GOJ REQUEST TO COORDINATE NUCLEAR ISSUES RELATED

C O N F I D E N T I A L TOKYO 001579

SIPDIS

DEPT FOR ISN/NESS, ISN/MNSA, AND EAP/J
DOE FOR OFFICE OF NUCLEAR ENERGY

E.O. 12958: DECL: 07/10/2019
TAGS: PREL PUNE PREL ENRG TRGY KNNP MY AE KS JP
SUBJECT: GOJ REQUEST TO COORDINATE NUCLEAR ISSUES RELATED
TO SOUTH KOREA, THE UAE, AND MALAYSIA

REF: TOKYO 1477

Classified By: EMIN Robert F. Cekuta, Reasons 1.4 (B) and (D)


1. (U) Please see action request contained in para 10.


2. (C) Summary: Senior working level MOFA officials are
interested in deepening cooperation with the U.S. to further
non-proliferation efforts with third countries. Particular
instances listed where MOFA would like to work more closely
with the USG are Japan's upcoming nuclear cooperation
negotiations with Seoul, in particular on contentious issues
such as pyroprocessing that may be raised; on ensuring a
U.S./Japan bid for a nuclear power project in the UAE is
successful; and on advancing cooperation with Malaysia on
non-proliferation. End summary.


3. (C) Meeting with Econoff July 9, MOFA International
Nuclear Energy Cooperation Division Principal Deputy Director
Zentaro Naganuma highlighted a number of areas where the GOJ
would like to work closely with the U.S.to discuss nuclear
cooperation with third countries. Naganuma highlighted
upcoming Japanese negotiations with Seoul on a nuclear
cooperation agreement, the ongoing nuclear tender in the UAE,
and the plans of Malaysia to consider nuclear power as areas
where the GOJ would like to coordinate with the U.S.

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Negotiations with Seoul
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4. (C) Japan announced June 28 it would hold the first round
of negotiations towards a nuclear cooperation agreement with
South Korea July 30 in Seoul. Naganuma suggested Japan and
the U.S. have stricter positions than South Korea regarding
the spread of nuclear technology to developing countries.
Japan requires the recipient country to have a strong
position on safeguards, safety and security and, before any
negotiations can even begin, requires a prospective partner
to have concluded an Additional Protocol. Naganuma said
South Korea is a recently emergent vendor that sells
relatively inexpensive reactors. The GOJ's concern is that
these potential ROK customers may not have sufficiently
strong positions on safeguards, safety and security. The
MOFA therefore believes there could be room for strengthening
cooperation with South Korea and has encouraged the ROK to
think about requiring potential customers to adopt
non-proliferation-related measures such as AP ratification,
as conditions for any commercial deals. Naganuma said if the
USG were to take a similar approach, South Korea might be
more inclined to consider such non-proliferation aspects more
strongly.


5. (C) Naganuma also raised reprocessing. Referencing past
discussions on whether pyroprocessing should be considered
reprocessing, he said the GOJ expects the ROK to raise this
issue during negotiations. He noted the GOJ would like to
seek information onQhe arguments South Korea used on this
issue during its negotiations with the U.S. and said MOFA
has already instructed the Japanese Embassy to approach
Washington agencies on this issue.

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Fuel and Operation Services in the UAE
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6. (C) Naganuma detailed one challenge related to the joint
U.S.-Japan bid for the nuclear project in the UAE. The
Ministry, he said, held discussions with the UAE June 25, at
which time UAE representatives stressed the need for "overall
service." Asked what this would include, Naganuma said the
UAE mentioned specifically fuel services and plant operation,
but not reprocessing. The UAE reportedly feels the
GE/Hitachi consortium should be in a position to provide
these services. Naganuma noted Hitachi would need help from
a Japanese utility to provide operating services. If it
cannot successfully make that arrangement, Hitachi would need
to turn to a U.S. utility. Naganuma hinted this issue could
be a challenge for U.S. and Japanese companies in other
locations as well and might require deepening USG-GOJ nuclear
cooperation.

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Malaysia seeking GOJ support
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7. (C) Naganuma also noted Malaysia's recently announced
plans to develop nuclear power. At present, the GOJ does not
have an official position or even a strong view on Malaysia's
interest in nuclear energy. Naganuma had just returned from
a conference in Kuala Lumpur, where he conducted an informal
exchange with Malaysian officials and strongly stressed the
importance of safety, safeguards, and security. Malaysian
officials had expressed an interest in deepening cooperation
with Japan and possibly beginning some kind of joint project,
he added. Naganuma said the GOJ has no official position
regarding helping Malaysia develop nuclear power per se, but
it does believe developing Malaysia's capability related to
safety, safeguards, and security would be useful. In that
regard, Japan will consider ways it can provide assistance in
those areas, but will not transfer any equipment or material.



8. (C) According to Naganuma, Malaysia's foreign ministry
had previously criticized the IAEA Additional Protocol (AP),
claiming global disarmament was not proceeding fast enough
relative to non-proliferation efforts. However, during his
visit, the Director General of the Malaysian atomic
regulatory agency had spoken in favor of Malaysia's
ratification of the Additional Protocol.


9. (C) Finally, given the A.Q. Khan network's past
activities in Malaysia, Naganuma suggested it might be
prudent to make an assessment of non-proliferation and export
control issues with Malaysia before proceeding too far. He
requested any USG views on these issues be shared with the
GOJ if possible.


10. (C) Action request: Post would appreciate any
information on non-proliferation or export control issues
related to Malaysia that can be shared with the GOJ.
ZUMWALT