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### Viewing cable 07BEIJING347, SECRETARY OF ENERGY BODMAN'S MEETING WITH

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07BEIJING347 | 2007-01-16 06:35 | 2011-08-23 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Beijing

`

    VZCZCXRO8316
    PP RUEHCN RUEHGH RUEHHM RUEHLN RUEHMA RUEHPB RUEHVC
    DE RUEHBJ #0347/01 0160635
    ZNR UUUUU ZZHP 160635Z JAN 07
    FM AMEMBASSY BEIJING
    TO RUEHC/SECSTATE WASHDC PRIORITY 3852
    RUEHCN/AMCONSUL CHENGDU
    RUEHGH/AMCONSUL SHANGHAI
    RUEHHM/AMCONSUL HO CHI MINH CITY
    RUEHLN/AMCONSUL ST PETERSBURG
    RUEHMA/AMEMBASSSY MALABO
    RUEHPB/AMEMBASSY PORT MORESBY
    RUEHVC/AMCONSUL VANCOUVER
    INFO RUEHZN/SCIENCE COLLECTIVE
    RUEHOO/CHINA POSTS COLLECTIVE
    RUEAEPA/HQ EPA WASHDC
    RHMFIUU/DEPT OF ENERGY WASHINGTON DC
    RUCPDOC/DEPT OF COMMERCE WASHDC
    RUCPDC/NOAA NMFS WASHDC
    RHEHNSC/NSC WASHDC

` `

    UNCLAS SECTION 01 OF 03 BEIJING 000347

    SIPDIS

    SENSITIVE
    SIPDIS

    STATE FOR OES/WATSON, OES/EGC-DEROSA-JOYNT AND OES/PCI
    STATE FOR EAP/CM - WARD
    STATE PASS TO CEQ CONNAUGHTON AND BANKS
    NSC FOR HUNTER, SHRIER, TONG
    USDOE FOR INTERNATIONAL/HARBERT, PUMPHREY AND GEBERT
    USDOC FOR NOAA/OFFICE OF GLOBAL PROGRAMS/SCHNELL
    EPA FOR INTERNATIONAL/MCASKILL AND AYRIS

    E.O.  12958: N/A
    TAGS: ENRG TRGY KNNP KOLY PTER OVIP CH
    SUBJECT:  SECRETARY OF ENERGY BODMAN'S MEETING WITH
    CHAIRMAN SUN QIN OF THE CHINA ATOMIC ENERGY AUTHORITY

    BEIJING 00000347  001.3 OF 003

    ¶1.  (SBU) Summary. Secretary of Energy Samuel Bodman
    discussed the Global Nuclear Energy Program (GNEP),
    Generation IV International Forum (GIF), ongoing
    cooperation under the Peaceful Uses of Nuclear Technology
    (PUNT) and potential areas for new cooperation with China
    Atomic Energy Authority (CAEA) Chairman Sun Qin after the
    Strategic Economic Dialogue (SED) December 15.  Chairman
    Sun said that China would have much to contribute to GNEP,
    but needs to learn more about the program and is willing to
    engage in a private dialogue to do so.  The Ministry of
    Science and Technology (MOST), which signed the GIF
    agreement, is considering full cooperation in GIF, Chairman
    Sun said.  Chairman Sun expressed interest in enhancing
    China's nuclear security efforts before the 2008 Olympics,
    and continuing enhancing nuclear safety and security as
    China launches its ambitious nuclear power program.
    Finally, Chairman Sun said that China is interested in
    increasing cooperation in nuclear energy development,
    because he is concerned that China lacks adequate human
    resources for future development needs.  End Summary.

    U.S. - China Nuclear Cooperation on Solid Footing
    --------------------

    ¶2.  (SBU) During a December 15, 2006 meeting with CAEA
    Chairman Sun Qin, DOE Secretary Bodman expressed
    satisfaction with the length and quality of nuclear
    cooperation with China during more than two decades of
    formal cooperation.  Chairman SUN highlighted the history
    of the cooperation, beginning in 1985, when the United
    States and China established the Peaceful Uses of Nuclear
    Energy Agreement (PUNE) to the present, when the
    cooperation is based on the Peaceful Uses of Nuclear
    Technology (PUNT) agreement, signed in 1998.  Exchanges
    between the two countries have continued to diversify,
    Chairman SUN added.  Beginning with the October 2005 Joint
    China - U.S. Integrated Nuclear Materials Management
    Technology Demonstration at the China Institute of Atomic
    Energy (CIAE), Chairman SUN continued, the two sides are
    participating in expanded areas of cooperation in nuclear
    technology, materials safeguards and security, waste
    disposal, and new cooperation on radiological sources
    security.

    China Considering GNEP but Concerned about Risk
    ----------------------

    ¶3.  (SBU) Secretary Bodman expressed his view that China
    has a lot to contribute to GNEP's development, and hoped
    that China's decision to join the partnership would be
    forthcoming in the near future.  Chairman SUN stated that
    China attaches great importance to the GNEP concept, but
    still needs to have a better understanding of its
    organization.  SUN also acknowledged that GNEP's long-term
    purpose is to strengthen non-proliferation while developing
    nuclear energy, and noted that the United States devotes
    much effort to promote nonproliferation throughout the
    world.  Nevertheless, China requires additional clarity on
    the program.

    ¶4.  (SBU) Chairman SUN wanted to know whether there are
    risks in going from a theoretical fuel cycle concept
    technology into an engineering design and construction
    project.  Secretary Bodman acknowledged that because GNEP
    is still in the research phase there will be risks.  That
    is true of any research program, Secretary Bodman
    continued.  However, it is important to know what the risks
    are, and pay attention to them.  GNEP has three stages, the
    second of which is the research stage, taking place between
    the years 2008 to 2023, or providing more than 12 years to
    settle the technical issues, the Secretary asserted,
    reaffirming his belief that the risks will be resolved in
    that time frame.

    Other China GNEP Concerns

    BEIJING 00000347  002.2 OF 003

    -------------------------

    ¶5.  (SBU) Chairman Sun also wants to acquire further
    details on how the policy of returning reprocessed spent
    fuel to the country of origin would work, how would the
    added value derived from the production of plutonium fuel
    in the irradiated fuel be accounted for, and on the
    relationship between GNEP and other nonproliferation
    mechanisms, such as the Nuclear Nonproliferation Treaty
    (NPT), the Nuclear Suppliers Group (NSG), the IAEA Project
    on Next Generation Reactors (INPRO)  and the U.S. GIF
    initiative.

    ¶6.  (SBU) According to SUN, China is also concerned about
    GNEP's effect on the development of China's own nuclear
    industry, should it choose to become a GNEP partner.  SUN
    indicated that China is willing to engage in a private
    dialogue in order to get a better understanding of GNEP and
    to discuss these matters with other countries to learn of
    their understanding of the program.  He twice stated that
    China has a constructive attitude toward the project.

    GNEP's Immediate Challenge Is To Design an International
    Cooperative Framework
    --------------------------

    ¶7.  (SBU) Devising the cooperative framework will require
    devoting a lot of effort to politics, diplomatic
    initiatives, and consideration of the national interests of
    countries that would participate in the program, Secretary
    Bodman noted.

    China Signals Desire for Olympic Cooperation under PUNT
    -------------------------

    ¶8.  (SBU) Secretary Bodman and Chairman Sun affirmed their
    satisfaction with progress made under the PUNT agreement,
    with a working group meeting scheduled in Beijing early in
    2007, a Chinese nuclear emergency delegation going to the
    U.S. at the end of January, and new cooperation on
    radiological source security being organized under the
    PUNT.

    ¶9.  (SBU) Noting that China is host to the 2008 Summer
    Olympic Games, Chairman SUN voiced the need to strengthen
    nuclear security efforts for the games, given the limited
    time left before the games begin.  Assistant Secretary
    Harbert responded that DOE is ready to work on a pilot
    project on radiological sources security that can be in
    place in time for the Olympics.

    Other Cooperative Activities with the United States
    ----------------------------

    ¶10.  (SBU) Furthermore, Chairman SUN indicated concern over
    the need to continue enhancing nuclear safety and security
    as China launches its ambitious nuclear power program.  He
    signaled willingness for additional cooperation in the
    areas of nuclear safety, safeguards, security, waste
    disposal, and nuclear emergency response, each an agenda
    item under the PUNT Joint Coordinating Committee.

    Cooperation on Expanding Nuclear Power Development
    ------------------------

    ¶11.  (SBU) Finally, Chairman SUN made a bid for additional
    cooperation in the nuclear energy development field,
    stating that China's research and development facilities
    are weak.  China seeks cooperation with the United States
    in every aspect, SUN stated.  Secretary Bodman disagreed
    with the characterization of China's capabilities,
    affirming his belief that China's great advantage is its
    engineering talent.  Chairman SUN countered that given the
    enormity of the challenge, China does not possess
    sufficient human resources to satisfy future development
    needs.  China is open to cooperation with other countries

    BEIJING 00000347  003.2 OF 003

    on nuclear energy and nuclear technology applications.
    Although Tsinghua University's high temperature gas cooled
    pebble bed reactor is a technical advantage, it is not a
    mature technology, he stated.  Similarly, he added, the
    CIAE Fast Reactor, now under construction, will not reach
    criticality until 2009.

    Full Participation in GIF
    -------------------------

    ¶12.  (SBU) Assistant Secretary Karen Harbert observed that
    DOE is happy to sponsor China's membership in GIF, and she
    encouraged China to take all steps to participate fully in
    GIF.  She stated that there were approximately 60 technical
    meetings last year under GIF, and she noted that the
    program provided an opportunity for additional cooperation
    on nuclear issues.  The Ministry of Science and Technology
    (MOST) signed the GIF agreement, and is considering full
    participation, Chairman SUN replied.  China, he continued,
    will be able to benefit from the technology exchanges, but
    will also make contributions of its own, for example on
    high temperature gas cooled reactor research.

    China's Participation in IAEA Antiterrorism Programs
    ------------------------

    ¶13.  (SBU) Chairman Sun also highlighted the attention and
    great interest that China pays to combat nuclear
    antiterrorism and its increasing cooperative activities on
    the subject with the International Atomic Energy Agency
    (IAEA).  China is ready to participate in the IAEA Nuclear
    Security Network Laboratory and will participate in the
    IAEA's non-proliferation supporting program, SUN declared.
    (Note: DOE is providing technical assistance with the
    Security Network Laboratory.)

    Participants
    ------------

    ¶14.  (U)  Participants from the U.S. the U.S. Department of
    Energy:

    Samuel W. Bodman, Secretary of Energy
    Karen Harbert, Assistant Secretary for Policy and
    International Affairs
    Jeffrey Kupfer, Chief of Staff
    Anne Womack Koulton, Director of Public Affairs
    Molly Williamson, Senior Foreign Policy Advisor
    Ben Getto, Senior Policy Advisor
    Maria Holleran Rivera, Attach, DOE China Office

    Participants from the China Atomic Energy Authority:

    SUN Qin, Chairman
    WANG Yiren - Director General Department of System
    Engineering
    YANG Dazhu - Director General Department of Intl.
    Cooperation
    HUANG Wei - Acting Division Director, Department of System
    Engineering
    LI Junjie - Division Director, Department of System
    Engineering
    CAO Shudong - Division Director, Department of System
    Engineering
    ZHANG Shaoping - Interpreter, Department of Intl.
    Cooperation
    Ms. XIAO Lili - Project Manager, Department of Intl.
    Cooperation

    RANDT

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