US embassy cable - 03THEHAGUE2431

UNCLAS SECTION 01 OF 03 THE HAGUE 002431 
 
SIPDIS 
 
STATE FOR T, AC/FO, AC/CB, NP/CBM, L/ACV, VC/CCB 
SECDEF FOR OSD/ISP 
JOINT STAFF FOR DD PMA-A FOR WTC 
WINPAC FOR FOLEY 
COMMERCE FOR GOLDMAN (BIS) 
NSC FOR CHUPA 
 
E.O. 12958: N/A 
TAGS: PARM, PREL, CWC 
SUBJECT: CHEMICAL WEAPONS CONVENTION (CWC): DISCUSSIONS ON 
RUSSIAN CHEMICAL WEAPONS DESTRUCTION (CWD) ASSISTANCE 
 
THIS IS CWC-94-03. 
 
1. SUMMARY:  ON THE MARGINS OF OPCW EXECUTIVE COUNCIL 
(EC)-34, U.S. DELOFFS PARTICIPATED IN MEETINGS RELATED TO 
RUSSIAN CWD ASSISTANCE.  U.S. DEPARTMENT OF DEFENSE (DOD) REP 
ANNOUNCED DOD PLANS TO OBLIGATE AN ADDITIONAL $60.3 MILLION 
FOR SHCHUCH'YE CHEMICAL WEAPONS DESTRUCTION FACILITIES (CWDF) 
CONSTRUCTION BY THE END OF THIS MONTH.  SHE ALSO EMPHASIZED 
THE URGENT NEED FOR ADDITIONAL INTERNATIONAL ASSISTANCE TO 
DESTROY THE NERVE AGENT-FILLED ARTILLERY MUNITIONS STORED AT 
SHCHUCH'YE (PLANOVY) AND KIZNER.  FOR THE FIRST TIME, FRANCE 
EXPRESSED INTEREST IN SUPPORTING THE SHCHUCH'YE PROJECT UNDER 
THE G-8 GLOBAL PARTNERSHIP (GP).  ITALY INTENDS TO PROVIDE 
360 MILLION EUROS TO DESIGN AND CONSTRUCT A NEUTRALIZATION 
FACILITY AT POCHEP.  CZECH REPUBLIC PLANS TO CONTRIBUTE 60 
THOUSAND EUROS TO SUPPORT THE ELECTRICAL SUBSTATION PROJECT 
AT SHCHUCH'YE.  SWITZERLAND OUTLINED PLANS TO PROVIDE 17 
MILLION SWISS FRANCS OVER SIX YEARS TO RUSSIAN CWD.   END 
SUMMARY. 
 
-------------- 
DONORS MEETING 
-------------- 
 
2. ON 22 SEPTEMBER, SUSAN RYAN, OFFICE OF THE SECRETARY OF 
DEFENSE, COOPERATIVE THREAT REDUCTION (CTR) POLICY, AND 
ROBERT MIKULAK, STATE ARMS CONTROL BUREAU, PARTICIPATED IN 
THE DONORS COORDINATION MEETING, CHAIRED BY AMBASSADOR AREND 
MEERBURG, DUTCH MINISTRY OF FOREIGN AFFAIRS (MFA).  OTHER 
PARTICIPANTS INCLUDED: CANADA, CZECH REPUBLIC, EUROPEAN UNION 
(EU), FRANCE, GERMANY, ITALY, JAPAN, POLAND, RUSSIAN 
FEDERATION (RF), SWITZERLAND, AND THE UNITED KINGDOM (UK). 
THE PURPOSE OF THE MEETING WAS TO EXCHANGE INFORMATION AMONG 
CURRENT AND POTENTIAL DONORS. 
 
3. RUSSIAN PARTICIPATION.  RUSSIAN MUNITIONS AGENCY (RMA) 
DIRECTOR-GENERAL (D-G) KHOLSTOV THANKED DONORS FOR THEIR 
CONTRIBUTIONS TO RUSSIAN CWD EFFORTS.  HE STATED THAT 
CONSTRUCTION OF THE SECOND DESTRUCTION (DRILL, DRAIN, AND 
NEUTRALIZE) BUILDING AT SHCHUCH'YE IS UNDERWAY.  IN RESPONSE 
TO A PREVIOUS REQUEST BY MEERBURG, KHOLSTOV PRESENTED AN 
OVERVIEW OF THE RUSSIAN CWD PROGRAM. HIS BRIEFING INCLUDED: 
ORGANIZATIONAL CHART; PRINCIPAL CWD ACTIVITIES; STEPS TO 
BEGIN CONSTRUCTION OF A CWDF; PROJECTED SCHEDULE FOR 
DESTRUCTION OF CATEGORY 1 CHEMICAL WEAPONS; AND PHOTOGRAPHS 
RELATED TO THE CWDF SITES AT GORNIY, SHCHUCH'YE, AND 
KAMBARKA.  THE EU, FINLAND, GERMANY, AND THE NETHERLANDS HAVE 
CONTRIBUTED TO GORNIY.  KHOLSTOV PRESENTED PHOTOGRAPHS OF 
RECENT PROGRESS AT SHCHUCH'YE AND CITED THE UK, ITALY, 
CANADA, NORWAY, AND THE EU AS CONTRIBUTORS TO THE INDUSTRIAL 
INFRASTRUCTURE AT SHCHUCH'YE.  SITE PREPARATIONS AT KAMBARKA 
ARE UNDERWAY.  THE FEASIBILITY STUDY FOR MARADYKOVSKIY HAS 
BEGUN.  THE LEONIDOVKA FEASIBILITY STUDY HAS BEEN APPROVED. 
THE "JUSTIFICATION OF INVESTMENT" FOR THE POCHEP FACILITY HAS 
BEEN DEVELOPED. (NOTE. MEERBURG REQUESTED A COPY OF THE 
BRIEFING AND ACCOMPANYING TEXT FOR DISTRIBUTION TO MEETING 
PARTICIPANTS.  U.S. REPS WILL PROVIDE THIS INFORMATION TO 
INTERESTED PARTIES WHEN IT BECOMES AVAILABLE. END NOTE.) 
 
4.  RUSSIAN 2004 CWD FUNDING. THE CANADIAN REP, CITING A 19 
SEPTEMBER 2003 INTERFAX ARTICLE ABOUT PROJECTED INSUFFICIENT 
2004 RUSSIAN FUNDS FOR CWD, ASKED HOW THIS POTENTIAL DECREASE 
IN FUNDING WOULD AFFECT THE CWDF CONSTRUCTION SCHEDULE. 
KHOLSTOV REPLIED THAT BUDGET PLANNING FOR 2004 HAS JUST BEGUN 
IN THE DUMA.  HE IS TRYING TO OBTAIN "MAXIMUM" FUNDING FOR 
CWD AND VOWED THAT THE 2004 BUDGET "WILL NOT BE LESS THAN THE 
2003 BUDGET" FOR CWD. 
 
5.  U.S. ASSISTANCE.  SUSAN RYAN ANNOUNCED THAT ON 17 
SEPTEMBER 2003, KHOLSTOV SIGNED AN AMENDMENT TO A CTR CWD 
IMPLEMENTING AGREEMENT THAT, ONCE SIGNED BY DOD, WOULD ALLOW 
THE U.S. DOD TO OBLIGATE $60.3 MILLION IN PRIOR-YEAR CTR 
FUNDS FOR SHCHUCH'YE CWDF CONSTRUCTION ACTIVITIES. (DOD 
SIGNED THE AMENDMENT ON 24 SEPTEMBER.) RYAN EMPHASIZED THAT 
THIS PLUS-UP WOULD RESULT IN THE U.S. HAVING OBLIGATED OVER 
HALF OF THE TOTAL COST OF $887.3 MILLION FOR THE CTR 
SHCHUCH'YE CWDF PROJECT.  SHE ALSO HIGHLIGHTED THE CWDF 
CONSTRUCTION PROGRESS OVER THE PAST SIX MONTHS AND THE URGENT 
NEED FOR ADDITIONAL INTERNATIONAL ASSISTANCE TO FUND 
INDUSTRIAL INFRASTRUCTURE PROJECTS COSTING A TOTAL OF OVER 
$110 MILLION THAT ARE CRITICAL TO THE SUPPORT AND OPERATION 
OF THE CWDF. 
 
6.  CANADA.  CANADA, UNDER THE GP, PLANS TO PROVIDE 
APPROXIMATELY $24 MILLION TO CONSTRUCT THE RAILROAD BETWEEN 
THE PLANOVY STORAGE FACILITY AND THE SHCHUCH'YE CWDF.  CANADA 
ALSO PLANS TO JOIN THE UK TO FUND PART OF THE SECOND 
DESTRUCTION BUILDING AT SHCHUCH'YE (TOTAL ESTIMATED COST OF 
CONSTRUCTION, TRAINING, AND SYSTEMIZATION IS $175 MILLION). 
IN ADDITION, CANADA WILL CONSIDER FUNDING ENHANCED PHYSICAL 
SECURITY AT LEONIDOVKA AND IS AWAITING MORE DETAILED 
INFORMATION FROM RMA.  CANADA PLANS TO USE INITIALLY THE UK 
AGREEMENT WITH THE RF AS THE FUNDING MECHANISM BUT INTENDS TO 
ESTABLISH ITS OWN BILATERAL AGREEMENT ON CWD ASSISTANCE WITH 
THE RF.  SMITH NOTED THAT CANADA AND NUCLEAR THREAT 
INITIATIVE (NTI) HAVE EXCHANGED LETTERS IN PREPARATION TO 
RECEIVE NTI'S PLEDGE OF $1 MILLION TO FUND PART OF THE 
RAILROAD PROJECT AT SHCHUCH'YE.  HE ALSO STATED THAT ON 20 
OCTOBER 2003, CANADA INTENDS TO JOIN THE INTERNATIONAL 
SCIENCE AND TECHNOLOGY CENTER (ISTC) IN MOSCOW.  (NOTE. SEE 
PARAGRAPH 22 FOR ADDITIONAL INFORMATION ABOUT CANADIAN 
ASSISTANCE.  END NOTE.) 
 
7.  UK.  USING PREVIOUSLY ALLOCATED FUNDING, THE UK, 
PARTNERED WITH NORWAY, EU, AND CZECH REPUBLIC, IS PROVIDING 
EQUIPMENT (COSTING ABOUT FOUR MILLION BRITISH POUNDS) AN 
ELECTRICAL SUBSTATION THAT WILL SUPPORT THE SHCHUCH'YE CWDF. 
THE UK ALSO IS SERIOUSLY CONSIDERING PARTIAL FUNDING OF THE 
SECOND DESTRUCTION BUILDING AT SHCHUCH'YE.  SPECIFICALLY, THE 
UK PROBABLY WOULD FUND THE SECOND METAL PARTS FURNACE AT A 
COST OF ABOUT $4 MILLION. 
 
8. ITALY.  ITALY, UNDER THE GP, INTENDS TO PROVIDE 360 
MILLION EUROS TO FUND THE DESIGN AND CONSTRUCTION OF THE 
NEUTRALIZATION FACILITY AT POCHEP.  A BILATERAL AGREEMENT 
WITH THE RF WILL BE SIGNED IN EARLY NOVEMBER 2003.  ITALIAN 
REP TRACCI URGED OTHER DONORS TO FUND SIMILAR FACILITIES AT 
LEONIDOVKA AND MARADYKOVSKIY. 
9. FRANCE.  FRANCE WILL CONTRIBUTE A TOTAL OF 1 MILLION EUROS 
IN 2003 AND 2004 FOR ENVIRONMENTAL MONITORING AT GORNIY. 
FRANCE IS INTERESTED IN PROVIDING SIX MILLION EUROS FOR 
ENVIRONMENTAL MONITORING AT THE SHCHUCH'YE CWDF.  FRENCH REP 
LEVAL ALSO REQUESTED A COPY OF THE "SHOPPING" LIST OF 
AVAILABLE INDUSTRIAL INFRASTRUCTURE PROJECTS AT SHCHUCH'YE. 
(NOTE.  SEE PARAGRAPHS 20 AND 21 FOR ADDITIONAL INFORMATION 
RELATED TO FRENCH ASSISTANCE.  END NOTE.) 
 
10.  SWITZERLAND.  THE SWISS ARE WORKING WITH THE RF TO 
CONCLUDE A BILATERAL AGREEMENT TO PROVIDE 17 MILLION SWISS 
FRANCS OVER SIX YEARS FOR CWD ASSISTANCE.  SWISS-FUNDED 
PROJECTS INCLUDE: UP TO 470 THOUSAND EUROS FOR "HEALTH 
MONITORING" AT SHCHUCH'YE; IMPLEMENTATION OF PUBLIC OUTREACH 
(GREEN CROSS) OFFICES AT LEONIDOVKA, MARADYKOVSKIY, AND 
POCHEP; AND, WORKING WITH THE DUTCH ON A PROJECT FOR 
KAMBARKA. (NOTE. ON THE MARGINS SWISS REP INDICATED THAT A 
DEFINITIVE DECISION ABOUT FUNDING SHCHUCH'YE INDUSTRIAL 
INFRASTRUCTURE WOULD BE FORTHCOMING.  END NOTE.) 
 
11. GERMANY.  GERMANY REITERATED ITS PLANS TO PROVIDE 24 
MILLION EUROS IN 2003 FOR "TECHNICAL EQUIPMENT" FOR KAMBARKA. 
 
12. JAPAN.  JAPAN REITERATED THAT IT PLANS TO PROVIDE GP 
ASSISTANCE ONLY FOR THE DISMANTLEMENT OF RUSSIAN NUCLEAR 
SUBMARINES. 
 
13. EU.  THE EU INTENDS TO PROVIDE FOUR MILLION EUROS FOR 
EQUIPMENT AT KAMBARKA. 
14. CZECH REPUBLIC.  THE CZECHS HAVE COMMITTED 60 THOUSAND 
EUROS TO FUND EQUIPMENT RELATED TO THE ELECTRICAL SUBSTATION 
PROJECT AT SHCHUCH'YE.  CZECH REPUBLIC PLANS TO USE THE UK 
AGREEMENT WITH THE RF AS PRAGUE'S FUNDING VEHICLE.  ACCORDING 
TO STEFKOVA, THE AGREEMENT SHOULD BE SIGNED IN ABOUT ONE 
MONTH. 
 
15. NETHERLANDS.  THE DUTCH CONTINUE TO CONSIDER A RUSSIAN 
PROPOSAL TO PROVIDE POWER FOR KAMBARKA. 
 
16. POLAND.  POLISH REP PASTUREJ REITERATED HIS PLEA FOR 
INTEREST IN FUNDING POLAND'S TECHNOLOGY FOR SAFELY PROCESSING 
ARSENIC-CONTAINING WASTE FROM LEWISITE DESTRUCTION. 
 
17. OPCW PARTICIPATION IN DONORS COORDINATION MEETINGS. 
DURING THE SUMMER MEERBURG INFORMED MEETING PARTICIPANTS OF A 
REQUEST TO INVITE A REPRESENTATIVE FROM THE TECHNICAL 
SECRETARIAT (TS) TO THE DONORS MEETINGS.  (OVER THE PAST 
 
SIPDIS 
SEVERAL YEARS, THE U.S. HAS OPPOSED PREVIOUS ATTEMPTS TO 
INCLUDE THE TS IN DONORS' COORDINATION FORA.)  US REP MIKULAK 
NOTED THAT THE TS PARTICIPATES IN A VARIETY OF CWD MEETINGS, 
SUCH AS THE INFORMAL DESTRUCTION MEETINGS PRIOR TO EACH EC 
AND THE NONPROLIFERATION DISARMAMENT COOPERATION INITIATIVE 
(NDCI) CONFERENCES.  HE EXPLAINED THAT IT IS IMPORTANT TO 
PRESERVE THE CHARACTER OF THE DUTCH-LED DONORS MEETINGS BY 
INVITING ONLY DONORS AND POTENTIAL CONTRIBUTORS.  ITALY 
CONCURRED WITH THE U.S. POSITION.  MEERBURG AGREED TO RETAIN 
THE CURRENT INVITEES. 
 
18.  NEXT DUTCH-LED DONORS MEETING.  THE NEXT DUTCH-LED 
DONORS MEETING WILL BE IN THE HAGUE ON 1 DECEMBER 2003. 
 
19.  INTERNATIONAL CWD CONFERENCES IN 2004.  JAMES HARRISON, 
UKMOD, ANNOUNCED THAT THE NEXT NDCI CONFERENCE WILL BE HELD 
ON 4-5 MARCH IN LONDON.  HE ALSO STATED THE UKMOD-HOSTED CWD 
CONFERENCE WILL CONVENE DURING THE WEEK OF 22 MAY IN ST. 
PETERSBURG, RUSSIA. 
 
------------- 
SIDE MEETINGS 
------------- 
 
20. FRANCE.  ON 23 SEPTEMBER, HENRI LEVAL MET RYAN TO DISCUSS 
POTENTIAL FRENCH CONTRIBUTIONS, UNDER THE GP, TO SHCHUCH'YE. 
LEVAL EXPLAINED THAT FRANCE IS INCLINED TO ASSIST WITH 
PROJECTS THAT ARE MORE RELATED TO CHEMICAL WEAPONS 
DESTRUCTION ITSELF.  FRANCE HAS NO EXPERIENCE IN RUSSIA CWD, 
THEREFORE, IS UNCERTAIN ABOUT HOW TO ASSIST THE RF WITH ITS 
CWD.  FRANCE WOULD CONSIDER PROVIDING BETWEEN 50-100 MILLION 
EUROS OVER 10 YEARS UNDER THE GP FOR RUSSIAN CWD.  FRANCE 
INTENDS TO PROVIDE SIX MILLION EUROS IN 2003 AND 2004 FOR 
ENVIRONMENTAL MONITORING AT SHCHUCH'YE.  FURTHERMORE, FRANCE 
IS INTERESTED IN FUNDING INDUSTRIAL INFRASTRUCTURE PROJECTS 
AT SHCHUCH'YE.  LEVAL INDICATED THAT FRANCE WOULD REQUEST 
CONSULTATIONS WITH U.S. EXPERTS ON SHCHUCH'YE ASSISTANCE 
AFTER PARIS HAS FURTHER CONSIDERED POTENTIAL PROJECTS.  RYAN 
NOTED THAT A LETTER, ENCOURAGING FRENCH GP ASSISTANCE FOR 
SHCHUCH'YE, FROM DOD TO THE FRENCH MINISTRY OF DEFENSE MAY BE 
FORTHCOMING. 
 
21. FRENCH INSIGHTS ABOUT KIZNER.  DURING MARCH 2003 DONORS 
MEETINGS, FRANCE HAD INDICATED SERIOUS INTEREST IN HELPING TO 
FUND SECURE TRANSPORTATION OF INTACT CHEMICAL WEAPONS FROM 
THE KIZNER STORAGE FACILITY TO THE SHCHUCH'YE CWDF.  LEVAL 
SUBSEQUENTLY VISITED KIZNER (DURING PAK'S TENURE AS RMA D-G) 
AND NOTED WITH INTEREST THAT THE RUSSIANS NEVER MENTIONED 
THAT THE U.S. WAS PROVIDING PHYSICAL SECURITY IMPROVEMENTS TO 
THE KIZNER FACILITY.  (IN MARCH 2003, RYAN TOLD LEVAL THAT 
DOD WAS PROVIDING ABOUT $10 MILLION IN CTR ASSISTANCE TO 
UPGRADE KIZNER'S PHYSICAL SECURITY.)  ON 1 JULY 2003, RMA 
DEPUTY D-G KULEBYAKIN TOLD LEVAL THAT RMA WAS NO LONGER 
INTERESTED IN FRENCH ASSISTANCE WITH THE TRANSPORTATION OF 
KIZNER STOCKS.  LEVAL WAS SURPRISED BUT COMMENTED TO RYAN 
THAT HE FELT RMA ONLY WANTED FRANCE'S MONEY AND DID NOT WANT 
TO WORK IN A COOPERATIVE MANNER. 
 
22. UK AND CANADA.  UK REPS MENTIONED THEIR INTENTION TO 
PURSUE NORWAY FOR CWD ASSISTANCE UNDER THE GP.  CANADIAN REP 
INDICATED A STRONG POSSIBILITY THAT CANADA MAY BE ABLE TO 
CONTRIBUTE A SURPLUS $1.5 MILLION IN ITS 2003 BUDGET FOR 
EQUIPMENT TO SUPPORT THE SHCHUCH'YE CWDF.  THE SURPLUS FUNDS 
WILL EXPIRE ON 31 MARCH 2004.  RYAN PROMISED TO PROVIDE 
FUNDING SUGGESTIONS.  CANADIAN AND UK REPS PLAN TO MEET WITH 
CTR EXPERTS NEXT MONTH IN OTTAWA TO CONDUCT FURTHER 
DISCUSSIONS RELATED TO SHCHUCH'YE. 
 
23. JAVITS SENDS. 
SOBEL