UNCLAS PARIS 000291

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: TRGY ENRG ITER FR
SUBJECT: FRANCE: CONCERN OVER USG FUNDING FOR ITER

1. (SBU) SUMMARY: France strongly supports the ITER (International
Thermonuclear Experimental Reactor) "clean" nuclear fusion based
project that if successfully developed would produce much
electricity with little radioactive waste. In addition to providing

the ITER site, France has allocated 900 million euros toward ITER's
original 5 billion euro cost, and an additional 60 million euros for
auxiliary infrastructure. Now the project needs 1 billion euros
more to pay for critical design changes, thus delaying operations
until at least 2019. Despite international commitments, the U.S.
Department of Energy has not received budget authorization to supply
equipment designed and manufactured in the U.S. nor to pay ITER
operating expenses. These shortfalls could severely stresses the
ITER project and raise questions about our reliability as an
international research partner. END SUMMARY.

ITER: Dedication of Resources
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2. (U) The French actively campaigned successfully for the ITER site
in Cadarache, about 50 miles northeast of Marseille, committing 895
million euros to site development, construction and the enlarged
highway to carry heavy equipment from the Port of Marseille. In
addition, local Provence-Alpes-Cote d'Azur (PACA) governments are
providing 60 million euros in auxiliary infrastructure, support for
international school construction, and additional road construction.
In October 2008, with only site preparation under way, a scientific
advisory panel informed the partners that an additional 1.2 billion
to 1.6 billion euros over the original 5 billion euro cost would be
needed to pay for critical design changes. These changes will delay
ITER completion for up to three years past the 2018 due date.

ITER: European Steadfast Financial Support
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3. (U) In 2005, ITER direct construction costs were estimated at 5.5
billion euros, of which 45 percent would be provided by Europe and
55 percent by the six other Parties (China, the Republic of Korea,
the United States, Russia, India, and Japan), each contributing 9
percent. Of Europe's share, France contributes 496 million Euros in
first phase costs, and 8 percent of second phase costs. The EU
budget covers the remaining European commitments not paid by France.
In addition, of the 678 million Euros enlarged roadway cost, France
is paying 25 percent or 170 million euros, with the remainder
divided between Japan (50 percent) and other European countries.

Difficulty in U.S. Financial Commitment to ITER
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4. (SBU) Originally the USG pledged to contribute USD 1.12 billion
between 2008 and 2014 mainly in in-kind shipments of equipment and
components as well as a small amount in cash for ITER secretariat
expenses. However, so far, the Congress has appropriated only
modest amounts, far below the pledge level. In FY 2008, only USD
26.1 million was appropriated towards a request of USD 160 million.
The FY 2008 funding reduction sharply curtailed U.S. design, R and D
activities and procurement, reduced the U.S.-based project staff to
a core team, and precluded an approximately USD 11 million cash
payment. With the Continuing Resolution in FY 2009 the ITER Project
received an additional USD 5.3 million. Total USG funding for ITER
to date has been USD 110.7 million. USG funds on hand will be
exhausted in March. The USG shortfall compounds ITER's challenges,
and further compounds a reliability issue first raised when the USG
first pulled out of the ITER project in 1999.

Work in Progress: The ITER School
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5. (U) The ITER School, located in the town of Manosque, nearby to
Cadarache, has enrolled a little over 200 students during its second
year of operation; under half of those students come from ITER
families, while the rest are from the local community. There are
reportedly 58 teachers on staff, representing 13 nationalities.
Although the proportion of instruction in French has been relaxed
somewhat, there is still some dissatisfaction among the non-European
ITER parents about the lack of an International Baccalaureate (IB)
Diploma program and only a French Baccalaureate program for high
school students. Currently only one American elementary student is
enrolled. Curriculum and class materials are still generally below
standards and logistics remains a problem as the school is
approximately 60 kilometers (40 miles) from the ITER housing sites
and there is a lack of adequate transportation.

PEKALA