Identifier
Created
Classification
Origin
09UNVIEVIENNA243
2009-05-27 16:25:00
CONFIDENTIAL
UNVIE
Cable title:  

NUCLEAR FUEL ASSURANCES: TOP-LEVEL APPROACHES TO

Tags:  AORC ENRG KNNP EG SA 
pdf how-to read a cable
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DE RUEHUNV #0243/01 1471625
ZNY CCCCC ZZH
O 271625Z MAY 09
FM USMISSION UNVIE VIENNA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9503
INFO RUEHEG/AMEMBASSY CAIRO IMMEDIATE 0231
RUEHRH/AMEMBASSY RIYADH IMMEDIATE 0044
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C O N F I D E N T I A L UNVIE VIENNA 000243 

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FOR S, D(S),P, T, ISN, NEA, AND IO
DOE FOR NA-243
NSC FOR SCHEINMAN, CONNERY
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E.O. 12958: DECL: 05/26/2014
TAGS: AORC ENRG KNNP EG SA
SUBJECT: NUCLEAR FUEL ASSURANCES: TOP-LEVEL APPROACHES TO
SAUDI ARABIA AND EGYPT

REF: A. UNVIE 0154

B. UNVIE 0198

C. UNVOE 0095

Classified By: Ambassador Gregory L. Schulte, 1.4 (b) and (d)

C O N F I D E N T I A L UNVIE VIENNA 000243

SIPDIS

FOR S, D(S),P, T, ISN, NEA, AND IO
DOE FOR NA-243
NSC FOR SCHEINMAN, CONNERY
NRC FOR DOANE

E.O. 12958: DECL: 05/26/2014
TAGS: AORC ENRG KNNP EG SA
SUBJECT: NUCLEAR FUEL ASSURANCES: TOP-LEVEL APPROACHES TO
SAUDI ARABIA AND EGYPT

REF: A. UNVIE 0154

B. UNVIE 0198

C. UNVOE 0095

Classified By: Ambassador Gregory L. Schulte, 1.4 (b) and (d)


1. (SBU) At the conclusion of his meeting with U.S. House oF
Representatives leaders Waxman and Lowey on May 26 (septel to
follow),IAEA Director General (DG) ElBaradei engaged for
several minutes separately with Ambassador and Msnoff on
tactics for Board of Governors consideration of nuclear fuel
assurance proposals. The annotated provisional agenda for
the Board's June 15-19 meeting foresees that the Board
request the Director General:

-- Prepare for its consideration a detailed proposal for the
establishment of an IAEA Low Enriched Uranium (LEU) bank;
and,

-- Bring for its consideration the draft of an agreement that
could be concluded between the Russian Federation and the
IAEA for the supply of LEU to the IAEA and of a model
agreement that could be concluded between the IAEA and a
Member State (i.e., one suffering a politically-motivated
cut-off of commercial or other access to LEU for power plant
fuel).

Thus, at the Board's June meeting ElBaradei aims for interim
steps leading to prospective approval by the Board (ideally
in September 2009) of two parallel mechanisms with which the
Agency could assure states of the availability of LEU for
their civil power programs and thereby provide an alternative
to acquiring uranium enrichment capabilities.


2. (C) Ambassador reminded ElBaradei that four G-77 states
-- Argentina, Brazil, Egypt, and South Africa -- were the
skeptics dominating the Group's formal position on
multilateral nuclear arrangements (MNAs). ElBaradei
undertook to lobby South African IAEA Governor Abdul Minty
directly. He repeated his advice (reported ref A) that the
U.S. should approach Egyptian President Mubarak to secure
Egypt's passive concurrence with the process proposed for the
June Board. A U.S. approach to Mubarak should clarify that
an IAEA nuclear fuel bank or other mechanism will not involve
Israel (as it has no nuclear power plants) and is unconnected
to Egypt's preoccupation, the Middle East Nuclear Weapons
Free Zone.


3. (SBU) As reported ref B, during the Beijing nuclear
energy ministerial, Ambassador Schulte spoke with Egypt's
minister for energy and electricity, Hassan Younes, on
multilateral nuclear fuel assurances. The minister was
pragmatic and constructive about the issue. In consultations
in Vienna and in Riyadh, U.S. diplomats have also found Saudi
Arabia amenable to the fuel bank issue, but despite several
efforts we have thus far not persuaded the Kindgom to speak
up in favor of the issue in the IAEA Board of Governors.


4. (SBU) With the President's Prague speech and ElBaradei's
statements during the March Board of Governors meeting (ref
C),there is ample reassurance that no country's rights to
develop peaceful uses of nuclear energy must be forfeited in
connection with permitting development of the leading fuel
bank/fuel reserve concepts.


5. Action request: With this background, Mission recommends
the Department and White House consider whether opportunities
around the President's June 3 and 4 meetings with Saudi King
Abdullah and Egyptian President Mubarak, respectively, could
be used to advocate for progress in the IAEA on the
international nuclear fuel bank concept. We provide talking
points from which drafters of Presidential briefing materials
may wish to draw.


6. Proposed Talking Points:

-- In Prague I said an international nuclear fuel bank
should be part of a new framework for cooperation, so that
countries like Saudi Arabia/Egypt can access peaceful power
without increasing the risks of proliferation.

-- Mohamed ElBaradei has presented our delegations in the
IAEA Board of Governors with two discussion papers, one on an

IAEA nuclear fuel bank concept and one treating Russia's
proposal to make uranium available to the IAEA.

-- Both proposals could support countries in the development
of safe, secure, proliferation-resistant nuclear power for
their prosperity.

-- ElBaradei points out privately that the fuel bank will
play no role in the Middle East disarmament issue, as Israel,
having no nuclear power plant, will be unaffected by the
existence of a fuel bank.

-- For countries that have serious prospects of operating
civil nuclear power in the future, an IAEA fuel bank can be
cost-free insurance for the availability of LEU. Other
developing states want this opportunity open to them. The
Non-Aligned Movement may wish to be careful about closing it
off.

-- I hope you will instruct your delegation in Vienna to
concur with ElBaradei and his staff developing these concepts
further and bringing detailed proposals to the Board.

SCHULTE