VZCZCXYZ0010
PP RUEHWEB

DE RUEHUNV #0144/01 0961535
ZNR UUUUU ZZH
P 061535Z APR 09
FM USMISSION UNVIE VIENNA
TO RUEHC/SECSTATE WASHDC PRIORITY 9247
RHMCSUU/DEPT OF ENERGY WASHINGTON DC PRIORITY
RUEANFA/NRC WASHDC PRIORITY
INFO RUEHII/VIENNA IAEA POSTS COLLECTIVE PRIORITY

UNCLAS UNVIE VIENNA 000144 
 
SENSITIVE 
SIPDIS 
 
STATE FOR ISN A-A/S KANG, IO/T, ISN/MNSA, ISN/NESS, ISN/RA 
NA-20 LOONEY/FINK, NA-20.1 KOONTZ 
NA-21 BIENIAWSKI/SHEELY/ILIOPULOS/STAPLES/DICKERSON , NA-25 
HUIZENGA/VOLGER, NA-243-GOOREVICH/BRUNNS; NA-241 O'CONNOR, 
LAMONTAGNE 
NRC FOR OIP - HENDERSON, SCHWARTZMAN 
 
E.O. 12958: N/A 
TAGS: AORC KNNP IAEA ENRG TRGY PTER EAID
SUBJECT: BEGINNING THE RIGHTSIZING OF THE IAEA OFFICE OF NUCLEAR 
SECURITY WITH THE 2010-2011 BUDGET PROPOSALS 
 
REF: (A) UNVIE 65 (B) UNVIE 74 
 
¶1. (SBU) SUMMARY.  An IAEA Office of Nuclear Security (ONS) 
presentation on the proposed IAEA 2010-2011 budget emphasized plans 
to re-organize, increase staff, and become a more focused operation 
if the proposed IAEA budget increase is approved.  The increase in 
regular budget resources for ONS would mainly go to bringing on 
regular staff, developing an information platform, analysis 
methodologies, develop databases and Integrated Nuclear Security 
Support Plans, completing a nuclear security framework, and 
establishing technical norms to support the framework.  There are 
several nuclear security items anchored in the regular budget 
increase that would bring broad benefits to developing countries. 
If adopted, the proposed 2010-2011 budget would begin to rightsize 
regular budget (RB) support for ONS upward from the five percent of 
program resources the RB currently provides (which IAEA DDG David 
Waller called "pathetic" during his February budget presentation). 
DG ElBaradei has been among strongest advocates of giving ONS the 
resources necessary to help prevent the use of nuclear and other 
radiological materials in terrorist acts.  End summary. 
 
¶2. (SBU) On March 18, Tim Andrews from the International Atomic 
Energy Agency's (IAEA) Office of Nuclear Security (ONS), within the 
Department of Nuclear Safety and Security, gave a presentation of 
the ONS vision for the funds proposed in the IAEA's 2010-2011 budget 
released in early February (REF A).  The presentation was hosted by 
the German Mission with several other key donors present, including 
the United Kingdom, Japan, Canada, and the Netherlands. 
 
------------------------- 
ONS 2008 Accomplishments 
------------------------- 
 
¶3. (SBU) The briefing began with a discussion by Mr. Andrews of the 
current expenditure, structure and accomplishments of the ONS.  The 
2008 regular budget of ONS is 1.1 million Euros and the total 
expenditure for 2008 was 22.9 million Euros, of which the United 
States provided close to 60 percent.  ONS is currently structured 
with 4 full time professional staff in three sections; Information 
Management and Coordination Section, Prevention Section, and 
Detection and Response to Malicious Acts Section. 
 
¶4. (SBU) The primary outputs by ONS for 2008 were 21 nuclear 
security related missions, 10 Integrated Nuclear Security Support 
Plans-INSSP (provides a platform for nuclear security work to be 
implemented over a period of time), physical protection activities 
underway in 12 States, more than 1500 radioactive sources removed, 
more than 170 kilograms of Highly Enriched Uranium (HEU) 
repatriated, detection equipment supplied to 24 States and nuclear 
security related training for more than 1600 people from 90 states. 
 
------------------ 
2010-2011 Funds 
------------------ 
 
¶5. (SBU) Andrews said that with the 2010-2011 proposed budgets, ONS 
is interested in establishing "regular and assured resources" for 
ONS activities; however, they do want the regular budget to continue 
to be supplemented by extra-budgetary contributions.  If the 
Secretariat's proposed budget goes through, ONS would re-structure 
the office into four sub-programs with the following titles; Needs 
Assessments and Information Coordination, Establishing a Global 
Nuclear Security Regime, Providing Nuclear Security Services, and 
Threat Reduction and Security Improvement. 
 
¶6. (SBU) In the Secretariat's 2010 budget proposal, the ONS proposed 
regular budget is slightly over 8 million Euros (reflecting an 
increase of over 600 percent from the current low level), and 
anticipated extrabudgetary supported is 15 million Euros down from 
16.7 million Euros in 2008.  For 2011, the proposed regular budget 
is slightly under 11.6 million Euros while extrabudgetary would 
decline to 11.2 million Euros.  Andrews said that the majority of 
the increased regular budget funds will be used for nuclear security 
activities that provide benefits across member states, including; 
development of information platforms, database development, program 
monitoring and INSSPs.  Extrabudgetary funds would be more focused 
on state-specific activities such as physical protection upgrades, 
source recovery, supplying detection equipment and remote 
monitoring. 
 
¶7. (SBU) ONS also expects to pay for more ONS staff with the regular 
budget funding.  ONS would like to expand from funding 7.31 
 
professional and general services staff from the regular budget to 
funding a total of 49.95 staff.  ONS expects the total number of 
staff in the office not to increase significantly from the number 
currently on board.  However, instead of consultants and cost free 
experts making up a majority of the current positions, these slots 
would be filled with professional and general services staff. 
 
---------------------- 
Program Support Costs 
----------------------- 
 
¶8. (SBU) Andrews also mentioned that due to unresolved issues over 
the new IAEA requirement to deduct Program Support Costs, ONS 
currently has 1.7 million Euros in tasks that are currently unfunded 
and only 50,000 Euros left unobligated.  ONS is being asked to 
prioritize and delay work due to the funding shortage.  However, 
Andrews also mentioned that the United Kingdom and Canada recently 
pledged 4 million pounds and 2 million dollars respectively and both 
agreed to pay program support costs at 7 percent. 
 
----------------------- 
Key Donor Comments 
----------------------- 
 
¶9. (SBU) Andrews left after the briefing and there was a discussion 
among those who attended about the 2010-2011 proposed budgets.  The 
German Mission host commented that this was a very good 
presentation, however, the European Union, "...are against the 
budget increase as a whole and would not like to see more money 
given to TC."  Canada and Netherlands both commented that they favor 
the increase in ONS funding.  However, the Netherlands does have a 
problem with the overall Agency increase of the budget of 23 
percent.  Japan also mentioned that the "300 percent" increase was 
not something they could support. 
 
------------ 
COMMENT 
------------ 
 
¶10. (SBU) ONS is attempting to become a more independent office that 
produces short and long-range plans that can only be executed with a 
steady flow of assured regular budget resources.  REF A made the 
case for "mainstreaming" the IAEA's nuclear security activities.  As 
part of this, Mission recommends the U.S. encourage additional 
regular budget resources for ONS.  In this priority we are in close 
accord with the Director General and DDG Waller, who argued 
passionately for mainstreaming nuclear security in the RB to budget 
hawks from like-minded missions, whom the Ambassador invited to 
dinner with senior NNSA officials March 30.  However, we also 
recognize the advantage of being able to give extrabudgetary funds 
that can be used to initiate and promote nuclear security activities 
that further specific USG interests.  In the expectation that 
nuclear security will steadily move under the regular budget, the US 
should also consider the potential for 49 professional and general 
services staff being hired within ONS and work with ONS to ensure 
some of those positions, particularly professional, are staffed with 
Americans.  The U.S. currently accounts for over 50 percent of ONS 
personnel, but all Amcits in ONS are Cost Free Experts.  If these 
positions are paid for with the regular budget in the future, all of 
these jobs would cross over, become competitive, and would open to 
non-Americans. 
 
SCHULTE