Identifier
Created
Classification
Origin
09UNVIEVIENNA410
2009-08-28 13:51:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
UNVIE
Cable title:  

IAEA/General Conference: Train wreck or New Dawn ?

Tags:  AORC KNNP IAEA ENRG TRGY 
pdf how-to read a cable
VZCZCXYZ0000
OO RUEHWEB

DE RUEHUNV #0410/01 2401351
ZNR UUUUU ZZH
O 281351Z AUG 09
FM USMISSION UNVIE VIENNA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9986
INFO RUEHRO/AMEMBASSY ROME IMMEDIATE 0570
RUEHSM/AMEMBASSY STOCKHOLM IMMEDIATE 0298
RUEHII/VIENNA IAEA POSTS COLLECTIVE PRIORITY
RUEHGP/AMEMBASSY SINGAPORE PRIORITY 0066
RUEHPE/AMEMBASSY LIMA PRIORITY 0050
RUEHLB/AMEMBASSY BEIRUT PRIORITY 0032
RUEHUM/AMEMBASSY ULAANBAATAR 0030
RUEHTC/AMEMBASSY THE HAGUE 0313
RUEHTV/AMEMBASSY TEL AVIV 0276
UNCLAS UNVIE VIENNA 000410 

SENSITIVE
SIPDIS

STATE FOR T, IO/T, ISN/MNSA, ISN/RA
NRC FOR OIP - DOANE
DOE FOR S-1, NA-20-DAGASTINO;
NA-243-GOOREVICH,OEHLBERT;
NA-241 O'CONNOR; NA-21- CUMMINS;
NE- MCGINNIS, PERKO, CLAPPER

E.O. 12958: N/A
TAGS: AORC KNNP IAEA ENRG TRGY
SUBJECT: IAEA/General Conference: Train wreck or New Dawn ?

REF: (A) UNVIE 359 (B) UNVIE 402 and previous (C) UNVIE 377 (D)
UNVIE 397

-------
Summary
-------

UNCLAS UNVIE VIENNA 000410

SENSITIVE
SIPDIS

STATE FOR T, IO/T, ISN/MNSA, ISN/RA
NRC FOR OIP - DOANE
DOE FOR S-1, NA-20-DAGASTINO;
NA-243-GOOREVICH,OEHLBERT;
NA-241 O'CONNOR; NA-21- CUMMINS;
NE- MCGINNIS, PERKO, CLAPPER

E.O. 12958: N/A
TAGS: AORC KNNP IAEA ENRG TRGY
SUBJECT: IAEA/General Conference: Train wreck or New Dawn ?

REF: (A) UNVIE 359 (B) UNVIE 402 and previous (C) UNVIE 377 (D)
UNVIE 397

--------------
Summary
--------------


1. (SBU) Traditionally, the September 14-18 53rd IAEA General
Conference (GC) serves as a platform for promoting U.S. priorities
on core IAEA issues, nuclear safety and security, strengthened
safeguards and peaceful use of nuclear energy. While we will
continue to promote these priorities, we fear that Middle East
issues will overshadow the substantive work of the 2009 General
Conference, including on technical resolutions, as previewed ref A.
Our objectives for the GC will be circumscribed by this reality.
U.S. goals will include the following:

-- GC approval of Director General-designate Yukiya Amano and
approval of the 2010 budget: If nothing else, these are the two
Statutory "must-dos" for the General Conference, and both are
expected to be pro forma endorsements of two important U.S.
accomplishments this summer.

-- Improving the divisive atmosphere in the General Conference and
Board of Governors: As we continue our effort in concert with
like-minded to bridge North-South divisions, this overarching goal
will be contingent on the outcome of the Middle East debate.

-- Defeating or containing Iran's proposed agenda item on armed
attacks against nuclear facilities and thereby signaling to Tehran
that its effort at distracting international attention will not
succeed.

-- Containing the fallout from the Middle East: Limiting the
spillover of the Middle East debate and expected Arab Group and
Iranian "hostage-taking" of other GC resolutions will be a core
objective. Mission will advise USDEL to move technical resolutions
expeditiously, even by vote in the absence of consensus. At the
same time, we should prepare for the contingency of a "no
resolutions" conference if all else fails. As previewed ref a, GC
resolutions are not essential to the work of the Agency in core
technical areas. This is not a desirable outcome, however, since an
impasse on Middle East issues and abandonment of the technical

resolutions would be a clear signal that the atmosphere in Vienna is
deteriorating, vice our strong desire to improve it, and could also
be read as a decision on our part to make things worse among Member
States before making them better. Avoiding this "train wreck"
scenario will require further intensive effort in Vienna and
capitals.

-- Highlighting nuclear security as a core IAEA function and
furthering President Obama's goal of securing vulnerable nuclear
material in four years: In addition to GC deliberations on the
nuclear security resolution, high-level consultations on the margins
of the General Conference will elevate the profile of this issue.

-- Preparation for the NPT Revcon: High-level consultations on the
margins of the IAEA General Conference will help lay the ground-work
for the 2010 Revcon. The tenor of the GC Middle East debate will
also set the stage for the Revcon.


2. (SBU) USDEL will focus on two key policy objectives: the
disposition of Middle East issues with a view to a "new consensus"
or, failing that, damage control as described above, and secondly,
the setting aside or defeat of any resolution associated with Iran's
supplemental agenda item on armed attacks against nuclear
facilities. Both of these issues have the potential to derail the
General Conference. Ref B previews agenda item 21 on the
Application of IAEA Safeguards in the Middle East as well as the
supplemental item on Israeli Nuclear Capabilities and the
supplemental Iranian item on armed attacks. Further guidance is
requested on these issues with respect to the General Committee
(agenda item 1 below) and the adoption of the agenda (agenda item 5
below).


3. (SBU) Ref A previews the GC resolutions under agenda items 15-19

relating to core IAEA technical areas of nuclear safety, security,
technical cooperation, nuclear applications and safeguards.
Corresponding reports by the Director General for the September
Board and General Conference are also previewed in ref D. GC
position papers need not repeat guidance on the DG reports already
covered in the September Board but should include guidance on the
respective resolutions, as appropriate. There is no requirement for
or expectation of prepared U.S. statements on these items in the
Plenary; USDEL will draft EOVs as developments warrant. Likewise,
Ref c previews DPRK agenda item 22. Several of the Six Parties
deliver statements under this agenda item and corresponding
resolution, but the U.S. does not usually speak. Mission requests
appropriate guidance on a U.S. statement on DPRK in the GC Plenary,
if necessary. All other GC agenda items are covered below.


4. (SBU) Among other side-events, the annual Scientific Forum this
year will be devoted to the theme of "Energy for Development" (para
32). The Department of Commerce (DOC) will also host a U.S. nuclear
industry group on the margins of the GC (para 33).

-------------- --------------
Agenda Item 1: Election of Officers / General Committee
-------------- --------------


5. (SBU) Election of Officers: The South East Asia Pacific (SEAP)
group has selected New Zealand Ambassador Jennifer Macmillan to
serve as the President of the 2009 General Conference. The
Secretariat has also been advised that UK Ambassador Smith will
serve as Chairman of the Committee of the Whole (COW) on behalf of
Western Europe. As the first order of business, the General
Conference will select eight Vice-Presidents nominated from each of
the eight regional groups, who also serve on the General Committee.
Thus far, the known nominees for GC Vice President are: United
States (North America),Finland (Western Europe),Singapore(SEAP),
Mongolia (Far East),Iran (MESA) and Sudan (Africa). Eastern Europe
and Latin America and the Caribbean (GRULAC) have not selected their
respective nominees for VP as of yet; Russia usually claims the
Eastern Europe slot and Peru is seeking the GRULAC VP slot. This is
the second consecutive year in which Iran has occupied the symbolic
role of GC Vice President for MESA, which gives Iran a voice and
vote on the General Committee as to the disposition of its
supplemental agenda item (see below),but is otherwise without
substantive importance.


6. (SBU) General Committee: The General Committee meets at the
beginning of the GC and later as necessary to manage the agenda,
examine credentials, consider requests to restore voting rights,
revise the format of resolutions, and otherwise assist the GC
President. The President of the GC chairs the General Committee,
which includes the eight Vice Presidents, the Chairman of the COW
and six additional members this year. The additional members will
include Canada (North America),Italy (Western Europe),Lebanon
(MESA) and Libya (Africa). (Note: Lebanon is also the Chair of the
Vienna Arab Group. End Note.) Eastern Europe and GRULAC will also
each nominate an additional member. Thus the regional composition
of the 2009 General Committee will be:

--N. America: U.S. (VP) and Canada.
--W. Europe: Finland (VP) and Italy and COW Chair UK
--E. Europe: 1 VP, 1 elected member
--Africa: Sudan (VP) and Libya
--MESA: Iran (VP)
--GRULAC 1 VP and 1 elected member
--Far East Mongolia (VP)
--SEAP Singapore (VP)


7. (U) At its first meeting on the opening day of the General
Conference, the General Committee will consider the provisional GC
agenda submitted to the June Board of Governors, along with two
requests for supplementary agenda items: Israeli Nuclear
Capabilities (INC) submitted by the Arab Group and an
Iranian-proposed item entitled, "Prohibition of Armed Attack or
Threat of Attack Against Nuclear Installations, During Operation or
Under Construction" (previewed ref B). The General Committee
report to the General Conference will include a recommendation as to
the inclusion of these items on the agenda. The General Committee

cannot discuss the substance of the items except in so far as it
bears upon the question of whether or not to include them. (Note:
This recommendation can be challenged in Plenary. End Note).


8. (SBU) The General Committee will also convene, usually on the
fourth day of the General Conference, as the Credentials Committee.
This will be the occasion for a scripted exchange between the Arab
Group and Israel on the latter's credentials, and also potentially a
challenge to Honduras's credentials, in the unlikely event that
Honduras sends a delegation to the General Conference. Brazil and
Mexico have advised the Secretariat that GRULAC members would
challenge credentials presented on behalf of the "illegitimate"
government of Honduras. Since Honduras has been a no-show for
previous General Conferences, the Secretariat considers this a
remote possibility, but would observe UN practice (i.e., the
disposition of Honduras's UNGA delegation) in any legal opinion, if
so required. For many years, the Arab-Israeli exchange of letters
has followed an agreed formula, also involving an IAEA legal
opinion. The head of the Arab Group submits a formal reservation to
Israel's credentials having been signed in "occupied Jerusalem."
Israel responds with a letter disputing the reservation as
politically motivated and irrelevant to the purpose of the GC rules
of procedure and credentials. The Credentials Committee "notes"
each letter, thus giving each equal status. The General Conference
then approves agenda item 25 "Examination of Delegates'
Credentials."


9. (SBU) Recommendation and Action Request: Mission recommends that
the U.S. join consensus in endorsing the selection of officers and
appointment of the General Committee, as proposed by respective
regional groups. USDEL should use the General Committee discussion
of the supplemental item on the INC to underline our efforts to
support a consensus approach to Middle East GC issues. USDEL should
voice strong reservations in principle, as in the past, and register
disappointment as to Arab Group insistence on a second Middle East
item singling out Israel, given the existing agenda item on the
Application of Middle East Safeguards. However, the U.S. should not
provoke an agenda fight by opposing inclusion of this supplemental
item, which has appeared on the agendas of successive General
Conferences. Mission welcomes elements for the U.S. statement in
the General Committee on the INC item.


10. (SBU) Recommendation and Action Request (continued): The
Iranian request for a supplemental agenda item on armed attacks
against nuclear facilities is another matter. As previewed ref B,
USDEL should consider a General Committee challenge to the inclusion
of the Iranian item should we have sufficient votes, i.e., a
majority of eight, on the Committee. It would be optimal if another
like-minded Committee member called for a vote so as to reduce the
likelihood of a tit-for-tat exchange between the U.S. and Iran on
the Committee, but USDEL should be authorized to call a vote if no
other delegation volunteers. (Note: There is no recent precedent
of a General Committee challenge or vote against the inclusion of an
item, though such a possibility is envisaged in the Rules of
Procedure. End note.) USDEL will require strong procedural
arguments to challenge this Iranian item given that the General
Conference has adopted three previous resolutions on the subject in
1985, 1987, and 1990. While questioning Iranian motivations for
this agenda item request, USDEL may also argue that the UN Security
Council is the more appropriate body to address matters of
international peace and security and that consideration of
legally-binding instruments is a matter for the UNGA Sixth/Legal
Committee. USDEL should also underline, as UNVIE has done in
informal consultations, that this item will complicate GC
deliberations on the Middle East, despite Iranian pretentions of
presenting the issue as a general matter disassociated from regional
developments as well as the Arab Group's desire to keep the issues
separate. Many delegations have indicated to us confusion over
whether Iran intends to table a resolution in connection with this
item. There is little enthusiasm for such a development, but much
wider sympathy for the idea that Member States should be able to
discuss attacks on nuclear facilities. A further option within the
scope of the General Committee is to refer the Iranian item to the
COW; Mission recommends against this as it would politicize the work
of the COW on technical resolutions and likely be opposed by the UK
COW Chair.


11. (SBU) Recommendation and Action Request (continued): A General
Committee recommendation against inclusion of this supplemental
agenda item may dissuade Iran from calling a Plenary vote on the
adoption of the agenda, which is usually adopted by consensus.
Since the General Committee only makes recommendations, a Plenary
vote is still possible, and we will need to assess the chances of
the Committee's recommendation being overturned in Plenary. By the
same token, if the General Committee recommends inclusion of the
Iranian item, the U.S. or like-minded can also call a vote in
Plenary to seek deletion of this item from the agenda by
simple-majority vote. USDEL seeks Department guidance and elements
for U.S. statements in the General Committee and/or Plenary on the
disposition of the Iranian agenda item, including any legal analysis
as to the appropriateness of the item within the scope of the IAEA
mandate. Mission notes that any chance of successfully defeating
the Iranian item in the Plenary must be preceded by a strong
demarche in capitals. Per ref b, the NAM sent DG ElBaradei a letter
supporting inclusion of the agenda item, but Egypt and other NAM
contacts have told us the NAM position is based on the principle of
not blocking discussion of items on procedural grounds, vice strong
substantive support for Iran. To win a Plenary vote, we would have
to splinter any semblance of NAM unity on this issue, perhaps via an
appeal to prevent Iran from further politicizing and sidetracking
the GC.


12. (SBU) Recommendation and Action Request (continued): With
respect to the Credentials Committee, USDEL will require contingency
guidance in the unlikely event Honduras seeks to seat a delegation.


-------------- --------------
Agenda Item 2: Applications for Membership
-------------- --------------


13. (U) To date, the Board of Governors has not received or referred
any new applications for IAEA membership to the General Conference.
A membership request by Cambodia may be forthcoming for the
September Board for approval by the General Conference. Cambodia
was an IAEA member 1958-2003 and its membership application is
problematic due to significant arrears. The Secretariat is seeking
to finalize a re-payment plan for Cambodia before submitting its
membership application to the Board and General Conference.
Recommendation and Action Request: Assuming that Cambodia agrees to
repayment of arrears, as is expected, Mission recommends that USDEL
join consensus in approving its membership application.

-------------- --------------
Agenda Item 3: Message from the UN Secretary General
-------------- --------------


14. (U) A ceremonial message from the UN SYG is read just before the
DG's statement.

-------------- --------------
Agenda Item 4: Statement by the Director General
-------------- --------------


15. (U) This will be DG ElBaradei's swan-song, the last time he will
address the IAEA General Conference as Director General. We are
advised to expect a lofty and sweeping statement to include
ElBaradei's personal reflections on his twelve-year tenure as
Director General and the future of the Agency as well as on the
non-proliferation regime. We can expect him to go well beyond his
brief as IAEA DG in addressing disarmament and assume the mantle of
Nobel Laureate for the occasion. This will certainly diverge from
the normal format of covering the GC agenda, and likely focus on
"legacy issues" which may include Iran, or more helpfully, nuclear
security and fuel banks. Following the General Conference, the DG
will deliver similar remarks to the UNGA in early November.

-------------- --------------
Agenda Item 5: Arrangements for the Conference / Agenda
-------------- --------------


16. (SBU)(a) Adoption of the Agenda: Breaking from the customary
practice of adopting the agenda by consensus would be a major shift
in the General Conference dynamic. Depending on developments in the
General Committee, i.e., whether or not the Committee recommends
inclusion of the supplemental Iranian item on armed attacks (paras
9-10, ref B),the onus of breaking consensus will either fall upon
Iran or U.S./like-minded. In accordance with Rule 18, the
provisional agenda and report of the General Committee is submitted
to the General Conference for approval. There is no precedent in
recent memory of calling for a vote on the agenda and recommendation
of the General Committee. If the recommendation is to exclude the
item, Iran could call a vote in Plenary to reject the General
Committee's recommendation and seek inclusion of the item. If the
General Committee recommendation is to include the item,
U.S./like-minded could seek its deletion in the Plenary in
accordance with Rule 22 allowing amendment or deletion of an item by
majority vote.


17. (SBU) Recommendation and Action Request: Mission recommends
that USDEL join consensus in adopting the provisional agenda and
General Committee report recommending exclusion of the Iranian
agenda item. If Iran calls for a Plenary vote to overturn the
recommendation of the General Committee, USDEL should vote "no" and
rally others to do the same. In the contingency that the General
Committee recommendation is to include the Iranian item, i.e.,
because we lacked sufficient votes in Committee to exclude it,
Mission recommends giving USDEL the option to call for or support
deletion of the item from the agenda by Plenary vote. USDEL should
consider the advisability of this option, which places the onus on
us for disrupting the General Conference, based on our chances of
success. Alternatively, USDEL may pursue other procedural options
(ref B) upon consideration of the Iranian item later in the General
Conference. In addressing this issue, we need to bear in mind that
whatever diplomatic capital we are forced to expend will inevitably
detract from resources we will need to prevail on other Middle East
items.


18. (U)(b) Closing date of the Session and the Opening of the Next
Session: The GC will be asked to confirm that the closing date of
the current 53rd General Conference will be Friday, September 18,
2009 and that the opening date of the 54th General Conference will
be September 20, 2010. Recommendation and Action Request: Mission
recommends that USDEL join consensus in approving the dates.

-------------- --------------
Agenda Item 6: Approval of the Appointment of the DG
-------------- --------------


19. (U) The General Conference is expected to approve by acclamation
the Board's appointment of Yukiya Amano as the next Director General
for a term of four years, from December 1, 2009 to November 30,

2013. The Director General-designate will make an acceptance
speech. In addition, the General Conference will be asked to
approve a resolution entitled "Tribute to the Director General,"
which confers upon Dr. ElBaradei the customary title of IAEA
Director General Emeritus (previewed ref D.)


20. (U) Recommendation and Action Request: Mission recommends that
USDEL join consensus on the approval of the Director General and the
tribute to ElBaradei. As Chairman of the North America Group, the
United States is expected to deliver a short regional group
statement welcoming DG-designate Amano and paying tribute to
ElBaradei. Mission requests early submission of a draft statement
so that we can consult with Canada (the only other member of the
North America Group) in advance of delivery.

-------------- --------------
Agenda Item 7: Contributions to the TC Fund for 2009
-------------- --------------


21. (U) Under this agenda item, the GC President requests Member
States to confirm pledges to the Technical Cooperation Fund (TCF),
and notes that such pledges can be made during the course of the
General Conference. Recommendation: No USDEL action is needed.

-------------- --------------
Agenda Item 8: General Debate and Annual Report 2008
-------------- --------------


22. (U) For the first three days of the General Conference, while
most of the substantive work is taking place in the Committee of the
Whole, the Plenary is devoted to the
"General Debate." It is essential that an accredited member of the
U.S. delegation sit in the Plenary whenever it is in session in case
another delegation proposes an undesirable parliamentary action.
The General Debate is not a debate, but rather the time when heads
of delegation deliver formal remarks. Delegates are asked to keep
their remarks to 15 minutes, but evening sessions are often required
for all of the statements to be made. Heads of delegation of
Ministerial rank are given earlier time slots than lower ranking
speakers. At least twenty Ministers of Energy or Foreign Affairs
are expected to attend the GC. Secretary Chu will be among the
first Ministers speaking in the morning of September 14. The
Secretary currently has the third speaking slot after Afghanistan
and Ghana and followed by China, Sweden (EU Presidency),Egypt and
Russia in the afternoon session. Speakers use the General Debate to
highlight issues of importance to them. For example, Arab states
always call on Israel to sign the NPT and place its nuclear
facilities under IAEA safeguards. The G-77 and China call on donor
states to contribute their full share to the Technical Cooperation
Fund (TCF.) Although the issue of Iran's nuclear program is not on
the GC agenda, Mission will take note of any interventions that
touch on this and other verification issues. Recommendation: As
the first Ministerial statement to the IAEA General Conference under
the Obama Administration, Mission recommends that Secretary Chu's
statement encapsulate U.S. goals and priorities with respect to the
Agency, including nuclear safety, security, safeguards and peaceful
uses of nuclear energy. The Secretary may also thank DG ElBaradei
for his service and welcome DG-designate Amano.


23. (U) The GC is required by the IAEA Statute to consider the
annual report of the previous year, which is contained in GC(53)/7.
The Board of Governors approved the report at its June meeting.
Recommendation and Action Request: Mission recommends that the U.S.
delegation be authorized to join consensus in approving the 2008
annual report.

-------------- --------------
Agenda Item 9: Elections to the Board of Governors
-------------- --------------


24. (SBU) The GC is required to elect 11 members to the Board for
two years, according to a regional distribution determined by the
Agency's Statute. This agenda item is usually addressed on the
fourth day of the Conference after the General Debate. The GC
normally ratifies agreed candidates selected by the regional groups.
The Africa group has not yet agreed on two candidates to fill the
Board seats being vacated by Algeria and Ghana. At present, there
remain four candidates for the Africa seats: Libya, Tunisia, Niger
and Cameroon. Although the Africa group is expected to come to
agreement in advance of the General Conference, there is a recent
precedent of a contested election for the Africa group Board seats
in 1997. If an election is required, the GC President would likely
name the countries interested, and conduct several votes by secret
ballot with a simple majority required for election to either of the
two seats.


25. (SBU) The other regional groups have agreed on the following
candidates to fill their respective regional seats:

-- GRULAC: Peru, Venezuela
-- Western Europe: Denmark, The Netherlands
-- Eastern Europe: Azerbaijan, Ukraine
-- Far East: ROK and Mongolia (floating seat)
-- MESA: Pakistan

The outgoing elected Board members are: Albania, Lithuania, Ireland,
Switzerland, Mexico, Ecuador, Iraq, Saudi Arabia, Philippines,
Algeria and Ghana. (Note: Switzerland will remain on the Board as a
designated member replacing Finland, which will leave the Board. End
Note.)


26. (SBU) Recommendation and Action Request: Mission recommends that

USDEL join consensus in approving all nominations on behalf of
regional groups for elected Board members. USDEL requests
contingency guidance on which of the Africa Group contenders (Libya,
Tunisia, Niger and Cameroon) to vote for in a secret ballot
election, if the group does not come to agreement. It is customary
but not required that one elected Africa Group member be from North
Africa and the other from Sub-Saharan Africa.

-------------- --------------
Agenda Item 10 The Agency's Accounts for 2008
-------------- --------------


27. (U) U) The General Conference will be asked to take note of the
Agency's Accounts for 2008 and of the External Auditor's report.
The Accounts were accepted by the Program and Budget Committee in
its April 27, 2009 session. (In future versions of this document,
the Secretariat has indicated it will report the income and
disbursements from the newly-established Program Support Cost
"sub-fund.") Recommendation and Action Request: Mission recommends
that the U.S. delegation join consensus in noting the Accounts and
the External Auditor's report.

-------------- --------------
Agenda Item 11 The Agency's Budget for 2010-2011
-------------- --------------


28. (U) (U) The General Conference will be asked to approve the 2010
Budget, in accordance with the recommendation from the August
Special Board. After intensive U.S. efforts, the Budget entails a
2.7 percent real growth increase and a 2.7 percent price adjustment,
along with a number of cost-cutting measures. A Capital Investment
Fund is established and will initially be used to fund upgrades to
the Safeguards Analytical Laboratory. The 2010 Regular budget will
total 318.3 million Euros, with the largest increases from 2009
levels in Nuclear Security and Safety, Management of Technical
Cooperation, Nuclear Power and Nuclear Applications. The General
Conference will also approve the TCF target for 2010 of 85 million
USD. Recommendation and Action Request: Mission recommends the U.S.
delegation join consensus to approve the 2010 budget resolution.
Delegation should also accept a 2010 TC voluntary contribution
target of USD 85 million.

-------------- --------------
Agenda Item 12 Appointment of the External Auditor
-------------- --------------


29. (SBU) The tenure of the Agency's External Auditor will end with
the completion of the audit of the Agency's accounts for 2009.
Germany, the incumbent, struggled with India and Morocco for several
months over Germany's wish for a fourth and final two-year
appointment to continue the job of auditing the Agency's accounts
for 2010-2011. Morocco eventually withdrew and India is reportedly
poised to accept a deal that allows for Germany's continued tenure.
Barring some change in this status quo, the September Board will
recommend that Germany's Federal Audit Chamber be re-appointed as
External Auditor for 2010 and 2011. Recommendation and Action
Request: Mission recommends that the U.S. delegation join consensus
in approving the Board's recommended appointment of Germany as
External Auditor.

-------------- --------------
Agenda Item 13 Amendment to Article XIV.A
-------------- --------------


25. (U) The 1999 General Conference approved this amendment, the
purpose of which is to promote the benefits of biennial budgeting.
The Secretariat informs Member States in GC (53)/INF/5 of the
progress of the amendment's ratification by a two-thirds majority of
Member States for entry into force in accordance with the GC
statute. Only 44 Member States have ratified thus far, one more
than last year; 100 ratifications are required for entry into force.
The United States is not among those that have ratified.
Recommendation and Action Request: Mission recommends the U.S.
delegation joins other Member States in taking note of the report.

-------------- --------------
Agenda Item 14 Scale of Assessment
-------------- --------------


26. (U) The General Conference will be asked to approve the scale of
assessments for 2010. Recommendation and Action Request: Mission
recommends that the U.S. delegation be authorized to join
consensus.

-------------- --------------
Agenda Item 22 Amendment to Article VI
-------------- --------------


27. The 1999 General Conference approved this amendment, the
purpose of which is to expand Board membership from 35 to a total of
43 Member States to provide a "more democratic representation" of
the Board. The numbers of elected and "designated" members "most
advanced in the technology of atomic energy" in different regional
groups under Article VI (a) would increase, to include the expected
designation of Pakistan and the ROK. The two requirements for entry
into force of this amendment have not been met: ratification by
two-thirds of Member States, and confirmation by the GC of a list,
adopted by the Board, whereby each Member State is allocated to one
of the regional groups (including Israel in MESA) referred to in
Article VI (1)(a). The Secretariat informs Member States in
GC(53)/10 of progress on the amendment's ratification. Thus far, 48
states have ratified, out of a total of 100 required for entry into
force. The United States has not ratified this amendment.
Recommendation and Action Request: USDEL should join consensus in
taking note of these ratifications.

-------------- --------------
Agenda Item 23 Elections to the Staff Pension Committee
-------------- --------------


28. (U) The GC will be requested to approve the election of an
alternate member of the Agency's Staff Pension Committee. The
alternate member from the UK will become a full member, replacing a
member from South Africa. Morocco has informally nominated an
alternate. Recommendation and Action Request: Mission recommends
that the USDEL join consensus.

-------------- --------------
Agenda Item 24 Personnel: (a) Staffing, (b) Women
-------------- --------------


29. (U) The General Conference will be requested to receive two
reports on Secretariat staffing issues by nationality and gender,
which are expected to be approved by the September Board.
Recommendation and Action Request: Mission recommends that the U.S.
delegation join consensus in receiving the two reports.

-------------- --------------
Agenda Item 25 Examination of Delegates Credentials
-------------- --------------


30. (U) Paras 10 and 12 preview this agenda item, which is raised
within the General Committee. Recommendation and Action Request:
USDEL should join the expected consensus in approving the General
Committee's report. USDEL seeks guidance should a credentials
challenge arise with respect to Honduras, as previewed in para 10.

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Agenda Item 26 Report on TCF Fund Contributions
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31. (U) The GC President will report on pledges for the TC Fund,
including those made during the General Conference (para 21).
Recommendation and Action Request: No U.S. action is necessary.

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Scientific Forum
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32. (U) The IAEA Scientific Forum, being held September 15-16 on the
margins of the General Conference, will focus on Energy for
Development. The forum will be divided into four sessions: Energy
for Development - The Issues, Energy Demand, Energy Supply, and
International Institutional Implications. The first session will
review principle issues surrounding energy development and the lack
of access to modern energy services. The second session will
discuss essential drivers of energy demand and the prospects for
energy efficiency improvements in end-use sectors. The third
session will focus on energy resource availability and supply
technology options (renewable, fossil, and nuclear). The fourth
session will explore the role of international organizations in
advancing energy for development. U.S. private experts speaking at
the conference are former White House Science Adviser John H.
Gibbons from Resource Strategies and Thomas Schelling. Richard
Cirillo from Argonne National Laboratory and DOE DAS Carmen Difiglio
will also speak.

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U.S. Industry Event
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32. (U) The Department of Commerce (DOC) will host a U.S. nuclear
industry delegation on the margins of the GC to promote U.S.
services and technologies to interested IAEA Member States. DOC,
DOS, and DOE continue to support the involvement of U.S. companies
in the global expansion of nuclear energy and want to ensure that
U.S. industry is well-positioned to take advantage of the growing
business opportunities. The DOC sponsored three-day program for
approximately 30 representatives of U.S. firms will focus on
participation in the U.S. technologies and services exhibit, in the
U.S. policymaker roundtable, and in technologies and services
seminars.

DAVIES