US embassy cable - 04THEHAGUE1695

UNCLAS SECTION 01 OF 04 THE HAGUE 001695 
 
SIPDIS 
 
STATE FOR AC/CB, NP/CBM, VC/CCB, L/ACV, IO/S 
SECDEF FOR OSD/ISP 
JOINT STAFF FOR DD PMA-A FOR WTC 
COMMERCE FOR BIS (GOLDMAN) 
NSC FOR JOECK 
WINPAC FOR LIEPMAN 
 
E.O. 12958: N/A 
TAGS: PARM, PREL, CWC 
SUBJECT: CHEMICAL WEAPONS CONVENTION (CWC): WRAP-UP FOR THE 
37TH EXECUTIVE COUNCIL SESSION OF THE OPCW 
 
REF: STATE 140663 
 
This is CWC-83-04. 
 
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SUMMARY 
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1.  (U)  The U.S. accomplished all of its objectives at a very 
successful 37th Executive Council (EC) session.  The requests from 
Libya and Albania for extension of their destruction deadlines were 
adopted.  Agreement was reached on a larger Working Capital Fund with a 
longer replenishment period, and there was also consensus on revised 
Financial Rules and Regulations.  Finally, there was extensive informal 
discussion of the proposed technical change to allow conversion of the 
Rabta facility in Libya (septel).  In addition, a number of 
administrative and technical issues were resolved by the EC.  The resul 
ensures that in the run-up to the October EC, the focus will be on two 
key issues: the 2005 budget for the OPCW, and the anticipated formal 
request for the technical change on Rabta conversion.  End Summary. 
 
-------------------------------- 
AGENDA ITEM THREE:  DG STATEMENT 
-------------------------------- 
 
2.  (U) Director General Pfirter's statement focused on budget reform, 
the OPCW's growing world image, program delivery and management reform 
of the Technical Secretariat (TS).  The DG noted India's destruction 
efforts, adding that it is very likely India would destroy its stockpil 
before the necessary end date.  The DG expressed a desire for more 
involvement from African countries in the coming year.  The DG raised 
the proposed 4.8% increase in the operating budget for 2005.  He noted 
that annual assessments would rise less than 4.4% and commented that th 
number of inspections is expected to rise some 17% in 2005.  The DG sai 
the TS is addressing the concerns of the States Parties and implementin 
changes in the TS.  He asked for patience, emphasizing that he is movin 
as quickly as the Convention allows in implementing administrative 
changes.  The DG concluded his statement addressing the importance of 
amending the Working Capital Fund and referred to it as "crucial" to th 
success of the organization. 
 
--------------------------------- 
AGENDA ITEM FOUR:  GENERAL DEBATE 
--------------------------------- 
 
3.  (U) General debate of EC-37 opened with the U.S. statement 
delivered by Ambassador Javits.  Fifteen other countries then went on t 
deliver opening statements, most welcoming and pledging support to Jose 
Antonio Arrospide Del Busto (Ambassador of Peru) as the new EC Chairman 
The other key issue in the statements was the proposed 2005 Budget and 
the new Results Based Budgeting (RBB) format.  Most comments focused on 
requests for justification and clarification on how the proposed budget 
was formulated.  In addition, India expressed concern over the morale o 
the TS staff.  Malaysia and Algeria had concerns about the geographic 
composition and distribution of TS staff posts.  Of minor note, Cuba 
called for the UNSC to stay out of the arms control business 
(referencing UNSC resolution 1540), and focus on other issues. 
 
--------------------------------------------- ---------------- 
AGENDA ITEM FIVE:  STATUS OF IMPLEMENTATION OF THE CONVENTION 
--------------------------------------------- ---------------- 
 
4.  (U)  The EC noted the 2003 verification implementation report and 
the corrigenda which included U.S. comments. 
 
5.  (U)  The DG's report on the status of Article X and XI 
implementation also was noted, and the U.S. delegation made an 
intervention per instructions in reftel. 
 
------------------------------------------ 
AGENDA ITEM SIX:  DRAFT REPORT OF THE OPCW 
------------------------------------------ 
 
6.  (U)  The Council agreed to note this document with no substantive 
discussions. 
 
--------------------------------------------- ------------ 
AGENDA ITEM SEVEN:  LIBYAN AND ALBANIA EXTENSION REQUESTS 
--------------------------------------------- ------------ 
 
7.  (U)  The EC approved the requests by Libya and Albania for 
extensions of their respective Category 1 destruction deadlines.  There 
were minor technical changes proposed by the FRG, which were acceptable 
to Washington.  The issue of site visits did not arise. 
--------------------------------------------- ----- 
AGENDA ITEM EIGHT:  DETAILED PLANS FOR DESTRUCTION 
--------------------------------------------- ----- 
8.  (U)  Russia asked that the detailed plan for Aberdeen be deferred 
to EC-38.  The EC approved the plan for Dugway Proving Ground.  And the 
EC approved the detailed plan for destruction of Category 2 CW at the 
Al-Jufra CWDF in Libya, which included the amendment requested by 
Washington in the guidance cable. 
 
--------------------------------------------- --------- 
AGENDA ITEM NINE:  DESTRUCTION OR CONVERSION OF CWPFS 
--------------------------------------------- --------- 
 
9.  (U)  The Council noted that no objection had been raised on two 
notifications of changes at former CWPFs: (1) A State Party's changes 
to chemical process equipment at a converted facility and (2) the 
Russian Federation's changes in the production activity at the former 
CWPF (loading chemical submunitions into munitions) at Novocheboksarsk. 
The Council also noted the information submitted on June 8, 2004 by the 
TS on the progress made at former CWPFs undergoing conversion. 
 
SIPDIS 
 
10. (U)  Deloffs Susan Ryan and Bob Metcalf met with Russian officials 
to seek responses to the U.S. June 2004 questions (STATE 125008) 
regarding the May 4, 2004 notification of changes to the former CWPF 
(loading chemical submunitions into munitions) at Novocheboksarsk and t 
obtain a status of five Russian CWPFs.  Alexander Gorbovskiy (Federal 
Agency for Industry) provided a written response to the U.S. questions 
and clarified several answers. (Note: Copy of the Russian language text 
and an unofficial English translation were provided to the CWC Del and 
sent to Washington. End note.) 
 
11. (U)  The VX Production Facility (Building 350) at Novocheboksarsk 
is scheduled to be destroyed by April 29, 2007. Both the former 
Volgograd sarin and soman production facilities are undergoing 
conversion to manufacture insecticides and herbicides.  As the joint 
stock company that now owns these facilities is suffering from financia 
problems, Gorbovskiy anticipates the former CWPFs will not be converted 
before the end of 2005.  The destruction of the former munitions fillin 
facility (Building 602) is complete with the exception of two reinforce 
concrete bunkers.  The completion of destruction will be "no earlier 
than the end of 2004." Aerosol sprays will be produced in the former 
Volgograd CWPF for the assembly of non-chemical parts (Building 601). 
Details will be provided in the forthcoming documentation submitted to 
the TS.  Pressed by the U.S. for an updated schedule of remaining 
conversion activities, Gorbovskiy responded that updated schedules woul 
be provided in forthcoming TS documents.  The Russian Federation intend 
to submit a combined plan for the conversion and verification of 
Buildings 301, 302, 601, and 604 at Volgograd as well as additional 
notifications of changes. 
 
------------------------------------- 
AGENDA ITEM TEN:  FACILITY AGREEMENTS 
------------------------------------- 
 
12. (U) Russia deferred action on the Aberdeen facility agreement to 
EC-38.  The facility agreement for Dugway was approved by the Council. 
Despite early interventions by the Italian and Iranian delegations, the 
EC approved both the Australian and Singaporean Schedule 1 Facility 
Agreements.  The Italians intervened to signal their displeasure with 
the negotiation process pursued by the TS.  The Italian delegation 
reviewed with the Del their disappointment that, during negotiation of 
their Schedule 2 FAs, the TS insisted that language regarding the 
frequency and intensity of inspections be included in the agreement, 
whereas similar language appeared missing in the Schedule 1 FAs before 
the Council. Both the Italian and Iranian delegations were also 
concerned that the proposed Facility Agreements deviate from the Model 
Facility Agreement. 
 
--------------------------------------------- 
AGENDA ITEM ELEVEN:  CHEMICAL INDUSTRY ISSUES 
--------------------------------------------- 
 
13. (U) The EC adopted report language to encourage the TS to establish 
criteria to use in considering when to pursue facility agreements.  The 
EC further recommended that, when considering criteria for negotiation 
of facility agreements, the TS consider the input received from the 
inspected State Party.  The Delegation noted the U.S. understanding of 
the text will apply to new Schedule 2 facilities and will also 
significantly reduce the number of facility agreements currently under 
negotiation. 
 
14. (U) Anticipated EC report language regarding marking declared 
chemicals in the Handbook on Chemicals was not tabled by the 
facilitator (Ruck, FRG).  The facilitator indicates he will table 
language for inclusion in the report for EC-38. 
 
--------------------------------------------- -- 
AGENDA ITEM TWELVE:  LIST OF NEW VALIDATED DATA 
--------------------------------------------- -- 
 
15.  (U)  The EC approved the note by the DG on the lists of new 
validated data for inclusion in the OPCW Central Analytical Database. 
 
--------------------------------------------- -- 
AGENDA ITEM THIRTEEN:  AGREEMENTS ON PRIVILEGES 
AND IMMUNITIES OF THE OPCW 
--------------------------------------------- -- 
 
16.  (U)  The EC considered and approved the privileges and immunities 
agreements with Mauritius and Malta.  Before approval, the Delegation 
noted the U.S. position as outlined in the guidance cable.  Japan 
followed with a statement that mirrored the U.S. sentiment. 
 
---------------------------------------- 
AGENDA ITEM FOURTEEN:  REPORT OF THE OIO 
---------------------------------------- 
 
17.  (U)  The EC noted the OIO report, and the U.S. made the points 
provided in the guidance cable. 
 
-------------------------------------- 
AGENDA ITEM FIFTEEN:  FINANCIAL ISSUES 
-------------------------------------- 
 
18.  (U)  The EC noted the DG's reports on income and expenditure for 
February 29, March 31, April 30 and May 31.  It also noted the TS 
report on non-service incurred death and disability insurance. 
 
--------------------------------------------- ---------------- 
AGENDA ITEM SIXTEEN:  AMENDMENTS TO THE FINANCIAL REGULATIONS 
--------------------------------------------- ---------------- 
 
19.  (U)  Most important for the U.S., the draft decision on proposed 
amendments to the Working Capital Fund was adopted by the EC, raising 
the amount of the Fund and substantially extending the period over whic 
the TS must repay any funds drawn from the WCF. 
 
20.  (U)  As reported to Washington, the Indian delegation informed the 
EC at its opening session that it had difficulty with the use of the 
word "contributions" in the proposed amendments to the Financial 
Regulations. After lengthy discussions, India agreed to an explanatory 
footnote that would be included in the regulations simply stating that 
 
(Begin footnote) Under this definition, "contributions" means (a) 
amounts assessed on States Parties under the provisions of Article VIII 
of the Convention, and (b) payments by States Parties of verification 
costs based on invoices issued by the Secretariat subsequent to the 
verification activities undertaken under the provisions of Articles IV 
and V of the Convention.  (End footnote) 
 
21.  (U)  India also asked that the word "contested" be substituted for 
the word "disputed" on the relevant sections involving Article IV/V 
invoices.  Both the inclusion of the footnote and use of the word 
"contested" were approved by Washington.  With those changes, the 
Financial Rules and Regulations were adopted. 
 
---------------------------- 
AGENDA ITEM SEVENTEEN:  ABAF 
---------------------------- 
 
22.  (U)  The EC noted the ABAF report.  The discussion then turned to 
the ABAF recommendation on reclassification of the posts of Special 
Assistant, Verification Division and Special Adviser, Administration 
Division. With Washington's approval, agreement was reached on a 
decision that approved the reclassification of these jobs at the D-1 
level, but specifically noted that both would revert to the original 
level of P-5 upon departure of the incumbent. 
 
23.  (U) Following adoption of this decision, the DG made a strong 
statement urging delegations to provide him with the authority to 
reclassify positions.  He noted that this power had been taken away 
from his predecessor, but argued that such reclassification authority i 
important to allow for effective management and personnel decisions. 
Ambassador Javits made a statement from the floor expressing support 
for the general principle of returning to the DG the position 
reclassification authority for lower and mid-level positions.  (Note: 
We fully anticipate that the DG will return to this issue again, and 
that it will be an important item for discussion possibly at the next 
EC.  End Note.) 
 
--------------------------------------------- -------------------- 
AGENDA ITEM EIGHTEEN:  PROVISIONAL AGENDA OF THE NINTH SESSION OF 
THE CONFERENCE OF STATES PARTIES 
--------------------------------------------- ------------------- 
 
24.  (U) The EC considered and approved document EC-37/DG.11, the 
provisional agenda of the ninth session of the CSP, with no debate. 
The Ninth CSP is schedule to take place from 29 November to 3 December 
2004. 
 
----------------------------------------- 
AGENDA ITEM NINETEEN:  DATES FOR REGULAR 
SESSIONS OF THE EXECUTIVE COUNCIL IN 2005 
----------------------------------------- 
 
25.  (U)  Following approval from Washington, the EC considered and 
approved the following dates for its regular sessions in 2005:  40th 
session: 15 - 18 March; 41st session: 28 June - 1 July; 42nd session: 
27 - 30 September.  All members except South Africa agreed to the U.S. 
proposal to move the 43rd session dates from 6 - 9 December to 13 - 16 
December. 
 
South Africa informed the Council that moving EC-43 to that date would 
make it exceedingly difficult for the delegation to receive 
instructions for that particular Council session.  Due to the South 
African objection, the EC agreed to defer a decision on dates for EC-43 
until the next Council meeting. 
 
--------------------------------------- 
AGENDA ITEM TWENTY:  ANY OTHER BUSINESS 
--------------------------------------- 
 
26.  (U)  Libyan Ambassador Sahli urged all Council members to support 
the proposed technical change to the Convention to allow the conversion 
of the Rabta CWPF to peaceful purposes.  She added that Libya plans to 
submit its formal request for conversion by mid-July for consideration 
by EC-38. Tunisia, Sudan, and Algeria expressed their support for the 
proposed technical change. 
 
27.  (U)  The Council requested that the issue of late submissions of 
declarations be placed on the plan of activities for intersessional 
consultations. Although there is agreement that the issue is ripe for 
consideration, informal discussions indicate that States Parties are 
unsure as to which cluster this issue should be tasked.  Pakistan 
indicated a preference for the issue to be considered in the legal 
cluster, but France and Germany intervened to insist that the issue be 
tasked to the industry cluster for consideration.  The EC Chair 
supported this suggestion that the Bureau task the issue to the industr 
cluster. 
 
28.  (U)  Javits sends. 
 
 
SOBEL