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DE RUEHC #7710 3180012
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O 140007Z NOV 09
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UNCLAS STATE 117710 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: AORC KNNP IAEA ENRG TRGY TU AJ CH GM SZ BR RO AR
EG, AS, VE, DA, CM, PK, AF, UP, MY, PE, UK, SP, UY, RS, KE, UV, CA, 
IN, FR, SF, KS, NL, JA, MG, NZ 
SUBJECT: NUCLEAR FUEL BANKS - ELICITING SUPPORT FOR THE 
ANGARSK RESERVE 
 
¶1.  (U) This is an ACTION REQUEST:  Please see para 3. 
 
¶2.  (SBU) SUMMARY:  At the November 26-27, 2009 meeting of 
the International Atomic Energy Agency (IAEA) Board of 
Governors, the Board will be asked to formally approve the 
first proposal for an international nuclear fuel bank. 
Specifically, the Board will be asked to vote on a resolution 
from the Russian Federation that would authorize the IAEA 
Director General to enter into the necessary agreements to 
establish the nuclear fuel reserve in Angarsk, Russia.  The 
United States supports this initiative as a means of 
expanding access to nuclear power while addressing 
nonproliferation risks.  The cable seeks support from all 
members of the IAEA Board, with the exception of Cuba, for 
this resolution.  END SUMMARY. 
 
¶3.  (SBU) ACTION REQUESTS: 
 
-- All Posts with the exception of Moscow are requested to 
convey the points in para 7, which call for support of the 
Russian resolution on the Angarsk nuclear fuel reserve, to 
appropriate officials in the host government. 
 
-- For Moscow only:  Post is requested to inform appropriate 
government officials that the United States is calling on all 
other members of the IAEA Board (with the exception of Cuba) 
for their support of the Angarsk proposal.  Post is requested 
to encourage the Government of Russia to make a similar 
demarche to other IAEA Board members. 
 
-- For New Delhi only:  Post is requested to insert 
supplemental points, as appropriate, based on consultations 
by U/S Tauscher that are currently underway. 
 
¶4.  (SBU) BACKGROUND:  Since 2004, the International Atomic 
Energy Agency (IAEA) has promoted the concept of multilateral 
nuclear fuel assurances.  This concept is intended to 
strengthen the international nuclear fuel market and thereby 
remove an incentive for states to develop indigenous uranium 
enrichment and spent fuel reprocessing capacity.  Over the 
past five years, a number of concrete and complementary fuel 
assurance proposals have been developed. 
 
¶5.  (SBU) One of these - for a nuclear fuel reserve in 
Angarsk, Russia - will be presented to the IAEA Board of 
Governors at their November 26-27, 2009 meeting.  This 
guaranteed reserve of low-enriched uranium fuel would be 
located in an IAEA-safeguarded facility in Angarsk, Siberia 
for use in cases of fuel supply disruption.  Under the 
current proposal, the IAEA Director General would be 
authorized to request fuel from this reserve for transfer to 
a recipient state in good standing with its IAEA safeguards 
obligations.  The Government of Russia is responsible for 
issuing any necessary export authorizations, in accordance 
with domestic law. 
 
¶6.  (SBU) Transfer of fuel from this reserve would be based 
on a pair of agreements, the first between Russia and the 
IAEA and the second between the IAEA and the recipient state. 
 These agreements have now been finalized and submitted to 
the IAEA Board for its consideration.  At the November 
meeting, we expect the Board will consider a Russian 
resolution ("On the Establishment by the Russian Federation 
of a Reserve of Low Enriched Uranium to the IAEA for its 
Member States") that would formally authorize the IAEA 
Director General to enter into these two agreements to 
establish the Angarsk reserve.  The United States will 
support this resolution, and is calling on all other members 
of the Board for their support.  END BACKGROUND. 
 
¶7.  (SBU) BEGIN TALKING POINTS: 
 
-- For many years, the IAEA has sought to establish a 
mechanism to provide reliable access to nuclear fuel.  The 
United States has supported this effort. 
 
-- We believe the establishment of nuclear fuel banks would 
support expansion of nuclear energy worldwide by increasing 
confidence of countries considering nuclear energy that 
alternatives will be available in the event of disruption of 
supply of nuclear fuel. 
 
-- A fuel bank would expand access to the peaceful use of 
nuclear energy while simultaneously addressing proliferation 
risks associated with the potential spread of uranium 
enrichment and spent fuel reprocessing technologies. 
 
-- No state is being asked to give up any rights to peaceful 
nuclear technologies. 
 
-- A nuclear fuel bank must not and does not alter the rights 
recognized under the Nonproliferation Treaty; instead, it 
would facilitate the expansion of peaceful nuclear energy to 
many more countries. 
 
-- In all, a dozen diverse and complementary fuel assurance 
proposals have been crafted by governments and 
non-governmental organizations (NGOs). 
 
-- One fuel bank concept is now before the IAEA Board of 
Governors for its consideration and approval ) the 
establishment of a low enriched uranium reserve in Angarsk, 
Russia. 
 
-- In event of a non-commercial disruption of supply, upon 
the request of the IAEA, fuel from this reserve could be 
transferred, in accordance with Russian law, to a recipient 
in good standing with its IAEA safeguards obligations. 
 
-- The United States supports the Angarsk reserve, and we 
will be lending our support of the expected resolution "On 
the Establishment by the Russian Federation of a Reserve of 
Low Enriched Uranium to the IAEA for its Member States." 
 
-- This resolution would authorize the IAEA Director General 
to enter into the necessary agreements to establish the 
Angarsk reserve. 
 
-- With your support, the Angarsk reserve could be the first 
nuclear fuel bank established, and would provide the IAEA 
with an additional resource to facilitate access to peaceful 
nuclear power while managing proliferation risk. 
 
-- Approval of the Angarsk reserve could open the way for 
additional fuel reserves and other ideas for multilateral 
fuel supply assurances. 
 
-- We strongly encourage you to vote for approval of the 
Angarsk reserve if, as we expect, Russia requests a decision 
on its proposal through the mechanism of a resolution. 
 
-- If you are not prepared to support the Angarsk reserve at 
this meeting, we strongly urge you to abstain. 
 
END TALKING POINTS. 
 
¶8.  (U) Department thanks Posts for their assistance in this 
matter, and requests that any substantive responses be 
transmitted by Monday, November 23.  Department points of 
contact for working-level fuel assurance issues are Marc 
Humphrey and Burrus Carnahan (ISN/NESS); please include 
USMISSION UNVIE VIENNA as an info addressee on all responses. 
CLINTON