VZCZCXRO2372
OO RUEHPT
DE RUEHBY #1057/01 3340410
ZNR UUUUU ZZH
O 300410Z NOV 09
FM AMEMBASSY CANBERRA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2366
INFO RUEHBJ/AMEMBASSY BEIJING 9654
RUEHCP/AMEMBASSY COPENHAGEN 1170
RUEHJA/AMEMBASSY JAKARTA 5566
RUEHLO/AMEMBASSY LONDON 2150
RUEHME/AMEMBASSY MEXICO 0352
RUEHMO/AMEMBASSY MOSCOW 1587
RUEHNE/AMEMBASSY NEW DELHI 1210
RUEHOT/AMEMBASSY OTTAWA 0012
RUEHUL/AMEMBASSY SEOUL 9958
RUEHKO/AMEMBASSY TOKYO 3745
RUEHWL/AMEMBASSY WELLINGTON 0166
RUEHBN/AMCONSUL MELBOURNE 6807
RUEHPT/AMCONSUL PERTH 5072
RUEHDN/AMCONSUL SYDNEY 5075
RHMFISS/DEPT OF ENERGY WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFIUU/HQ EPA ADMINISTRATORS WASHINGTON DC
RHMFIUU/HQ EPA OIA WASHINGTON DC
RHEHAAA/THE WHITE HOUSE WASHINGTON DC

UNCLAS SECTION 01 OF 02 CANBERRA 001057 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EEB MONOSSON, S/SECC STERN, WHITE HOUSE FOR CEQ 
SUTLEY, DOE FOR SANDOLOW 
 
E.O. 12958: N/A 
TAGS: ENRG ECON SENV ETRD AS
SUBJECT: AMBASSADOR BLEICH CALL ON ENERGY MINISTER FERGUSON 
 
 ¶1. (SBU) Summary:  Energy, Resources and Tourism Minister 
Ferguson told Ambassador Bleich during an initial courtesy 
call that Australia is "in lockstep" with the U.S. on energy 
policy, technology goals, and views on climate change. 
Ferguson sees Australia, a major liquefied natural gas (LNG), 
coal, and uranium producer, as a key energy security 
guarantor for East and South Asia.  Australian policy makers 
will have to deal with potential shortfalls in renewable 
energy and clean coal technology development by seriously 
considering nuclear power in the future.  Ferguson suggested 
strengthening work under the International Renewable Energy 
Agency (IRENA) and believes that shaping the emerging UN 
technology partnership into a useful body will require close 
coordination.  Australia recognizes U.S. efforts to deal with 
problems in the work-study visa pilot program and appreciates 
steps to improve the bilateral tourism relationship.  End 
Summary. 
 
¶2. (SBU) Ambassador Bleich and DCM Clune met with Energy, 
Resources and Tourism Minister Martin Ferguson and Department 
of Resources, Energy and Tourism Deputy Secretary Drew Clarke 
on November 27.  In a brief but cordial meeting, the 
Ambassador and Ferguson shared views on priorities for the 
U.S.-Australia energy and technology relationship, climate 
challenges, nuclear energy, and tourism.  Ferguson 
highlighted his role as the point man for clean energy and 
technology development in the GOA's effort to combat climate 
change. 
 
 
GORGON PROJECT KEY TO TIES WITH NEIGHBORS 
----------------------------------------- 
 
¶3. (SBU) Ferguson noted that he and the Ambassador would both 
be present at the December 1 groundbreaking ceremony for the 
Gorgon LNG project off Australia's northwest coast.  Gorgon, 
at A$37 billion, is the largest-ever foreign investment in 
Australia, led by a consortium of Chevron, Exxon Mobil, and 
Shell.  The Ambassador said that LNG was a critical interim 
step in the drive to a lower-carbon future.  Ferguson agreed 
and said that work with the companies on the project had 
generally gone very well.  Gorgon was one of the projects 
that would secure Australia's energy relationships not just 
with China and Japan, but India and South Korea as well.  The 
abundance of LNG, coal and uranium now makes Australia a key 
energy security player for these countries, Ferguson said. 
 
RENEWABLE ENERGY DEVELOPMENT 
----------------------------- 
 
¶4. (SBU) Ferguson turned to U.S.-Australia cooperation on 
clean energy technology development, characterizing existing 
work with DOE and other USG agencies as very strong.  He 
pointed to planned January 18-20 high-level consultations 
with DOE as an example of coordination and mutual benefit. 
Ferguson plans to attend those talks and to meet with DOE 
QFerguson plans to attend those talks and to meet with DOE 
Secretary Chu.  Ferguson said work by the International 
Renewable Energy Agency (IRENA) would be critical in 
developing technologies that could help against climate 
change and provide developing counties, especially Pacific 
Island states, a pathway for sustainable development. 
Ferguson added that the proposed UN technology partnership 
coming out of Copenhagen would need to be carefully shaped to 
provide real outcomes, and cooperation between the U.S. and 
Australia had been excellent so far. 
 
NUCLEAR POWER NOT ON THE TABLE, YET 
------------------------------------ 
 
CANBERRA 00001057  002 OF 002 
 
 
 
¶5. (SBU) Ambassador Bleich asked if Australia's current 
policy on nuclear energy might change, especially if pressure 
for action on climate change continues to mount.  Ferguson 
said in his own view the recent expansion in uranium 
development in Australia reflected a shift in willingness to 
consider nuclear energy.  Ferguson said he personally 
supported the U.S.-India nuclear agreement and the PM had 
been careful in recent comments in Parliament to leave the 
door open for uranium exports to other countries, including 
India.  In his view, a deal to supply India with nuclear fuel 
could be reached in 3-5 years.  Nuclear power would not be on 
the agenda under this Parliament.  At the same time, Ferguson 
said he had counted a large number of things that have to go 
right technologically to meet Australia's renewable and clean 
coal energy goals.  Describing the challenge of developing 
base-load renewable energy as "quite worrying," Ferguson said 
policymakers would have to address the question of 
alternatives - nuclear most notably - if any of the other 
technologies failed to develop commercially quickly enough. 
 
TOURISM 
-------- 
 
¶6. (SBU)Turning to tourism, Ferguson recognized that work was 
being done to fix problems associated with the work-study 
visa pilot program.  The U.S. is an important tourist market 
for Australia, and education exports are a major employer and 
source of revenue.  Recent problems with India over treatment 
of students in Australia appeared to be working out.  The 
Ambassador said he had consulted closely with Under Secretary 
for Public Diplomacy McHale on the pilot program, and, 
although there were some tough legal questions that had to be 
resolved, there was no better way to strengthen the 
relationship than to have young students traveling to each 
country.  Ferguson thanked the Ambassador for his effort, and 
said he was always a phone call away for any issues that did 
come up in the relationship. 
 
BLEICH