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OO RUEHWEB

DE RUEHUNV #0080/01 0561322
ZNR UUUUU ZZH
O 251322Z FEB 09
FM USMISSION UNVIE VIENNA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9051
INFO RUEHXX/GENEVA IO MISSIONS COLLECTIVE PRIORITY
RUEHII/VIENNA IAEA POSTS COLLECTIVE PRIORITY
RUEHRO/AMEMBASSY ROME PRIORITY 0423
RHEBAAA/DOE WASHDC PRIORITY
RUEHFR/USMISSION UNESCO PARIS PRIORITY
RUCNDT/USMISSION USUN NEW YORK PRIORITY 1507

UNCLAS UNVIE VIENNA 000080 
 
SENSITIVE 
SIPDIS 
 
FOR ISN/MNSA, IO/T; DOE FOR NA-24, NA-25, NA-21 
 
E.O. 12958: N/A 
TAGS: IAEA OTRA KNNP TRGY AORC UN PREL AS CA
SUBJECT: REQUEST FOR GUIDANCE - PROGRAM SUPPORT COSTS AT 
UPCOMING BOARD MEETINGS 
 
REF: UNVIE 27 
 
¶1. (SBU) This is a guidance request.  Per reftel, the 
simmering issue of Program Support Costs (PSCs) may come to 
the fore sooner rather than later.  A Canadian contribution 
of nearly 4 million USD for the Nuclear Security Fund is on 
hold pending release of an official PSC policy, and there is 
some risk that Director General ElBaradei will pass the 
contribution to the March or June Board of Governors meetings 
for decision.  Meanwhile, DDG Waller's promised release of a 
"Secretariat Directive" on PSCs has not been forthcoming and 
is rumored to be languishing in the IAEA's front office. 
 
¶2. (SBU) At a meeting of the Geneva Group on February 18, 
members agreed it was time to define the measures needed for 
achieving clarity on the PSC issue and transmit them to the 
Secretariat.  Members agreed informally on these measures and 
formalized them in a non-paper for members to use as a basis 
for consultation with capitals (below).  While Mission pushed 
to include a demand the PSCs be applied to the Technical 
Cooperation Fund (TCF), Japan proved hesitant to commit to 
another battle with the G-77 over this issue (reftel).  In 
the interest of building consensus and making progress on the 
PSC policy, Mission agreed to relinquish the TCF point for 
the moment.  The due date of the consultation process is 
March 2 (the first day of the March Board of Governors 
meeting). 
 
Request for Guidance 
-------------------- 
 
¶3. (SBU) Mission requests permission to 1) join the likely 
Geneva Group consensus on the below non-paper by March 2, 2) 
transmit a cover letter to the non-paper as co-chair of the 
Geneva Group, and 3) rely on points from these two documents 
should the issue come up in the March Board. 
 
 
BEGIN COVER LETTER 
 
Dear Mr. Waller: 
 
I am writing you in my capacity as Co-Chair of the IAEA 
Geneva Group to transmit the attached non-paper, "Measures to 
Achieve a Transparent and Fair Program Support Cost Policy 
(PSC). 
 
The Geneva Group regrets past difficulties in achieving 
consensus among Member States on this issue, and hopes the 
attached non-paper serves as a point of departure for further 
consultations.  We also hope to see the spirit of these 
measure enshrined in the forthcoming Secretariat Directive on 
PSCs (referred to in your December 24 letter). 
 
Our goal is to achieve a PSC policy that is acceptable to all 
Member States, preferably without resorting to the Board of 
Governors for a decision on individual contributions.  To 
that end, the Geneva Group welcomes the Secretariat's 
reactions to the contents of this non-paper.  We also invite 
your attendance at a working-level meeting of the Geneva 
Group in March to elaborate on the pending issues (at a date 
convenient to you). 
 
Sincerely, 
 
Gregory L. Schulte 
 
 
BEGIN NON-PAPER 
 
"Measures to Achieve a Transparent and Fair Program Support 
Cost Policy (PSC)" 
 
- Publish an official PSC policy that applies to all extra 
budgetary contributions. 
 
- Establish 7 percent as the standard rate, with any 
variations categorized in a "rates scale." 
 
- Refer to PSCs as a separate line item in all extra 
budgetary, transfer of funds documents. (If the rate deviates 
from the standard 7 percent, the "rates scale" must be 
referenced in the line item.) 
 
 
 
- Set a flat rate for cost-free experts and junior 
professionals. 
 
 
SCHULTE