VZCZCXYZ0005
PP RUEHWEB

DE RUEHKO #0645/01 0820834
ZNR UUUUU ZZH
P 230834Z MAR 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 1705
RHMCSUU/DEPT OF ENERGY WASHINGTON DC PRIORITY
INFO RUEHBJ/AMEMBASSY BEIJING PRIORITY 8396
RUEHUL/AMEMBASSY SEOUL PRIORITY 4421

UNCLAS TOKYO 000645 
 
SENSITIVE 
SIPDIS 
 
PASS ISN/MNSA, EAP/J 
PASS DOE FOR NE, MCGINNIS, WELLING NNSA 
 
E.O. 12958: N/A 
TAGS: PARM ENRG TRGY NRR MNUC PUNE IN JA KR
SUBJECT:  THE CONVENTION ON SUPPLEMENTARY COMPENSATION FOR 
NUCLEAR DAMAGE AND CIVIL NUCLEAR ENERGY COOPERATION 
 
REF: TOKYO 572 
 
¶1. (U) Summary:  Department of Energy Deputy Assistant 
Secretary (DAS) Edward McGinnis recently met with Japanese 
Ministries to discuss the Convention on Supplementary 
Compensation for Nuclear Damage (CSC) and cooperative civil 
nuclear energy activities.  Representatives of the 
Contractor,s International Group for Nuclear Liability 
(CIGNL) also attended the CSC discussions.  On the CSC, GOJ 
officials described progress made in resolution of Japan's 
position and suggested prospects for GOJ's acceptance of the 
CSC were improving, even though the GOJ's process could take 
a year or even more.  On civil nuclear energy cooperation, 
GOJ officials expressed strong willingness to work with the 
new U.S. administration's priorities in a number of areas, in 
line with the GOJ position in recent energy-related 
discussions between Prime Minister Aso and the President, and 
separate discussions between Energy Secretary Chu and the 
Chairman of the Japan Atomic Energy Commission and the 
Minister of the Ministry of Economy Trade and Industry 
(METI).  METI provided McGinnis an informal but fairly 
detailed proposal regarding potential areas of nuclear energy 
cooperation while stressing METI,s willingness to be 
flexible.  End Summary. 
 
¶2.  (SBU) DAS McGinnis met with various Ministries and held 
discusssions on various civil nuclear energy issues including 
the CSC, U.S.-Japan cooperation, Sodium Cooled Fast Reactor 
Cooperation, the Generation IV International Forum and India. 
 
--------------------------------------------- -------------- 
Convention on Supplementary Compensation for Nuclear Damage 
--------------------------------------------- -------------- 
 
¶3.  (SBU)  Ministry of Education, Culture, Sports, Science 
and Technology (MEXT) Director, Atomic Energy Division, 
Research and Development Bureau Tomohiro Yamano told McGinnis 
there has been progress on CSC within MEXT. MEXT is looking 
at what it would take to join, and the level of interest in 
Japan is rising.  A MEXT Working Group will identify and sort 
out CSC issues over the next 6 months or so and then engage 
with METI, the Ministry of Foreign Affairs (MOFA), and the 
Cabinet Office (CAO), though this could still take years.  Of 
particular importance, Japan will have to modify its domestic 
laws and determine how CSC would be funded.  As such, the 
Ministry of Finance (MOF) and the Ministry of Justice (MOJ) 
have to be consulted and Yamano said these negotiations are 
always difficult.  Yamano asked about progress with Korea and 
China on CSC as MEXT had heard the Koreans were not making 
progress and in China it is unclear.  CIGNL responded 
discussions with Korea and China suggested they were both 
looking at the CSC seriously. 
 
¶4. (SBU)  In a separate meeting, METI Director for Nuclear 
Energy, Policy Planning Taizo Takahashi told McGinnis METI 
recognizes the need for the CSC and that Hitachi has gone on 
record with the GOJ in support of CSC.  METI, like MEXT, 
stated the MOJ needs to be consulted.   In response to a 
question as to whether MOJ was currently involved in the CSC 
discussion, METI Nuclear Energy Planning Division Deputy 
Director, Junichi Yokota, stated the MOJ won't participate at 
this point, not because they are against CSC, but rather 
because they have a very domestic orientation and are very 
conservative about changes in their domestic law. 
 
¶5.  (SBU)  MOFA Principle Deputy Director, International 
Cooperation Division, Zentaro Naganuma stated that on CSC 
MOFA has no official position but has seriously studied the 
issue.  He added it would help if DOE could send information 
on CSC deliberations in the U.S. and the basis for how the 
U.S. decided its approach to CSC funding. 
 
-------------------------------- 
Civil Nuclear Energy Cooperation 
-------------------------------- 
 
¶6.  (SBU)    GOJ Officials were broadly positive on recent 
energy related communications with President Obama and 
Secretary Chu and are seeking ways to continue cooperation. 
Japan Atomic Energy Commission Chairman, Shunsuke Kondo, who 
recently met with Secretary Chu, said his Minister (Seiko 
Noda) was pleased with the readout of the meeting and 
commented "lets take this opportunity to build."  Kondo said 
he is preparing a letter to Secretary Chu on a joint proposal 
on continuation of cooperation.  He added METI Minister 
Nikai, who also spoke with Secretary Chu, was pleased with 
 
his conversation. 
 
¶7.  (SBU)  CAO Deputy Director General for Science and 
Technology Policy Taizo Nishikawa, said the President and 
Prime Minister discussed the Green New Deal and Japan is very 
interested in the Green New Deal.  He then rhetorically 
raised the question of how nuclear energy would factor in to 
the Green New Deal.  Nishikawa related that Kondo had 
mentioned Secretary Chu's stated continued commitment to 
nuclear power with an emphasis on waste management and 
disposal, and a preference for research on recycling rather 
than proceeding into design and construction. 
 
¶8.  (SBU)  METI's Takahashi referenced Prime Minister Aso's 
meeting with President Obama on energy cooperation and he 
handed out the Prime Minister's proposal.  Takahashi further 
stated Secretary Chu had mentioned specific areas of interest 
for collaboration (advance waste forms, seismic analysis, 
long term R&D on recycling) and Secretary Chu said we need to 
increase our long term cooperation.  He then handed out an 
informal but fairly detailed proposal on potential areas of 
civil nuclear energy cooperation, asking McGinnis to comment 
on the proposal and add ideas.  Takahashi further stated the 
USG and GOJ need to highlight our enhanced cooperation and 
that METI Minister Nikai is planning to visit DC in the March 
to May timeframe. 
 
--------------------------------------------- ------------- 
Sodium Fast Reactor Funding Opportunity Announcement (FOA) 
--------------------------------------------- ------------- 
 
¶9.  (U)  Japan Atomic Energy Agency (JAEA) Deputy Director 
General, Advanced Nuclear System Research and Development 
Directorate Yutaka Sagayama asked about prospects for the DOE 
Office of Nuclear Energy Sodium Fast Reactor FOA.  McGinnis 
replied that DOE is focusing on R&D with regards to advanced 
fuel cycle technologies and processes where it involves 
recycling and fast reactors.  McGinnis added that, as the 
Secretary has indicated, we certainly expect to see our R&D 
and fuel cycle cooperation with Japan continue. 
 
--------------------------------------- 
Generation IV International Forum (GIF) 
--------------------------------------- 
 
¶10.  (SBU)  Sagayama asked about the US view on forthcoming 
changes in staffing of the GIF positions. He also stated his 
view that it would serve well to have a Policy Director from 
France and a Technical Director from the U.S.  McGinnis 
replied DOE does not have a final position but DOE is looking 
at what countries are represented at what levels in GIF to 
see if there is a need for other nations to hold the Vice 
Chair positions.  Sagayama replied that the GIF positions are 
changing out in December so DOE will need to identify its 
candidates in the summer. 
 
---------------- 
Exports to India 
---------------- 
 
¶11.  (SBU)  In response to a METI discussion on Japanese 
nuclear exports to India, McGinnis stated the U.S. has had 
significant visits to India (including GE and Westinghouse) 
but a major question is what Japan would do in the event GE 
or Westinghouse contracted to build a Nuclear Power Plant 
with India.  McGinnis asked whether Japan would feel it 
necessary to conduct an export review on components from 
Japan.  Takahashi stated India is a sensitive issue but METI 
wants to cooperate, India has agreed to exchange views and 
METI staff is going to India in March.  He further stated 
METI is trying to address public opinion on the issue and 
needs to argue, not on the basis of what benefits industry, 
but rather on the issue of international security. 
 
¶12.  (SBU)  Takahashi stated Japan's export control laws 
require METI to conduct an export review of key parts as 
defined by Japanese domestic law.  Reactor vessels are 
controlled by law but not turbines he added.  McGinnis asked 
Takahashi if he had a sense of what more Japan would need to 
support cooperation beyond what was agreed to by the  Nuclear 
Suppliers Group (NSG).  Takahashi stated the NSG conditions 
do not address testing and that if India tested, Japan 
cooperation would stop.  Further discussions on nuclear 
export control reported (reftel). 
 
¶13.  (U) DAS McGinnis cleared on this cable subsequent to his 
 
departure. 
ZUMWALT