THE CONVENTION ON SUPPLEMENTARY COMPENSATION FOR

UNCLAS TOKYO 000644 SENSITIVE SIPDIS PASS ISN/MNSA, EAP/J PASS DOE FOR NE, MCGINNIS, WELLING NNSA E.O. 12958: N/A TAGS: PARM ENRG TRGY NRR MNUC PUNE IN JA KR SUBJECT: THE CONVENTION ON SUPPLEMENTARY COMPENSATION FOR NUCLEAR DAMAGE AND CIVIL NUCLEAR ENERGY COOPERATION REF: TOKYO 572 ¶1. (U) Summary: Department of Energy Deputy Assistant Secretary (DAS) Edward McGinnis recently met with Japanese Ministries to discuss the Convention on Supplementary Compensation for Nuclear Damage (CSC) and cooperative civil nuclear energy activities. Representatives of the Contractor,s International Group for Nuclear Liability (CIGNL) also attended the CSC discussions. On the CSC, GOJ officials described progress made in resolution of Japan's position and suggested prospects for GOJ's acceptance of the CSC were improving, even though the GOJ's process could take a year or even more. On civil nuclear energy cooperation, GOJ officials expressed strong willingness to work with the new U.S. administration's priorities in a number of areas, in line with the GOJ position in recent energy-related discussions between Prime Minister Aso and the President, and separate discussions between Energy Secretary Chu and the Chairman of the Japan Atomic Energy Commission and the Minister of the Ministry of Economy Trade and Industry (METI). METI provided McGinnis an informal but fairly detailed proposal regarding potential areas of nuclear energy cooperation while stressing METI,s willingness to be flexible. End Summary. ¶2. (SBU) DAS McGinnis met with various Ministries and held discusssions on various civil nuclear energy issues including the CSC, U.S.-Japan cooperation, Sodium Cooled Fast Reactor Cooperation, the Generation IV International Forum and India. -------------- -------------- Convention on Supplementary Compensation for Nuclear Damage -------------- -------------- ¶3. (SBU) Ministry of Education, Culture, Sports, Science and Technology (MEXT) Director, Atomic Energy Division, Research and Development Bureau Tomohiro Yamano told McGinnis there has been progress on CSC within MEXT. MEXT is looking at what it would take to join, and the level of interest in Japan is rising. A MEXT Working Group will identify and sort out CSC issues over the next 6 months or so and then engage with METI, the Ministry of Foreign Affairs (MOFA),and the Cabinet Office (CAO),though this could still take years. Of particular importance, Japan will have to modify its domestic laws and determine how CSC would be funded. As such, the Ministry of Finance (MOF) and the Ministry of Justice (MOJ) have to be consulted and Yamano said these negotiations are always difficult. Yamano asked about progress with Korea and China on CSC as MEXT had heard the Koreans were not making progress and in China it is unclear. CIGNL responded discussions with Korea and China suggested they were both looking at the CSC seriously. ¶4. (SBU) In a separate meeting, METI Director for Nuclear Energy, Policy Planning Taizo Takahashi told McGinnis METI recognizes the need for the CSC and that Hitachi has gone on record with the GOJ in support of CSC. METI, like MEXT, stated the MOJ needs to be consulted. In response to a question as to whether MOJ was currently involved in the CSC discussion, METI Nuclear Energy Planning Division Deputy Director, Junichi Yokota, stated the MOJ won't participate at this point, not because they are against CSC, but rather because they have a very domestic orientation and are very conservative about changes in their domestic law. ¶5. (SBU) MOFA Principle Deputy Director, International Cooperation Division, Zentaro Naganuma stated that on CSC MOFA has no official position but has seriously studied the issue. He added it would help if DOE could send information on CSC deliberations in the U.S. and the basis for how the U.S. decided its approach to CSC funding. -------------- Civil Nuclear Energy Cooperation -------------- ¶6. (SBU) GOJ Officials were broadly positive on recent energy related communications with President Obama and Secretary Chu and are seeking ways to continue cooperation. Japan Atomic Energy Commission Chairman, Shunsuke Kondo, who recently met with Secretary Chu, said his Minister (Seiko Noda) was pleased with the readout of the meeting and commented "lets take this opportunity to build." Kondo said he is preparing a letter to Secretary Chu on a joint proposal on continuation of cooperation. He added METI Minister Nikai, who also spoke with Secretary Chu, was pleased with his conversation. ¶7. (SBU) CAO Deputy Director General for Science and Technology Policy Taizo Nishikawa, said the President and Prime Minister discussed the Green New Deal and Japan is very interested in the Green New Deal. He then rhetorically raised the question of how nuclear energy would factor in to the Green New Deal. Nishikawa related that Kondo had mentioned Secretary Chu's stated continued commitment to nuclear power with an emphasis on waste management and disposal, and a preference for research on recycling rather than proceeding into design and construction. ¶8. (SBU) METI's Takahashi referenced Prime Minister Aso's meeting with President Obama on energy cooperation and he handed out the Prime Minister's proposal. Takahashi further stated Secretary Chu had mentioned specific areas of interest for collaboration (advance waste forms, seismic analysis, long term R&D on recycling) and Secretary Chu said we need to increase our long term cooperation. He then handed out an informal but fairly detailed proposal on potential areas of civil nuclear energy cooperation, asking McGinnis to comment on the proposal and add ideas. Takahashi further stated the USG and GOJ need to highlight our enhanced cooperation and that METI Minister Nikai is planning to visit DC in the March to May timeframe. -------------- -------------- Sodium Fast Reactor Funding Opportunity Announcement (FOA) -------------- -------------- ¶9. (U) Japan Atomic Energy Agency (JAEA) Deputy Director General, Advanced Nuclear System Research and Development Directorate Yutaka Sagayama asked about prospects for the DOE Office of Nuclear Energy Sodium Fast Reactor FOA. McGinnis replied that DOE is focusing on R&D with regards to advanced fuel cycle technologies and processes where it involves recycling and fast reactors. McGinnis added that, as the Secretary has indicated, we certainly expect to see our R&D and fuel cycle cooperation with Japan continue. -------------- Generation IV International Forum (GIF) -------------- ¶10. (SBU) Sagayama asked about the US view on forthcoming changes in staffing of the GIF positions. He also stated his view that it would serve well to have a Policy Director from France and a Technical Director from the U.S. McGinnis replied DOE does not have a final position but DOE is looking at what countries are represented at what levels in GIF to see if there is a need for other nations to hold the Vice Chair positions. Sagayama replied that the GIF positions are changing out in December so DOE will need to identify its candidates in the summer. -------------- Exports to India -------------- ¶11. (SBU) In response to a METI discussion on Japanese nuclear exports to India, McGinnis stated the U.S. has had significant visits to India (including GE and Westinghouse) but a major question is what Japan would do in the event GE or Westinghouse contracted to build a Nuclear Power Plant with India. McGinnis asked whether Japan would feel it necessary to conduct an export review on components from Japan. Takahashi stated India is a sensitive issue but METI wants to cooperate, India has agreed to exchange views and METI staff is going to India in March. He further stated METI is trying to address public opinion on the issue and needs to argue, not on the basis of what benefits industry, but rather on the issue of international security. ¶12. (SBU) Takahashi stated Japan's export control laws require METI to conduct an export review of key parts as defined by Japanese domestic law. Reactor vessels are controlled by law but not turbines he added. McGinnis asked Takahashi if he had a sense of what more Japan would need to support cooperation beyond what was agreed to by the Nuclear Suppliers Group (NSG). Takahashi stated the NSG conditions do not address testing and that if India tested, Japan cooperation would stop. Further discussions on nuclear export control reported (reftel). ¶13. (U) DAS McGinnis cleared on this cable subsequent to his departure. ZUMWALT