CANADA WELCOMES COMMERCIAL, NOT GOVERNMENTAL,

UNCLAS OTTAWA 000522 SENSITIVE SIPDIS DEPT FOR ISN/WMDT--M. CURRY E.O. 12958: N/A TAGS: PREL PARM KNNP MNUC ASEC KCRM PINR XS CA SUBJECT: CANADA WELCOMES COMMERCIAL, NOT GOVERNMENTAL, TALKS ON EXTRACTION OF HELIUM-3 REF: STATE 69767 ¶1. (SBU) The Government of Canada would welcome USG discussions with Canadian commercial entities regarding extraction of Helium-3 for the purposes outlined in reftel, according to Department of Foreign Affairs and International Trade (DFAIT) Deputy Director for International Nuclear Cooperation Shawn Caza. Caza underlined, however, that relevant Canadian federal agencies see no governmental role in any commercial discussions between the USG and Canadian suppliers in what the GOC views as a "straight up" commercial transaction. He counseled that USG interlocutors should focus their efforts on discussions with Ontario Power in particular. He added that Canadian officials would nevertheless be willing to meet with U.S. officials during the trip, but that the decision to proceed would rest exclusively with the commercial entity. ¶2. (SBU) Caza commented that the senior management of Ontario Power is "clearly interested" in pursuing discussions with USG officials on Helium-3 extraction. Ontario Power's prime concern, according to Caza, would be the unique nature of our request and an unfamiliarity with the process of Helium-3 extraction. He stressed that Ontario Power's paramount concern is that this contemplated side venture not interfere with its regular commercial operations. He observed that Ontario Power would look for a "turnkey operation" and would have no interest in developing an extraction capability on its own. If the USG were to offer such a business solution to Ontario Power, it would also preclude the need to launch a public tender process, according to Caza. Visit Canada,s North American partnership community at http://www.intelink.gov/communities/state/nap / HOPPER