VZCZCXRO9504
RR RUEHRG
DE RUEHBR #1529/01 3301705
ZNR UUUUU ZZH
R 251705Z NOV 08
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC 2991
RHEBAAA/DEPT OF ENERGY WASHDC
RUEHBU/AMEMBASSY BUENOS AIRES 5946
INFO RUEHSO/AMCONSUL SAO PAULO 3126
RUEHRI/AMCONSUL RIO DE JANEIRO 6930
RUEHRG/AMCONSUL RECIFE 8753
RUCNNSG/NUCLEAR SUPPLIERS GROUP COLLECTIVE

UNCLAS SECTION 01 OF 02 BRASILIA 001529 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ENRG ETTC KNNP MNUC PARM TRGY IAEA BR
SUBJECT: NNSA ADMINISTRATOR SEEKS BRAZIL SUPPORT FOR NSG PROPOSAL ON 
ENRICHMENT AND REPROCESSING TECHNOLGY TRANSFERS 
 
REF: (A) STATE 115509, (B) BRASILIA 1354 
 
¶1.  (U) THIS CABLE IS SENSITIVE BUT UNCLASSIFIED AND NOT FOR 
INTERNET DISTRIBUTION. 
 
¶2.  (SBU) SUMMARY.  On November 5, National Nuclear Security 
Administration (NNSA) Administrator D'Agostino met with senior 
officials of the Government of Brazil (GOB) - Ministry of Exterior 
Relations (MRE) Under Secretary Vargas and Defense Minister Jobim - 
to urge them to work with the USG in developing acceptable language 
for a criteria-based proposal for Nuclear Suppler Group control of 
transfers of enrichment and reprocessing (ENR) equipment and 
technology.  The MRE, which leads the GOB effort, is ready and 
willing to review the draft language as soon as it is available. 
Nonetheless, the GOB made clear that it would not accept anything 
that would indicate that Brazil should adopt an IAEA Additional 
Protocol; the GOB views adoption of an AP as a complex matter, and 
it has not concluded its internal deliberations.  END SUMMARY. 
 
¶3.  (SBU) National Nuclear Security Administration (NNSA) 
Administrator Thomas D'Agostino, Adam Scheinman, NNSA's Assistant 
Deputy Administrator for Non-Proliferation and International 
Security, and Captain Peter H. Hanlon, Captain, Executive Staff 
Director and Military Assistant to the Administrator, came to 
Brasilia to discuss nuclear safeguards.  Specifically, D'Agostino 
met with senior officials from Government of Brazil (GOB) to urge 
support for reaching consensus at the November 19 meeting of the 
Consultative Group of the Nuclear Supplier Group (NSG) on a U.S. 
criteria-based proposal for NSG control of transfers of enrichment 
and reprocessing (ENR) equipment and technology (REFTEL A).  On 
November 5, the Administrator met with Brazilian Ministry of 
External Relations (MRE) Under Secretary for Policy, Amb. Everton 
Vargas, and later with Minister of Defense Nelson Jobim.  NOTE: 
Embassy's request for a meeting with MRE Deputy Minister Samuel 
Pinheiro Guimaraes Neto was turned down because he was "unavailable" 
all day; he is a key player in matters regarding nuclear safeguard 
issues.  END NOTE. 
 
MEETING WITH UNDER SECRETARY VARGAS 
 
¶4.  (SBU) Administrator D'Agostino met with Amb. Vargas and his 
staff.  He said that the USG hoped to bring the effort to develop a 
criteria-based ENR transfer proposal to a successful conclusion 
after three years of work.  D'Agostino stressed that the USG 
recognized the issue of Brazil adopting an International Atomic 
Energy Agency (IAEA) Additional Protocol (AP) was a sensitive one 
for the GOB and would take time to implement.  Therefore, he wanted 
to delink the AP adoption issue from that of supporting the 
criteria-based ENR transfer proposal at the NSG.  He suggested that 
the USG and GOB try to work out differences on the ENR proposal 
before the upcoming NSG meeting.  Scheinman briefed Vargas on 
progress being made on resolving the outstanding issues with Canada 
on the proposal.  Scheinman expected that Canada would be on board 
shortly.  NOTE: With Canada supporting the NSG proposal, the only 
remaining countries with significant objection would be Brazil and 
Argentina.  END NOTE. 
 
¶5.  (SBU) Vargas said the AP and the ENR proposal were complex 
issues.  He appreciated that the NNSA Administrator had come to 
Brasilia to hear the GOB's views.  He noted that Argentina might 
have concerns apart from the issues that the GOB had with references 
to an AP.  Vargas explained that the GOB did not want to see 
impediments to Brazil's programs or Brazil's and Argentina's common 
development.  He noted that the GOB has an ongoing enrichment 
program at Resende run by the Navy and also plans to build from 4-6 
new reactors by 2030 (REFTEL B).    Vargas did say that the GOB had 
no intention of sharing its ENR technology with any other countries, 
including Argentina.  However, he did not know what might happen in 
the future and he did not want to restrict Brazil's access to ENR 
technology or its ability to share technology with Argentina. 
 
¶6.  (SBU) Vargas said, the GOB has been discussing the question of 
an AP for some time now, but has not decided whether to adopt it or 
not.  Thus, anything that turns on an AP as a pre-condition or 
criteria would be a problem for Brazil, he stated.  Nonetheless, the 
GOB does support the non-proliferation goals and work of the NSG and 
has collaborated closely with the USG on sensitive matters, such as 
the India deal.  In the end, however, Vargas made clear that the GOB 
cannot accept "language that calls for Brazil to sign an Additional 
Protocol".  Brazil is open to working with the USG, he added, but 
would have great difficulty in making an AP a threshold condition 
for ENR transfers.  Vargas's deputy, Carlos Sergio Sobral Duarte, 
MRE Director of the Department of International Organizations (which 
oversees IAEA matters), added that the GOB wants to strengthen the 
 
BRASILIA 00001529  002 OF 002 
 
 
NSG, but did not want to hinder its nuclear development. 
 
¶7.  (SBU) D'Agostino clarified that the USG did not intend to 
hamstring Brazil's nuclear programs.  He said, we just want to make 
sure that ENR transfers occur in a responsible fashion.  We would be 
sending the GOB shortly draft language that would seek to accomplish 
those ends, promised D'Agostino.  The proposal would involve using 
the inspections and safeguards provided by the Brazilian-Argentine 
Agency for Accounting and Control of Nuclear Materials (ABACC).  He 
said that he was ready to come back to Brazil to meet with Deputy 
Minister Guimaraes and/or Amb. Vargas once they had a chance to see 
the USG proposed language.  Vargas thanked D'Agostino for the offer 
of a second visit, noting the GOB would first want to look over the 
proposal. 
 
¶8.  (SBU) As for an AP itself, D'Agostino pointed out that the USG 
would put an AP in place this year.  The USG had many years of 
dealing with hundreds of IAEA inspections and has been able to 
protect its national security interests.  He proposed that the GOB 
send officials to the USG to learn about the USG experience with 
inspections.  This could help to alleviate their concerns about 
disclosure of their technology or sensitive or proprietary 
information. 
 
¶9.  (SBU) Amb. Vargas was accompanied by Carlos Duarte, MRE's 
Americas Desk Director Joao Tabajara de Oliveira Junior, MRE's 
Acting Director of the Division of Sensitive Technologies, Fabio 
Simao Alves, and Army Col. Leal, who handles science and technology 
issues.  Administrator D'Agostino and party were joined from the 
Embassy by Acting Deputy Chief of Mission Cherie Jackson, Science 
Counselor Richard Driscoll, and Political Military Officer John 
Erath. 
 
MEETING WITH DEFENSE MINISTER JOBIM 
 
¶10.  (SBU) At a subsequent meeting, Defense Minister Jobim said he 
too would be ready to review any language the USG would propose, but 
stated that any text that would oblige Brazil to adhere to an AP 
would be unacceptable.  Jobim told D'Agostino that the MRE would be 
the decision maker for the GOB, although the Ministry of Defense 
would be consulted.  He underlined the importance of nuclear power 
in Brazil and the Brazilian Navy's sensitivity about protecting its 
proprietary enrichment technology.  Ambassador Sobel, who joined 
D'Agostino at the meeting, noted that the United States and Brazil 
shared an objective of protecting ENR technology and asked that 
Brazil approach the issue from the point of view of seeing what it 
could do in the short term to restrict transfers of such technology 
while leaving the question of the AP aside.  Jobim promised to give 
any USG proposals careful attention. 
 
COMMENT 
 
¶11.  (SBU) The visit of NNSA Administrator underscored the USG's 
great interest in quickly developing with the GOB acceptable 
language on a criteria-based ENR transfer proposal for the NSG.  In 
concept, there appears to be a way forward, so long as it does not 
explicitly or implicitly increase pressure on the GOB to adopt an 
AP.  The GOB officials seem ready and willing to work with the USG 
to that end.  As Amb. Vargas underscored, the USG and the GOB have 
successfully worked together on sensitive negotiations in the past, 
and he signaled a willingness to try to do so again here.  Given 
Brazilian sensitivities, we expect that they will proceed cautiously 
and may not be able to take a decision prior to the upcoming NSG 
meeting. 
 
KUBISKE