This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 OTTAWA 001721 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR OES (WATSON), OES/EGC (REIFSNEIDER, DEROSA), 
EB/ESC/ISC (MCMANUS, DUDLEY), WHA/CAN (MASON, RUNNING, 
NORMAN) 
 
USDOC FOR ITA/MAC -- OFFICE OF NAFTA 
 
DOE FOR INT'L AND POLICY (PUMPHREY AND PERSON), IE-141 
(DEUTSCH) AND BPA (ATKINS) 
 
EPA FOR OFFICE OF THE ADMINISTRATOR, INTERNATIONAL AFFAIRS 
AND BRIAN MCLEAN 
 
E.O. 12958: N/A 
TAGS: ENRG CA
SUBJECT: INTERNATIONAL PARTNERSHIP FOR THE HYDROGEN ECONOMY: 
      CANADIAN REACTIONS 
 
REF:      (A) STATE 146268 
 
      (B) STATE 153914 
 
¶1. SUMMARY:  GOC OFFICIALS APPEAR TO BE CAUTIOUSLY 
INTERESTED IN PARTICIPATING IN THE IPHE, BUT HAVE 
SIGNIFICANT CONCERNS ABOUT HOW IPHE WILL RELATE TO THE IEA'S 
HYDROGEN COORDINATION GROUP.  THEY ALSO POSED NUMEROUS 
QUESTIONS ABOUT IPHE'S POSSIBLE STRUCTURE AND PROCESS - SEE 
ACTION REQUESTED, PARAGRAPH 7.  THIS INITIATIVE WILL REQUIRE 
SOME SELLING AT THE POLITICAL LEVEL, AND TO THIS END WE URGE 
WASHINGTON AGENCIES TO CONSIDER VISITS TO OTTAWA BY SENIOR 
OFFICIALS FROM DOE AND STATE TO PROMOTE THE IPHE.    END 
SUMMARY 
 
¶2.    EMBASSY ESTH COUNSELOR AND ENERGY SPECIALIST DISCUSSED 
THE USG'S PROPOSAL FOR THE INTERNATIONAL PARTNERSHIP FOR THE 
HYDROGEN ECONOMY (IPHE) WITH KEY OFFICIALS AT NATURAL 
RESOURCES CANADA (NRCAN) ON JUNE 16.  NRCAN PERSONNEL WERE 
FAMILIAR WITH THE PROPOSAL:  ALL HAD SEEN THE INFORMATION 
PROVIDED IN REFTEL A, SOME HAD HEARD SECRETARY ABRAHAM'S 
INVITATION AT THE IEA MINISTERIAL IN APRIL, AND OTHERS HAD 
SEEN A PRESENTATION BY DOE'S CHRIS BORDEAUX AT THE MOST 
RECENT MEETING OF SCIENCE AND TECHNOLOGY EXPERTS UNDER THE 
NORTH AMERICAN ENERGY WORKING GROUP IN OTTAWA ON JUNE 5. 
 
¶3.   CANADIAN OFFICIALS' MOST IMPORTANT QUESTIONS WITH 
RESPECT TO IPHE PERTAINED TO ITS RELATIONSHIP TO THE IEA'S 
HYDROGEN COORDINATION GROUP (REF B).  NOTING THAT THE WORK 
BEING PURSUED IN THAT FORUM IS SUBSTANTIVE AND IS ALREADY 
WELL UNDERWAY, THEY EXPRESSED CONCERN THAT THE IPHE 
INITIATIVE WOULD DUPLICATE WHAT WAS ALREADY BEING DONE IN 
THE IEA CONTEXT AND/OR THAT IT WOULD SPREAD THE GOC'S 
AVAILABLE RESOURCES TOO THIN.  IN ADDITION, NRCAN OFFICIALS 
RAISED QUESTIONS ABOUT HOW THE IPHE PROCESS WOULD RELATE TO 
IEA EFFORTS ON THE DEVELOPMENT OF INTEROPERABLE CODES AND 
STANDARDS. 
 
¶4.   CANADIAN OFFICIALS INQUIRED BRIEFLY ABOUT SECRETARY 
ABRAHAM'S EFFORT TO PROMOTE THE IPHE AMONG PROSPECTIVE 
MEMBERS DURING VISITS TO THEIR CAPITALS.  (COMMENT:  THE 
FACT THAT SECRETARY ABRAHAM HAS PROMOTED THE IPHE DIRECTLY 
WITH THE EU AND OTHER FOREIGN GOVERNMENTS, BUT HAS NOT DONE 
SO WITH CANADA, MAKES THIS A SENSITIVE TOPIC IN OTTAWA.  END 
COMMENT). 
 
¶5.   OUR INTERLOCUTORS WERE INTERESTED IN THE POSSIBLE 
FORMAT OF THE PROSPECTIVE MEETING TO LAUNCH THE IPHE IN FALL 
¶2003.  THEY RECOMMENDED STRONGLY THAT WE NOT TRY TO HOLD 
MEETINGS AT THE POLICY AND TECHNICAL LEVELS SIMULTANEOUSLY 
(CITING THE CASE OF THE CARBON SEQUESTRATION LEADERSHIP 
FORUM), BUT RATHER THAT WE PUT POLICY ISSUES FIRST AND THEN 
DEAL SEPARATELY WITH STRUCTURAL AND TECHNICAL MATTERS. 
 
¶6.   OTHER ISSUES IN WHICH NRCAN SHOWED INTEREST INCLUDED: 
 
-- THE APPROPRIATENESS OF THE IPHE'S TIME FRAMES (I.E. IS IT 
REALISTIC TO MAKE HYDROGEN THE "TRANSPORTATION FUEL OF 
CHOICE" BY 2020?); 
 
-- WHETHER INDIA AND CHINA WERE LIKELY TO PARTICIPATE; 
 
-- HOW THE IPHE SECRETARIAT WOULD BE STRUCTURED AND WHERE IT 
MIGHT BE LOCATED; 
 
-- HOW INDUSTRY/PRIVATE SECTOR GROUPS WOULD BE INVOLVED IN 
THE PARTNERSHIP; 
 
-- HOW WILL IPR ISSUES BE HANDLED; 
 
-- WHETHER U.S. STATES AND/OR LOCAL GOVERNMENTS BE INVOLVED 
IN THE PARTNERSHIP (NRCAN UNDERSTANDS THAT CALIFORNIA AND 
OTHER STATES HAVE BEEN ACTIVE ON HYDROGEN AND FUEL CELL 
DEVELOPMENT); 
 
-- WHETHER THE IPHE WILL ENGAGE IN ACTUAL PROJECTS, OR JUST 
BE A FORUM FOR EXCHANGE OF INFORMATION; AND 
 
-- HOW IPHE MIGHT CONNECT TO CSLF. 
¶7. ACTION REQUESTED:  BASED ON OUR DISCUSSIONS THUS FAR, IT 
IS CLEAR THAT THE GOC IS INTERESTED IN THE IPHE AND GIVING 
IT CAREFUL CONSIDERATION. HOWEVER, OFFICIALS ARE ALSO 
CONCERNED ABOUT ORGANIZATIONAL DETAILS AND ABOUT THE 
POSSIBLE IMPLICATIONS OF THIS NEW PARTNERSHIP INITIATIVE FOR 
EXISTING BILATERAL AND MULTILATERAL (PARTICULARLY IEA) 
COOPERATION ON HYDROGEN TECHNOLOGIES AND FUEL CELLS. 
REQUEST THAT WASHINGTON PROVIDED RESPONSES FOR QUESTIONS AND 
CONCERNS RAISED IN PARAGRAPHS 2, 4 AND 5 ABOVE SO THAT WE 
CAN REASSURE THE GOC ON THESE ISSUES TO THE EXTENT POSSIBLE. 
END ACTION REQUESTED. 
 
¶8. OUR MEETING WITH NRCAN OFFICIALS WAS CLEARLY INCONCLUSIVE 
WITH REGARD TO CANADIAN PARTICIPATION IN THE IPHE, 
PARTICULARLY SINCE IT INVOLVED ONLY ONE AGENCY OF THE 
SEVERAL IN THE CANADIAN GOVERNMENT THAT WOULD PRESUMABLY 
PLAY A ROLE IN DECIDING ON CANADIAN PARTICIPATION.  THE U.S. 
PROPOSAL FOR AN INTERNATIONAL PARTNERSHIP HAS RAISED A 
NUMBER OF BASIC QUESTIONS THAT THE GOC WILL HAVE TO WRESTLE 
WITH AS THEY CONSIDER HOW TO RESPOND.  ANY ADDITIONAL 
INFORMATION THAT WASHINGTON AGENCIES MAY BE ABLE TO PROVIDE 
TO US WILL BE USEFUL IN ENGAGING NRCAN AND OTHER CANADIAN 
GOVERNMENT AGENCIES ON THE IPHE PROPOSAL.  FINALLY, BEYOND 
ALL THE TECHNICAL AND BUREAUCRATIC ISSUES THAT WE HAVE 
ENCOUNTERED IN OUR INITIAL DISCUSSIONS WITH GOC OFFICIALS, 
THERE IS A NEED TO SELL THE CONCEPT AT THE POLITICAL LEVEL 
IF WE ARE SERIOUS ABOUT ENGAGING CANADA IN THE IPHE.  THAT 
IS AN EFFORT THAT WE EXPECT THE AMBASSADOR TO BE FULLY 
INVOLVED IN, ONCE WE HAVE THE INFORMATION TO RESPOND TO SOME 
OF THE BASIC ISSUES RAISED ABOVE.  HOWEVER, WE WOULD ALSO 
URGE WASHINGTON AGENCIES TO CONSIDER VISITS TO OTTAWA BY 
SENIOR OFFICIALS FROM DOE AND STATE TO PROMOTE THE IPHE. 
 
CELLUCCI