VZCZCXYZ0000
PP RUEHWEB

DE RUEHUNV #0119/01 0820742
ZNR UUUUU ZZH
P 230742Z MAR 09
FM USMISSION UNVIE VIENNA
TO RUEHC/SECSTATE WASHDC PRIORITY 9189
RHMCSUU/DEPT OF ENERGY WASHINGTON DC PRIORITY
RUEANFA/NRC WASHDC PRIORITY
INFO RUEHII/VIENNA IAEA POSTS COLLECTIVE

UNCLAS UNVIE VIENNA 000119 
 
SENSITIVE 
SIPDIS 
 
STATE FOR IO/T, ISN/MNSA, ISN/RA 
NA-243-GOOREVICH/OEHLBERT, BRUNNS; NA-241 O'CONNOR, SIEMON; 
NA21-CUMMINS, ILIOPULOS; NE- MCGINNIS, PEKO, CLAPPER 
NRC FOR OIP - DUNN LEE, HENDERSON, SCHWARTZMAN 
 
E.O. 12958: N/A 
TAGS: ENRG PREL TRGY ETTC KNNPCH
SUBJECT: CHINA PARTNERS WITH IAEA TO BUILD HUMAN RESOURCE CAPACITY 
IN THE NUCLEAR ENERGY SECTOR 
 
------- 
SUMMARY 
------- 
 
¶1. (U) China has embarked on a major IAEA Technical Cooperation (TC) 
project focusing on Human Resource Capacity Building and Technical 
and Vocational Education and Training (TVET) to rehabilitate of 
eight national training centers.  Each center will have a specialty 
such as radiation safety, needs assessments, uranium enrichment, 
waste management, and training of trainers.  The aim of the IAEA TC 
project is to reduce stress on the already overburdened nuclear 
professionals in China and build national capacity in this area, 
thereby decreasing dependence on foreign experts.  Upon completion, 
China also hopes to open its network of centers to other countries 
in Asia.  To fund this TC project, China will contribute a total of 
USD 2 million through in-kind services and is seeking an additional 
USD 2,059,100 million in extrabudgetary funding from IAEA member 
states, in particular the Europeans.   The PRC and IAEA hope that 
this project will create a framework transferable to the other TC 
Regions that would like to embark on similar projects.  For the 
U.S., it provides an unusual and welcome example of transparency in 
the development f the IAEA's TC program. 
 
----------------- 
PROJECT SPECIFICS 
----------------- 
 
¶2. (U) PRC representatives in Vienna, on March 6, outlined  for P5 
and donor delegations medium and long-term plans for nuclear power 
development.  China hopes that no fewer than twelve new reactors 
will be fully operational by 2020.  R&D achievements noted by the 
PRC include large scale thermal-hydraulic test loops, a heavy water 
research reactor, a tandem accelerator and an experimental fast 
reactor.  While the PRC is focusing on energy self-reliance, China 
seeks international cooperation in order to develop a network of 
research centers through which countries in the region would gain 
access to training and development.  Total project funding is USD 4 
million over three years with most of the PRC contribution in 
construction, equipment and R&D and a requested USD $2,059,100 in 
unconstrained funding from other member states. 
 
¶3. (U) In rolling the project out, the PRC highlighted strong 
involvement from the IAEA in assessment and design.  The project 
aims to address China's national weaknesses in the field: dwindling 
personnel, and weak regulations, radiation safety, and 
non-destructive testing capabilities.  In the future, the PRC and 
the IAEA would like to see this project as a model for regional 
program design, and have been exceptionally transparent in 
presenting the project to potential donors, the Europeans in 
particular. 
 
¶4. (SBU) In a private follow-up conversation, Chinese Mission DCM 
Liu Yongde told us plainly that China was pursuing this project 
through IAEA TC channels as an invitation to international 
participation in the broader Chinese nuclear industry.  Against the 
backdrop of Chinese plans to invest over USD 100 Billion in nuclear 
power over the coming 11-12 years, the USD 2 million in IAEA TC 
contributions sought over three years were to be understood as 
tokens (our word, his meaning) of partnership.  He anticipated the 
European Commission, Japan, Russia, South Korea and France in its 
national capacity may all want to be on the roster of contributors 
as a door-opener to their respective industry actors.  Liu said he 
and the IAEA Secretariat expected extrabudgetary contributions for 
this project to be forthcoming well in excess of the USD 2 million 
budget target, and his mission was already discussing with the 
Office of the Legal Adviser how, procedurally with Board concurrence 
and practically, to apply excess funds.  He encouraged U.S. 
participation as well. 
 
------- 
COMMENT 
------- 
 
¶5. (SBU) The IAEA and China received approval from the November 2008 
TACC and Board of Governors meetings for this project and the 
Chinese Government sees this as a priority TC project for the 
2009-2011 cycle.  Almost all member states in the March 2009 Board 
highlighted their concerns regarding large gaps in human resource 
capacity in the nuclear energy sector.  China is progressively 
looking to fill that gap by creating a model that serves its 
national purposes as well as future regional aspirations.  By 
opening up the training centers to the region, the Chinese can 
create a stand-alone "business" funded by other countries and 
subsequently export their knowledge and best practices in this 
 
sector.  This also supports China's desire to promote technology 
transfer and capacity building throughout the region. 
 
¶6. (SBU) In a separate conversation with Msnoffs, the IAEA's TC 
Director for Europe Peter Salema (TC Director for Asia until he was 
replaced last month by a Chinese national) shared that China's 
primary goal during the project planning stage with the TC Division 
was to make this a regional model which could be exported to other 
parts of the world.  Salema said this is not surprising since China 
wants to be seen "as the big brother to the developing world" and in 
the nuclear sector would like to use "partnerships" to get to 
resources such as uranium, oil, and gas.  Salema said he had 
advocated for the TC project, not because of the regional component, 
but because this project presented an opportunity for the IAEA to 
work with China in a transparent way to ensure China has the 
infrastructure to run its nuclear power program.  With relation to 
the TC program, Mission counts the Chinese approach of making its 
case for funding to a broader audience than the IAEA TC department 
alone as a positive example for other beneficiary states. 
 
 
SCHULTE