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### Viewing cable 09CARACAS26, VENEZUELAN SCIENTISTS SAY NUCLEAR ENERGY PROGRAM

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09CARACAS26 | 2009-01-08 20:24 | 2010-11-30 21:30 | CONFIDENTIAL | Embassy Caracas

`

    VZCZCXRO2599
    PP RUEHAO RUEHCD RUEHGA RUEHGD RUEHHA RUEHHO RUEHMC RUEHMT RUEHNG
    RUEHNL RUEHQU RUEHRD RUEHRG RUEHRS RUEHTM RUEHVC
    DE RUEHCV #0026/01 0082024
    ZNY CCCCC ZZH
    P 082024Z JAN 09
    FM AMEMBASSY CARACAS
    TO RUEHC/SECSTATE WASHDC PRIORITY 2396
    INFO RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
    RUCPDOC/DEPT OF COMMERCE
    RUEATRS/DEPT OF TREASURY
    RUMIAAA/HQ USSOUTHCOM MIAMI FL

` `

    C O N F I D E N T I A L SECTION 01 OF 03 CARACAS 000026

    SIPDIS

    HQ SOUTHCOM ALSO FOR POLAD
    TREASURY FOR MMALLOY
    COMMERCE FOR 4431/MAC/WH/JLAO
    COMMERCE FOR SARAH LOPP

    E.O. 12958: DECL: 01/08/2018
    TAGS: ENRG TRGY BEXP BTIO PGOV PREL ETRD ECON PARM
    EMIN, EINV, VE
    SUBJECT: VENEZUELAN SCIENTISTS SAY NUCLEAR ENERGY PROGRAM
    POLITICAL HOT AIR

    Classified By: Economic Counselor Darnall Steuart for reasons 1.4
    (b) and (d).

    ¶1. (C) Summary: In late 2008, Chavez once again made
    statements regarding his plans to develop a nuclear power
    program in Venezuela and went so far as to sign an agreement
    with Russia's Rosatom on nuclear energy cooperation. Several
    local nuclear physicists are skeptical arguing that nothing
    came of the Venezuelan government's interest in nuclear power
    in the 70's and nothing will come of it today. The
    scientists argued the government has demonstrated little
    interest in domestic nuclear research and the result has been
    antiquated labs with only a handful of Venezuelan experts in
    the field. Nevertheless, they did not discount the Chavez
    Government's willingness to purchase a nuclear power plant
    lock, stock and barrel from Russia if it could get the
    financing, although they believe this unlikely given
    Venezuela's looming economic crisis. End Summary.

    --------------------------------------------- --
    RUSSIAN CONSTRUCTION OF NUCLEAR PLANTS UNLIKELY
    --------------------------------------------- --

    ¶2. (C) In November 2008, Chavez trumpeted that he had high
    hopes for a nuclear reactor constructed with Russian
    technology in the Venezuelan state of Zulia to be called the
    "Huberto Fernandez Moran Nuclear Complex". On December 2,
    Econoffs met with three scientists from Venezuela's only
    fully functional nuclear physics research lab at public
    University Simon Bolivar (USB). XXXXXXXXXXXX (strictly
    protect throughout,) noted Chavez' recent statements on
    nuclear power were reminiscent of those he made in 2005.
    XXXXXXXXXXXX speculated that if Russia would offer Venezuela
    enough credit for plant construction, Venezuela would be
    happy to accept. XXXXXXXXXXXX, who after the
    meeting identified himself as a Russian-educated scientist of
    Cuban origin, added that the Russians are fully capable of
    building adequate plants but they would take five to eight
    years to complete and would cost billions of dollars. (Note:
    Although the Director General of Rosatom State Nuclear
    Energy Corporation signed an agreement to cooperate with
    Venezuela on nuclear energy on November 26, international
    press reports on December 8 indicated no Russian loans or
    credits will be forthcoming for costly nuclear power projects
    in part due to Venezuela's uncertain financial future. End
    Note.)

    --------------------------------------------- --------
    VENEZUELAN GOVERNMENT NOT SERIOUS ABOUT NUCLEAR POWER
    --------------------------------------------- --------

    ¶3. (C) The second in command at the lab, XXXXXXXXXXXX (strictly protect throughout,) said he has "heard this talk before in the 70's" when the government
    was much more serious about developing a nuclear power
    program and even went so far as to identify several potential
    sites for hypothetical reactors. XXXXXXXXXXXX was adamant that
    "nothing came of it then, and nothing will come of it now."
    There is only sporadic interest in nuclear power in
    Venezuela, which, he noted, is rational given that Venezuela
    is a petroleum rich state.

    ¶4. (C) XXXXXXXXXXXX added that behind every nuclear power
    project is a team of strong scientists. Unfortunately, he
    said, Venezuelan politicians are not talking to the
    scientists. He agreed that the current discussion of
    developing a domestic nuclear energy program in Venezuela is
    only talk, as there are no serious scientists involved and no
    project is underway. Even if the government of the
    Bolivarian Republic of Venezuela (GBRV) were serious, he
    said, it would take 10 to 15 years to make substantial
    progress towards developing a nuclear energy program using
    domestic resources.

    ¶5. (C) XXXXXXXXXXXX asserted that his lab at USB has the most
    domestic expertise and would be the most likely talent pool
    if the GBRV was in the market for government advisors or
    program heads. He added that the GBRV had recently
    approached him about serving as a government advisor on
    nuclear power, but he had declined citing his workload.
    XXXXXXXXXXXX said he hopes the government will tap the USB lab at

    CARACAS 00000026 002 OF 003

    some point to spearhead nuclear power research, with the
    accompanying funding, as he agrees with President Chavez on
    Venezuela's need to diversify its energy sources. He noted
    that his scientists are currently collaborating with the
    National Experimental Politech University of the Bolivarian
    Armed Forces, UNEFA, on developing a course, as the military
    seems to have a new interest in giving its cadets a nuclear
    physics background. (Note: XXXXXXXXXXXX is hopeful this
    collaboration might translate into more funding for his lab,
    which currently looks more like a museum than a functioning
    research center. End Note.)

    --------------------------------------------- -
    BARRIERS TO DEVELOPING A NUCLEAR POWER PROGRAM
    --------------------------------------------- -

    ¶6. (C) The scientists argued that the GBRV's failure to
    support serious nuclear research has resulted in antiquated
    labs, restrictive policies that inhibit academic research,
    and a dearth of experts in the field. They also noted lack
    of uranium as another limiting factor. In May 2005 when
    Chavez announced his plans to start a nuclear energy program,
    media reports at that time indicated that according to
    government research in the 70's, there might be three
    substantial uranium deposits in Venezuela. XXXXXXXXXXXX, however,
    was firm in his assertion that Venezuela has little uranium.
    His friend, respected Venezuelan geologist, often jokes with
    him that "yes there is a uranium mine, but no one knows where
    it is." XXXXXXXXXXXX added that Venezuela has thorium which can
    be mixed with other radioactive materials and might someday
    replace uranium in nuclear reactions.

    ¶7. (C) In addition to a lack of natural resources, XXXXXXXXXXXX said
    there is also a severe deficiency in "manpower". He claimed
    that all of the scientists in Venezuela capable of running or
    even assisting with a nuclear power program were in the room.
    (Three scientists were present). He said he knew perhaps
    130 former students that had the academic credentials, but
    almost all of them were "either selling shoes or building
    shopping malls." He said the USB lab is now focusing more on
    health diagnostics as there is a commercial interest in such
    research.

    ¶8. (C) XXXXXXXXXXXX also implied he was not impressed with the
    quality of the government's staff in the sector. XXXXXXXXXXXX is his
    former student. XXXXXXXXXXXX. While
    the Directorate has its own lab, XXXXXXXXXXXX said he has personally
    verified that none of its equipment works. He noted that the
    Directorate is a purely bureaucratic operation where
    scientists do not conduct research but rather attend numerous
    conferences abroad. When work needs done, the Directorate
    will occasionally bring in experts and contract out research
    projects. As an additional example of the government's
    failures in the sector, he cited Venezuela's sole, and now
    defunct, reactor at the GBRV's Venezuelan Institute for
    Scientific Research (IVIC). USB, he said, carried off pieces
    of the 1950's era reactor several years ago for student
    experiments.

    ¶9. (C) XXXXXXXXXXXX finished his list of serious challenges facing
    the development of a Venezuelan nuclear power program by
    complaining about his inability to get permission from the
    USG to obtain equipment or even data from the US. He said
    the Venezuelan government is even more difficult to work with
    as it will not give him licenses to import any radioactive
    material. XXXXXXXXXXXX has consequently taken to bringing in
    undeclared material in his pocket. He stated he flew in with
    a "source" from California in this manner even though the
    University warned him he could end up in jail. He ignored
    the warning saying the Venezuelan government does not seem to
    be particularly interested in the fact that all of the
    radioactive material in the USB lab is currently illegal
    under Venezuelan law. XXXXXXXXXXXX added that anything students
    or professors do with the radioactive material is also
    illegal. After 20 years of his best efforts, XXXXXXXXXXXX has yet
    to get GBRV approval for radioactive material handling
    regulations he wrote himself based on manuals he obtained
    from the Imperial College of London and a US university. In
    another "illegal" practice, XXXXXXXXXXXX said that his scientists
    regularly go scavenging for radium from old Venezuelan
    hospitals that they store on the USB campus.

    CARACAS 00000026 003 OF 003

    -------
    COMMENT
    -------

    ¶10. (C) In spite of Chavez' grand public statements, the
    academic community believes the GBRV continues to demonstrate
    that it is uninterested in, or unable to develop a domestic
    nuclear energy program. It has instead hamstrung the efforts
    of the handful of its scientists with an interest in the
    area. Scientists seem inclined to agree with a member of
    Argentina's National Atomic Energy Commission who in 2005 was
    quoted as saying "on a scale of zero to five, nuclear power
    development within Venezuela does not reach one. It is not
    only behind Brazil and Argentina, it is also behind Chile,
    Mexico and Peru." Nevertheless, the USB scientists seemed
    confident that if Venezuela one day finds a country willing
    to sell its technology on credit, however unlikely given
    Venezuela's looming financial trouble, the GBRV would be more
    than willing to buy. Regardless of whether or not nuclear
    power plants make sense in a petroleum rich country, high
    profile projects that give the rest of the world cause for
    concern hold a certain appeal for Chavez.

    GENNATIEMPO

`