are closely aligned. Knight also commented on similarities in speeches made by both Prime Minister Gordon Brown and President Obama regarding the peaceful use of nuclear power and goals on nuclear nonproliferation. The UK Government will not raise its Multilateral Nuclear Assurance (MNA) proposal introduced at the UK-hosted March 17-18, 2009 International Nuclear Fuels Conference at the June meeting, but plans to discuss it at an IAEA meeting later in the year, Knight said. ¶2. (C/NF) The three proposals noted in reftel "complement one another," Knight told us, but questions remain regarding export control measures. Knight said the UK has concerns regarding the non-discriminatory nature of the IAEA's proposal to establish an IAEA Low Enriched Uranium (LEU) Bank since all IAEA members -- including Israel, Pakistan, and India -- would have access to the LEU Bank. In addition, Knight said the UK Government is apprehensive about Kazakhstan as the site/location for the LEU Bank due to security and nonproliferation concerns, but noted it is the first country to volunteer. Knight noted the UK Government would prefer to see a "neutral" state such as Switzerland or another "safe, stable, and secure country" volunteer to be the site for the LEU Bank. He also asked about the U.S. Government's ideas on sites for the LEU Bank under the IAEA's proposal. ¶3. (C/NF) Knight said more details are needed regarding how export controls will fit together in the Russian Federation's proposal to establish a reserve of LEU to supply to the IAEA for its member states. He noted the German proposal to establish independent access to nuclear fuel cycle services, called the Multilateral Enrichment Sanctuary Project (MESP), complements other proposals on the table. He added that Japan's proposal for an IAEA Standby Arrangements System (SAS) for nuclear fuel supply needs more work. Knight commented on the success of the Nuclear Non-Proliferation Treaty (NPT) PREPCOM III meeting in May 2009, adding countries "outside" the NPT should not be able to use the fuel bank. Visit London's Classified Website: http://www.intelink.sgov.gov/wiki/Portal:Unit ed_Kingdom LeBaron