VZCZCXRO2760
PP RUEHDE
DE RUEHAD #0371/01 0841250
ZNR UUUUU ZZH
P 241250Z MAR 08
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC PRIORITY 0605
RHMFIUU/DEPT OF ENERGY WASHINGTON DC PRIORITY
INFO RUEHDE/AMCONSUL DUBAI 7643

UNCLAS SECTION 01 OF 03 ABU DHABI 000371 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR ISN/NESS, NEA/ARP, NEA/PPA 
DEPARTMENT OF ENERGY FOR NNSA and Office of Nuclear Energy 
 
E.O. 12958: N/A 
TAGS: ENRG KNNP AE
SUBJECT: UAE CABINET APPROVES PLAN TO ASSESS DEVELOPMENT OF PEACEFUL 
NUCLEAR ENERGY 
 
REF: A) ABU DHABI 299, B) ABU DHABI 238, C) ABU DHABI 147, D) ABU 
DHABI 45 
 
¶1. (U) This cable contains suggested press points in para 6. 
 
¶2. (SBU) Summary: On March 23, the UAE cabinet formally set out a 
policy memorandum on the potential development of nuclear energy. 
If the UAE develops nuclear power, it will formally renounce 
domestic reprocessing or enrichment capabilities in favor of a 
secure external fuel supply, according to the articulated policy. 
The UAE is committed to working with the international community and 
UAE officials tell us they have the blessing of UAE Foreign Minister 
Sheikh Abdullah bin Zayed Al-Nahyan to negotiate an MOU and a 
Section 123 Agreement with the U.S.  The UAE is evaluating USG 
comments to its proposed changes to the draft MOU shared earlier and 
hopes to finalize it shortly as well as to have initial comments on 
the draft 123 text received during its peaceful nuclear cooperation 
discussions with the USG (ref a).  End summary. 
 
¶3. (U) On March 23, the UAE cabinet formally approved a memorandum 
on potential development of peaceful nuclear power.  The UAE will 
establish a Nuclear Energy Implementation Office, as recommended by 
the IAEA, with an initial capital of approximately USD 100 million. 
The UAE cabinet's policy statement renounces any intention to 
develop a domestic enrichment and/or reprocessing capability in 
favor of long-term arrangements for the secure external supply of 
nuclear fuel.  The UAEG also commits to ratifying various 
international instruments both with regard to evaluation of nuclear 
energy and with regard to any decision to establish a program.  The 
policy statement also noted that the UAE "hopes to establish a new 
model via which non-nuclear states may explore and potentially 
deploy nuclear energy with the full support of the international 
community."  The UAE will enlist assistance at both the government 
to government level and from the IAEA and other appropriate 
organizations.  The statement was prominently carried in the UAE's 
March 24 English and Arabic language newspapers. 
 
¶4. (SBU) The UAE policy statement is the executive summary of the 
UAE's "White Paper" as modified after international consultations. 
The UAE has added commitments to create effective mechanisms for 
public information and engagement as well as a commitment to ratify 
the IAEA Protocol to Amend the Vienna Convention on Civil Liability. 
 It also modified the statement on participation in the 
IAEA-initiated multilateral fuel-assurance network to "supporting 
international efforts to develop a network of multi-lateral fuel 
assurances."  Executive Affairs Authority Director of Economic 
Affairs David Scott told Econchief that the UAE was still finalizing 
the full policy plan for publication.  It had completed the English 
language version but was "tweaking" the Arabic translation.  He 
stated that UAE Foreign Minister Sheikh Abdullah bin Zayed Al-Nahyan 
had approved moving forward with negotiating international MOUs with 
various supplier countries and that he hoped to be able to finalize 
the draft U.S. - UAE MOU and send comments back on a draft Section 
123 Nuclear Cooperation Agreement shortly. 
 
¶5. (U) Begin Text of Policy Memorandum: 
 
Policy of the United Arab Emirates on the Evaluation and Potential 
Development of Peaceful Nuclear Energy 
--------------------------------------------- ------ 
 
Recent analysis of future domestic electricity demand and supply 
conducted by official UAE entities has concluded that peaceful 
nuclear power-generation represents an environmentally promising and 
commercially competitive option which could make a significant 
contribution to the UAE's economy and future energy security. 
Accordingly, the UAE intends to establish a Nuclear Energy 
Implementation Organization (NEPIO) as recommended by the IAEA, and 
is proceeding to evaluate the establishment of a peaceful nuclear 
program that would make the potential benefits of nuclear power 
available to the people of the UAE. 
 
To make clear its intentions with regard to nuclear power, the 
government of the UAE has prepared and formally endorses the 
following policy statement as a reflection of its views on the 
potential establishment of a peaceful civilian nuclear energy 
program. 
 
¶1. The UAE is committed to complete operational transparency. 
 
¶2. The UAE is committed to pursuing the highest standards of 
non-proliferation. 
 
¶3. The UAE is committed to the highest standards of safety and 
security. 
 
¶4. The UAE will work directly with the IAEA and conform to its 
 
ABU DHABI 00000371  002 OF 003 
 
 
standards in evaluating and potentially developing a peaceful 
nuclear energy program. 
 
¶5. The UAE hopes to develop any peaceful nuclear power capability in 
partnership with the governments and firms of responsible nations, 
as well as with the assistance of appropriate expert organizations. 
 
¶6. The UAE will approach any domestic nuclear power program in a 
manner that best ensures long-term sustainability. 
 
The policies and actions described in this document are of two 
kinds: those that will be implemented as part of the UAE's ongoing 
evaluation of nuclear energy and those which would be undertaken 
only in the event that the UAE opts to build nuclear facilities 
within its borders. 
 
Through the adoption and implementation of these policies and 
actions, the government of the UAE hopes to establish a new model 
via which non-nuclear states may explore and potentially deploy 
nuclear energy with the full support of the international community. 
 
 
 
Commitments related to the ongoing evaluation of nuclear energy 
--------------------------------------------- ------ 
 
- Ratifying additional international non-proliferation instruments, 
including the IAEA Additional Protocol to the Safeguards Agreement 
and the IAEA Amendment to the Convention on Physical Protection. 
 
- Adopting the NSG Export Guidelines. 
 
- Enlisting assistance at the government-to-government level and 
requesting technical cooperation from the IAEA and other 
international bodies. 
 
- Establishing a NEPIO with a capitalization of AED 375 million 
(roughly USD 100 million) to evaluate and potentially implement a 
peaceful nuclear energy program within the UAE. 
 
- Constituting an international advisory board made up of recognized 
experts in various fields related to the nuclear energy sector. 
 
- Creating effective mechanisms for public information and 
engagement. 
 
- Ratifying international nuclear safety instruments, including the 
IAEA Convention on Nuclear Safety and IAEA Joint Convention on the 
Safety of Spent Fuel Management. 
 
- Promoting the principles outlined in this document within the Gulf 
Cooperation Council-IAEA nuclear initiative. 
 
 
Commitments to be undertaken in conjunction with any decision to 
move forward with the establishment of a peaceful domestic nuclear 
energy program 
--------------------------------------------- ------ 
 
- Renouncing any intention to develop a domestic enrichment and/or 
reprocessing capability in favor of long-term arrangements for the 
secure external supply of nuclear fuel. 
 
- Favoring and supporting the development of future technologies and 
designs that are resistant to proliferation. 
 
- Designing a detailed and phased implementation plan to translate 
stated UAE policy into practical arrangements. 
 
- Developing robust security infrastructure to accompany any nuclear 
power program from inception to commercial operation of facilities 
and beyond. 
 
- Enlisting assistance at the government-to-government level and 
requesting technical cooperation from the IAEA, WANO and other 
appropriate expert organizations. 
 
- Offering joint venture arrangements to foreign investors for the 
construction and operation of future nuclear power plants. 
 
- Deploying only advanced third-generation light water reactors 
(LWR) offering enhanced safety features. 
 
- Introducing a comprehensive national legal framework covering all 
aspects of nuclear law, including safety, security, 
non-proliferation, liability and regulatory and commercial aspects. 
 
 
ABU DHABI 00000371  003 OF 003 
 
 
 
- Establishing an independent, vigilant and effective regulatory 
authority empowered to enact the highest standard of regulation and 
safety controls across the sector. 
 
- Ensuring that any operating organizations implement the highest 
standards of safety management. 
 
- Ratifying international nuclear liability instruments, including 
the IAEA Vienna Convention on Civil Liability for Nuclear Damage, 
the IAEA Protocol to Amend the Vienna Convention on Civil Liability, 
and the IAEA Convention on Supplementary Compensation. 
 
- Developing programs for training and human resource development 
and instituting appropriate funding mechanisms. 
 
- Developing a comprehensive waste management system that reflects 
the highest standard of international practice and which does not 
include domestic reprocessing, and instituting mechanisms for the 
funding of waste and decommissioning liabilities. 
 
- Supporting international efforts to develop a network of 
multi-lateral fuel assurances, possibly including a "last resort" 
fuel bank, which would provide insurance against nuclear fuel supply 
interruption for states with no indigenous enrichment facilities. 
 
End Text 
 
¶6. (U) Post proposes the following press guidance to indicate USG 
support for the UAE's activities. 
 
- The U.S. strongly supports the United Arab Emirate's interest in a 
fully transparent nuclear power program. 
 
- The U.S. had the opportunity to work with the UAE as it developed 
its policy and found the proposed approach to be carefully 
considered. 
 
- We especially commend the UAE's renunciation of any intention to 
develop a domestic enrichment and/or reprocessing capability in 
favor of long-term arrangements for the secure external supply of 
nuclear fuel. 
 
- We also commend the UAE for its support for international efforts 
to develop a network of multi-lateral fuel assurances, possibly 
including a "last resort" fuel bank to provide insurance against 
nuclear fuel supply interruption. 
 
- We look forward to seeing the UAE's final detailed program and to 
cooperating with the UAE as it moves forward with evaluating and 
potentially developing a peaceful nuclear program. 
 
Quinn