URUGUAYAN NUCLEAR ENERGY PLANS NOT DEFINITIVE

UNCLAS MONTEVIDEO 000009

SIPDIS

STATE FOR WHA/BSC MDASCHBACH, T MHUMPHREY,
COMMERCE FOR SLOPP

E.O. 12958: N/A
TAGS: ENRG TRGY BEXP BTIO UY
SUBJECT: URUGUAYAN NUCLEAR ENERGY PLANS NOT DEFINITIVE

REF: 08 STATE 127423


1. Uruguay is increasingly interested in diversifying its energy
sector, potentially including the use of nuclear power. Currently,
the implementation of such a program is prohibited by law, but
President Tabare Vazquez authorized feasibility research of a civil
nuclear program and its implications in April 2008. A technical
team coordinated by the Directorate of Energy and Nuclear Technology
(DNETN) within the Ministry of Industry, Energy, and Mining (MIEM)
undertook the study and published their conclusions in October.


2. The report noted that while Uruguay is facing the challenge of
meeting a growing demand for energy, the country is not ready to
make a definitive decision on starting a nuclear program. Instead,
the report recommends continued study of the subject. A number of
legal hurdles would need to be overcome in order to realize a
nuclear industry in Uruguay. The report concluded that if the
industry develops, its guidelines and protocols would be developed
according to international standards. The primary political
consideration to be taken into account when choosing to cooperate
with competing nuclear supplier states would be the potential
exportation to neighboring countries, particularly Brazil and
Argentina.


3. Were the GOU to initiate a civil nuclear energy program, Minister
of Industry, Energy, and Mining Daniel Martinez would be the key
government official in charge of it, with DNETN as the primary
governing body. Key contacts at DNETN include Director Ramon Mendez
and Advisor Pablo Mosto.


4. The GOU has signed twelve multilateral agreements on nuclear
issues, and one bilateral agreement:

Multilateral:
--Vienna Convention on Civil Liability for Nuclear Damage of 1963
(Law 17,051)
--Additional Protocol to the Agreement between the GOU and the
International Atomic Energy Agency for the Application of Safeguards
in Relation with the Treaty for Non-Proliferation of Nuclear Weapons
(Law 17,753)
--Treaty of Tlatelolco for the Prohibition of Nuclear Weapons in
Latin America and the Caribbean (Law 13,669)
--Convention on the Physical Protection of Nuclear Material (Law
17,680)
--Treaty Banning Nuclear Weapon Tests in the Atmosphere, in Outer
Space and Under Water (Law 13,684)
--Comprehensive Nuclear Test Ban Treaty (Law 17,348)
--Convention on Nuclear Security (Law 17,588)
--Treaty on the Non-Proliferation of Nuclear Weapons (Law 13,859)
--Convention on Assistance in the Case of Nuclear Accident or
Radiological Emergency (Law 16,075)
--Convention on Early Notification of a Nuclear Accident (Law
16,075)
--Convention for the Establishment of a European Organization for
Nuclear Research (Entered into effect September 9, 1954)
--Convention on the Privileges and Immunities of the Agency for the
Prohibition of Nuclear Weapons in Latin America and the Caribbean
(Law 14,815)

Bilateral:
--With Argentina: Agreement on Cooperation in the Area of Peaceful
Uses of Nuclear Energy (Law 14,074)


5. Uruguay has no known deposits of uranium, but the GOU believes
there are potential areas for mining. MIEM has put out a call for
international investors to support the exploration for uranium in
the country.


6. If Uruguay did decide to implement a civil nuclear power program,
it would result in state-owned plants and seek international
financing to start the project. Many of the components to construct
reactors would need to be imported. The GOU would likely request a
TDA grant to study the best way to initiate the program and look to
the U.S. nuclear industry for consultation and perhaps constructing
infrastructure, though the latter could also be contracted through
European firms.

BAXTER