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OO RUEHWEB

DE RUEHTC #2048/01 2630648
ZNR UUUUU ZZH
O 200648Z SEP 06
FM AMEMBASSY THE HAGUE
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6858
INFO RUEAIIA/CIA WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RHEBAAA/DEPT OF ENERGY WASHDC PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC PRIORITY

UNCLAS THE HAGUE 002048 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR ISN/CB, VCI/CCB, L/ACV, IO/S 
SECDEF FOR OSD/ISP 
JOINT STAFF FOR DD PMA-A FOR WTC 
COMMERCE FOR BIS (GOLDMAN) 
NSC FOR DICASAGRANDE 
WINPAC FOR WALTER 
 
E.O. 12958: N/A 
TAGS: PARM PREL CWC
SUBJECT: CHEMICAL WEAPONS CONVENTION (CWC): WRAP-UP FOR 
WEEK ENDING SEPTEMBER 15 
 
 
This is CWC-80-06. 
 
-------------------- 
BUDGET CONSULTATIONS 
-------------------- 
 
¶1.  (U) Budget consultations were held on September 12 and 
¶14. The consultations covered the International Cooperation 
and Assistance Division (ICA), the Secretariat for the Policy 
Making Organs (PMO), the External Relations Division (ERD), 
and the Executive Management (EM) sections of the budget. 
 
¶2.    (U) The Director of ICA, John Makhubalo, began his 
presentation of the ICA budget by noting that ICA hoped to 
conduct twenty technical assistance visits (TAVs) as opposed 
to "up to ten" as indicated in the budget using regular 
budget money.  The unstated implication being that perhaps 
even more TAVs could be conducted if voluntary contributions 
were used.  Makhubalo said that ICA would continue to support 
Article VII implementation. He noted that the Assistance and 
Protection budget had been increased by 4.7%, the Support for 
National Authorities by 4.8%, Capacity Building by 4.8%, and 
the Associates program by 2.5%. 
 
¶3.    (U) The Netherlands asked why the two temporary P-2 
positions envisaged to help with Article VII implementation 
were placed in ICA given that the positions would report to 
the Legal Advisor.  The Dutch delegate also asked if any 
provision for the staffing of a temporary office in Africa 
had been made.  Makhubalo said that the two P-2 positions 
were placed in ICA as ICA is responsible for supporting the 
implementation of Article VII.  He said that no decision had 
been made on the possible "Office in Africa" as consultations 
were ongoing. 
 
¶4.    (U) South Africa asked if it would be possible to 
consider increased funding for the peaceful uses of chemistry 
program.  South Africa also observed that according to chart 
5 on page 69, only 3% of the TS staff works in ICA. 
Makhubalo said that both funding and manpower were limiting 
factors so simply increasing the funding levels would not be 
enough unless a commensurate increase in staffing was 
approved as well. 
 
¶5.    (U) Germany asked about the increase in the number of 
TAVs and where the TAVs would take place.  Makhubalo said 
that the budget would be changed to reflect the increase and 
that where the TAVs would occur would depend on the requests 
received by the TS. 
 
¶6.    (U) Sudan said that ICA was a "very dear" program for 
Sudan and that many developing countries had benefited from 
its programs; ten people who had taken part in the Associates 
Program, for example, were now TS employees. 
 
¶7.    (U) Iran asserted that the overall .8% increase in the 
ICA budget was really a reduction if one removed the 159,000 
euros budgeted for the two P-2 positions to work on Article 
VII.  Germany observed that part of the reduction in the ICA 
budget was due to the fact that furniture and capital costs 
had been reduced by 100%. The Director of the Budget and 
Finance Branch, Rick Martin, highlighted the fact that the 
operational core parts of the budget, i.e. program delivery, 
had increased between 2.5% and 4.8% depending on the program. 
 Austria claimed that 15% of the ICA budget was not even 
spent last year and that the significant amount of voluntary 
contributions should be considered by delegations. 
 
¶8.    (U) Iran asked that almost all references to Article 
VII in the budget including paragraphs 3.45, 4.25, 4.30, and 
all references to Article VII in table 9 be deleted.  Most 
delegations including NAM delegations seemed annoyed by 
Iran's proposal and no delegation supported Iran.  Austria 
asked that Iran provide a national paper, or at least 
something in writing to outline such extensive editorial 
changes to the budget.  The facilitator then intervened and 
said he would note Iran's suggestions, but they could better 
be addressed at a future consultation.  The Iranian delegate 
was not pleased with the facilitators' proposal, but 
 
realizing that he was isolated he did not push back. 
 
¶9.    (U) The Director of PMO, Alexander Khodakov, presented 
the PMO budget.  He said there were few changes from the 2006 
budget other than a significant decrease in the amount 
budgeted for rental equipment.  There were no questions. 
 
¶10.   (U) The second day of the budget consultations began 
with an examination of the External Relations Division.  Rick 
Martin (BFB) noted that the 3.8% increase in ERD's budget was 
almost exclusively due to a an increase in the training 
budget (largely a result of the devolution of funding for 
training TS-wide) and an increase in staff costs attributable 
to the larger size of new ERD staff members families and the 
resulting increase in allowances paid to them. 
 
¶11.   (U) The Netherlands and Switzerland began the 
discussion by lamenting that the OPCW had very little 
visibility on the international stage and asked what ERD 
planned to do to raise the organization's profile.  The 
Director of ERD, Liu Zhixian, said that he hoped that the 
commemoration of the tenth anniversary of the OPCW would 
serve to raise the profile of the organization.  He also 
pointed out that the TS had released over 80 press releases 
in 2005 and hoped to significantly update and improve the 
OPCW website by significantly increasing the amount of 
foreign language content available on the website. 
 
¶12.   (U) South Africa asked in reference to paragraph 4.52 
what the TS was doing to maintain and improved the OPCW's 
relationship with the host country and what the goal of the 
eight assistance visits to be carried out by ERD would be. 
Liu said that the Host Country Committee and the Legal 
Advisors Office would both continue their respective 
dialogues with The Netherlands on a wide range of host 
country issues.  He said the eight assistance visits 
envisaged would primarily be visits to non-SP's to encourage 
them to accede to the CWC. 
 
¶13.   (U) Iran praised the success that the OPCW has had in 
its universality efforts but questioned the wisdom of 
focusing efforts in the Middle East where the prospects for 
success were bleak given the current situation -- at least 
according to Iran.  Iran also said that the TS needed to 
inform SPs before making contacts with other international 
organizations.  Iran asked what "other" travel costs 
constituted.  Liu pushed back and said that he believed it 
was important to continue to focus TS universality efforts in 
the Middle East.  He also said that the TS would continue to 
have contacts with the UN, especially the First Committee and 
the 1540 Committee, as well as with other international 
organizations working in the area of non-proliferation and 
WMD.  Liu said that "other" travel costs were related to visa 
fees.  He added that "other" contractual costs covered 
publications costs such as the quarterly publication 
"Chemical Disarmament" and that "other" workshops covered 
universality workshops. 
 
¶14.   (U) Germany objected to the reference to soliciting of 
voluntary contributions found in paragraph 4.43 of the budget 
and suggested that any references to voluntary contributions 
should clearly state that they would be used for specific 
tasks to be designated by the donor.  Germany also asked 
rhetorically if simply releasing large numbers of press 
releases had any real impact and if there were any plans to 
revamp the quarterly "Chemical Disarmament" publication.  The 
Netherlands proposed that the TS press office work with the 
Dutch MFA's press office to come up with ideas on how to 
increase the visibility of the organization.  Iran suggested 
that for clarity's sake a word other than "other" be used to 
describe miscellaneous budget items in table 28. 
 
¶15.   (U) The UK asked what training ERD planned on receiving 
with their increased training budget.  Surprisingly, Liu 
responded that there was not training plan in place for 2007. 
 
¶16.   (U) Mohamed Louati, the Director of the Office of 
Internal Oversight, introduced the OIO budget noting that it 
would decrease by 3.5% from the 2006 budget.  He also pointed 
 
out that for the first time in quite awhile OIO was fully 
staffed and that the amount budgeted for training was largely 
realized through steep reductions in the travel budget for 
OIO. 
 
¶17.   (U) Mexico said it was concerned by the reduction in 
the OIO budget and asked why in table 12 the goal for the 
acceptance or approval of OIO recommendations was not 100% as 
opposed to 90% as is currently proposed.  South Africa asked 
the same question and if the current staffing levels were 
adequate for OIO to carry out its work.  Austria suggested 
that the language proposed for key outcomes should be more 
positive in tone.  Japan asked what type of training OIO 
would be requesting. 
 
¶18.   (U) Louati responded that he believed that 90% was a 
reasonable goal, noting that 84% is the current figure for 
the acceptance or approval of OIO recommendations, which was 
one of the highest figures amongst international 
organizations.  He opined that some times, for valid reasons, 
divisions in the TS do reject OIO recommendations as too 
cumbersome or unworkable, so a 100% implementation rate would 
probably not be attainable.  He said OIO would be seeking 
training in risk management and specialized audit training. 
On staffing, Louati said that he currently had eight 
full-time staff and that he believed that number to be 
adequate. 
 
¶19.   (U) Santiago Onate, the Director of the Legal Advisors 
Office, introduced the LAO budget saying that the LAO would 
continue to support Article VII implementation in 2007.  He 
also said that there might be an increased need for legal 
support for Article X support.  LAO would also continue its 
work on privileges and immunities and the drafting and 
amending of procurement rules and regulations.  In addition, 
LAO would also provide legal support to all of the divisions 
and branches in the TS.  Onate highlighted the fact that the 
LAO budget request had decreased by 4% and that this was 
largely due to a reduction in the fees paid to the 
International Labor Organization (ILO) for trying personnel 
cases. 
 
¶20.   (U) Mexico said that they found the placement of 
Article VII activities in the LAO budget subprogram to be an 
"anomaly."  Iran said they did not see any benefit in placing 
Article VII activities in the LAO budget and asked why the 
two P-2 legal officer positions were not being put in LAO as 
opposed to ICA.  Austria asked why there was a decrease in 
the amount to be paid to the ILO. 
 
¶21.   (U) Onate responded that while the mandate for working 
on full implementation of Article VII and the budget for that 
goal were in ICA, the reality was that the expertise on 
reviewing and drafting national legislation existed only in 
LAO; therefore the decision was made to place the two P-2 
positions in ICA but under the supervision of LAO.  He said 
he was not sure if this was the best arrangement, but it was 
clear to him that if the positions and funding were placed in 
LAO he would need additional administrative staffing to 
manage the positions and resources. 
 
¶22.   (U) On the amount budgeted for the ILO, Onate said that 
the TS pays a base amount each year to the ILO to have the 
right for the ILO to hear cases.  The TS must also pay an 
additional fee to the ILO for each case heard.  Onate 
conceded that it was difficult to accurately budget for this, 
as there is no way to know how many cases will go to the ILO, 
so the amount budgeted is just a best guess taking into 
consideration that the tenure issue has been resolved in 
front of the ILO and there are likely to be few if any tenure 
cases. 
 
¶23.   (U) The Netherlands asked for reassurance that LAO will 
have access to adequate resources to carry out its work in 
support of Article VII and that ICA will not have a veto or 
the ability to hinder LAO's work in support of TAVs to work 
on legislation.  The UK said that they saw a clear link 
between Article VII implementation and support for Article XI 
activities. 
 
 
¶24.   (U) Onate made it clear that ICA would not have a veto 
over LAO support for Article VII implementation.  He said the 
bigger problem for LAO in supporting Article VII outreach was 
staffing.  He said, for example, that he recently had to turn 
down an ICA request to support Article VII outreach for Yemen 
because the trip was scheduled for the same dates as the 
Executive Council when LAO would be required to provide 
extensive legal support for the TS and the EC. 
 
¶25.   (U) The review of the Office of Special Projects budget 
was deferred at the request of Iran, as the Director was not 
available. 
 
¶26.   (U) Brian Davey, the Head of the Health and Safety 
Branch (HSB), introduced the HSB budget noting that the 2007 
budget request 1.5% lower than the 2006 budget.  He said that 
most of the savings was realized by significantly reducing 
the cost of physical exams for new employees.  Davey 
cautioned that the amount of turnover and the resultant 
physicals could significantly impact on the expenditures of 
the branch as could the need to deal with any complex medical 
cases.  There were no questions from delegates. 
 
¶27.   (U) The Head of Physical Security, Joe Hogan, 
introduced the Office of Confidentiality and Security (OCS) 
budget.  He said that in 2006, OCS had significantly upgraded 
the physical security of the TS.  Continued progress was also 
made with the VIS.  Hogan said no staffing changes were 
proposed for the 2007 budget.  There were no questions. 
 
¶28.   (U) The next budget consultations will take place on 
October 5.  In the meantime, the facilitators encouraged 
delegations to report to their capitals and seek guidance for 
the next round of consultations. 
 
----------------------------- 
SCHEDULE 2 FACILITY AGREEMENT 
----------------------------- 
 
¶29.   (U) Del rep (Larry Denyer), together with Beth Scott 
and Hung Ly of BIS's Treaty Compliance Division, met with Per 
Runn, Faisa Patel King, and Susan Atego of Policy and Review 
Branch and successfully finalized the language of the 
facility agreement for plant site Sched2/125.  The agreed 
language has gone back to Washington for final review under a 
cover letter from Verification director Horst Reeps to Robert 
Mikulak (L/VER/PRB/116444/06, dated 13 September 2006). 
Treaty Compliance Division has the task to carry out one last 
confirmation of the agreed language with plant site 
personnel.  In their cover letter, the TS asks that we reply 
formally to them by September 29, 2006 to enable this 
facility agreement to be considered at EC-47 (November 7-10). 
 
----------- 
ARTICLE VII 
----------- 
 
¶30.  (U) Facilitator Maarten Lak (Netherlands) moderated a 
September 12 informal consultation to consider the status of 
Article VII implementation.  Legal Advisor Santiago Onate 
updated the information (summary faxed back to ISN/CB) 
included in the draft progress report (date of information as 
of August 15), informing delegations that only ten states 
have yet to establish National Authorities (NA).  Of these 
ten, only Mauritania adhered to the Convention before 2003. 
(Note: Algeria has kept del reps updated on its efforts, 
noting that prior to implementing the CWC, Mauritania must 
first stabilize its governmental institutions.  It informed 
Algeria that Mauritania intends to fully implement its 
Article VII obligations as soon as its government is in a 
position to do so.) 
 
¶31.  (U) Onate also advised delegations that it is possible 
that Honduras and Liberia may establish NAs before the 11th 
Conference of States Parties.  Onate then advised delegations 
that as of September 15 (when Comoros becomes a SP), 69 of 
179 SPs had yet to inform the TS of the status of its 
implementing legislation.  However, 44 of these states are in 
 
communication with the TS, and some have sent legislation for 
comment or requested models for use in drafting.  This leaves 
about 25 that have not communicated what legislation is in 
place or what efforts are being made to implement Article VII 
obligations.  Onate indicated that he expected at most one 
state to finalize and enact its legislation before the CSP, 
and perhaps four or five might submit legislation to 
Parliaments. 
 
¶32.  (U) Mexico, supported by Colombia, responded that the 
progress report set a very good tone and established that the 
encouragement/cooperative approach was working.  China also 
welcomed the steady progress, but noted that the report's 
cut-off date of August 15 and eventual final version's 
cut-off date of September 30 was too early: the EC is in 
November, the CSP in December.  Onate responded that if the 
cut-off date would be late October, the TS would not have 
time to edit and translate the report into all official 
languages and distribute it in time for delegations to send 
it back to capital for analysis and guidance.  Instead the TS 
intends to distribute individual sheets with updates as 
progress is made. 
 
¶33.  (U) Australia (also speaking on behalf of New Zealand) 
welcomed the significant progress in the Pacific Island Forum 
(PIF) states, noting that much of the progress noted in the 
report was the result of contributions from SPs who have 
participated in regional meetings, sponsored training 
sessions, and sponsored or contributed to targeted TAVs in 
capitals.  Australia emphasized that in the two states 
opinions, TAVs are the most effective venue, and that states 
rely on the TS to inform states where their efforts and 
contributions can be best put to use. 
 
¶34.  (U) Germany took the floor, noting that the 25 SPs about 
which nothing is known included the ten without NAs.  Did 
this mean that the TS has not received any information from 
22 states?  Onate responded that there are various 
communications.  For instance, the TS worked for 19 months to 
be received by the Afghan consulate in Amsterdam.  At this 
meeting, the TS was told that Afghanistan would like a TAV -- 
but now is not the right moment.  It also would be necessary 
to carefully consider the venue, whether the TAV should be in 
The Hague or in Kabul. 
 
¶35.  (U) Status reports:  The newly arrived Turkish rep 
informed delegations that beginning in 2004, he became the 
drafter of Article VII implementing legislation.  The Turkish 
legislation now is in Parliament, and should be enacted by 
the end of 2006.  Belgium noted that at the next 
consultation, it would provide an update on the status of its 
legislation.  Sierra Leone, which recently established its 
NA, has requested a TAV to assist its drafting effort. 
Belgium noted that it would assist the TS efforts to receive 
information from the DROC. 
 
¶36.  (U) SPs outreach and assistance to implementing states: 
France gave an impassioned summary of its biannual training 
courses in Paris, but noted that Paris is not expected to 
participate in any TAVs to capitals.  The UK announced that 
it would be holding a follow-up training session for NAs that 
would focus on declarations and industry inspections.  Canada 
announced that it would be providing logistical support for 
the upcoming TAV to Haiti.  Netherlands announced its support 
for the upcoming meeting for NAs of South African states, 
noting that it would be hands-on training vice TS 
presentations.  Netherlands also supported the recent TS/U.S. 
TAV to Paramaribo. 
 
¶37.  (U) Australia, for New Zealand, noted NZ's voluntary 
contribution of 10,000 euros to support former TS staff 
member Keith Wilson's PIF TAVs.  Wilson's efforts to date 
include PNG, Cook Islands, and Vanuatu.  Australia noted its 
participation in TAVs to PNG and Cambodia, as well as its 
Australian translation of model legislation into Khmer. 
Australia also noted that Tuvalu, one of the states about 
which little is known, is targeted for the next round of 
NZ/Australia-supported TAVs.  Both NZ and Australia are 
considering additional voluntary contributions to support 
 
future TAVs in their region.  The U.S. noted its national 
assistance paper (July 2006), and provided copies to those 
who had not received them in July. 
 
--------- 
ARTICLE X 
--------- 
 
¶38.  (U) At a September 11 facilitation on Article X issues, 
Hans Schramml (Austria) began with a briefing on the 
activities of the Assistance and Protection Branch in 2006. 
APB chief Gennadi Lutay provided two documents: a six-page 
briefing, and a list of the 92 member states 
that participated in the courses and events in 2006 (both 
documents were FAXed to ISN/CB).  As for the key points: 
 
-- Lutay made the pitch for one more regional course focused 
on Asia in 2007. 
-- On Africa, he noted that there is a particular focus on 
East Africa. 
-- On Central Asia, Lutay said there would be a meeting in 
Tashkent in about a month to review the efforts, funded by 
Norway, to assist the six countries of Central Asia.  The 
focus of the Tashkent meeting is also to determine how 
they can continue efforts independent of TS assistance, with 
guidance provided by instructors from Switzerland.  In 
response to a request from The Netherlands, Lutay said that 
APB will provide a report of the Tashkent discussions. 
-- Lutay added that a similar assistance arrangement is being 
considered for African states, and that Switzerland has 
indicated a willingness to help in Africa as well. 
-- The APB budget for 2007, stated Lutay, is basically 
unchanged. 
-- In response to a question from the Dutch, he noted that 
some equipment storage is done at the OPCW lab, but some is 
also done with the Dutch government.  There are discussions 
under way to see if more storage (at reduced costs) might be 
arranged. 
-- In response to a question from Poland, Lutay said that 
various types of equipment are needed by the TS, and the most 
effective way to proceed is to have offers from SPs listed in 
the new format.  That will then generate 
more accurate requests from the TS. 
-- Lutay specifically said that the TS assessment of the 
offers that have been provided so far indicate that there is 
a specific shortfall concerning equipment suitable to 
assisting children. 
-- There is also a problem of limited offers of 
transportation.  Recognizing that this is a tall order, Lutay 
noted that for short-notice requests, offers of aircraft are 
needed. 
-- Lutay also noted that the voluntary fund does not have 
enough money.  There currently is enough to handle about 
three days of operations. 
 
¶39.  (U) The next issue was a briefing on follow-up actions 
concerning Joint Assistance Exercise 2005.  Renato Carvalho 
of the Inspectorate provided a two-page summary of follow-up 
actions (FAXed to ISN/CB).  The key points: 
 
-- The training plan for inspectors in 2007 is being 
formulated.  He specifically cited the effort to double the 
number of inspectors certified on the X-ray machine as well 
as more live agent training. 
-- In response to a question from the Germans, Carvalho 
reported that the funds allocated for training in 2006 as a 
follow-on to JAE had been spent by mid-year.  Additional 
funds were then provided by transferring unused allocations 
from within the Inspectorate.  Some of this came from vacant 
posts. 
-- The key problem area was communicators for inspectors.  In 
response to a question from The Netherlands, the problem is 
that sub-teams are working at some distance from each other, 
so repeaters are needed. 
-- The team leaders need guidance on how to handle public 
affairs.  The recommendation is for training to be approved 
by the end of the year. 
-- The bottom line is that 80-90% of the tasks recommended by 
the Working Group are completed. 
 
-- A shortened version of the Working Group report will be 
distributed soon. 
 
¶40. (U) Iran asked about the composition of the assessment 
team.  Carvalho confirmed that it was five TS personnel, two 
from the U.S. and two from the UK.  Iran asked how that 
composition came about, and Carvalho replied that the U.S. 
and UK had offered people.  When Iran asked if all SPs had 
been given a notification that they could offer assessors, 
Carvalho confirmed this had not been done.  Instead, all SPs 
had been given a chance to send observers, of which there 
were over 90.  Iran said that this was not the same as 
providing an assessor, and, as a result, it could not concur 
at this time.  (Note: At this point, it is not clear exactly 
what the Iranians could actually do to halt any follow-on 
actions.  They can certainly complain at the November EC, but 
the actions being taken are all internal TS decisions.) 
 
¶41.  (U) Finally, Schramml noted that he will be returning to 
Vienna on October 1 so the search should begin for a new 
facilitator.  He offered to continue in that role from Vienna 
if a new facilitator could not be found and return to The 
Hague as needed.  Del rep spoke to Schramml about this after 
the meeting and noted that it was pretty clear that effective 
consultations were hard to do when facilitators are not 
present in The Hague, adding that there may also be 
advantages in finding a capable, non-WEOG facilitator to 
handle Article X. 
 
¶42.  (U) Javits sends. 
ARNALL