VZCZCXYZ0000
OO RUEHWEB

DE RUEHUNV #0065 0481314
ZNR UUUUU ZZH
O 171314Z FEB 09
FM USMISSION UNVIE VIENNA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9016
RHEBAAA/DOE WASHDC IMMEDIATE
INFO RUEHXX/GENEVA IO MISSIONS COLLECTIVE PRIORITY
RUEHII/VIENNA IAEA POSTS COLLECTIVE PRIORITY
RUEHRO/AMEMBASSY ROME PRIORITY 0417
RHEGGTN/DEPT OF ENERGY GERMANTOWN MD PRIORITY
RUEHFR/USMISSION UNESCO PARIS PRIORITY
RUCNDT/USMISSION USUN NEW YORK PRIORITY 1498

UNCLAS UNVIE VIENNA 000065 
 
SIPDIS 
 
FOR D, P, T, IO, ISN 
DOE FOR NA-24, NA-25, NA-21 
 
E.O. 12958: N/A 
TAGS: AORC PREL KNNP IAEA UN
SUBJECT: IAEA PROPOSES UNPRECEDENTED, 23 PERCENT BUDGET 
INCREASE 
 
REF: A. UNVIE 57 
     ¶B. UNVIE 52 
 
¶1. (U) The IAEA released its biennial budget document on 
February 15, proposed an unprecedented, 23 percent increase. 
The increase would bring the IAEA regular budget from just 
under 300 million Euros in 2009 to 368 million in 2010 and 
383 million in 2011.  The proposed increase is split roughly 
in half between operational increases and capital 
investments, plus an additional, 3 percent price adjustment 
for inflation. 
 
¶2. (U) As predicted in ref A, the largest operational 
increase goes to the Department of Nuclear Security and 
Safety, bringing the Nuclear Security subprogram from 1 
million Euros to over 8 million and more than doubling the 
Incident and Emergency Center from 1.4 million to 3.5 
million.  The Departments of Safeguards and Nuclear Power 
also enjoy healthy increases, including additional funds for 
verification activities, innovative reactor and nuclear power 
infrastructure development.  One small but notable subprogram 
in the Department of Nuclear Techniques for Development - the 
Program of Action for Cancer Therapy (PACT) - was singled out 
for an increase from half a million Euros to 1.7 million. 
The largest increases under capital investments are destined 
for establishing a multi-year investment fund and financing 
upgrades for the Safeguards Analytical Laboratory (SAL). 
 
¶3. (U) Press reports to date have been misleading, with AFP, 
AP and Reuters all reporting the 11 percent figure for 
operational increases while giving only secondary attention 
to the equally impressive increase for capital investments 
and 3 percent adjustment for inflation.  The total increase 
for the IAEA's regular budget of approximately 23 percent is 
more than double the amount mentioned in press reports.  The 
entire 23 percent increase, if approved by Member States, is 
all part of the regular budget and would therefore be charged 
to Member States in the form of increased assessments. 
 
¶4. (SBU) Member States are not yet prepared to issue official 
positions on the proposed increase, but agree that tough 
negotiations lay ahead.  One representative from a major 
donor country stated that the 23 percent proposed increase 
was "not a point of departure for serious negotiations." 
Another representative predicted the "wretched increase" 
would dominate all negotiations between Member States from 
now into the summer.  From a U.S. point of view, however, the 
proposed increase supports U.S. priorities and is very much 
in line with Mission's view of how to make the best use of 
increased resources (ref B). 
PYATT