DOE DEPUTY SECRETARY DISCUSSES NEW NUCLEAR ENERGY FRAMEWORK WITH JAPAN'S AEC, CABINET OFFICE

SECRET S E C R E T SECTION 01 OF 02 BEIJING 003095 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: 11/12/2019 TAGS: ENERG, ECON, ETTC, TRGY, KNNP, IAEA, KTIA, CVIS, CH SUBJECT: DOE DEPUTY SECRETARY DISCUSSES NEW NUCLEAR ENERGY FRAMEWORK WITH JAPAN'S AEC, CABINET OFFICE REF: BEIJING 2978 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 Keisuke TSUMURA, the Parliamentary Secretary for Science and Technology in Japan's Cabinet Office, and Shunsuke KONDO, the Chairman of Japan,s Atomic Energy Commission (AEC), on the margins of the Global Nuclear Energy Partnership (GNEP) Ministerial meeting in Beijing on October 23. The two sides 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). Japanese officials said more discussion was needed to ensure fair and equitable business models were established for commercial fuel cycle providers. Tsumura also asked DEPSEC to confirm that the U.S. proposal would not impact Japan's fuel cycle and reprocessing activities. END SUMMARY. 2. (S) Following DEPSEC's opening remarks and an explanation of the U.S. Administration's thinking on nonproliferation and the future of GNEP, Tsumura responded by noting that Japan's new Administration hopes to construct an even stronger partnership regarding nuclear-related issues; nevertheless, Tsumura expressed concern over how the U.S. proposal will be implemented and asked the DEPSEC to confirm that there will be no impact on Japan's fuel cycle and reprocessing activities. The DEPSEC reiterated that efforts to enhance and rename GNEP would not affect Japan's fuel cycle and made clear that no one was asking Japan to reconsider reprocessing, as a 1993 U.S. proposal had done. 3. (S) Japanese officials also asked for more specifics regarding proposed business models for fuel cycle activities and stated that commercial opportunities should be divided equitably among fuel cycle providers. The DEPSEC said that multiple commercial suppliers will be essential to providing a sense of security to countries concerned with reliable access to fuel supplies, but ultimately it is the responsibility of governments to secure and protect "used fuel" and ensure public safety. Therefore, individual governments must strongly state their intent to take responsibility over the long term--particularly the back-end of the fuel cycle--to reassure private fuel providers that they do not have to worry about what to do with the fuel when it is used up. Tsumura acknowledged the need for strong government involvement and said he looked forward to discussing the results of a U.S. blue ribbon panel, which the DEPSEC said will be convened soon to devise new ways of BEIJING 00003095 002 OF 002 thinking about fuel cycle and reprocessing activities. HUNTSMAN