VZCZCXYZ0010
OO RUEHWEB

DE RUEHC #6838 1042231
ZNR UUUUU ZZH
O 142212Z APR 09
FM SECSTATE WASHDC
TO RUEHUNV/USMISSION UNVIE VIENNA IMMEDIATE 0000
INFO RUEHBJ/AMEMBASSY BEIJING IMMEDIATE 0000

UNCLAS STATE 036838 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: AORC CH ENRG KNNP TRGY IAEA
SUBJECT: IAEA BEIJING MINISTERIAL ON NUCLEAR ENERGY - 
GUIDANCE FOR AMBASSADOR SCHULTE 
 
¶1.  (U) THIS IS AN ACTION REQUEST:  Please see para 3. 
 
¶2.  (U) On April 20-21, 2009, the Government of China, 
through the China Atomic Energy Authority, will host an 
international ministerial conference on "Nuclear Energy in 
the 21st Century."  Following the Ministerial Conference held 
in Paris in March 2005, this conference, organized by the 
IAEA, is designed to allow participants to discuss 
developments and emerging issues relevant to the role of 
nuclear power in providing clear and sustainable energy for 
national and regional development. 
 
¶3.  (SBU) The U.S. delegation to this conference will be led 
by Ambassador Greg Schulte, the permanent representative of 
the U.S. Mission to the IAEA.  Ambassador Schulte has been 
asked to give a speech on behalf of Energy Secretary Chu who 
is unable to attend.  The full text of Ambassador Schulte's 
interagency-cleared speech is provided below.  As 
appropriate, delegation may also draw on the speech text when 
dealing with other interlocutors in connection with the 
Conference. 
 
BEGIN SPEECH TEXT: 
 
Ambassador Schulte's Remarks on Behalf of Energy Secretary Chu 
IAEA International Ministerial Conference, Beijing 
April 20-21, 2009 
 
Introduction 
 
It is a pleasure to participate in this second Ministerial 
Conference convened by the IAEA here in Beijing.  Secretary 
of Energy Steven Chu has asked that I deliver this speech on 
his behalf.  He sends his sincere regrets that he is unable 
to attend this event personally.  As you know, this week is 
Earth Week, and the Secretary is very engaged promoting our 
energy and climate change agenda back in Washington.  Let me 
assure you, however, that the United States views nuclear 
energy as an important part of our effort to put the world on 
the road to a low-carbon future. 
 
The global expansion of nuclear energy 
 
It is now widely recognized that nuclear energy has the 
potential to curtail dependence on fossil fuels and greatly 
reduce greenhouse gas emissions while promoting greater 
energy security. 
 
Yet, given the stakes associated with the use ) and 
potential misuse ) of nuclear energy around the world, it is 
imperative that all nations with existing or new nuclear 
power programs play an active role in global efforts to 
address the safety, security, and safeguards implications of 
nuclear power. 
 
As President Obama recently stated, it is time we consider a 
new framework for civil nuclear cooperation, one that allows 
all interested countries to enjoy the benefits of nuclear 
energy while limiting the associated risks of nuclear weapons 
proliferation.  This new framework should include measures 
that improve energy security, including an international fuel 
bank and related fuel services arrangements.  This conclusion 
reflects our recognition of the right of nations that comply 
with global nonproliferation norms to share in the benefits 
of peaceful nuclear uses. 
 
We also share a responsibility to maintain and strengthen 
global standards for safety, security and nonproliferation. 
Today, access to nuclear energy faces significant challenges 
) the development of sound infrastructure, the reliable 
provision of nuclear fuel, and the safe and secure management 
of spent fuel and nuclear waste.  If we succeed in meeting 
these challenges and discharging these responsibilities, I am 
confident we will also succeed in promoting the responsible 
development of nuclear energy. 
 
The IAEA and multilateral cooperation 
 
Over 50 countries have informed the IAEA of their interest in 
nuclear power.  In response to this, the Agency has developed 
a high-level framework to help states chart a safe, secure, 
and safeguarded path to nuclear power.  The Milestones 
document, as it is now known, has become an essential 
reference on the desks of planners tasked with developing a 
national nuclear power infrastructure. 
 
The United States is a longstanding and strong supporter of 
the infrastructure development concepts detailed in the 
Milestones document.  More broadly, the United States is 
committed to increasing the capabilities of the IAEA to 
better carry out all of its vital functions.  Key among them 
is improved international safeguards.  The United States has 
launched a program to build next generation safeguards 
technologies and a new community of safeguards experts; to 
assist full use of IAEA inspection authorities; and to foster 
a culture of safeguards, security and safety in nations using 
nuclear energy. 
 
Though a very valuable reference, the Milestones document was 
not intended for use as a detailed road map to nuclear power. 
  It is the responsibility of each state to assess its own 
needs, identify its own priorities, and develop its own 
strategic objectives.   However, states need not pursue these 
tasks alone, and there is plenty of guidance available 
through pursuit of civil nuclear cooperation. 
 
In addition to the vital role of the IAEA, other multilateral 
groups are addressing the challenges facing nuclear energy 
today.  Forums such as the International Energy Agency, the 
Nuclear Energy Agency, the Generation IV International Forum, 
and the Global Nuclear Energy Partnership ) or GNEP ) 
complement and build upon the important work of the IAEA. 
 
The international community through GNEP, as currently 
structured, has established two working groups, both with 
significant involvement from the IAEA.  The first addresses 
infrastructure development and seeks to help states begin 
implementing the guidance conveyed in the Milestones 
document.  The second working group addresses reliable 
nuclear fuel services as a viable alternative to the 
acquisition of sensitive fuel cycle technologies.  We need to 
take full advantage of these and other exchanges to seek 
solutions and innovations to bring about the new framework 
proposed by President Obama. 
 
Bilateral civil nuclear cooperation 
 
Besides these multilateral avenues, new entrants have much to 
gain through bilateral cooperation Governments with long 
nuclear energy histories can help states avoid mistakes made 
in the past while advancing sustainable programs.  The United 
States has a long history of civil nuclear cooperation dating 
back to President Eisenhower's historic "Atoms for Peace" 
speech.  A half century later, our commitment to civil 
nuclear cooperation remains strong.  We have agreements that 
provide a framework for U.S. nuclear cooperation with nearly 
50 countries and the IAEA. 
 
In addition, the Department of Energy, including the National 
Nuclear Security Administration, and the Nuclear Regulatory 
Commission have dozens of arrangements with their counterpart 
institutions ) in countries with both developed and emerging 
programs ) on issues such as energy planning, infrastructure 
development, site selection, regulatory body strengthening, 
new reactor safety evaluation and regulation, reactor 
operation, decommissioning, and waste management. 
 
Industry partners can also provide often-overlooked training 
and consulting services to help states with the long-term, 
strategic planning necessary for the century-long commitment 
that accompanies a nuclear power plant.  For our part, the 
United States is committed to ensuring that all nuclear firms 
compete exclusively on the merits of their products and 
services. 
 
Global nuclear liability regime 
 
International cooperation will be greatly facilitated by a 
global nuclear liability regime based on the Convention on 
Supplementary Compensation for Nuclear Damage, or the CSC. 
The United States believes that the CSC is essential to 
assuring the greatest possible cooperation and taking full 
advantage of the benefits of nuclear energy.  The United 
States has ratified the CSC and urges other countries to also 
take this necessary action to establish a key component of a 
sound nuclear energy infrastructure. 
 
Reliable access to nuclear fuel 
 
A second major challenge we will all face ) reducing the 
risk of nuclear weapons proliferation ) will require 
creative measures that allow countries to enjoy the benefits 
of nuclear power while avoiding the spread of nuclear weapons 
and the technologies needed to acquire them. 
 
In 2003, Director General ElBaradei renewed the call for 
international nuclear fuel supply assurances, writing that 
"the margin of security under the current nonproliferation 
regime is becoming too slim for comfort."  Since then, more 
than a dozen fuel assurance mechanisms have been proposed, 
several of which are now under serious consideration in 
Vienna.  These are all designed to supplement the existing 
fuel market, which all agree is functioning well, to 
facilitate fuel provision in the case of political 
disruption. 
 
The United States is committed to working with the IAEA and 
others to establish a new international nuclear energy 
architecture ) including an international nuclear fuel bank, 
international fuel cycle centers, and reliable fuel supply 
assurances.  Over time, these arrangements can be broadened 
to include the back end of the fuel cycle through cooperation 
in management of spent fuel and waste.   Such multilateral 
fuel cycle mechanisms would provide responsible states and 
their utilities with assurances that fuel will always be 
available for their nuclear plants. 
 
The U.S. domestic view 
 
In the United States, we believe that nuclear energy must 
remain a significant component of our own energy mix, and we 
continue to pursue the development of new capacity.  Although 
nuclear energy accounts for only about 20 percent of our 
total electricity production, it is the source of about 70 
percent of all our carbon-free electricity.  This we cannot 
ignore as we strive to meet our climate change objectives. 
 
Our current interest is driven in part by a set of 1992 and 
2005 legal provisions that authorize streamlined regulatory 
processes that combine both construction and operation 
licenses, government-backed loan guarantees, and tax credits 
for electricity produced from advanced nuclear power plants. 
As of March 2009, 17 power companies had applied for combined 
licenses for 26 new reactors, and another 6 companies had 
announced their intention for new licenses over the next 2 
years.  These license applications reference both U.S. and 
foreign reactor designs. 
 
Spent fuel management 
 
Looking towards the future, our Department of Energy is 
currently restructuring its fuel cycle activities, which were 
previously focused on the near-term deployment of recycling 
processes and advanced reactor designs, into a long-term, 
science-based, research and development program focused on 
the technical challenges associated with managing the back 
end of the fuel cycle.  These challenges will be thoroughly 
vetted and resolved as we explore long-term solutions for 
management and disposition of our spent nuclear fuel. 
 
The United States also remains committed to the Generation IV 
International Forum.  There are significant benefits to be 
gained by all member countries working together on Generation 
IV technologies in the form of shared resources and expertise 
and scientific efficiency. 
 
Though technical hurdles exist, we believe that progress made 
through a robust nuclear research and development program 
will one day equip us with the advanced tools necessary to 
deal with the third major challenge facing nuclear energy 
today ) the safe, secure, and sustainable management of 
spent nuclear fuel. 
 
Closing 
 
In closing, we are witnessing an unprecedented level of 
interest in nuclear energy worldwide.  While most new 
reactors will be constructed in existing nuclear energy 
states, tangible steps are being taken around the world 
towards brand new nuclear power programs. 
 
If deployed with the highest possible standards of safety, 
security, and nonproliferation, nuclear energy will play an 
essential role in combating climate change while advancing 
peace and promoting sustainable development worldwide.  The 
United States is firmly committed to playing its part to 
usher in the responsible expansion of nuclear energy. 
 
END SPEECH TEXT. 
 
¶4.  (U) Department thanks Mission for its assistance in this 
matter.  The Department's point of contact for this speech is 
Marc Humphrey (ISN/NESS). 
CLINTON