VZCZCXRO8512
RR RUEHHM
DE RUEHHI #0362/01 0580825
ZNR UUUUU ZZH
R 270825Z FEB 07
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 4731
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
INFO RUEHHM/AMCONSUL HO CHI MINH 2629

UNCLAS SECTION 01 OF 03 HANOI 000362 
 
SIPDIS 
 
DEPT FOR EAP/K AND EAP/MLS 
DEPT PASS TO NUCLEAR REGULATORY COMMISSION (KIRK FOGGIE) 
DEPT OF ENERGY FOR NNSA/NA-21 (SARAH FRAZER, KEN APT, SARAH 
DICKERSON) 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: ENRG TRGY TECH OTRA KNNP VM
SUBJECT: U.S. NUCLEAR REGULATORY COMMISSIONER DISCUSSES COOPERATION 
WITH VIETNAM 
 
(U) SENSITIVE BUT UNCLASSIFIED.  PLEASE PROTECT ACCORDINGLY. 
 
¶1. (SBU) Summary: Vietnamese officials signaled a strong willingness 
to enter into a cooperative agreement with the United States on 
nuclear regulatory issues during U.S. Nuclear Regulatory 
Commissioner Jeffrey Merrifield's visit to Hanoi on February 5. 
Officials told Commissioner Merrifield that Vietnam plans to build a 
nuclear plant in central Vietnam by 2020, though officials noted 
they must overcome a range of regulatory and other challenges.  They 
said Vietnam would sign a contract soon with Russia to convert the 
fuel at the Dalat research reactor to low-enriched uranium (LEU) 
from high-enriched uranium (HEU).  Officials also described their 
progress writing a new nuclear energy law which the National 
Assembly will pass in late 2007.  End Summary. 
¶2. (SBU) Nuclear Regulatory Commissioner Jeffrey Merrifield visited 
Hanoi on February 5 to discuss nuclear regulatory issues, including 
the potential of a cooperative agreement between the Nuclear 
Regulatory Commission (NRC) and the GVN on nuclear regulation, 
Vietnam's plans to build a nuclear reactor, and Vietnam's progress 
writing a new atomic energy law.  Commissioner Merrifield met with 
Vice Minister of Science and Technology Le Dinh Tien, as well as 
officials at the Vietnam Atomic Energy Commission (VAEC) and the 
Vietnam Agency for Radiation and Nuclear Safety and Control 
(VARANSAC).  The visit followed the mid-December trip to Vietnam by 
International Atomic Energy Agency (IAEA) Director-General Mohamed 
El Baradei, in which the IAEA pledged almost $1.5 million to Vietnam 
to develop nuclear technology over the next two years.  The last 
visit to Vietnam by a U.S. Nuclear Regulatory Commissioner was in 
¶1999. 
 
MOST "delighted" to cooperate 
----------------------------- 
 
¶3. (SBU) Vice Minister Tien outlined the range of Vietnam's nuclear 
challenges:  Vietnam has learned that management of radioactive 
facilities is "not so good," and needs to put in place improved 
processes to regulate the safety and control of radioactive 
materials and facilities.  Many enterprises importing radiological 
sources for business are not registering with the government, and 
therefore the government's inventory of radioactive materials is not 
adequate, he said.  Second, the Ministry must create a nuclear waste 
storage site, as many spent materials are now stored at radiological 
facilities.  Third, the government needs to work with customs 
authorities to improve controls over the imports and exports of 
radioactive materials. Fourth, the GVN must trade the 
highly-enriched uranium (HEU) at the Dalat Research Reactor for 
low-enriched uranium (LEU).  The contracts for this transformation 
are now being finalized, VM Tien said, but the project is complex 
and requires cooperation of Vietnam Customs, the Ministry of Public 
Security, the Ministry of Transportation, the Ministry of Defense, 
and the Ho Chi Minh City airport, he said.  Finally, the Prime 
Minister has tasked MOST with writing the new Atomic Energy law for 
the National Assembly's passage in late 2007.  Tien added that the 
Prime Minister has already approved MOST's National Strategy for the 
Peaceful Use of Nuclear Energy, which outlines Vietnam's plans to 
build its first nuclear reactor by 2020. 
 
¶4. (SBU) Commissioner Merrifield thanked Tien for his overview and 
explained in detail the U.S. Nuclear Regulatory Commission's role in 
the nuclear regulation in the United States.  The United States has 
104 nuclear reactors and in the next two years it could receive 
applications for up to 29 new reactors, he said.  He noted that the 
United States has been involved in nuclear cooperation with the 
International Atomic Energy Agency (IAEA) and has active bilateral 
cooperative arrangements with 36 countries -- virtually every 
country using nuclear energy in the world.  He emphasized how 
important it is for a country to understand the commitment and time 
it takes to develop nuclear energy and commended the GVN for its 
efforts thus far.  He emphasized the importance of the agreement 
between the United States and Vietnam, signed when President Bush 
visited in November, to switch out HEU for LEU at the Dalat reactor. 
 Commissioner Merrifield explained that one of the reasons for his 
visit was to explore the possibility of a bilateral "arrangement" on 
nuclear regulation with the United States.  He also asked Tien if he 
had any idea of the timing of the Dalat reactor's conversion. 
 
¶5. (SBU) Tien responded: "On behalf of MOST, I'd like to say that we 
are very delighted about the prospect of future cooperation with the 
United States."  Vietnam has not developed a regulatory framework 
yet and he encouraged Mr. Merrifield to discuss the cooperative 
arrangement further with VARANSAC.  Regarding the conversion of the 
Dalat reactor, Tien noted that it was not yet clear when the uranium 
transfer would occur because the ministry had to wait until the 
contracts between Vietnam and Russia and Vietnam and the IAEA were 
concluded.  He said that a contract draft had been prepared by 
 
HANOI 00000362  002 OF 003 
 
 
Russia but that the GVN had suggested amendments.  The contract 
should be finished soon, however, he said.  Finally, Commissioner 
Merrifield invited the Vice Minister to a nuclear regulatory 
conference in the United States in March. 
 
Nuclear Power Plant by 2020 
--------------------------- 
 
¶6. (SBU) Vietnam plans to build a nuclear power plant by 2020, and 
officials at all three agencies discussed the matter in detail. 
Vice Minister Tien said the GVN had made no decision on the 
technology that would be used, but had been approached by several 
companies, most notably those from France and Japan.  Commissioner 
Merrifield noted that the ministry would likely be approached also 
by American firms, including General Electric and Westinghouse.  He 
also explained that the United States had experienced excellent 
cooperation with South Korea in its successful development of a 
nuclear program over the last 20 years. 
 
VAEC 
---- 
 
¶7. (SBU) VAEC Vice Chairman Le Van Hong further outlined Vietnam's 
nuclear power plans.  The first 2000 MW plant will be a turn-key 
model with two reactors, each with a 1000 MW capacity.  The site for 
the plant would have space for four reactors, to allow for future 
expansion.  Companies from France, Argentine, Korea and Japan had 
visited Vietnam, though no U.S. companies had yet expressed an 
interest.  Regarding the design, Hong said that Vietnam "wants an 
advanced design" and that the Russian AV 1000 design most likely 
"could not meet that demand."  Merrifield inquired as to how Vietnam 
would provide the off-site power necessary to supply the plant in 
case the reactor is not operational.  Hong responded that Vietnam 
possessed a 500 KV transmission line used to transmit electricity 
from southern to northern Vietnam, but added that power redundancy 
issues were important and said the matter would have to be raised 
with design providers.  Vietnam will import the plant's uranium from 
the design provider, though mining of uranium for future plants was 
a possibility, he added.  Vietnam also aims to develop some of the 
simple equipment for the fifth or sixth nuclear reactors to be built 
over the long term. 
 
¶8. (SBU) Vice Chairman Hong emphasized three important activities to 
be undertaken as Vietnam develops nuclear power: 1) improving 
education of nuclear scientists and officials; 2) conducting site 
selection and feasibility studies; and 3) promulgating a regulatory 
framework.  He reiterated the Vice Minister's eagerness for a 
bilateral nuclear arrangement, and suggested that the agreement 
would be best signed with MOST, so that both VAEC and VARANSAC could 
take advantage of it.  Commissioner Merrifield responded that that 
he would soon forward a model agreement via the U.S. Embassy to MOST 
for review.  In response to Vice Chairman Hong's request for 
financial assistance, Commissioner Merrifield said that the NRC is 
an agency supported by fees for licenses to nuclear power stations 
in the United States, and does not have financial resources for 
foreign assistance, but the NRC could provide training in the United 
States, and exchange of information with the GVN, particularly on 
technical and safety codes. 
 
VARANSAC: Power Needs and the Atomic Energy Law 
--------------------------------------------- -- 
 
¶9. (SBU) VARANSAC Chairman Ngo Dang Nhan outlined VARANSAC's 
activities and structure, noting that by 2020, Vietnam will lack 36 
billion KWH and 119 billion KWH by 2030.  Such a power deficit makes 
the development of nuclear power essential, he said.  In Vietnam's 
National Power Plan of 2000, the GVN stated its aim to develop 4000 
MW of nuclear power by 2017, representing five to nine percent of 
Vietnam's national power capacity.  There are now 2000 radiation 
facilities in Vietnam, including medical and industrial facilities, 
and 1000 facilities that are using radiation sources. 
 
¶10. (SBU) Vietnam is moving forward quickly on the development of a 
nuclear regulatory framework.  Nhan noted that while the GVN issued 
only five nuclear legal documents between 1995 and 2005, in 2006 
alone it had issued seven.  On the Nuclear Energy Law now being 
drafted, Nhan said that MOST had recently chosen VARANSAC's draft 
1.5 after both VAEC and VARANSAC had submitted competing versions to 
the ministry.  The final draft of the law will be submitted to the 
government by mid-2007 prior to its scheduled passage by late 2007, 
he said.  Commissioner Merrifield congratulated VARANSAC for having 
its draft chosen, and noted it was appropriate for the regulator to 
be drafting this law.  He urged VARANSAC to draft a law making the 
regulator as independent as possible, ensuring better regulation and 
helping Vietnam's nuclear program obtain a higher degree of 
 
HANOI 00000362  003 OF 003 
 
 
international acceptance.  Nhan emphasized that VARANSAC looks 
forward to cooperation with the United States and provided to the 
Commissioner a proposal listing areas of future cooperation. They 
were: 
 
     --The exchange of nuclear regulatory documents 
     --Discussions of U.S. regulatory documents 
     --Training 
     --Cooperation on Vietnam's participation in international 
treaties 
     --Technical Assistance 
     --Assistance with the development of a system to help Vietnam 
monitor and track radioactive sources and materials 
 
¶11. (SBU) Commissioner Merrifield said he would need to examine the 
proposal in detail before providing any definitive response to the 
proposals.  He added, however, that while the NRC has little funding 
for international projects, nothing in the proposal appeared to 
present "major problems." 
 
Comment 
------- 
 
¶12. (SBU) Post stands ready to assist the NRC in taking advantage of 
the GVN's eagerness to conclude a bilateral cooperative agreement on 
nuclear regulation.  Post agrees that the agreement should be signed 
with MOST (i.e., at the ministerial level) so that cooperation with 
MOST, VAEC and VARANSAC can occur.  President Triet's visit to the 
United States in June would present an ideal opportunity to sign any 
agreement, even though such a date would be ambitious. 
 
¶13.  This cable was cleared by the Commissioner Merrifield. 
 
MARINE