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OO RUEHWEB

DE RUEHUNV #0410/01 2401351
ZNR UUUUU ZZH
O 281351Z AUG 09
FM USMISSION UNVIE VIENNA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9986
INFO RUEHRO/AMEMBASSY ROME IMMEDIATE 0570
RUEHSM/AMEMBASSY STOCKHOLM IMMEDIATE 0298
RUEHII/VIENNA IAEA POSTS COLLECTIVE PRIORITY
RUEHGP/AMEMBASSY SINGAPORE PRIORITY 0066
RUEHPE/AMEMBASSY LIMA PRIORITY 0050
RUEHLB/AMEMBASSY BEIRUT PRIORITY 0032
RUEHUM/AMEMBASSY ULAANBAATAR 0030
RUEHTC/AMEMBASSY THE HAGUE 0313
RUEHTV/AMEMBASSY TEL AVIV 0276

UNCLAS UNVIE VIENNA 000410 
 
SENSITIVE 
SIPDIS 
 
STATE FOR T, IO/T, ISN/MNSA, ISN/RA 
NRC FOR OIP - DOANE 
DOE FOR S-1, NA-20-DAGASTINO; 
NA-243-GOOREVICH,OEHLBERT; 
NA-241 O'CONNOR; NA-21- CUMMINS; 
NE- MCGINNIS, PERKO, CLAPPER 
 
E.O. 12958: N/A 
TAGS: AORC KNNP IAEA ENRG TRGY
SUBJECT:  IAEA/General Conference: Train wreck or New Dawn ? 
 
REF: (A) UNVIE 359 (B) UNVIE 402 and previous (C) UNVIE 377 (D) 
UNVIE 397 
 
------- 
Summary 
------- 
 
¶1. (SBU) Traditionally, the September 14-18 53rd IAEA General 
Conference (GC) serves as a platform for promoting U.S. priorities 
on core IAEA issues, nuclear safety and security, strengthened 
safeguards and peaceful use of nuclear energy.  While we will 
continue to promote these priorities, we fear that Middle East 
issues will overshadow the substantive work of the 2009 General 
Conference, including on technical resolutions, as previewed ref A. 
Our objectives for the GC will be circumscribed by this reality. 
U.S. goals will include the following: 
 
-- GC approval of Director General-designate Yukiya Amano and 
approval of the 2010 budget:  If nothing else, these are the two 
Statutory "must-dos" for the General Conference, and both are 
expected to be pro forma endorsements of two important U.S. 
accomplishments this summer. 
 
-- Improving the divisive atmosphere in the General Conference and 
Board of Governors:  As we continue our effort in concert with 
like-minded to bridge North-South divisions, this overarching goal 
will be contingent on the outcome of the Middle East debate. 
 
-- Defeating or containing Iran's proposed agenda item on armed 
attacks against nuclear facilities and thereby signaling to Tehran 
that its effort at distracting international attention will not 
succeed. 
 
-- Containing the fallout from the Middle East: Limiting the 
spillover of the Middle East debate and expected Arab Group and 
Iranian "hostage-taking" of other GC resolutions will be a core 
objective.  Mission will advise USDEL to move technical resolutions 
expeditiously, even by vote in the absence of consensus.  At the 
same time, we should prepare for the contingency of a "no 
resolutions" conference if all else fails.  As previewed ref a, GC 
resolutions are not essential to the work of the Agency in core 
technical areas.  This is not a desirable outcome, however, since an 
impasse on Middle East issues and abandonment of the technical 
resolutions would be a clear signal that the atmosphere in Vienna is 
deteriorating, vice our strong desire to improve it, and could also 
be read as a decision on our part to make things worse among Member 
States before making them better.  Avoiding this "train wreck" 
scenario will require further intensive effort in Vienna and 
capitals. 
 
-- Highlighting nuclear security as a core IAEA function and 
furthering President Obama's goal of securing vulnerable nuclear 
material in four years:  In addition to GC deliberations on the 
nuclear security resolution, high-level consultations on the margins 
of the General Conference will elevate the profile of this issue. 
 
-- Preparation for the NPT Revcon:  High-level consultations on the 
margins of the IAEA General Conference will help lay the ground-work 
for the 2010 Revcon.  The tenor of the GC Middle East debate will 
also set the stage for the Revcon. 
 
¶2. (SBU) USDEL will focus on two key policy objectives: the 
disposition of Middle East issues with a view to a "new consensus" 
or, failing that, damage control as described above, and secondly, 
the setting aside or defeat of any resolution associated with Iran's 
supplemental agenda item on armed attacks against nuclear 
facilities.  Both of these issues have the potential to derail the 
General Conference.  Ref B previews agenda item 21 on the 
Application of IAEA Safeguards in the Middle East as well as the 
supplemental item on Israeli Nuclear Capabilities and the 
supplemental Iranian item on armed attacks.  Further guidance is 
requested on these issues with respect to the General Committee 
(agenda item 1 below) and the adoption of the agenda (agenda item 5 
below). 
 
¶3. (SBU) Ref A previews the GC resolutions under agenda items 15-19 
 
relating to core IAEA technical areas of nuclear safety, security, 
technical cooperation, nuclear applications and safeguards. 
Corresponding reports by the Director General for the September 
Board and General Conference are also previewed in ref D.  GC 
position papers need not repeat guidance on the DG reports already 
covered in the September Board but should include guidance on the 
respective resolutions, as appropriate.  There is no requirement for 
or expectation of prepared U.S. statements on these items in the 
Plenary; USDEL will draft EOVs as developments warrant.  Likewise, 
Ref c previews DPRK agenda item 22.  Several of the Six Parties 
deliver statements under this agenda item and corresponding 
resolution, but the U.S. does not usually speak.  Mission requests 
appropriate guidance on a U.S. statement on DPRK in the GC Plenary, 
if necessary.  All other GC agenda items are covered below. 
 
¶4. (SBU) Among other side-events, the annual Scientific Forum this 
year will be devoted to the theme of "Energy for Development" (para 
32).  The Department of Commerce (DOC) will also host a U.S. nuclear 
industry group on the margins of the GC (para 33). 
 
--------------  ---------------------------------------- 
Agenda Item 1:  Election of Officers / General Committee 
--------------  ---------------------------------------- 
 
¶5. (SBU) Election of Officers: The South East Asia Pacific (SEAP) 
group has selected New Zealand Ambassador Jennifer Macmillan to 
serve as the President of the 2009 General Conference.  The 
Secretariat has also been advised that UK Ambassador Smith will 
serve as Chairman of the Committee of the Whole (COW) on behalf of 
Western Europe.  As the first order of business, the General 
Conference will select eight Vice-Presidents nominated from each of 
the eight regional groups, who also serve on the General Committee. 
Thus far, the known nominees for GC Vice President are: United 
States (North America), Finland (Western Europe), Singapore(SEAP), 
Mongolia (Far East), Iran (MESA) and Sudan (Africa).  Eastern Europe 
and Latin America and the Caribbean (GRULAC) have not selected their 
respective nominees for VP as of yet; Russia usually claims the 
Eastern Europe slot and Peru is seeking the GRULAC VP slot.  This is 
the second consecutive year in which Iran has occupied the symbolic 
role of GC Vice President for MESA, which gives Iran a voice and 
vote on the General Committee as to the disposition of its 
supplemental agenda item (see below), but is otherwise without 
substantive importance. 
 
¶6. (SBU) General Committee:  The General Committee meets at the 
beginning of the GC and later as necessary to manage the agenda, 
examine credentials, consider requests to restore voting rights, 
revise the format of resolutions, and otherwise assist the GC 
President.  The President of the GC chairs the General Committee, 
which includes the eight Vice Presidents, the Chairman of the COW 
and six additional members this year.  The additional members will 
include Canada (North America), Italy (Western Europe), Lebanon 
(MESA) and Libya (Africa).  (Note: Lebanon is also the Chair of the 
Vienna Arab Group. End Note.)  Eastern Europe and GRULAC will also 
each nominate an additional member.  Thus the regional composition 
of the 2009 General Committee will be: 
 
--N. America: U.S. (VP) and Canada. 
--W. Europe:   Finland (VP) and Italy and COW Chair UK 
--E. Europe:   1 VP, 1 elected member 
--Africa:    Sudan (VP) and Libya 
--MESA:    Iran (VP) 
--GRULAC    1 VP and 1 elected member 
--Far East     Mongolia (VP) 
--SEAP     Singapore (VP) 
 
¶7. (U) At its first meeting on the opening day of the General 
Conference, the General Committee will consider the provisional GC 
agenda submitted to the June Board of Governors, along with two 
requests for supplementary agenda items: Israeli Nuclear 
Capabilities (INC) submitted by the Arab Group and an 
Iranian-proposed item entitled, "Prohibition of Armed Attack or 
Threat of Attack Against Nuclear Installations, During Operation or 
Under Construction"  (previewed ref B).  The General Committee 
report to the General Conference will include a recommendation as to 
the inclusion of these items on the agenda.  The General Committee 
 
cannot discuss the substance of the items except in so far as it 
bears upon the question of whether or not to include them.  (Note: 
This recommendation can be challenged in Plenary. End Note). 
 
¶8. (SBU) The General Committee will also convene, usually on the 
fourth day of the General Conference, as the Credentials Committee. 
This will be the occasion for a scripted exchange between the Arab 
Group and Israel on the latter's credentials, and also potentially a 
challenge to Honduras's credentials, in the unlikely event that 
Honduras sends a delegation to the General Conference.   Brazil and 
Mexico have advised the Secretariat that GRULAC members would 
challenge credentials presented on behalf of the "illegitimate" 
government of Honduras.  Since Honduras has been a no-show for 
previous General Conferences, the Secretariat considers this a 
remote possibility, but would observe UN practice (i.e., the 
disposition of Honduras's UNGA delegation) in any legal opinion, if 
so required.  For many years, the Arab-Israeli exchange of letters 
has followed an agreed formula, also involving an IAEA legal 
opinion.  The head of the Arab Group submits a formal reservation to 
Israel's credentials having been signed in "occupied Jerusalem." 
Israel responds with a letter disputing the reservation as 
politically motivated and irrelevant to the purpose of the GC rules 
of procedure and credentials.  The Credentials Committee "notes" 
each letter, thus giving each equal status.  The General Conference 
then approves agenda item 25 "Examination of Delegates' 
Credentials." 
 
¶9. (SBU) Recommendation and Action Request:  Mission recommends that 
the U.S. join consensus in endorsing the selection of officers and 
appointment of the General Committee, as proposed by respective 
regional groups.  USDEL should use the General Committee discussion 
of the supplemental item on the INC to underline our efforts to 
support a consensus approach to Middle East GC issues.  USDEL should 
voice strong reservations in principle, as in the past, and register 
disappointment as to Arab Group insistence on a second Middle East 
item singling out Israel, given the existing agenda item on the 
Application of Middle East Safeguards.  However, the U.S. should not 
provoke an agenda fight by opposing inclusion of this supplemental 
item, which has appeared on the agendas of successive General 
Conferences.   Mission welcomes elements for the U.S. statement in 
the General Committee on the INC item. 
 
¶10. (SBU) Recommendation and Action Request (continued):  The 
Iranian request for a supplemental agenda item on armed attacks 
against nuclear facilities is another matter.  As previewed ref B, 
USDEL should consider a General Committee challenge to the inclusion 
of the Iranian item should we have sufficient votes, i.e., a 
majority of eight, on the Committee.  It would be optimal if another 
like-minded Committee member called for a vote so as to reduce the 
likelihood of a tit-for-tat exchange between the U.S. and Iran on 
the Committee, but USDEL should be authorized to call a vote if no 
other delegation volunteers.  (Note:  There is no recent precedent 
of a General Committee challenge or vote against the inclusion of an 
item, though such a possibility is envisaged in the Rules of 
Procedure.  End note.)  USDEL will require strong procedural 
arguments to challenge this Iranian item given that the General 
Conference has adopted three previous resolutions on the subject in 
1985, 1987, and 1990.  While questioning Iranian motivations for 
this agenda item request, USDEL may also argue that the UN Security 
Council is the more appropriate body to address matters of 
international peace and security and that consideration of 
legally-binding instruments is a matter for the UNGA Sixth/Legal 
Committee.  USDEL should also underline, as UNVIE has done in 
informal consultations, that this item will complicate GC 
deliberations on the Middle East, despite Iranian pretentions of 
presenting the issue as a general matter disassociated from regional 
developments as well as the Arab Group's desire to keep the issues 
separate.  Many delegations have indicated to us confusion over 
whether Iran intends to table a resolution in connection with this 
item.  There is little enthusiasm for such a development, but much 
wider sympathy for the idea that Member States should be able to 
discuss attacks on nuclear facilities.  A further option within the 
scope of the General Committee is to refer the Iranian item to the 
COW; Mission recommends against this as it would politicize the work 
of the COW on technical resolutions and likely be opposed by the UK 
COW Chair. 
 
¶11. (SBU) Recommendation and Action Request (continued):  A General 
Committee recommendation against inclusion of this supplemental 
agenda item may dissuade Iran from calling a Plenary vote on the 
adoption of the agenda, which is usually adopted by consensus. 
Since the General Committee only makes recommendations, a Plenary 
vote is still possible, and we will need to assess the chances of 
the Committee's recommendation being overturned in Plenary.  By the 
same token, if the General Committee recommends inclusion of the 
Iranian item, the U.S. or like-minded can also call a vote in 
Plenary to seek deletion of this item from the agenda by 
simple-majority vote.  USDEL seeks Department guidance and elements 
for U.S. statements in the General Committee and/or Plenary on the 
disposition of the Iranian agenda item, including any legal analysis 
as to the appropriateness of the item within the scope of the IAEA 
mandate.  Mission notes that any chance of successfully defeating 
the Iranian item in the Plenary must be preceded by a strong 
demarche in capitals.  Per ref b, the NAM sent DG ElBaradei a letter 
supporting inclusion of the agenda item, but Egypt and other NAM 
contacts have told us the NAM position is based on the principle of 
not blocking discussion of items on procedural grounds, vice strong 
substantive support for Iran.  To win a Plenary vote, we would have 
to splinter any semblance of NAM unity on this issue, perhaps via an 
appeal to prevent Iran from further politicizing and sidetracking 
the GC. 
 
¶12. (SBU) Recommendation and Action Request (continued):  With 
respect to the Credentials Committee, USDEL will require contingency 
guidance in the unlikely event Honduras seeks to seat a delegation. 
 
 
-------------- -------------------------- 
Agenda Item 2: Applications for Membership 
--------------  -------------------------- 
 
¶13. (U) To date, the Board of Governors has not received or referred 
any new applications for IAEA membership to the General Conference. 
A membership request by Cambodia may be forthcoming for the 
September Board for approval by the General Conference.  Cambodia 
was an IAEA member 1958-2003 and its membership application is 
problematic due to significant arrears.  The Secretariat is seeking 
to finalize a re-payment plan for Cambodia before submitting its 
membership application to the Board and General Conference. 
Recommendation and Action Request:  Assuming that Cambodia agrees to 
repayment of arrears, as is expected, Mission recommends that USDEL 
join consensus in approving its membership application. 
 
-------------   ------------------------------------- 
Agenda Item 3:  Message from the UN Secretary General 
--------------  ------------------------------------ 
 
¶14. (U) A ceremonial message from the UN SYG is read just before the 
DG's statement. 
 
-------------   ---------------------------------- 
Agenda Item 4:  Statement by the Director General 
--------------  --------------------------------- 
 
¶15. (U) This will be DG ElBaradei's swan-song, the last time he will 
address the IAEA General Conference as Director General.  We are 
advised to expect a lofty and sweeping statement to include 
ElBaradei's personal reflections on his twelve-year tenure as 
Director General and the future of the Agency as well as on the 
non-proliferation regime.  We can expect him to go well beyond his 
brief as IAEA DG in addressing disarmament and assume the mantle of 
Nobel Laureate for the occasion.  This will certainly diverge from 
the normal format of covering the GC agenda, and likely focus on 
"legacy issues" which may include Iran, or more helpfully, nuclear 
security and fuel banks.  Following the General Conference, the DG 
will deliver similar remarks to the UNGA in early November. 
 
--------------  ---------------------------------------- 
Agenda Item 5:  Arrangements for the Conference / Agenda 
--------------  ---------------------------------------- 
 
¶16. (SBU)(a) Adoption of the Agenda:  Breaking from the customary 
practice of adopting the agenda by consensus would be a major shift 
in the General Conference dynamic.  Depending on developments in the 
General Committee, i.e., whether or not the Committee recommends 
inclusion of the supplemental Iranian item on armed attacks (paras 
9-10, ref B), the onus of breaking consensus will either fall upon 
Iran or U.S./like-minded.  In accordance with Rule 18, the 
provisional agenda and report of the General Committee is submitted 
to the General Conference for approval.  There is no precedent in 
recent memory of calling for a vote on the agenda and recommendation 
of the General Committee.  If the recommendation is to exclude the 
item, Iran could call a vote in Plenary to reject the General 
Committee's recommendation and seek inclusion of the item.  If the 
General Committee recommendation is to include the item, 
U.S./like-minded could seek its deletion in the Plenary in 
accordance with Rule 22 allowing amendment or deletion of an item by 
majority vote. 
 
¶17. (SBU) Recommendation and Action Request:  Mission recommends 
that USDEL join consensus in adopting the provisional agenda and 
General Committee report recommending exclusion of the Iranian 
agenda item.  If Iran calls for a Plenary vote to overturn the 
recommendation of the General Committee, USDEL should vote "no" and 
rally others to do the same.  In the contingency that the General 
Committee recommendation is to include the Iranian item, i.e., 
because we lacked sufficient votes in Committee to exclude it, 
Mission recommends giving USDEL the option to call for or support 
deletion of the item from the agenda by Plenary vote.  USDEL should 
consider the advisability of this option, which places the onus on 
us for disrupting the General Conference, based on our chances of 
success.  Alternatively, USDEL may pursue other procedural options 
(ref B) upon consideration of the Iranian item later in the General 
Conference.  In addressing this issue, we need to bear in mind that 
whatever diplomatic capital we are forced to expend will inevitably 
detract from resources we will need to prevail on other Middle East 
items. 
 
¶18. (U)(b) Closing date of the Session and the Opening of the Next 
Session:  The GC will be asked to confirm that the closing date of 
the current 53rd General Conference will be Friday, September 18, 
2009 and that the opening date of the 54th General Conference will 
be September 20, 2010.  Recommendation and Action Request:  Mission 
recommends that USDEL join consensus in approving the dates. 
 
-------------  ------------------------------------- 
Agenda Item 6: Approval of the Appointment of the DG 
-------------  ------------------------------------- 
 
¶19. (U) The General Conference is expected to approve by acclamation 
the Board's appointment of Yukiya Amano as the next Director General 
for a term of four years, from December 1, 2009 to November 30, 
¶2013.  The Director General-designate  will make an acceptance 
speech.  In addition, the General Conference will be asked to 
approve a resolution entitled "Tribute to the Director General," 
which confers upon Dr. ElBaradei the customary title of IAEA 
Director General Emeritus (previewed ref D.) 
 
¶20. (U) Recommendation and Action Request:  Mission recommends that 
USDEL join consensus on the approval of the Director General and the 
tribute to ElBaradei.  As Chairman of the North America Group, the 
United States is expected to deliver a short regional group 
statement welcoming DG-designate Amano and paying tribute to 
ElBaradei.  Mission requests early submission of a draft statement 
so that we can consult with Canada (the only other member of the 
North America Group) in advance of delivery. 
 
-------------  ------------------------------------- 
Agenda Item 7: Contributions to the TC Fund for 2009 
-------------  ------------------------------------- 
 
¶21. (U) Under this agenda item, the GC President requests Member 
States to confirm pledges to the Technical Cooperation Fund (TCF), 
and notes that such pledges can be made during the course of the 
General Conference.  Recommendation: No USDEL action is needed. 
 
-------------   ------------------------------------- 
Agenda Item 8:  General Debate and Annual Report 2008 
-------------   ------------------------------------- 
 
¶22. (U) For the first three days of the General Conference, while 
most of the substantive work is taking place in the Committee of the 
Whole, the Plenary is devoted to the 
"General Debate."  It is essential that an accredited member of the 
U.S. delegation sit in the Plenary whenever it is in session in case 
another delegation proposes an undesirable parliamentary action. 
The General Debate is not a debate, but rather the time when heads 
of delegation deliver formal remarks.  Delegates are asked to keep 
their remarks to 15 minutes, but evening sessions are often required 
for all of the statements to be made.  Heads of delegation of 
Ministerial rank are given earlier time slots than lower ranking 
speakers.  At least twenty Ministers of Energy or Foreign Affairs 
are expected to attend the GC.  Secretary Chu will be among the 
first Ministers speaking in the morning of September 14.  The 
Secretary currently has the third speaking slot after Afghanistan 
and Ghana and followed by China, Sweden (EU Presidency), Egypt and 
Russia in the afternoon session.  Speakers use the General Debate to 
highlight issues of importance to them.  For example, Arab states 
always call on Israel to sign the NPT and place its nuclear 
facilities under IAEA safeguards.  The G-77 and China call on donor 
states to contribute their full share to the Technical Cooperation 
Fund (TCF.)  Although the issue of Iran's nuclear program is not on 
the GC agenda, Mission will take note of any interventions that 
touch on this and other verification issues.  Recommendation:  As 
the first Ministerial statement to the IAEA General Conference under 
the Obama Administration, Mission recommends that Secretary Chu's 
statement encapsulate U.S. goals and priorities with respect to the 
Agency, including nuclear safety, security, safeguards and peaceful 
uses of nuclear energy.  The Secretary may also thank DG ElBaradei 
for his service and welcome DG-designate Amano. 
 
¶23. (U) The GC is required by the IAEA Statute to consider the 
annual report of the previous year, which is contained in GC(53)/7. 
The Board of Governors approved the report at its June meeting. 
Recommendation and Action Request: Mission recommends that the U.S. 
delegation be authorized to join consensus in approving the 2008 
annual report. 
 
--------------  ----------------------------------- 
Agenda Item 9:  Elections to the Board of Governors 
--------------  ----------------------------------- 
 
¶24. (SBU) The GC is required to elect 11 members to the Board for 
two years, according to a regional distribution determined by the 
Agency's Statute.  This agenda item is usually addressed on the 
fourth day of the Conference after the General Debate.  The GC 
normally ratifies agreed candidates selected by the regional groups. 
 The Africa group has not yet agreed on two candidates to fill the 
Board seats being vacated by Algeria and Ghana.  At present, there 
remain four candidates for the Africa seats: Libya, Tunisia, Niger 
and Cameroon.  Although the Africa group is expected to come to 
agreement in advance of the General Conference, there is a recent 
precedent of a contested election for the Africa group Board seats 
in 1997.  If an election is required, the GC President would likely 
name the countries interested, and conduct several votes by secret 
ballot with a simple majority required for election to either of the 
two seats. 
 
¶25. (SBU) The other regional groups have agreed on the following 
candidates to fill their respective regional seats: 
 
-- GRULAC: Peru, Venezuela 
-- Western Europe:  Denmark, The Netherlands 
-- Eastern Europe: Azerbaijan, Ukraine 
-- Far East: ROK and Mongolia (floating seat) 
-- MESA: Pakistan 
 
The outgoing elected Board members are: Albania, Lithuania, Ireland, 
Switzerland, Mexico, Ecuador, Iraq, Saudi Arabia, Philippines, 
Algeria and Ghana.  (Note: Switzerland will remain on the Board as a 
designated member replacing Finland, which will leave the Board. End 
Note.) 
 
¶26. (SBU) Recommendation and Action Request: Mission recommends that 
 
USDEL join consensus in approving all nominations on behalf of 
regional groups for elected Board members.  USDEL requests 
contingency guidance on which of the Africa Group contenders (Libya, 
Tunisia, Niger and Cameroon) to vote for in a secret ballot 
election, if the group does not come to agreement.  It is customary 
but not required that one elected Africa Group member be from North 
Africa and the other from Sub-Saharan Africa. 
 
-------------  ------------------------------ 
Agenda Item 10   The Agency's Accounts for 2008 
-------------  ------------------------------ 
 
¶27. (U) U) The General Conference will be asked to take note of the 
Agency's Accounts for 2008 and of the External Auditor's report. 
The Accounts were accepted by the Program and Budget Committee in 
its April 27, 2009 session. (In future versions of this document, 
the Secretariat has indicated it will report the income and 
disbursements from the newly-established Program Support Cost 
"sub-fund.")   Recommendation and Action Request: Mission recommends 
that the U.S. delegation join consensus in noting the Accounts and 
the External Auditor's report. 
 
-------------  ---------------------------------- 
Agenda Item 11   The Agency's Budget for 2010-2011 
-------------  ---------------------------------- 
 
¶28. (U) (U) The General Conference will be asked to approve the 2010 
Budget, in accordance with the recommendation from the August 
Special Board.  After intensive U.S. efforts, the Budget entails a 
2.7 percent real growth increase and a 2.7 percent price adjustment, 
along with a number of cost-cutting measures.  A Capital Investment 
Fund is established and will initially be used to fund upgrades to 
the Safeguards Analytical Laboratory.  The 2010 Regular budget  will 
total 318.3 million Euros, with the largest increases from 2009 
levels in Nuclear Security and Safety, Management of Technical 
Cooperation, Nuclear Power and Nuclear Applications.  The General 
Conference will also approve the TCF target for 2010 of 85 million 
USD.  Recommendation and Action Request: Mission recommends the U.S. 
delegation join consensus to approve the 2010 budget resolution. 
Delegation should also accept a 2010 TC voluntary contribution 
target of USD 85 million. 
 
-------------  ---------------------------------- 
Agenda Item 12   Appointment of the External Auditor 
-------------  ---------------------------------- 
 
¶29.  (SBU) The tenure of the Agency's External Auditor will end with 
the completion of the audit of the Agency's accounts for 2009. 
Germany, the incumbent, struggled with India and Morocco for several 
months over Germany's wish for a fourth and final two-year 
appointment to continue the job of auditing the Agency's accounts 
for 2010-2011.  Morocco eventually withdrew and India is reportedly 
poised to accept a deal that allows for Germany's continued tenure. 
Barring some change in this status quo, the September Board will 
recommend that Germany's Federal Audit Chamber be re-appointed as 
External Auditor for 2010 and 2011.  Recommendation and Action 
Request: Mission recommends that the U.S. delegation join consensus 
in approving the Board's recommended appointment of Germany as 
External Auditor. 
 
--------------  -------------------------- 
Agenda Item 13  Amendment to Article XIV.A 
--------------  -------------------------- 
 
¶25. (U) The 1999 General Conference approved this amendment, the 
purpose of which is to promote the benefits of biennial budgeting. 
The Secretariat informs Member States in GC (53)/INF/5 of the 
progress of the amendment's ratification by a two-thirds majority of 
Member States for entry into force in accordance with the GC 
statute.  Only 44 Member States have ratified thus far, one more 
than last year; 100 ratifications are required for entry into force. 
 The United States is not among those that have ratified. 
Recommendation and Action Request: Mission recommends the U.S. 
delegation joins other Member States in taking note of the report. 
 
--------------  -------------------- 
Agenda Item 14   Scale of Assessment 
--------------  -------------------- 
 
¶26. (U) The General Conference will be asked to approve the scale of 
assessments for 2010.  Recommendation and Action Request: Mission 
recommends that the U.S. delegation be authorized to join 
consensus. 
 
--------------  ----------------------- 
Agenda Item 22   Amendment to Article VI 
--------------  ------------------------ 
 
¶27.  The 1999 General Conference approved this amendment, the 
purpose of which is to expand Board membership from 35 to a total of 
43 Member States to provide a "more democratic representation" of 
the Board.  The numbers of elected and "designated" members "most 
advanced in the technology of atomic energy" in different regional 
groups under Article VI (a) would increase, to include the expected 
designation of Pakistan and the ROK.  The two requirements for entry 
into force of this amendment have not been met: ratification by 
two-thirds of Member States, and confirmation by the GC of a list, 
adopted by the Board, whereby each Member State is allocated to one 
of the regional groups (including Israel in MESA) referred to in 
Article VI (1)(a).  The Secretariat informs Member States in 
GC(53)/10 of progress on the amendment's ratification.  Thus far, 48 
states have ratified, out of a total of 100 required for entry into 
force.   The United States has not ratified this amendment. 
Recommendation and Action Request:  USDEL should join consensus in 
taking note of these ratifications. 
 
--------------  ---------------------------------------- 
Agenda Item 23  Elections to the Staff Pension Committee 
--------------  ---------------------------------------- 
 
¶28. (U) The GC will be requested to approve the election of an 
alternate member of the Agency's Staff Pension Committee.  The 
alternate member from the UK will become a full member, replacing a 
member from South Africa.  Morocco has informally nominated an 
alternate.  Recommendation and Action Request:  Mission recommends 
that the USDEL join consensus. 
 
--------------  ---------------------------------- 
Agenda Item 24  Personnel: (a) Staffing, (b) Women 
--------------  ---------------------------------- 
 
¶29. (U) The General Conference will be requested to receive two 
reports on Secretariat staffing issues by nationality and gender, 
which are expected to be approved by the September Board. 
Recommendation and Action Request:  Mission recommends that the U.S. 
delegation join consensus in receiving the two reports. 
 
-------------  ------------------------------------- 
Agenda Item 25   Examination of Delegates Credentials 
--------------  ------------------------------------- 
 
¶30. (U) Paras 10 and 12 preview this agenda item, which is raised 
within the General Committee.  Recommendation and Action Request: 
USDEL should join the expected consensus in approving the General 
Committee's report.  USDEL seeks guidance should a credentials 
challenge arise with respect to Honduras, as previewed in para 10. 
 
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Agenda Item 26   Report on TCF Fund Contributions 
--------------  ---------------------------------- 
 
¶31. (U) The GC President will report on pledges for the TC Fund, 
including those made during the General Conference (para 21). 
Recommendation and Action Request:  No U.S. action is necessary. 
 
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Scientific Forum 
---------------- 
 
¶32. (U) The IAEA Scientific Forum, being held September 15-16 on the 
margins of the General Conference, will focus on Energy for 
Development.  The forum will be divided into four sessions: Energy 
for Development - The Issues, Energy Demand, Energy Supply, and 
International Institutional Implications.  The first session will 
review principle issues surrounding energy development and the lack 
of access to modern energy services.  The second session will 
discuss essential drivers of energy demand and the prospects for 
energy efficiency improvements in end-use sectors.  The third 
session will focus on energy resource availability and supply 
technology options (renewable, fossil, and nuclear).  The fourth 
session will explore the role of international organizations in 
advancing energy for development.  U.S. private experts speaking at 
the conference are former White House Science Adviser John H. 
Gibbons from Resource Strategies and Thomas Schelling.  Richard 
Cirillo from Argonne National Laboratory and DOE DAS Carmen Difiglio 
will also speak. 
 
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U.S. Industry Event 
------------------- 
 
¶32. (U) The Department of Commerce (DOC) will host a U.S. nuclear 
industry delegation on the margins of the GC to promote U.S. 
services and technologies to interested IAEA Member States.  DOC, 
DOS, and DOE continue to support the involvement of U.S. companies 
in the global expansion of nuclear energy and want to ensure that 
U.S. industry is well-positioned to take advantage of the growing 
business opportunities.  The DOC sponsored three-day program for 
approximately 30 representatives of U.S. firms will focus on 
participation in the U.S. technologies and services exhibit, in the 
U.S. policymaker roundtable, and in technologies and services 
seminars. 
 
DAVIES