IAEA/JUNE BOARD: IRAQ SEEKS A CLEAN SLATE FROM THE

UNCLAS UNVIE VIENNA 000281

SENSITIVE
SIPDIS

ISN/RA FOR DANIEL; NEA/I FOR NOTAR, KENNA; L FOR MITCHELL,
HIRSCH; BAGHDAD FOR FINGARSON, AHN, SWINEY

E.O. 12958: N/A
TAGS: AORC IAEA IZ KNNP
SUBJECT: IAEA/JUNE BOARD: IRAQ SEEKS A CLEAN SLATE FROM THE
IAEA AT THE SEPTEMBER 2009 BOARD

REF: STATE 061807


1. (SBU) Summary. During June 17 IAEA Board of Governors
deliberations, Iraq requested that an item be added to the
September Board meeting agenda that addresses the cooperation
between Iraq and the IAEA related to implementation of Iraq's
IAEA safeguards obligations. Iraq asked for member states'
support for such an agenda item with the end goal of
recovering its "natural rights" to establish nuclear programs
for peaceful purposes, currently constrained by UNSCR 707
(1991). Iraq's statement recounted its efforts to meet
international obligations on disarmament and
nonproliferation, including all IAEA obligations, over the
last five years. At the Board Chair's prompting, the
Director General delivered an immediate response saying the
decision is for the Security Council, and that the IAEA is
ready to inform the UNSC that Iraq's cooperation is
excellent. IAEA/Legal privately clarified to DCM, and later
in a more detailed discussion with MsnOff that the
Secretariat agreed that it is ultimately the Board's
prerogative to decide compliance. However, the Secretariat,
including the DG, believe that the formulation of UNSCR 707
(which calls for "full compliance") raises questions about
the scope and nature of how the Secretariat should express
itself on Iraq in light of the fact that Iraq has yet to
bring into force the Additional Protocol and therefore the
IAEA cannot certify the "completeness" of Iraq's
declarations. The U.S. supported Iraq's call for a September
agenda item to underline the responsibility of the Board in
determining compliance with safeguards agreements. End
Summary.

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Iraq Requests An Agenda Item
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2. (SBU) Iraqi Ambassador Aqrawi delivered a moving
statement at the Board of Governors meeting under the
Safeguards Implementation Report agenda item on June 16. He
began by thanking the Agency and several Member States for
the assistance it has provided on cancer radiotherapy,
establishing a nuclear regulator, and decontamination of
nuclear sites. He recounted Iraq's efforts to meet
international obligations on disarmament and nonproliferation
over the last five years, while United Nation Security
Council restrictions remained in force constraining Iraq's
ability to develop peaceful nuclear programs. Aqrawi said
that UNSCR 707 forbids Iraq from carrying out any activity
except for use of isotopes for medical, agricultural, or
industrial purposes. (Comment: UNSCR 707 says that Iraq must
"Halt all nuclear activities of any kind, except for use of
isotopes for medical, agricultural or industrial purposes,
until the Council determines that Iraq is in full compliance
with the present resolution (i.e., UNSCR 707) and with
paragraphs 12 and 13 of resolution 687 (1991) and the Agency
determines that Iraq is in full compliance with its
safeguards agreement with the Agency." End Comment.)


3. (SBU) Ambassador Aqrawi reviewed the list of conventions
and agreements towards which Iraq has moved over the last
five years to illustrate his point, including the Convention
on Nuclear Safety, the Vienna Convention on Civil Liability
for Nuclear Damage, International Convention to Fight Nuclear
Terrorism, and the Code of Conduct for Safety and Security
for Radioactive Sources. The Iraqi Ambassador also noted
that Iraq no longer had nuclear programs and facilities, as
these have been destroyed either through military action or
by UN Commission.


4. (SBU) Despite UNSCR 1762 (2007) which terminated the
mandates of UNMOVIC and the IAEA Iraq Nuclear Verification
Office, Iraq said it has yet to recover its natural right to
undertake nuclear activities. The technological development
of Iraq is hampered by these restrictions, especially in the
area of nuclear energy, and "impairs the natural balance."
Having met its disarmament obligations, Iraq sought support
for exercise of its full rights under the NPT.


5. (SBU) Iraq concluded by requesting that an item be added
to the September Board agenda that addresses the cooperation
between Iraq and the IAEA, and Iraq's observance of its
safeguards obligations.

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Director General Passes to UNSC
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6. (SBU) In an intervention after Iraq spoke, Board Chair
Feroukhi questioned what the Board could do as this was a
resolution passed at the UN Security Council. DG ElBaradei
immediately responded that this is an issue for the Security
Council, not the IAEA. ElBaradei said that the Agency is
ready to tell the SC that Iraq's cooperation "is excellent in
all aspects," and that Iraq has met its obligations with the
Agency. As a result, a September agenda item was not needed.
He agreed that it was time to lift sanctions and advised
Iraq to put this on the Security Council agenda.


7. (SBU) Shortly after the DG's intervention, IAEA senior
safeguards attorney Laura Rockwood approached DCM in the
Board room to clarify that the Board does have a prerogative
to decide compliance and that the DG's point was that
addressing "full compliance" in Iraq is complicated by the
fact that Iraq does not yet have an AP in force that would
allow the Agency to draw a broader conclusion about the
absence of undeclared activities, i.e., the "completeness" of
Iraq's declarations. We shared our proposed statement
supporting Iraq (included in para 10 below) with the
Secretariat, as our request would be contrary to the DG's
remarks. EXPO Director Vilmos Cserveny indicated
satisfaction with our formulation, but added skepticism that
Iraq would move on the AP before September.


8. (SBU) The Japanese Delegation asked about the U.S.
intervention and, after receiving the explanation above, is
seeking instructions from Tokyo to express support (under the
"Any Other Business" agenda item likely to be taken up the
afternoon of June 18) for Iraq's request for an agenda item
at the September Board


9. (SBU) Comment: In a conversation subsequent to Rockwood's
approach to DCM, Rockwood and IAEA Legal Advisor Johan
Rautenbach confirmed again their understanding of the Board's
ultimate prerogatives in expressing a view on closure of
noncompliance in cases that the Board had previously reported
to the UNSC. They also took note of the relevance of the
Iraq case to Iran in this regard. Mission understands,
however, that the UNSC can take action to lift restrictions
on Iraq's nuclear activities with or without Board action.
Mission will continue to monitor Secretariat thinking and
approach to the Iraq safeguards/UNSC issue and, unless
otherwise instructed, will continue to work toward laying the
basis for appropriate Board action. Mission also notes,
however, that Rautenbach and Rockwood expressed the view,
that they said the DG shared, that it would be wise to ensure
that the AP was at least in force in Iraq before UNSCR 707
sanctions are lifted.

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U.S. Statement Supporting Iraq
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10. (SBU) Below is the text on Iraq from our SIR Statement:

Regarding Iraq, we welcome the statement by the Director
General that Iraq's cooperation has been excellent. In line
with the Board's role and responsibilities, the United States
would support the Government of Iraq in its request for an
agenda item in September, understanding that the Additional
Protocol is an essential element of the international
safeguards system.
SCHULTE