VZCZCXRO0582
PP RUEHHM
DE RUEHHI #2734/01 2991018
ZNR UUUUU ZZH
P 261018Z OCT 06
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC PRIORITY 3820
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHINGTON DC PRIORITY
RHMFIUU/DEPT OF ENERGY WASHINGTON DC PRIORITY
RUEHHM/AMCONSUL HO CHI MINH 2039
RUEAIIA/CIA WASHINGTON DC

UNCLAS SECTION 01 OF 02 HANOI 002734 
 
SIPDIS 
 
STATE FOR NP (FENSTERMACHER); EAP/MLS 
NSC FOR HOLLY MORROW 
USDOE FOR NNSA/NA-1 (BROOKS); NNSA/NA-20 (TOBEY, BAKER); 
NNSA/NA-21 (BIENIAWSKI, CUMMINS, DICKERSON) 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: KNNP ENRG TRGY KIPR VM
SUBJECT: MFA GIVES NOD ON FUEL CONVERSION OF VIETNAM'S RESEARCH 
REACTOR 
 
 
THIS CABLE IS SENSITIVE BUT UNCLASSIFIED. 
 
Ref: A) Hanoi 2687 B) Hanoi 2662 
 
¶1.  (SBU) Summary.  On October 24, 2006, the Department of Energy's 
National Nuclear Security Administration Assistant Deputy 
Administrator (ADA) Andrew Bieniawski met separately with Vice 
Minister of Science and Technology Le Binh Dinh and Assistant 
Minister of Foreign Affairs Phan Binh Minh to continue engagement 
with the Government of Vietnam (GVN) for the fuel conversion of 
Vietnam's research reactor and to reiterate the importance of 
showing tangible commitment on this issue prior to President Bush's 
visit in November.  Whereas VM Dinh reiterated the Ministry of 
Science and Technology's (MOST) hopes for continued support from the 
USG but left the topics of discussion unresolved, the two sides made 
apparent progress during the meeting with AM Minh and other Ministry 
of Foreign Affairs (MFA).  AM Minh assured ADA Bieniawski that "all 
options are on the table" regarding nuclear non-proliferation 
assistance cooperation and that resolution on this issue, along with 
others, will help ensure that President Bush's visit to Vietnam will 
be a success.  ADA Bieniawski sent a letter to MFA summarizing the 
proposed nonproliferation projects to AS Minh (septel).  End 
summary. 
 
Meeting with MOST on the Dalat Reactor Conversion 
--------------------------------------------- ---- 
 
¶2.  (SBU) On October 24, 2006, the Department of Energy's National 
Nuclear Security Administration Assistant Deputy Administrator 
Andrew Bieniawski met with Vice Minister of Science and Technology 
Le Dinh Tien to continue engagement with the GVN for the fuel 
conversion of Vietnam's research reactor and to reiterate the 
importance of showing tangible commitment on this issue prior to 
President Bush's visit in November.  (Note: Vice Minister Tran Quoc 
Thang, our usual interlocutor on this issue, was on travel to Korea. 
 End Note.)  As reported (reftel A), the Embassy had previously met 
with MOST to underscore the scientific as well as political 
importance of moving forward on the fuel conversion project and 
concluding the two related agreements on nuclear non-proliferation 
prior to President Bush's visit in November. 
 
¶3.  (SBU) ADA Bieniawski highlighted that the purpose of his visit 
is to secure approval from the GVN on the repatriation to Russia of 
the fresh high-enriched uranium (HEU) fuel, and that this could 
possibly be one of several deliverables highlighted in a 
U.S.-Vietnam joint statement.  He emphasized that no USG-GVN 
government-to-government agreement is needed to swap-out the HEU 
fuel and converting the reactor to low-enriched uranium (LEU) fuel, 
since that work is performed under a trilateral DOE-Russian 
company-IAEA contract. He provided a detailed presentation of the 
DOE's Russia Research Reactor Fuel Return (RRRFR) program, stating 
that DOE has experience with successfully implementing 10 HEU fuel 
shipments in other countries.  Other DOE/NNSA nuclear security 
activities in Vietnam include: security upgrades to the Dalat 
reactor facility; a basic ordering agreement signed for training on 
securing radiological sources and specifically four sites in 
Vietnam; technical assistance to develop a regulatory framework; and 
recent training and equipment worth USD 88,000 for orphan source 
search methods.  Finally, ADA Bieniawski offered to commit USD 1 
million to purchase 36 LEU replacement fuel assemblies, which would 
take about six months to produce in Russia. 
 
¶4.  (SBU) VM Tien reiterated his support for the RRRFR program.  He 
stated that MOST highly appreciates the support of USG and 
reiterated hopes that the DOE will continue to support Vietnam's 
strategy for the peaceful use of nuclear energy.  The Vice Minister 
stated that MOST is currently preparing a proposal to the Office of 
the Government that will address its three concerns of safety, 
quality of the LEU fuel and integrity of the Dalat Research 
Institute's aging reactor.  He offered neither a timeline for when 
the proposal would be submitted nor an indication of when the Office 
of the Government may provide a decision on the issue. 
 
Meeting with MFA on the Dalat Reactor Conversion 
--------------------------------------------- --- 
 
¶5.  (SBU) Subsequent to the meeting with MOST, ADA Bieniawski met 
with Assistant Minister of Foreign Affairs Pham Binh Minh to 
continue engagement with the GVN for the fuel conversion and 
reiterate at higher levels within the GVN the importance of showing 
tangible commitment on this issue prior to President Bush's visit in 
November.  He provided a presentation of the issues noted above in 
paragraph three, including the offer to commit USD 1 million to 
 
HANOI 00002734  002 OF 002 
 
 
purchase 36 LEU replacement fuel assemblies. 
 
¶6.  (SBU) AM Minh assured ADA Bieniawski that "all options are on 
the table" regarding nuclear non-proliferation cooperation and that 
resolution on this issue, along with others, will ensure that 
President Bush's visit to Vietnam will be a success.  MFA personnel 
were also amenable to ADA Bieniawski's proposal to focus a USG-GVN 
agreement limited to fuel return activities as an alternative to the 
broad, nonproliferation assistance agreement (and companion DOE-MOST 
implementing agreement).  ( 
 
¶7.  (SBU) Despite the fact that the MFA had told us that it 
considers the latter draft documents to be "too vague," and had 
previously declined to sign them (reftel B), MFA Acting Director of 
the Department of International Organizations Le Hoai Trung offered 
that the two draft agreements might be considered if the cooperative 
assistance are provided.  One of ADA Bieniawski's team, a DOE legal 
counsel, responded that the draft bilateral agreements were 
specifically written as broad framework agreements, intended to 
provide a framework for a broad range of nonproliferation assistance 
cooperation, with DOE as well as other USG agencies. 
 
Comment 
------- 
 
¶8.  (SBU) The GVN appears at this time to be unwilling to sign the 
broad bilateral agreements, which would allow for the transfer of 
spent fuel assemblies back to Russia.  They do, however, appear to 
be very interested in the replacement of HEU for LEU and fuel 
conversion activity.  Gaining political traction on this issue 
appears to now rest in the MFA, not the MOST.  ADA Bieniawski's 
offer to provide MFA with a brief summary of his visit and specific 
details of the USG assistance on the table was well received by MFA 
senior staff.  With this letter (septel), and a scheduled meeting 
between the Ambassador and continued high-level engagement between 
the Embassy and the MFA, we believe that the prospects for quick 
agreement on one or two of the issues at hand is possible. 
 
¶9.  (SBU) This cable has been cleared by ADA Bieniawski. 
 
MARINE