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UNCLAS STATE 017214 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: AORC ENRG JO KNNP KU MO QA SA TH TRGY TS VM IAEA
SUBJECT: RANF: U.S. DEMARCHE TO FORWARD-LEANING RECIPIENT 
STATES FOR POSITIVE INTERVENTION AT THE MARCH 2009 IAEA BOG 
 
REF: 09 UNVIE 0069 
 
¶1.  (U) THIS IS AN ACTION REQUEST:  Please see para 9; Kuwait 
please see paras 9 and 10. 
 
¶2.  (SBU) SUMMARY:  Since 2003, the International Atomic 
Energy Agency (IAEA) Secretariat has been developing a 
mechanism for reliable access to nuclear fuel (RANF).  This 
mechanism is intended to supplement the existing commercial 
market of nuclear fuel services and is designed to create an 
incentive for states to voluntarily choose the market over 
the development of indigenous uranium enrichment 
capabilities.  Two concrete proposals are nearly ready for 
consideration by the IAEA Board of Governors (BOG), however 
the IAEA Director General (DG) has been reluctant to bring 
these forward due to G-77 and NAM concerns that this 
initiative will infringe on their rights for peaceful use of 
nuclear power.  However, through private channels we have 
learned that a number of potential recipient states are in 
fact supportive of the RANF concept.  We believe that 
positive statements by these countries at the March 2-6 IAEA 
BOG meeting in support of RANF could help the DG overcome his 
reluctance to bring RANF proposals before the BOG, and 
hopefully make these a formal item for discussion at the June 
BOG meeting.  A set of key themes encouraging these states to 
come forward is presented here.  END SUMMARY. 
 
¶3.  (U) BACKGROUND:  Since 2003, the International Atomic 
Energy Agency (IAEA) Secretariat has been developing a 
mechanism for reliable access to nuclear fuel (RANF).  This 
effort is intended to supplement the existing commercial 
market of nuclear fuel services and is designed to create an 
incentive for states to voluntarily choose the market over 
the development of indigenous uranium enrichment capacity. 
President Obama has expressed support for this concept to 
help meet growing demands for nuclear power without 
contributing to nuclear weapons proliferation. 
 
¶4.  (U) Following a 2005 Expert Group report released by the 
IAEA, a number of governments, industry groups, and 
nongovernmental organizations released a number of 
complementary RANF proposals.  These diverse concepts are not 
mutually exclusive, and it is expected that a number of 
mutually reinforcing RANF mechanisms will ultimately be 
endorsed and developed by the IAEA.  After studying about a 
dozen such proposals, in June 2007 the IAEA Director General 
(DG) transmitted to the Board of Governors (BOG) a report 
(GOV/INF/2007/11) that sketched out a possible RANF 
framework. 
 
¶5.  (SBU) Fuel assurances were categorized by the Secretariat 
report into three distinct levels.  First, the existing 
commercial market (which consists of four international 
suppliers from six countries) provides a basic level of 
assurance.  Second, in the case of a disruption of supply, 
back-up commitments could be pre-arranged whereby other 
suppliers would provide fuel.  Finally, international "fuel 
banks" could be established as a supply of last resort.  To 
access a RANF mechanism, recipient states would not be 
required to give up any rights.  Instead, it is expected that 
these states would voluntarily decide to rely on the 
international market, bolstered by the RANF mechanism(s), 
rather than developing costly and complex uranium enrichment 
technologies.  END BACKGROUND. 
 
¶6.  (SBU) Currently, two RANF proposals are nearing fruition: 
 (1) an IAEA-administered international fuel bank to be 
funded by a challenge grant from the Nuclear Threat 
Initiative (NTI, a U.S. NGO) that includes donations from the 
United States, Norway, the UAE, and the EU; and (2) a fuel 
bank to be hosted by the Russian Federation at the 
International Uranium Enrichment Center in Angarsk. These 
proposals are related, as material from the Angarsk bank 
could be made available through the IAEA mechanism.  For 
these proposed concepts to become reality, approval by the 
IAEA Board of Governors is needed. 
 
¶7.  (SBU) Although he was an early proponent of RANF, 
Director General ElBaradei has over the past year stepped 
back from the initiative, largely due to concerns raised by 
G-77 and non-aligned Member States (reftel).  Despite many 
assurances to the contrary, these states claim they are 
concerned that the development of a RANF mechanism is the 
first step towards stripping them of their rights under the 
NPT to deploy nuclear technology for peaceful uses. 
ElBaradei has stated that he does not want to bring the issue 
to the IAEA Board prematurely for fear that its rejection 
would set the effort back indefinitely. 
 
¶8.  (SBU) Over the past year, however, Department officials 
have learned through private channels that a number of 
potential recipient states are in fact supportive of RANF. 
We believe that positive interventions at the March BOG 
meeting by some of these states could help assure the DG that 
support for this concept expands into the non-aligned sphere, 
and that there is more to gain than lose by bringing concrete 
RANF proposals before the IAEA Board for discussion at the 
next BOG meeting in June. 
 
¶9.  (U) ACTION REQUEST:  Posts are requested to convey the 
following key themes to appropriate officials as soon as 
possible, but no later than Monday, March 2.  These encourage 
a positive intervention at the March BOG meeting in support 
of a substantive discussion of concrete RANF proposals at the 
June BOG meeting.  The earlier this discussion can be held, 
the more likely the impact on statements to be made at the 
March BOG meeting.  Department appreciates Posts' efforts on 
this urgent request. 
 
BEGIN KEY THEMES: 
 
- As you know, the IAEA has been pursuing the development of 
a fuel assurance mechanism for several years now. 
 
- The purpose of this initiative is to expand, not restrict, 
access to the peaceful use of nuclear energy. 
 
- The fuel assurance mechanisms under consideration by the 
IAEA are intended to alleviate concerns about access to 
nuclear fuel from the international market. 
 
- Over the past few years, visiting U.S. officials have 
discussed with you the development of nuclear power in your 
country. 
 
- In addition to discussing potential activities to help you 
develop a sound nuclear infrastructure, we've discussed the 
concept of nuclear fuel assurances. 
 
- During these exchanges, you have learned that the United 
States supports the development of an IAEA-administered fuel 
assurance mechanism to increase global confidence in fuel 
supply. 
 
- Our understanding is that you too are open, in principle, 
to the idea of an IAEA fuel reserve. 
 
- We understand that two proposed concepts ) for the NTI 
international fuel bank and the Russian fuel reserve in 
Angarsk ) are nearly ready for discussion at the IAEA Board 
of Governors. 
 
- In our view, an open and frank exchange within the Board of 
Governors will be essential to resolving any outstanding 
differences Member States have on this issue. 
 
- Therefore, at the March 2-6 IAEA Board meeting, we will 
encourage Director General ElBaradei to bring these proposals 
forward for substantive discussion in June. 
 
- Likewise, we encourage your government to express similar 
interest in discussing fuel assurances within the IAEA Board 
of Governors through a statement of support at the March 
Board meeting. 
 
END KEY THEMES. 
 
¶10.  (U) ADDITIONAL REQUEST FOR KUWAIT ONLY.  Department 
understands that NTI representatives have reached out to 
Kuwait to discuss the IAEA fuel bank, and have said that 
Kuwait is considering a contribution to the NTI challenge 
grant, which would put the total of the pledges over the $150 
million target.  We recommend delivering the following 
additional points to encourage Kuwait to join the United 
States, Norway, the UAE, and EU in taking this step.  Due to 
the national holiday in Kuwait, we request this demarche be 
made as soon as possible but no later than Tuesday, March 3. 
 
BEGIN ADDITIONAL KUWAIT-SPECIFIC KEY THEMES: 
 
- You are probably also aware that the NTI challenge grant 
for an IAEA fuel bank is now just a few million dollars short 
of the minimum needed for realization. 
 
- We strongly encourage Kuwait to seriously consider a pledge 
to this effort. 
 
- Such a donation would be a tangible expression of support 
for an international mechanism designed to assure reliable 
access to nuclear fuel. 
 
- Now would be an excellent time, at or before the meeting of 
the IAEA Board next week, for Kuwait to state that it will 
make a pledge comparable to the $10 million pledge of the UAE 
or the $5 million pledge of Norway.  Either would result in 
meeting the NTI $150 million challenge. 
 
END ADDITIONAL KUWAIT-SPECIFIC KEY THEMES. 
 
¶11.  (U) Department thanks all Posts for their assistance 
with this matter.  Department point of contact for 
working-level RANF issues is Marc Humphrey (ISN/NESS, 
202-647-6103, humphreyma@state.gov). 
CLINTON