DOE DEPUTY SECRETARY DISCUSSES INTERNATIONAL NUCLEAR ENERGY FRAMEWORK WITH CHINA'S NATIONAL ENERGY ADMINISTRATION

SECRET S E C R E T SECTION 01 OF 02 BEIJING 002978 SIPDIS STATE FOR EAP/CM-BRAUNOHLER, EAP/CM STATE FOR OES DAS MIOTKE STATE FOR S/SECC-STERN, S/P-GREEN 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 E.O. 12958: DECL: 10/27/2019 TAGS: ENERG, ECON, ETTC, TRGY, KNNP, IAEA, KTIA, CVIS, CH SUBJECT: DOE DEPUTY SECRETARY DISCUSSES INTERNATIONAL NUCLEAR ENERGY FRAMEWORK WITH CHINA'S NATIONAL ENERGY ADMINISTRATION Classified By: ESTH Counselor Brent Christensen. Reason 1.4 (b) and (d) 1. (S) SUMMARY: Department of Energy (DOE) Deputy Secretary (DEPSEC) Daniel Poneman met privately with the head of China's National Energy Administration (NEA) ZHANG Guobao on the margins of the Global Nuclear Energy Partnership (GNEP) Ministerial in Beijing on October 23. The two discussed the U.S. proposal to construct an enhanced international framework for civil nuclear cooperation, including cradle-to-grave nuclear fuel management and supply services so that countries can access nuclear power without increasing the risks of proliferation. The proposal also calls for a renaming of GNEP to the International Nuclear Energy Framework (INEF). Zhang said that he "wants to make the U.S. idea a reality" and that China and the U.S. should take practical and joint measures to persuade other GNEP members of the proposal's merit. END SUMMARY. 2. (S) The DEPSEC began by asking for China's help and support in working closely with the U.S. to ensure that he INEF proposal is not perceived as a decision being imposed by one country or a small group of countries on the other partners (the nuclear haves versus nuclear have-nots). Zhang reminded the DEPSEC that GNEP was originally a U.S.-initiated efforts and that China's hosting of the GNEP Ministerial was proof of its commitment to the principles embodied by the partnership. Moreover, China and the U.S. share the same fundamental interests when it comes to energy security and nonproliferation; therefore, as a practical matter, minimizing access to fuel cycle and reprocessing capabilities would be better for nonproliferation efforts and global stability, said Zhang.The DEPSEC began by asking for China's help and support in working closely with the U.S. to ensure that he INEF proposal is not perceived as a decision being imposed by one country or a small group of countries on the other partners (the nuclear haves versus nuclear have-nots). Zhang reminded the DEPSEC that GNEP was originally a U.S.-initiated efforts and that China's hosting of the GNEP Ministerial was proof of its commitment to the principles embodied by the partnership. Moreover, China and the U.S. share the same fundamental interests when it comes to energy security and nonproliferation; therefore, as a practical matter, minimizing access to fuel cycle and reprocessing capabilities would be better for nonproliferation efforts and global stability, said Zhang. 3. (S) Zhang suggested that the Chinese and U.S. Governments take practical steps and work together to make the proposal a reality, beginning with a jointly-developed draft framework that could be rolled out to other key nuclear partners including France, the UK, Japan, and Russia. Zhang indicated that Japan is sensitive to the proposal, but assessed that as long as these key countries (including China) are able to retain reprocessing capabilities, they will ultimately go BEIJING 00002978 002 OF 002 along with the proposal, including Japan. Zhang also suggested that additional thought be given as to how to address sensitive countries in this proposal including India and Pakistan. 4. (S) Finally, Zhang agreed with the DEPSEC that it did not make economic sense for nuclear energy-aspiring countries to develop their own fuel cycle and their own reprocessing capabilities. Later, Zhang even reiterated this point to the GNEP plenary during his closing remarks. 5. (S) COMMENT: Despite Zhang's surprisingly strong support of the U.S. proposal, it is not clear how much, if any, of his stated position and recommendations have been vetted with other key Chinese players, including the Ministry of Foreign Affairs (MFA). As head of NEA and Vice Chairman of the National Development and Reform Commission (NDRC), Zhang would have a leading role in the GoC's decision to support U.S. efforts to recraft GNEP, but this would still require interagency discussion and concurrence. END COMMENT. HUNTSMAN