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### Viewing cable 08BRASILIA1398, Ambassador Schulte Visit to Brasilia - Nuclear Issues

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08BRASILIA1398 | 2008-10-24 16:05 | 2011-07-11 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Brasilia

`

    VZCZCXRO3675
    RR RUEHRG
    DE RUEHBR #1398/01 2981605
    ZNR UUUUU ZZH
    R 241605Z OCT 08
    FM AMEMBASSY BRASILIA
    TO RUEHC/SECSTATE WASHDC 2719
    INFO RUEHBU/AMEMBASSY BUENOS AIRES 5896
    RUEHSG/AMEMBASSY SANTIAGO 0679
    RUEHRG/AMCONSUL RECIFE 8618
    RUEHSO/AMCONSUL SAO PAULO 2956
    RUEHRI/AMCONSUL RIO DE JANEIRO 6782
    RUEKJCS/SECDEF WASHDC
    RUCPDOC/USDOC WASHDC
    RUCNDT/USMISSION USUN NEW YORK 0275
    RUEHUNV/USMISSION UNVIE VIENNA 0127

` `

    UNCLAS SECTION 01 OF 02 BRASILIA 001398

    SENSITIVE
    SIPDIS

    DEPARTMENT FOR WHA/BSC

    E.O. 12958: N/A
    TAGS: PREL ENRG MNUC PARM UN BR
    SUBJECT:  Ambassador Schulte Visit to Brasilia - Nuclear Issues
    ¶1.  (SBU) SUMMARY.  During an October 13 visit to Brasilia,
    Ambassador Gregory Schulte discussed Iran, Nuclear Suppliers Group
    (NSG) issues and Brazil's nuclear program.  Brazil wants to play a

    constructive role with the UN on nuclear issues, particularly with
    Iran.  Completing an Additional Protocol and joining a NSG consensus
    to limit the spread of enrichment technology will require difficult
    political decisions, though at a technical level they are
    acceptable.  Brazil is committed to developing its own nuclear power
    industry and has planned an extensive program of reactor
    construction.  Further, the GOB intends to develop its capacity to
    become self-sufficient in supplying fuel for its reactors.  The GOB
    sees no technical problem with joining the Global Nuclear Energy
    Partnership, although this will again require a political decision
    that will depend on completion of a government nuclear policy
    review.  END SUMMARY.
    IRAN
    ----

    ¶2.  (SBU)  Schulte urged Brazilian support for UN efforts to promote
    Iranian compliance with UN resolutions by suspending enrichment
    activities and implementing IAEA safeguards.  He pointed out that
    Iran's only "peaceful" nuclear reactor was a Russian design that
    could only use Russian fuel packages.  Therefore, there was no
    possible use for enriched uranium for power generation.  Brazilian
    Ministry for External Relations (MRE) Director for Disarmament and
    Sensitive Technologies Santiago Mourao said that the Brazilian
    Embassy in Tehran was reporting seeing signs of differences
    developing among the Iranians, with one group interested in a
    sharply scaled back enrichment program, while retaining the
    technology.  Also, he passed on their assessment that financial
    sanctions were taking a real toll in Iran.  Mourao cautioned that
    Iran may be stringing the international community along in
    responding to the IAEA in order to see who will win the U.S.
    elections and the policies they will take.  Presidential Advisor
    Marcel Biato reported that President Lula would like to visit Tehran
    to "tell them to their face" what Iran should do to comply with UN
    requirements.  He believed that Brazil could play an important role
    by doing so.  MRE Undersecretary Everton Vargas told Schulte that
    Brazil has "internalized" the UN process regarding Iran and urge a
    diplomatic approach to gaining Iranian compliance.

    ADDITIONAL PROTOCOLS AND NSG
    ----------------------------

    ¶3.  (SBU)  Ambassador Schulte sought Brazilian views on the Nuclear
    Suppliers Group (NSG) efforts to limit enrichment technology and the
    prospects for Brazil signing an IAEA Additional Protocol.  Brazil
    has resisted such a protocol over concerns about the intrusiveness
    of IAEA inspections.  Mourao's office has done a technical
    assessment and concluded that Brazil could comply with an Additional
    Protocol.  He added, what was needed was a political decision, and
    there, the issue would turn on Vice Minister Guimaraes' views.  He
    noted that the Argentines had taken the reverse approach and had the
    political decision to proceed (once Brazil did), and were now doing
    the technical level of assessment.  The Ministry of External
    Relations is doing a review of how it wants to handle this issue.
    Biato characterized this review as seeking "balance" between strong
    nonproliferation standards and access to peaceful nuclear power.
    The lack of an additional protocol has been a stumbling block to
    Brazil's support for a NSG rule on transfer of enrichment
    technology.  Mourao stated that Brazil could support language that
    would grandfather Brazil's technology in the proposed NSG rule on
    transferring enrichment technology.  Vargas also said that Brazil
    wanted to find a way forward that did not depend on an immediate
    requirement to sign an Additional Protocol, a decision he did not
    think Brazil ready to make.  Mourao was anxious to know progress on
    concerns from Canada and South Korea, which, if resolved would
    isolate Brazil in opposition, a situation Brazil would strongly
    prefer to avoid.  Mourao said that the proposed International
    Nuclear Fuel Bank sounded like an interesting idea from a technical
    perspective, but which countries' fuel would be purchased for the
    bank would be a critical point.  Vargas was more cautious, saying
    that the concept was good, but cautioning against the "proliferation
    of ideas."

    BRAZILIAN NUCLEAR PLANS
    -----------------------

    ¶4.  (SBU)  Mourao thought that Brazil would complete the Angra 3
    reactor and then build 4 to 6 more reactors, which would mean up to
    nine reactors by 2014.  At the same time, Argentina, Chile and
    others are planning to build more reactors, which could bring the

    BRASILIA 00001398  002 OF 002

    ¶1.  (SBU) SUMMARY.  During an October 13 visit to Brasilia,
    Ambassador Gregory Schulte discussed Iran, Nuclear Suppliers Group
    (NSG) issues and Brazil's nuclear program.  Brazil wants to play a
    constructive role with the UN on nuclear issues, particularly with
    Iran.  Completing an Additional Protocol and joining a NSG consensus
    to limit the spread of enrichment technology will require difficult
    political decisions, though at a technical level they are
    acceptable.  Brazil is committed to developing its own nuclear power
    industry and has planned an extensive program of reactor
    construction.  Further, the GOB intends to develop its capacity to
    become self-sufficient in supplying fuel for its reactors.  The GOB
    sees no technical problem with joining the Global Nuclear Energy
    Partnership, although this will again require a political decision
    that will depend on completion of a government nuclear policy
    review.  END SUMMARY.
    IRAN
    ----

    region up to 15-20 reactors by 2030.  Mourao said that this quantity
    of reactors would be sufficient to justify a regional enrichment
    program.  This could be done through expanding the Argentina-Brazil
    Commission for the Accounting and Control of Nuclear Materials
    (ABACC) or possibly through some other regional organ.  Initially,
    Mourao explained, the GOB wanted to have the ability to produce 60%
    of the fuel needed for Angra I and II.  Currently, the Brazilian
    uranium is made into yellowcake in Canada and then turned in HF6 by
    Urenco (European) and the rods were prepared in Brazil by INB.
    Subsequently, President Lula made a decision that Brazil should seek
    to be self-sufficient in enriching and processing fuel for not just
    Angra I and II but its future reactors too.

    GLOBAL NUCLEAR ENERGY PARTNERSHIP
    ---------------------------------

    ¶5.  (SBU)  Mourao said that he saw no technical problems with
    joining GNEP.  He noted that he had fruitful discussions with Energy
    Department Deputy Assistant Secretary Ed McGinnis in Vienna in
    September.  Almost all the questions had been resolved and from a
    technical viewpoint, GNEP looked like a decent idea.  Brazil is
    following various aspects of GNEP, such as Generation IV, added
    Mourao.  What remains is taking a political decision to join, which
    is part of the overall review of Brazil's international nuclear
    "face."

    SOBEL

`