VZCZCXRO1649
RR RUEHHM
DE RUEHHI #0911/01 1110823
ZNR UUUUU ZZH
R 210823Z APR 06 ZDK
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 1572
RHEBAAA/DOE WASHDC
INFO RUEHHM/AMCONSUL HO CHI MINH CITY 1002

UNCLAS SECTION 01 OF 02 HANOI 000911 
 
SIPDIS 
 
STATE FOR EAP/K AND EAP/MLS 
DOE/NNSA FOR KASIA MENDELSOHN 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: KNNP ENRG TRGY KTIA VM
SUBJECT:  Discussions of Agreements for the Dalat Reactor 
Conversion and Russian Origin Fuel Return 
 
REF: A) 05 HANOI 3278; B) 05 STATE 29473; C) 05 HANOI 3245; 
 
D) STATE 26081 
 
HANOI 00000911  001.2 OF 002 
 
 
¶1.  (SBU) Summary: On March 13-15, 2006, a DOE-DOS team met 
with Vice Minister of Science and Technology Tran Quoc Thang 
and other Government of Vietnam (GVN) officials in Hanoi to 
discuss the Vietnam's participation in the Russian Research 
Reactor Fuel Return (RRRFR) Initiative.  The USG delegation 
reiterated its offer to:  a) provide technical assistance to 
license the Dalat research reactor as a low enriched uranium 
(LEU) reactor; b) supply an amount of replacement LEU fuel 
in an amount equivalent to the 36 fresh highly enriched 
uranium (HEU) fuel assemblies currently located at the 
reactor site; and c) assist the GVN to repatriate the 
Russian-origin spent fuel to the Russian Federation at no 
cost to Vietnam.  The two sides agreed that negotiations of 
the draft Government-to-Government Agreement (GTGA) and 
draft Implementing Agreement (IA) should proceed in parallel 
to the conversion program work and that the USG will re- 
transmit the text of the GTGA and IA officially to the 
Ministry of Foreign Affairs.  There is some time pressure 
with regards to completing the fuel conversion in the 
reactor by September 2006.  End Summary. 
 
¶2.  (SBU) On March 13-15, 2006, a USG team comprised of 
representatives from the Office of Global Nuclear Material 
Threat Reduction (GNMTR), Department of Energy (DOE) and the 
Bureau of International Security and Nonproliferation, 
Office of Nuclear Energy, Safety, and Security (NESS), 
Department of State (DOS) met with the Vice Minister of 
Science and Technology Tran Quoc Thang and other GVN 
officials in Hanoi to discuss Vietnam's participation in the 
Trilateral U.S.-Russian Federation-International Atomic 
Energy Agency (IAEA) Russian Research Reactor Fuel Return 
(RRRFR) Initiative (reftels). 
 
¶3.  (SBU) The USG delegation was led by Ms. Kasia 
Mendelsohn, GNMTR Director of the Office of Global Nuclear 
Material Threat Reduction, and included three additional DOE 
officials, a NESS representative and ESTHOff.  The GVN 
delegation was led by Vice Minister Thang and included GVN 
officials from the Office of the Government's Department of 
Science and Education, Ministry of Foreign Affairs (MFA), 
Ministry of Science and Technology (MOST), Vietnam Atomic 
Energy Commission (VAEC), Vietnam Agency for Radiation and 
Nuclear Safety and Control, and the Dalat Nuclear Research 
Institute (DNRI). 
 
¶4.  (SBU) The USG delegation reiterated the U.S. offer to 
the GVN to: a) provide technical assistance to license the 
Dalat research reactor as a low enriched uranium (LEU) 
reactor; b) supply an amount of replacement LEU fuel in an 
amount equivalent to the 36 fresh highly enriched uranium 
(HEU) fuel assemblies currently located at the reactor site; 
and c) assist the GVN with the repatriation of Russian- 
origin spent fuel to the Russian Federation at no cost to 
Vietnam.  The USG offer is contingent upon agreement on the 
part of the GVN to the return of the existing inventory of 
fresh Russian-origin HEU fuel to Russia, also at no cost to 
Vietnam, upon delivery of total amount of replacement LE 
fuel and loading of the first eight LEU assemblies. 
 
¶5.  (SBU) Vice Minister Thang informed the USG delegation 
that MOST fully supports Vietnam's participation in the 
RRRFR program and instructed VAEC to draft a proposal to 
Prime Minister Phan Van Khai recommending that the Office of 
the Government accept the USG offer and instruct MOST to 
begin work on the conversion program.  It is expected that 
the Prime Minister will approve the conversion program. 
 
¶6.  (SBU) The two sides discussed the mechanism for 
cooperation under the RRRFR program.  The USG delegation 
explained that provision of replacement LEU fuel and 
repatriation of fresh HEU fuel could be completed through 
two standard contracts.  The supply of replacement LEU fuel 
can be achieved through a three-party fuel fabrication 
contract among TVEL (the Russian fuel fabricator), VAEC and 
DOE.  The removal of the fresh HEU fuel can be achieved 
through a contract under the already established IAEA 
technical cooperation regional project.  This contract would 
be among the proposed Russian air freighter, IAEA and VAEC. 
 
¶7.  (SBU) The USG delegation further explained that in order 
to proceed with the repatriation of Russian-origin spend HEU 
fuel, it would be necessary to negotiate and sign the 
"Agreement between the Government of the United States of 
America and the Government of the Socialist Republic of 
Vietnam to Facilitate the Provision of Assistance for 
 
HANOI 00000911  002 OF 002 
 
 
Nonproliferation Purposes" (a Government-to-Government 
Agreement or GTGA) as well as the "Agreement between the 
Department of Energy of the United States of America and the 
Ministry of Science and Technology of the Socialist Republic 
of Vietnam Concerning Cooperation in the Area of Prevention 
of Proliferation of Nuclear Materials and Technologies" (the 
Implementing Agreement or IA).  Vice Minister Thang 
requested that the USG officially transmit the texts of the 
GTGA and IA to Vietnam's MFA. 
 
¶8.  (SBU) Representatives from DNRI explained that in order 
to ensure uninterrupted operation of the Dalat research 
reactor, the reactor will need to refuel in September 2006. 
In order to avoid reloading the reactor with fresh HEU fuel 
assemblies from the inventory at the reactor site, both 
sides agreed to an implementation schedule that calls for 
the delivery of replacement LEU fuel in September 2006 to 
the reactor and the removal of the fresh HEU inventory 
within five days after the LEU fuel has been delivered. 
Fuel inspection, loading of eight fuel assemblies, and 
testing should be completed within these five days.  MOST 
representatives indicated that if the replacement LEU fuel 
does not meet technical criteria, MOST will retain the fresh 
HEU inventory.  Both sides agreed to proceed with the 
understanding that full implementation of this schedule is 
contingent upon approval by the Prime Minister. 
 
¶9.  (SBU) The two sides agreed to begin negotiating the 
necessary contracts for fuel supply and removal in advance 
of the Prime Minister's decision.  The contracts will be 
signed once the Prime Minister has accepted the USG 
proposal.  At the same time, MOST agreed that it would 
propose to the Office of the Government that the MFA be 
designated the focal point for negotiation of the GTGA and 
that MOST be designated for focal point for negotiations of 
the IA.  Both sides agreed that these negotiations would be 
undertaken in parallel to the conversion program activities. 
No preparations for spent fuel removal will be undertaken 
until after the GTGA and IA are concluded. 
 
¶10.  (SBU) The two sides agreed on the following list of 
actions:  a) preliminary implementation schedule for supply 
of replacement fresh LEU fuel and removal of fresh HEU fuel 
has been discussed and agreed providing for delivery of 
replacement LEU fuel and removal of fresh HEU fuel in 
September 2006; b) conduct a technical meeting in Dalat, 
Vietnam in early May 2006; c) the fuel fabrication and 
transportation contracts will be negotiated in advance of 
the Prime Minister's decision so that they may be signed as 
soon as the Prime Minister issues his decision. 
 
¶11.  (SBU) The two sides agreed that negotiations of the 
GTGA and IA should proceed in parallel to the conversion 
program work and that the USG will re-transmit the text of 
the GTGA and IA officially to MFA as soon as possible. 
 
MARINE