VZCZCXYZ0021
OO RUEHWEB

DE RUEHC #2566 0692204
ZNR UUUUU ZZH
O 102146Z MAR 09
FM SECSTATE WASHDC
TO RUEHLO/AMEMBASSY LONDON IMMEDIATE 0000
RUEHUNV/USMISSION UNVIE VIENNA IMMEDIATE 0000

UNCLAS STATE 022566 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: AORC ENRG KNNP TRGY UK IAEA
SUBJECT: RANF: GUIDANCE FOR U.S. DELEGATION TO UK 
MULTILATERAL FUEL ASSURANCES CONFERENCE MARCH 17-18, 2009 
IN LONDON 
 
REF: A. 09 UNVIE 40 
     ¶B. 09 LONDON 540 
     ¶C. 08 BERLIN 558 
     ¶D. 09 STATE 15931 
     ¶E. 09 UNVIE 95 
 
¶1. (U) For London: This is an action request. See para 7 
below. 
 
¶2. (U) This document provides guidance (paras 5-6) for the 
U.S. delegation, to be led by UNVIE Ambassador Schulte, to 
the UK Conference on "Multilateral Approaches to the Nuclear 
Fuel Cycle," which will be held March 17-18 in London (ref 
A).  In addition, it responds to an Action Request (ref B) 
for USG comments on the possible "emerging themes" prepared 
by the UK for this event (para 7). 
 
---------- 
BACKGROUND 
---------- 
 
¶3. (SBU) At an informal briefing held in Vienna on March 5, 
the UK announced that this conference would aim at building 
trust among concerned states and addressing the feasibility 
of mechanisms designed to assure reliable access to nuclear 
fuel (RANF).  The conference is being designed to be 
"cross-spectrum, inclusive, and interactive" and will include 
participants from a diverse cross section of states with a 
range of nuclear power and fuel cycle experience.  The 
British have promoted the conference as a follow-on to a 2008 
Berlin conference on the issue (ref C) and have billed it as 
a valuable step en route to a successful NPT PrepCom and 
RevCon.  Originally, the UK had proposed a "Statement of 
Principles" as a deliverable for this conference, though due 
to resistance from the United States and others (ref D), this 
proposal was dropped. 
 
¶4. (SBU) The Conference will come on the heels of a 
successful March Board of Governors meeting that witnessed 
clear forward progress on the RANF initiative (ref E). 
Renewed leadership by the Director General, announcements of 
financial pledges for an IAEA fuel bank, and calls for more 
dialogue from potential beneficiary states were solid 
advancements toward future IAEA Board of Governors action to 
the issue.  The Board debate was marked by new highs of 
support -- including announcements of donations sufficient to 
push funding for the IAEA fuel bank over the target of $150 
million -- and new lows of criticism -- the G-77 strongly 
rejected attempts to even discourage fuel cycle activities on 
the grounds of proliferation concerns.  There should be 
adequate support for the Board to consider the issue in June 
and for the Secretariat to do work on related issues in the 
interim. 
 
---------- 
OBJECTIVES 
---------- 
 
¶5. (SBU) The U.S. delegation should try and capitalize on the 
momentum generated during the recent March Board of Governors 
meeting.  In particular, the U.S. delegation should aim to: 
 
-- Encourage additional states to call for detailed 
discussion of RANF at the June Board of Governors meeting, 
 
-- Encourage forward-leaning states to make public statements 
in support of RANF, and 
 
-- Encourage skeptical states to play a constructive role in 
the development of RANF, in particular during future Board of 
Governors discussion. 
 
------------------- 
DELEGATION GUIDANCE 
------------------- 
 
¶6. (U) The U.S. delegation should participate in all aspects 
of the conference, including the working groups, in their 
capacity as subject matter experts.  In addition to the 
guidance on specific themes in para 7, the U.S. delegation 
should draw from the following talking points in comments 
reflecting U.S. policy: 
 
BEGIN TALKING POINTS: 
 
-- To ensure that any expansion of nuclear power proceeds 
without accident or incident, all states considering new 
nuclear power plants should strive for the highest standards 
of safety, security, and nonproliferation. 
 
-- Around the world today, more than 400 nuclear power 
reactors are supplied through sound, long-term contracts with 
a diverse set of fuel vendors.  Still, the possibility 
remains for unforeseen interruptions. 
 
-- Therefore, we believe that as responsible suppliers and 
recipients of nuclear power it would be wise to bolster the 
international fuel market against unexpected disruptions. 
 
-- President Obama has stated that the United States will 
work with other interested governments to establish a new 
international nuclear energy architecture to help ensure that 
growing interest in nuclear power does not contribute to 
proliferation risk. 
 
-- As the President noted, potential mechanisms to assure 
reliable access to nuclear fuel include an international 
nuclear fuel bank and international nuclear fuel cycle 
centers. 
 
-- A number of proposals for mechanisms like these are now 
under consideration, and two in particular are rapidly taking 
shape. 
 
-- With support from Member States and the Nuclear Threat 
Initiative, a total of $150 million is now available for an 
IAEA-administered fuel bank, provided the Board of Governors 
approves an institutional framework for its operation by this 
year's General Conference. 
 
-- Therefore, the United States looks forward to Director 
General ElBaradei's development of a concrete proposal to 
operationalize the concept for our consideration at the next 
Board meeting in June. 
 
-- Likewise, we look forward to further in-depth 
consultations among all Member States and the IAEA 
Secretariat on details on the operation of and future steps 
for the Russian proposal for a fuel reserve at Angarsk. 
 
-- Both of these mechanisms are intended to encourage states 
to obtain nuclear fuel from the international market as an 
economically attractive alternative to undertaking indigenous 
enrichment and reprocessing activities. 
 
-- Along with many others, we hope to see a tangible product 
emerge before the current era of IAEA leadership draws to a 
close. 
 
-- We stand ready for a frank and open discussion on the 
details underlying multilateral fuel assurances at the next 
Board of Governors meeting in June. 
 
END TALKING POINTS. 
 
------------------ 
COMMENTS ON THEMES 
------------------ 
 
¶7. (SBU) The UK has identified the following "emerging 
themes" as a basis for discussion during the conference.  UK 
officials have requested comment on these themes from 
governments participating in the conference (ref A).  The UK 
plans to collate and disseminate all comments, though it will 
not attribute any comments to a particular country.  Each of 
the "emerging themes" is reproduced below, followed by USG 
commentary on each.  London is requested to pass these 
comments in writing to HMG at an appropriate level. 
Delegation may also draw upon these comments as appropriate 
during the Conference. 
 
BEGIN USG COMMENTARY ON EMERGING THEMES: 
 
- Theme 1:  Significant increase in interest in civil nuclear 
power programs 
 
At the March 2009 Board of Governors meeting, IAEA Director 
General ElBaradei reported that "some 50 countries (are) 
turning to the Agency for help as they explore the possible 
introduction of nuclear power programs."  He added that the 
number of nuclear-power-related IAEA Technical Cooperation 
projects has "accelerated this year from 29 to 41."  To 
ensure that any expansion of nuclear power proceeds without 
accident or incident, all states should strive to develop 
nuclear power in accordance with the highest standards of 
safety, security, and nonproliferation. 
 
- Theme 2:  Rights and responsibilities under the 
Non-Proliferation Treaty (NPT), including the Nuclear Weapons 
States 
 
At the March 2009 Board of Governors meeting, IAEA Director 
General ElBaradei stated that fuel supply assurance proposals 
"are not impacting inherent rights under the NPT" and "no 
proposals that will be adopted on my watch will infringe 
rights."  Moreover, Article IV of the NPT states that nothing 
in the Treaty "shall be interpreted as affecting the 
inalienable right of all the Parties to the Treaty to develop 
research, production and use of nuclear energy for peaceful 
purposes without discrimination and in conformity with 
Article I and II."  Articles I and II are the basic 
nonproliferation obligations on all parties to the NPT, and 
Article III of the NPT requires non-nuclear weapon state 
parties to conclude safeguards agreements with the IAEA. 
Article IV also commits parties to facilitate and have the 
right to participate in "the fullest possible exchange" of 
nuclear equipment, material, and technology for peaceful 
purposes.  The rights and responsibilities of parties to the 
NPT fall on both nuclear weapon and non-nuclear weapon states 
and ensuring that nuclear power is developed for peaceful 
purposes is critical. 
 
- Theme 3:  Nuclear energy has much potential to provide 
great benefits to mankind; such benefits should be available 
to all States who meet their non-proliferation obligations 
 
The purpose of multilateral fuel assurances is to expand, not 
restrict, access to the peaceful use of nuclear power.  The 
IAEA has suggested a minimal set of criteria for access to an 
IAEA-administered mechanism, and a determination of 
eligibility would be made by the Director General based upon 
criteria set by the Board of Governors.  States supplying 
fuel to the IAEA would be expected to apply their relevant 
national laws and policies, including export controls. 
 
- Theme 4:  Proliferation risks involving certain parts of 
the nuclear fuel cycle 
 
In addition to their peaceful applications, uranium 
enrichment and spent fuel reprocessing technologies can be 
used to produce nuclear-weapons-usable material.  The spread 
of these technologies would increase the potential for new 
states to develop nuclear weapons.  A voluntary mechanism for 
reliable access to nuclear fuel would provide a viable 
alternative to the spread of expensive and 
proliferation-sensitive enrichment and reprocessing 
technologies. 
 
- Theme 5:  Commercial fuel market, operating successfully 
for many decades, but further enhancements in security of 
nuclear fuel services are desired by many 
 
The nuclear power sector benefits from a reliable, dynamic, 
and well functioning market.  Around the world today, more 
than 400 reactors are supplied through sound, long-term 
contracts with a diverse set of vendors.  Still, the 
possibility remains for unforeseen interruptions, which could 
encourage states to seek indigenous enrichment and 
reprocessing technologies.  By bolstering the market, RANF 
mechanisms would increase confidence in the market and weaken 
incentives for domestic enrichment and reprocessing. 
 
- Theme 6:  Encourage states to explore the use of 
multilateral (multinational) nuclear fuel assurances as a 
means of enhancing the security of their access to nuclear 
fuel services 
 
To benefit from the fuel assurance mechanisms under 
consideration, no state will be required to give up its right 
to develop nuclear energy for peaceful purposes consistent 
with its international obligations.  This is not about 
"rights."  These mechanisms are intended to alleviate 
concerns about access to nuclear fuel from the international 
market.  They provide an incentive for states to voluntarily 
choose the international market for nuclear fuel rather than 
develop costly and unnecessary indigenous enrichment and 
reprocessing capacity. 
 
- Theme 7:  Proposals offer States different options based on 
individual needs and concerns to give confidence in nuclear 
fuel supply 
 
A number of fuel assurance proposals are under development. 
These proposals are not mutually exclusive, and in the end a 
diverse and complementary set of mechanisms is expected. 
Diversity of supply offers the greatest assurance. 
 
- Theme 8:  IAEA has an essential role to play in 
facilitating the development and use of nuclear energy 
 
Support from the IAEA will be critical to the realization of 
multilateral fuel assurances.  Two specific proposals are 
rapidly taking shape ) a fuel reserve at Angarsk and an 
IAEA-administered fuel bank funded by the Nuclear Threat 
Initiative and IAEA Member States.  Detailed, frank, and open 
discussion of these proposals at the June 2009 Board of 
Governors meeting will be instrumental in moving the issue 
forward. 
 
END USG COMMENTARY ON EMERGING THEMES. 
 
¶8. (U) Department thanks both Posts for their assistance with 
this matter.  Department points of contact for working-level 
RANF issues are Burrus Carnahan and Marc Humphrey (ISN/NESS). 
CLINTON