VZCZCXYZ0000
OO RUEHWEB

DE RUEHUNV #0069/01 0501259
ZNR UUUUU ZZH
O 191259Z FEB 09
FM USMISSION UNVIE VIENNA
TO RHEGGTN/DEPT OF ENERGY GERMANTOWN MD IMMEDIATE
RUEHC/SECSTATE WASHDC IMMEDIATE 9025
INFO RUEANFA/NRC WASHDC PRIORITY

UNCLAS UNVIE VIENNA 000069 
 
SIPDIS 
 
DEPT FOR S, D(S), T, IO, AND ISN 
DOE FOR NNSA STEVE BLACK, NA-20 HEATHER LOONEY 
 
E.O. 12958: N/A 
TAGS: ENRG IAEA ETTC KNNP MNUC PARM TRGY
SUBJECT: IAEA: JOINT STATE/DOE LETTER URGING DG TO LEAD ON 
INTERNATIONAL FUEL BANK 
 
REF: A. REF: UNVIE 47 
     ¶B. UNVIE 41 
     ¶C. UNVIE 40 
 
¶1.  (U)  SUMMARY: Both the President and Secretary have 
publicly endorsed the establishment of an international 
nuclear fuel bank (INFB) under the auspices of the IAEA.  Our 
strategy to establish a fuel bank has three elements: 1) 
encouraging DG ElBaradei to resume a leadership role; 2) move 
one or two concrete proposals to the IAEA Board; and 3) 
engaging potential recipients of a fuel bank.  To advance the 
first element prior to the Board meeting, Mission recommends 
a joint letter from Secretary Clinton and Secretary Chu 
urging ElBaradei to play a more active proponency role 
(suggested draft text para. 3).  Mission recommends the 
letter be sent by Wednesday, February 25, in order to 
influence the Director General's statement to the IAEA Board 
on March 2. END SUMMARY. 
 
---------- 
BACKGROUND 
---------- 
 
¶2.  (U)  A top priority in the run-up to the March Board of 
Governors meeting, UNVIE continues to advance this goal. 
Following the conclusion of IAEA talks with Russia on a fuel 
reserve that would use Russian-transferred LEU, Secretariat 
experts will advise the DG to comment on the Russian proposal 
and to brief Member States on the status of the parallel 
Nuclear Threat Initiative (NTI) proposal.  The Secretariat 
also expects Russia will provide a preview of its proposal at 
the March Board under "Any Other Business" to spur Member 
States to discuss the issue in more detail at the June Board. 
 Supportive national statements after the Russian preview 
would help to advance the discussion of assuring reliable 
access to nuclear fuel (RANF), a concept of which ElBaradei 
was an early proponent. 
 
¶3.  (U)  To advance toward implementation, one or more 
concrete proposals for an IAEA role in RANF must come to the 
Board of Governors for approval.  Should IAEA DG ElBaradei's 
staff be successful in positioning Russia to speak at the 
March Board, Member States will hear that an agreement has 
been reached between Moscow and the Secretariat on 
arrangements for a reserve of LEU at the enrichment center in 
Angarsk to be held for IAEA procurement and transfer under 
explicit criteria.  This arrangement would be grounded in two 
agreements (one between Russia and the IAEA and one between 
the IAEA and a potential recipient state experiencing a 
nuclear fuel disruption.) These agreements would have to be 
approved by the Board at a future date, potentially June. 
Secretariat staff will also advise the DG to discuss the 
Agency's plans to develop a fuel bank concept using the funds 
contributed through the NTI challenge grant.  In order to use 
the NTI funds, the Board must issue a decision to this 
effect.  Preliminary discussion in the March Board would set 
the stage for a first Board action in June to accept the 
funds contributed through the NTI challenge grant and, 
optimistically, approve the broad contours of the Agency's 
fuel bank concept.  A key worry for ElBaradei is G-77 and NAM 
opposition to an INFB, which has caused him to step back from 
providing leadership on this issue.  In order for the issue 
to gain momentum among member states, the DG must once again 
assume his leadership role in establishing an INFB.  The IAEA 
also faces a September 2009 deadline set by NTI, already 
extended once, for expenditure of its funding. 
 
---------------------- 
Joint State/DOE Letter 
---------------------- 
 
¶4.  (U)  Mission proposes a joint letter, signed by Secretary 
Clinton and Secretary Chu urging ElBaradei to move forward on 
this issue quickly.  Mission proposes following text: 
 
 
Dear Dr. ElBaradei, 
 
We look forward to working with you in our capacities as 
Secretary of State and Secretary of Energy.  The 
International Atomic Energy Agency is of enormous importance 
to the United States and other countries around the world. 
President Obama has made clear his strong support for the 
Agency. 
 
President Obama also supports the establishment of new 
mechanisms, including an international fuel bank, to help 
assure supply of nuclear fuel to countries interested in 
 
nuclear power while safeguarding against the proliferation of 
bomb-making technologies. 
 
The proposal for an IAEA-administered international fuel bank 
mechanism would serve this purpose.  The U.S. supports the 
NTI proposal, as reflected by the Department of Energy's 
contribution of nearly $50 million to match the NTI challenge 
grant. 
 
The complexities of establishing a fuel bank are many, and we 
are grateful for your early and strong support.  As member 
states continue to grapple with this issue, we rely on your 
leadership role in bringing concrete proposals to the Board 
of Governors for consideration.  With your support, a 
carefully managed discussion in the Board can help member 
states work together to make the fuel bank a reality.  END 
TEXT 
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