VZCZCXYZ7637
RR RUEHWEB

DE RUEHSA #0455/01 0651608
ZNR UUUUU ZZH
R 051608Z MAR 08
FM AMEMBASSY PRETORIA
TO RUEHC/SECSTATE WASHDC 3688
INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 0760
RUEHLO/AMEMBASSY LONDON 1450
RUEHMO/AMEMBASSY MOSCOW 0760
RUEHNE/AMEMBASSY NEW DELHI 0476
RUEHFR/AMEMBASSY PARIS 1302
RUEHUL/AMEMBASSY SEOUL 0238
RUEHKO/AMEMBASSY TOKYO 0517
RUCPDC/DEPT OF COMMERCE WASHDC
RUEHUNV/USMISSION UNVIE VIENNA 0273
RHEBAAA/DEPT OF ENERGY WASHINGTON DC

UNCLAS PRETORIA 000455 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR AF/S, EEB/ESC, ISN 
DOE FOR T.SPERL, G.PERSON, A.BIENAWSKI, L.PARKER, M.SCOTT 
 
E.O. 12958: N/A 
TAGS: ENRG TRGY KNNP PREL BEXP SF
SUBJECT: NUCLEAR JSCNEC MEETING POSTPONED AGAIN - HOPE FOR 
BILATERAL AGREEMENT 
 
REF: A. STATE 7183 
 
     ¶B. PRETORIA 440 
     ¶C. PRETORIA 315 
     ¶D. 07 PRETORIA 4172 
     ¶E. 07 PRETORIA 3674 
     ¶F. 07 PRETORIA 3589 
 
 ¶1.  (SBU) SUMMARY:  The Department of Minerals and Energy 
(DME) Chief Director: Nuclear informed Embassy that the 
bilateral Joint Standing Committee on Nuclear Energy 
Cooperation (JSCNEC) planned for June in South Africa would 
unfortunately have to be postponed because of the 
overwhelming distractions of the power crisis and the tender 
for new nuclear build.  The Chief Director was optimistic 
that the long-awaited bilateral agreement on cooperation in 
nuclear R&D could soon be signed.  This could be helpful in 
supporting the Westinghouse bid for new nuclear power plants 
and counter the splash of announcements associated with the 
state visit of French President Sarkozy (Ref B).  End Summary. 
 
------------------------ 
JSCNEC Postponed - Again 
------------------------ 
 
¶2.  (SBU) Department of Minerals and Energy (DME) Chief 
Director: Nuclear Tseliso Maqubela informed Energy Officer on 
March 5 that regrettably the Joint Standing Committee on 
Nuclear Energy Cooperation (JSCNEC) would have to be 
postponed from June to a date yet to be determined (Refs A 
and D).  Maqubela attributed the need to postpone the 
long-planned meeting to the power crisis (Ref C) and the 
tender for new nuclear power plant build (Ref B).  He said 
that efforts to mitigate and resolve the electricity supply 
shortfall were consuming the attention of his office.  For 
example, Maqubela noted that DME was also postponing a 
planned Ministerial Conference on Nuclear Energy originally 
planned for April.  He stated that this was a challenging 
year with the vexing black-outs, the need to adjudicate 
nuclear power plant bids by June, and a short parliamentary 
calendar this year in advance of elections next year. 
Maqubela said he was being pulled every which way and he was 
back spending time consulting at state electricity supplier 
Eskom, in addition to working on the Clean Development 
Mechanism (CDM) clean energy portfolio.  (Comment: Maqubela's 
predicament is emblematic of South Africa's skills shortages. 
 Most of our SAG interlocutors' responsibilities are broadly 
stretched, forcing them to prioritize their time and 
hindering their ability to complete projects.  End Comment.) 
 
 
¶3.  (SBU) Maqubela underscored that the coming March-June 
period -- from final new nuclear build submissions from 
Westinghouse and Areva due on March 31 to the intended SAG 
decision in June -- would be an extremely sensitive period 
for himself and his staff.  He expected that he would no 
longer be able to meet with the competing governments, 
suppliers, and utilities, and at this time he could meet only 
with Westinghouse Country Manager Rita Bowser (and presumably 
her Areva counterpart).  For example, Maqubela noted that he 
had to turn down a meeting requested by the recent visit of 
the trade delegation from Pennsylvania.  He said he expected 
the SAG to soon promulgate formal guidelines on contacts with 
governments and interested parties during the tender period. 
Qgovernments and interested parties during the tender period. 
 
 
---------------------------------------- 
Hope for Bilateral Nuclear R&D Agreement 
---------------------------------------- 
 
¶4.  (SBU) Maqubela was optimistic that the SAG could soon 
deliver approval to sign the long-awaited "Agreement Between 
the Government of the United States and the Government of the 
Republic of South Africa for Cooperation in Research and 
Development in Nuclear Technology" (Refs D-F).  He said that 
the Department of Foreign Affairs (DFA) was close to 
finalizing the approval so that the two governments could 
then plan for the who-where-when for the signing of the 
agreement. 
 
 
¶5.  (SBU) COMMENT: Maqubela has asserted that the bilateral 
nuclear R&D agreement remains doable because it has been in 
the pipeline, rather than a new initiative during this 
sensitive tender period.  Embassy will continue to push for 
this agreement, which could tangibly counter the recent 
orchestrated splash of commercial announcements associated 
with the February 28-29 state visit of French President 
Nicholas Sarkozy and senior executives from energy and other 
key sectors (Ref B).  Longer-term, Embassy will wait for the 
dust to settle before seeking rescheduling of the 
long-anticipated JSCNEC meeting.  Our DFA contacts assert 
that the nuclear cooperation agreement should be finalized 
before preparing for the JSCNEC. 
BOST