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Viewing cable 08UNVIEVIENNA639,

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Reference ID Created Released Classification Origin
08UNVIEVIENNA639 2008-12-04 14:07 2011-08-24 01:00 UNCLASSIFIED UNVIE
VZCZCXYZ0001
PP RUEHWEB

DE RUEHUNV #0639/01 3391407
ZNR UUUUU ZZH
P 041407Z DEC 08
FM USMISSION UNVIE VIENNA
TO RUEHC/SECSTATE WASHDC PRIORITY 8777
INFO RUEHII/VIENNA IAEA POSTS COLLECTIVE PRIORITY
UNCLAS UNVIE VIENNA 000639 
 
STATE FOR IO/T, ISN, 
ISN/MNSA - RAGSDALE, COCKERHAM, DAVIS 
-  ISN/NESS - STRATFORD, BURKART 
-  ISN/RA - NEPHEW, GROMOLL 
DOE FOR S-1, S-2 
-  NE - MCGINNIS, CLAPPER, HERCZEG, HAN 
-  NA 2O - BAKER, WITTROCK 
-  NA24 - LERSTEN, SCHEINMAN, GOOREVICH, BRUNS 
NRC FOR OIP - MDOANE, JSCHWARZMAN 
ROME FOR USMISSION TO FAO 
 
SENSITIVE BUT UNCLASSIFIED 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: AORC KNNP IAEA ENRG TRGY IR KN SY
 
SUBJ: IAEA: NOVEMBER 2008 BOARD WRAP-UP 
 
Ref: A) UNVIE 633 B) UNVIE 637 C) UNVIE 635 D) UNVIE 598 E) STATE 
121438 
 
------- 
SUMMARY 
------- 
 
1. (SBU) The November 27-28 Board of Governors meeting focused on 
nuclear verification in Syria and Iran (refs a-c) and approval of 
the Technical Cooperation (TC) program cycle for 2009-2011, 
following a contentious agreement in the preceding Technical 
Assistance and Cooperation Committee (TACC) on the disposition of 
the Syrian feasibility study project (septel).  Discussion of DPRK 
was largely a placeholder, pending Six Party agreement on the 
verification protocol, with Board members expressing support for the 
IAEA's verification role.  In addition, the Board approved Draft 
Safety Requirements, a funding extension for physical security at 
the Vienna International Center, and an Additional Protocol for 
Zambia.  Under Any Other Business, the Board Chair's proposal for an 
open-ended Working Group on 20/20 recommendations met with 
nit-picking on the part of both OECD and G-77 countries that 
underlined the need for member state input and setting parameters 
for the process.  Only Japan announced that it would make a 
substantial contribution to the Safeguards Analytical Laboratory, an 
issue parenthetically inserted on the agenda under AOB, and Norway 
announced its contribution to fund the IAEA fuel bank.  The UK, 
Canada and, at our suggestion, Afghanistan also advocated the 
implementation of DG term limits under AOB in keeping with UN best 
practice and in light of the upcoming DG election.  On the margins 
of the Board, South Africa officially delivered its nomination of 
Governor Minty for DG, and campaign pitches on behalf of Minty and 
Japanese Ambassador Amano were made under AOB.  End Summary. 
 
--------------------------------- 
Agenda Item 1: DG Opening Remarks 
--------------------------------- 
 
2. (U) In addition to Iran (ref b), Syria (ref c) and DPRK (para 11) 
verification items, Director General ElBaradei provided general 
comments on the TC program for 2009-2011.  He noted that human 
health remains the single largest TC sector, representing 18 percent 
of the program, and food and agriculture programs have also 
increased.  The DG highlighted the Agency's role in cancer 
prevention (44 countries requesting assistance under the Program of 
Action for Cancer Therapy (PACT) and the launch of a WHO/IAEA Joint 
Project on Cancer Control) and Mexico's successful use of the 
Sterile Insect Technique.  The Agency further anticipated a 
four-fold increase in number of TC projects for 2009-2011 focused on 
introduction of nuclear power.  Assistance in this domain covered 
the entire process to ensure solid infrastructure with high levels 
of safety, security and non-proliferation.  The DG noted the Draft 
Safety Requirements and an Integrated Regulatory Review Service 
Mission in Spain that incorporated, for the first time, a security 
component.  Under nuclear verification, he observed that Zambia's 
conclusion of an Additional Protocol (AP) would bring the number of 
APs in force to 88, little more than half of the states with 
Comprehensive Safeguards Agreements (CSAs.) 
 
3. (SBU) The DG also made some pointed remarks on the Agency's 
verification process and the Safeguards Analytical Laboratory (SAL). 
 He noted the obligation to assess the veracity of information 
provided to the IAEA, and stressed the need for full cooperation and 
transparency from the State concerned given the Agency's limited 
legal authority.  He reiterated assurances as to the anonymity of 
environmental samples sent to the Network of Analytical Labs but 
advised that the Agency could not independently validate results in 
some cases.  ElBaradei used this as a pitch for refurbishing SAL at 
an estimated cost of 35 million Euros.  With only a two million Euro 
pledge from Japan received so far, the "ball is in your court," he 
told Member States.  He further noted that the Agency relied on 
Member State and commercial satellite imagery only as an auxiliary 
source to corroborate other information.  (Comment: Although the DG 
made these comments in a general vein, they were clearly related to 
the Syria verification case; see ref c. End Comment.) 
 
4. (U) Finally, the DG reported that 4.5 million Euros of the 2006 
cash surplus had been secured for the Agency-Wide Information System 
for Program Support (AIPS).  The remainder of the 10 million Euros 
needed for the first stage of AIPS would be sought from 
extra-budgetary resources and savings. 
 
-------------------------- 
Agenda Item 2: TACC Report 
-------------------------- 
 
5. (SBU) Board Chair Feroukhi began the discussion of the report of 
the Technical Assistance and Cooperation Committee (TACC) with a 
plea that the Board not re-open the agreement on approval of the 
2009-2011 TC program, which had been the subject of laborious 
negotiations over the disposition of the Syrian feasibility study 
project in the November 24-26 TACC (septel).  Only the EU, U.S. and 
Pakistan on behalf of the G-77 made substantive comments, and the 
Board approved the TACC report by consensus. 
 
6. (SBU) France delivered the EU statement, noting that collectively 
it was the top contributor to TC and supported OIOS recommendations, 
including on Country Program Frameworks, which significant TC 
recipients have not completed.  The EU underlined the need for 
guiding principles for TC to ensure the consistency of nuclear power 
projects, in particular, linkage to the Milestones document and 
other benchmarks as well as transparency in procurements for 
"umbrella projects," comments clearly aimed at the Syrian 
feasibility study proposal.  The EU also called on states embarking 
on nuclear power to adhere to nuclear safety and security 
conventions.  The U.S. statement likewise emphasized that nuclear 
power projects should track the Milestones document.  The U.S. 
further urged timely implementation of OIOS recommendations on 
evaluation of TC activities, and greater internal coordination 
within the Secretariat on safety, security and nonproliferation. 
 
7. (SBU) Pakistan stressed the great importance G-77 members 
attribute to TC assistance as the main vehicle for nuclear 
technology transfer to the developing world, and the need for 
assured, predictable and sufficient funding, as mandated by the 
General Conference.  Also reflecting the contentious TACC debate on 
the Syrian project, the G-77 warned against interference in TC or 
micromanagement of the Secretariat, and concluded that any 
"political conditions" placed on TC weaken and undermine the 
credibility of the Agency. 
 
---------------------------------------- 
Agenda Item 3: Draft Safety Requirements 
---------------------------------------- 
 
8. (U) The Board approved the Draft Safety Requirements: Safety 
Assessment for Facilities and Activities (GOV/2008/54) by consensus 
with supportive interventions by Switzerland, South Africa, Spain 
and, under Rule 50, the Republic of Korea highlighting the 
importance of the Agency's work on safety standards.  South Africa 
noted that the safety requirements provide an excellent guide for 
Member States and contribute to enhancing the safety and security of 
nuclear facilities.  Spain welcomed the draft safety requirements 
but questioned how the 2015 safety restructuring plan and the 
iteration of new safety standards would affect these existing safety 
guides. 
 
-------------------------------------------- 
Agenda Item 4: Funding for Physical Security 
-------------------------------------------- 
 
9. (U) The Board approved the extension of funding for physical 
security requested in GOV/2008/58 with a number of Board members 
(including the U.S.) registering dissatisfaction with the slow pace 
of security upgrades at the Vienna International Center.  (Note: The 
UN Office in Vienna (UNOV) has overall direction of the project. End 
Note.)  Cuba and Pakistan complained that such projects had been 
"imposed upon them" in the past and requested more information.  DDG 
for Management David Waller outlined the reasons for the delays and 
noted that a series of briefings for Member States over the course 
of the project had been held, with another briefing planned in 
coming weeks. On the margins, he welcomed our criticism of UNOV as 
helpful to his effort to move the project along. 
 
----------------  --------------------------------------- 
Agenda Item 5:    Conclusion of Safeguards Agreements, APs 
----------------  --------------------------------------- 
 
10. (U) The Board authorized the conclusion of an Additional 
Protocol with Zambia.  Cuba, speaking on behalf of NAM, took note of 
Zambia's decision to enter into an AP.  Australia warmly welcomed 
 
Zambia's decision and encouraged all states to conclude APs, which 
strengthen safeguards and provide assurances as to the absence of 
undeclared nuclear material and activities.  Australia noted that 
Comprehensive Safeguards Agreements together with APs are now the 
established safeguards standard.  South Africa regretted that 30 
non-nuclear-weapon States party to the NPT had not yet brought a 
safeguards agreement into force, and that more than 100 states have 
not concluded an AP.  The Agency should be vested with the necessary 
verification tools, South Africa concluded, and it is incumbent on 
all States to provide all the support and assistance required to 
fully implement its verification mandate. 
 
-------------------- 
Agenda Item 5b: DPRK 
-------------------- 
 
11. (SBU) In his opening statement to the Board, the Director 
General made noticeably short remarks on DPRK.  He updated the Board 
members that the Agency had resumed monitoring and verifying the 
shutdown status of the Yongbyon nuclear facilities, including the 
reinstallation of the IAEA's containment and surveillance equipment. 
 In a departure from his previous statements, the DG did not update 
the board on the status of disablement, i.e. the status of fuel 
discharge, but noted only that the Agency "has been monitoring 
disabling activities."  He added that he remained hopeful that 
"conditions will be created" for the DPRK to return to the NPT and 
for the Agency to resume the implementation of comprehensive 
safeguards.  The DG did not raise the issue of DPRK's NPT status, 
which he posited to Board members in June and September. 
 
12. (SBU) The Six Party members present -- China, Japan, Russia, and 
the U.S., with South Korea speaking under Rule 50 -- delivered 
statements, as well as France on behalf of the EU, Australia, 
Canada, New Zealand, Malaysia, Switzerland, Egypt, the Philippines, 
and South Africa.  Thailand also spoke under Rule 50.  Six Party 
Talks received broad support as did an enhanced role for the IAEA in 
verification. The EU, Japan, and Canada joined the U.S. in reminding 
Board members that all states must abide by UNSCR 1718. 
 
13. (SBU) China spoke first, recalling the significant progress made 
by the Six Party framework and announced the December 8 Head of 
Delegation (HOD) meeting with a view to advancing to a new phase in 
the process.  Russia reaffirmed the importance of the 2005 Joint 
Statement, and hoped disablement would be concluded as soon as 
possible.  Russia also noted that verification must include IAEA 
specialists, due to their experience in this area.  Japan observed 
that North Korea's intentions remain unclear in the talks, and cited 
a November 12 statement by a DPRK official that expressed a negative 
position on sampling.  Japan also cited the IAEA's significant 
contribution to the denuclearization of North Korea.  South Korea 
acknowledged the ups and downs of the process, but looked forward to 
the December 8 HOD meeting to establish a verification mechanism. 
South Korea stressed the essential role of the IAEA in 
verification. 
 
14. (SBU) Like-minded countries looked forward to continued progress 
through the Six Party framework.  New Zealand and Canada were 
reassured disablement was once again continuing.  Australia and the 
Philippines called for a timetable for completion of disablement 
measures and for the conclusion of a verification protocol.  The EU 
and Australia expressed concern over the slowdown in fuel unloading 
in recent months. 
 
15. (SBU) The Philippines stressed the critical role of the Six 
Party Talks to achieve a peaceful solution to the nuclear issue in 
North Korea.  Switzerland noted that the IAEA was not part of the 
Six Party talks and reminded Board members that the IAEA requested 
clarity on DPRK's NPT status.  Switzerland raised the U.S.-DPRK 
verification agreement announced on October 11, calling it an 
"encouraging" development, but was concerned about the provision of 
access to undeclared sites being granted by mutual consent. 
Switzerland appealed to North Korea to rejoin the NPT.  Under Rule 
50, Thailand reaffirmed its full support of the Six Party process 
and advocated confidence building measures for continued dialogue 
and diplomacy. 
 
16. (SBU) Board newcomers Egypt and Malaysia, which do not usually 
speak under the DPRK item, delivered positive statements supporting 
the Six Party Talks, and stressing the IAEA's essential role in the 
verification process.  Egypt further requested that the Six Parties 
proceed in a way that "will strengthen the nonproliferation regime." 
 Malaysia noted its appreciation for China's role as Chair of the 
Talks. 
 
---------------------------------------- 
Agenda Item 6: Any Other Business; 20/20 
---------------------------------------- 
 
17. (U) Opening the discussion of AOB, Board Chair Feroukhi 
summarized her informal consultations with Member States on 
follow-up to the Report by the Commission of Eminent Persons (CEP 
Report).  She noted no objections to her proposal of forming 
open-ended "cluster groups" but little enthusiasm either (ref d). 
She emphasized that both the CEP Report and the Direct General's 
Background Report on 20/20 could serve as useful resources, but that 
Member States would decide which issues to pursue.  Feroukhi 
entrusted stewardship of the process to Board Vice Chair Kirsti 
Kauppi of Finland. 
 
18. (SBU) Pakistan (speaking on behalf of the G-77) greeted the 
announcement with cautious optimism.  France, Canada, India, the 
U.S. and New Zealand raised questions about the parameters of the 
process, the anticipated outcomes, time frames, the structure of the 
debate, etc.  Malaysia asked that financing technical cooperation be 
a specific objective.  Chair Feroukhi eventually grew frustrated 
with what she characterized as the negative tone of the statements 
and exhorted Member States to be more "enthusiastic."  She signaled 
her intention to continue the process she had proposed and then 
closed further debate. 
 
19. (SBU) Comment: Private comments to Mission staff by DG ElBaradei 
and EXPO Chief Cserveny revealed Secretariat appreciation for the 
U.S. statement, which had been more cooperative and thoughtful than 
statements by other like-minded Members.  ElBaradei, clearly 
disgusted by the nit-picking tone of some interventions, appealed 
for U.S. leadership going forward.  If we do not set a tone and 
direction for this process, the DG counseled, the divisions inherent 
in the IAEA membership will doom the effort to modernize the 
Agency's agenda and operations. 
 
-------------------------------- 
AOB: SAL, RANF and Other Issues 
-------------------------------- 
 
20. (SBU) There was some consternation on the part of Board members 
who resented the fact that the Secretariat included a reference to 
an information report on SAL (GOV/INF/2008/15) under Any Other 
Business in parentheses, seeing this as a possible effort by the 
Secretariat to claim a Board imprimatur for Secretariat plans 
regarding SAL (by appearing to have prompted a Board review), when 
in fact, many Board members still have questions as to the way 
forward on SAL.  As it turned out, only Japan addressed the proposed 
SAL upgrade and stated it was considering a "substantial 
contribution" to the project.  Japan expressed appreciation for the 
Secretariat's continuing work, welcomed consultation with Member 
States, and hoped that plans would proceed in a timely manner. 
Malaysia announced the establishment of a new analytical lab, which 
it hoped could be added to the IAEA network. 
 
21. (U) Russia announced that it would be making a contribution to 
the Nuclear Security Fund (1.5 million USD in 2010, one million USD 
annually 2011-15), highlighting its commitment to combat trafficking 
in nuclear materials.  Norway announced its contribution of 5 
million USD to the proposed IAEA-administered International Fuel 
Bank.  The U.S. welcomed Norway's contribution, and noting its 
commitment of 50 million USD to the project, encouraged discussion 
of a concrete proposal at the March Board.  The U.S. also welcomed 
Russia's financial contribution to Nuclear Security and Japan's 
announcement of a January 26, 2009 conference on fuel assurances. 
Privately, UK Del informed us that if the Secretariat advances an 
agenda item on fuel assurances for March 2009, the UK would in 
parallel host a conference on its enrichment bonds concept and 
related proposals. 
 
22. (U) The EU announced an upcoming nuclear energy conference, and 
Malaysia is also sponsoring an international conference on nuclear 
energy partnerships. 
 
--------------------------- 
AOB: DG Race / Term Limits 
-------------------------- 
 
23. (SBU) South African Governor Minty, accompanied by a SAG 
Minister, held a news conference on the margins of the Board to mark 
the official submission of his candidacy by South Africa.  Under 
AOB, Zimbabwe, as African Union spokesman, announced the first of 
its kind endorsement of Minty's candidacy for DG, following the 
unavailability of ElBaradei for a further term.  Both the press 
conference and the AOB statement focused on Minty's commitment to 
peaceful use of nuclear energy and technology.  Not to be outdone, 
Japan reaffirmed its strong support for Amano's candidacy and was 
seconded by Mongolia, also speaking under AOB.  Mongolia noted the 
need for regional rotation of the Director General position, 
suggesting it was Asia's turn.  South Korea also spoke in favor of 
"the Asian candidate" succeeding to the Director General's position. 
 
 
24. (SBU) With prompting from the U.S. delegation (ref e 
instructions), Canada, the UK and Afghanistan advocated term limits 
for the Director General under AOB.  Canada and the UK, also 
speaking on instructions, cited the 1997 UNGA resolution on 
strengthening the UN, which recommended term limits for executive 
heads of specialized agencies.  The UK seconded Canada's request 
that this issue be added to the Board's agenda.  Reading from our 
talking points, Afghanistan suggested that the DG election was an 
opportune time to reconsider term limits and called upon declared 
candidates for the position to endorse a two-term limit. (Note: The 
U.S. decided not to make a statement on term limits after Iran 
half-jokingly suggested in its intervention under the Iran agenda 
item that ElBaradei serve a further term to deal with its dossier. 
Afghanistan, as a NAM/G-77 member, was better placed to make a 
statement, which should also help dispel the impression that term 
limits is a Western/Geneva Group initiative.  End Note.)