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DE RUEHBJ #3096/01 3170033
ZNR UUUUU ZZH
P 130033Z NOV 09 ZDK
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC PRIORITY 6794
INFO RUEHOO/CHINA POSTS COLLECTIVE
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UNCLAS SECTION 01 OF 14 BEIJING 003096 
 
STATE FOR EAP/CM-BRAUNOHLER, EAP/CM 
STATE FOR OES DAS MIOTKE 
STATE FOR S/SECC-STERN, S/P-GREEN 
STATE FOR ISN/NESS 
USDOE FOR NUCLEAR ENERGY/ MCGINNIS 
USDOE FOR NNSA/ SCHEINMAN, GOOREVICH, WHITNEY 
STATE PASS TO NUCLEAR REGULATORY COMMISSION (DOANE) 
USDOE FOR INTERNATIONAL/YOSHIDA, BISCONTI, HUANGFU 
USDOE FOR INTERNATIONAL 
NSC FOR HOLGATE 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ENRG ECON ETTC TRGY KNNP IAEA KTIA CVIS CH
 
SUBJECT: GNEP BEIJING MINISTERIAL - AGREEMENT TO CONSIDER 
TRANSFORMATION TO THE INTERNATIONAL NUCLEAR ENERGY FRAMEWORK (INEF) 
 
REF A:  09 STATE 106834 
REF B:  BEIJING 2978 
 
BEIJING 00003096  001.4 OF 014 
 
 
Sensitive but unclassified - please protect accordingly. 
 
¶1.   (SBU) SUMMARY: China--led by National Development and Reform 
Commission (NDRC) Vice Chairman and National Energy Administration 
(NEA) chief ZHANG Guobao--hosted the third Global Nuclear Energy 
Partnership (GNEP) Executive Committee meeting on October 23 in 
Beijing.  The U.S. delegation was led by Department of Energy (DOE) 
Deputy Secretary (DEPSEC) Daniel Poneman. 
 
¶2.  (SBU) At the meeting, all partners agreed to consider 
U.S.-proposed transformations to GNEP.  First, all partners agreed 
to consider the elimination of the requirement that states sign a 
Statement of Principles to become partners, a step we understand has 
dissuaded certain key states from participating; instead, states 
would be asked simply to associate themselves with a simpler and 
wider-ranging vision statement.  Second, all partners agreed to 
consider renaming the partnership the "International Nuclear Energy 
Framework" (INEF) to acknowledge the wider scope and broader 
participation envisioned under the transformation.  At the meeting, 
the partners also agreed to explore ways to enhance the 
international framework for civil nuclear energy cooperation, and 
 
BEIJING 00003096  002.4 OF 014 
 
 
agreed that "cradle to grave" nuclear fuel management could be one 
important element of this framework.  The concept of cradle-to-grave 
nuclear fuel management could be explored in more detail through 
GNEP/INEF working group activities.  END SUMMARY. 
 
USG-Proposed Transformation of GNEP 
----------------------------------- 
¶3.  (SBU) In his April 5 Prague speech, President Obama called for a 
new framework for civil nuclear cooperation, including an 
international fuel bank, so that countries can access peaceful 
nuclear power while minimizing the risks of proliferation.  The 
Global Nuclear Energy Partnership (GNEP) is a well-established 
international partnership, with technical and political 
representation, created to promote reliable, advanced nuclear fuel 
services and technologies.  It is well suited to support President 
Obama's call for a new civil nuclear cooperation framework. 
Therefore, the United States is proposing a transformation whereby 
GNEP would serve as a forum to develop wide-ranging support for and 
facilitate implementation of the elements outlined by President 
Obama(ref A). 
 
¶4.  (SBU) At the GNEP Executive Committee meeting on October 23, 
2009 in Beijing, the United States proposed two transformations to 
GNEP.  The first was a simple, wide ranging "vision statement" 
 
BEIJING 00003096  003.4 OF 014 
 
 
intended to broaden the scope of partnership activities (see para 
11).  This is designed to replace the GNEP Statement of Principles, 
signature of which has been a requirement for states to become full 
partners of GNEP.  Since certain key states have been reluctant to 
sign up to these principles, this change is also designed to promote 
wider participation in the future.  Second, the United States has 
proposed a renaming of the Partnership to the "International Nuclear 
Energy Framework" (INEF) to reflect that broader scope and wider 
participation, and to decouple the initiative from certain negative 
connotations associated with the name GNEP.  In addition to these 
proposed changes to the structure of GNEP, the United States 
proposed, and partners agreed to consider, the concept of 
"cradle-to-grave" (CTG) fuel cycle services as one important element 
of an enhanced framework for civil nuclear cooperation. 
 
Preliminary consultations 
------------------------- 
¶5.  (SBU) Two weeks prior to the October 23 Executive Committee 
(Ministerial) meeting, the USG began reaching out to the 24 other 
GNEP partners and key observer states to explain and seek support 
for the proposals on name change, vision statement, and CTG fuel 
services.  Initially, the United States called for all partners to 
adopt the proposed transformations at the Ministerial meeting, at 
which point the Steering Group (which oversees day-to-day GNEP 
 
BEIJING 00003096  004.4 OF 014 
 
 
functions) would develop a strategy to implement the changes by 
April 2010.  The majority of partners concurred with this proposal 
and voiced support for the CTG concept, with Australia and Jordan 
offering particularly enthusiastic comments. 
 
¶6.  (SBU) However, several partners raised concerns.  Russia felt 
that more time was needed to review the suggested changes to the 
GNEP structure.  It also expressed concerns with the CTG concept 
that governments accept liability for used fuel.  France and Russia 
noted discomfort with the word "framework" in the proposed name, and 
France offered "forum" as an alternative.  France and Japan 
expressed concern over the characterization of existing used fuel 
recycling technologies in the CTG concept paper, and called for a 
softening of the language.  Finally, China repeatedly queried the 
United States and others on the need for a renaming of the 
partnership, though this seemed to fall short of an outright 
objection.  Since GNEP operates upon a principle of consensus, these 
views led to Steering Group agreement on October 22 not to accept 
the changes straight away, but to "explore some Partners' proposal 
for renaming" the partnership and to "examine" the draft vision 
statement. 
 
Ministers Task Steering Group to Explore Changes 
--------------------------------------------- --- 
 
BEIJING 00003096  005.4 OF 014 
 
 
¶7.  (SBU) NEA Administrator Zhang chaired the October 23 Ministerial 
meeting, at which DEPSEC represented the United States.  In all, 42 
countries attended the meeting (including 24 Partners) along with 
two observer organizations -- the International Atomic Energy Agency 
(IAEA) and the Generation IV International Forum.  The U.S. 
delegation included representatives from the Departments of Energy, 
State, and Commerce, the Nuclear Regulatory Commission, and the 
National Security Council. 
 
¶8.  (SBU) Executive Committee members supported consideration of the 
U.S.-proposed changes, and the Steering Group's decision to 
"explore" the proposed renaming and "examine" the vision statement 
were captured in the agreed Joint Statement (see para 11 for full 
text).  Notable contributions by participating Principals included 
the following: 
 
-- DEPSEC noted the importance of leadership of all those attending 
the Executive Committee meeting for meeting collective long-term 
nuclear energy and climate change goals. DEPSEC referred to 
President Obama's call for a new framework for civil nuclear 
cooperation so that all countries can access peaceful nuclear power 
while minimizing proliferation risks. This framework could build on 
commercial models that exist today, to provide reassurance to the 
market and enhanced energy security.  Confidence will come in the 
 
BEIJING 00003096  006.4 OF 014 
 
 
form of dependable fuel services that address the needs associated 
with all aspects of the commercial fuel cycle.  DEPSEC stated U.S 
interest in engaging with partners to explore practical ways to 
implement the concept of cradle-to-grave fuel services, building on 
the work of GNEP's Reliable Nuclear Fuel Services Working Group. 
DEPSEC noted that GNEP provides a suitable platform upon which 
states can work together to build a useful framework that is 
acceptable to all. 
 
-- Zhang noted that GNEP is now one of the most influential 
international initiatives on civil nuclear energy and stated that 
efforts to "reform the initiative" would yield fruitful results. 
Moreover, the proposed changes constitute a pragmatic approach to 
developing nuclear energy programs while minimizing the risk of 
proliferation (see ref B for more on Zhang's private remarks 
regarding the U.S. proposal).  In his closing remarks he stated that 
it did not make economic or commercial sense for aspiring nuclear 
energy countries to develop costly enrichment and reprocessing 
facilities. 
 
-- Keisuke Tsumura, the Parliamentary Secretary of Japan's Cabinet 
Office, commented that the Government of Japan, now under the new 
Hatoyama Administration, would continue to cooperate under GNEP and 
would "respect" the proposals described in the Joint Statement. 
 
BEIJING 00003096  007.4 OF 014 
 
 
 
-- Bernard Bigot, Chairman of France's Atomic Energy Commission, 
stated France would take the proposed changes seriously, 
understanding that it is often necessary to adjust in the face of 
new international circumstances.  He then called for "careful study" 
to ensure against any shift away from the ideas enshrined in the 
original Statement of Principles. 
 
-- Vladimir Kuchinov, Councilor to the Director General of the 
Russian State Atomic Energy Corporation (Rosatom), stated that the 
U.S.-proposed transformation is "quite important" and merits serious 
study, while the CTG proposal was "also very important" and needs to 
be discussed. 
 
-- Dr. Myung Seung Yang, President, Korea Atomic Energy Research 
Institute (KAERI) of the Republic of Korea voiced support for the 
"expansion" of GNEP to INEF at an "important time," while stating 
that the CTG approach was a "good concept." 
 
-- Argentine Secretary of Energy, Daniel Cameron, stated his 
government's view that the "redefinition of this initiative" would 
increase scope and participation.  While stating that Argentina is 
"prepared to play a constructive role in this process," he cautioned 
that Argentina could not participate in GNEP if it believed this 
 
BEIJING 00003096  008.4 OF 014 
 
 
participation would infringe on its right to further develop its 
peaceful nuclear power program. 
 
¶9.  (SBU) Comment:  At the meetings close, the United States walked 
away with agreement for the consideration of the proposed 
transformations.  However, this is only the first step and the 
United States will have to work closely with other partners over the 
next few months to reach consensus on the changes.  End Comment. 
 
Side Meeting on Nuclear Security Summit 
--------------------------------------- 
¶10.  (SBU) Taking advantage of the participation of senior officials 
from the atomic energy ministries, a side meeting was held by U.S. 
National Security Council Senior Director for Weapons of Mass 
Destruction, Laura Holgate, to discuss the upcoming Nuclear Security 
Summit, which will be hosted by the White House in April 2009. 
Holgate included the GNEP delegations who have been invited to the 
Nuclear Security Summit to receive an update on the Summit plans and 
to review preparations which are underway.  The meeting was well 
attended by approximately 14 delegations and provided a chance to 
discuss the U.S. goals and objectives for the Summit meeting. The 
Summit's key goals will be securing vulnerable stockpiles of nuclear 
materials from theft and boosting global cooperation to combat the 
trafficking of nuclear materials. 
 
BEIJING 00003096  009.4 OF 014 
 
 
 
Joint Statement 
--------------- 
¶11.  (U) Begin Joint Statement Text: 
 
Global Nuclear Energy Partnership Joint Statement 
Third Executive Committee Meeting 
Beijing, China 
23 October 2009 
 
The third Global Nuclear Energy Partnership (GNEP) Executive 
Committee Meeting was held in Beijing, China, on 23 October 2009, 
where ministers and other senior officials met to review and discuss 
ongoing GNEP activities, the results of these activities, and 
further steps to the peaceful use of nuclear energy in a manner that 
promotes safety, security and non-proliferation. 
 
The Executive Committee welcomed 3 new Countries, which at this date 
comprises 25 Partner and 31 Observer nations.  The GNEP Partners 
represent different countries from different economic and technical 
stages of development as well as major geographic regions throughout 
the world. The broad diversity of nations predicated on a core 
operating principle of co-equal consensus-based decision-making 
represents one of the greatest strengths of the Partnership. 
 
BEIJING 00003096  010.4 OF 014 
 
 
 
The Executive Committee reviewed and acknowledged the activities of 
the Infrastructure Development Working Group and Reliable Nuclear 
Fuel Services Working Group. The Executive Committee also received 
the report from the Steering Group concerning how the Partners have 
worked with the international community, in accordance with the GNEP 
2008 Joint Statement, to promote the expansion of the peaceful use 
of nuclear energy to meet the challenge of global climate change, to 
contribute to the sustainability of energy supply, and to pursue new 
ways to support nuclear energy projects through financing 
mechanisms. 
 
The Infrastructure Development Working Group (IDWG) reported on the 
following: it expanded its analysis of global human resources needs 
and created a Human Resources Modeling Tool, enhanced the on-line 
Infrastructure Development Resource Library, and completed an 
infrastructure assessment in Jordan and began another in Ghana; it 
held Resources and Gaps Workshops on human resources development as 
well as small and medium reactors, and it further engaged with 
external entities, including industry and academia. Finally, it 
created a Subgroup on Radioactive Waste Management and began 
activities in that area. 
 
The Reliable Nuclear Fuel Services Working Group (RNFSWG) reported 
 
BEIJING 00003096  011.4 OF 014 
 
 
the following: it received reports from its sub-group on Lessons 
Learned and Resource Requirements; it established a second sub-group 
on Assurances a Country Should Seek as Sufficient for Nuclear Fuel 
Supply; it agreed on a work scope for a third sub-group on 
Approaches for Selecting Back-End Fuel Cycle Options as recommended 
by the Steering Group; it received IAEA presentations on fuel 
fabrication and multilateral nuclear approaches; and it hosted a 
workshop on the impact of fuel fabrication on fuel supply assurance 
which included the findings of an expert study on the international 
fuel fabrication market. 
 
At the meeting, the Executive Committee reconfirmed that the use of 
nuclear energy is an effective measure against global warming and 
contributes to greater global energy security. The Executive 
Committee also recognized that the expansion of the peaceful use of 
nuclear energy will help lead to the creation of employment and 
sustainable economic growth. The Executive Committee reconfirmed 
that safety, security and non-proliferation/safeguards are 
fundamental prerequisites for the peaceful use of nuclear energy, 
and concluded that all Partnership activities should be conducted in 
a manner that enhances them. 
 
Furthermore, the Partners are going to continue to support the 
development of the peaceful uses of nuclear energy globally in a 
 
BEIJING 00003096  012.4 OF 014 
 
 
safe and secure manner.  The Partners concurred that they will work 
with the international community in a cooperative and positive 
manner, to: 
 
(1) Further strengthen cooperation with the International Atomic 
Energy Agency (IAEA) and other relevant international organizations 
in order to make Partnership activities as effective and efficient 
as possible. 
 
(2) Establish global recognition that the peaceful use of nuclear 
energy is an effective measure against global warming and 
contributes to greater global energy security, the creation of 
employment, and sustainable economic growth. 
 
(3) Consider new approaches to enhance international collaboration 
on nuclear power infrastructure, including human resource 
development, radioactive waste management, financing and economics, 
exchange of experience on operation and construction, etc., and to 
make nuclear energy more widely accessible to the international 
community in accordance with safety, security and nonproliferation 
objectives. 
 
(4) Explore mutually beneficial approaches that support 
international civil nuclear cooperation, including assurances of 
 
BEIJING 00003096  013.4 OF 014 
 
 
nuclear fuel supply and services for spent nuclear fuel management. 
 
 
Recognizing global developments that have occurred since the 
Partnership was established on September 16, 2007, such as the 
increasing interests and needs by other countries regarding the 
peaceful use of nuclear energy, and in order to be as inclusive as 
possible of Partner countries' national energy priorities, the 
Executive Committee believes that transformation of GNEP is 
necessary in order to provide a broader scope with wider 
participation to explore mutually beneficial approaches that support 
the use of nuclear energy for peaceful purposes in a manner that is 
safe and secure and that strengthens the nuclear nonproliferation 
regime. 
 
Therefore, the Executive Committee has decided to explore some 
Partners' proposal for renaming the Partnership and noted that the 
"International Nuclear Energy Framework" (INEF) could be one of the 
options. The Executive Committee will explore ways to enhance the 
international framework for civil nuclear energy cooperation, 
including assurances of fuel supply, so that countries can access 
peaceful nuclear power without increasing the risks of 
proliferation.  Cradle-to-grave nuclear fuel management could be one 
important element of this framework. Furthermore the Executive 
 
BEIJING 00003096  014.4 OF 014 
 
 
Committee has decided to examine the following draft statement of 
vision, acceptance of which will be the sole action required of 
states to participate in future activities: 
 
This framework provides a forum for cooperation among participating 
states to explore mutually beneficial approaches to ensure the use 
of nuclear energy for peaceful purposes proceeds in a manner that is 
efficient, safe, secure, and supports non-proliferation and 
safeguards. 
 
The Executive Committee has tasked the Steering Group to act 
accordingly and to review the GNEP operational structure in order to 
adjust it to a possible new cooperation approach and to submit its 
finalized proposal to the Executive Committee by April 2010. 
 
End Joint Statement Text. 
 
¶12.  (U) This cable was cleared by DEPSEC Poneman. 
 
 
HUNTSMAN