US embassy cable - 05PRETORIA3477

C O N F I D E N T I A L SECTION 01 OF 02 PRETORIA 003477 
 
SIPDIS 
 
DEPT FOR NP/NE/ABURKART, AF/S/KGAITHER 
DEPT OF ENERGY FOR NE-2.4, NNSA/NA-243/MMANNING, NA-241, 
AND NA-21/ABIENIAWSKI 
 
E.O. 12958: DECL: 08/25/2015 
TAGS: KNNP, ENRG, TRGY, OPDC, SF 
SUBJECT: SOUTH AFRICA: AMBASSADOR MEETS WITH MINISTER OF 
MINERALS AND ENERGY TO DISCUSS CLOSER BILATERAL RELATIONS 
ON NUCLEAR ENERGY 
 
REF: A. PRETORIA 2923 
 
     B. SECSTATE 92684 
     C. PRETORIA 1974 
 
Classified By: Amb. J.E. Frazer; Reasons E.O. 12958 1.4 (b) and (d). 
 
1. (SBU) Summary.  Ambassador Frazer and DCM met with 
Minister of Minerals and Energy Lindiwe Hendricks on August 
22 to discuss the path forward on nuclear energy bilateral 
cooperation.  Ambassador Frazer framed U.S.-South African 
cooperation on nuclear energy in the context of the broader 
bilateral relationship, affirmed by the June Statement from 
Presidents Bush and Mbeki.  Hendricks agreed that South 
Africa's collaboration on nuclear energy was part of broader 
bilateral relations with the United States.  She indicated 
that positive responses to Secretary Rice's letter of May 19 
and Secretary Bodman's letter of July 22 were forthcoming. 
She also said that both sides should do "what needed to be 
done to establish" a Joint Standing Committee on Nuclear 
Energy Cooperation (JSCNEC).  Hendricks said that South 
Africa viewed the research and development agreements with 
the United States, one on nuclear energy and the other on 
nuclear materials safeguards technologies, as "part of a 
bigger package" regarding nuclear bilateral cooperation on 
which South Africa was almost ready to move forward. 
Hendricks also said that South Africa was interested in 
returning U.S. origin spent fuel assemblies as well as other 
areas of scientific and technical cooperation.  The 
Ambassador noted that Secretary Rice may be visiting South 
Africa in the near future, and that this might be a good time 
to launch the Joint Standing Committee with joint Department 
of State and Department of Energy participation.  End Summary. 
 
2. (SBU) Ambassador Frazer, DCM Donald Teitelbaum, and Econ 
M/C Jeff Hartley met with Minister of Minerals and Energy 
Lindiwe Hendricks and Deputy Director General Neliswe 
Magubane on August 22 to discuss the path forward on 
bilateral cooperation in the area of nuclear energy. 
Ambassador Frazer framed U.S.-South African cooperation on 
nuclear energy in the context of the broader bilateral 
relationship, affirmed by the June Statement from Presidents 
Bush and Mbeki.  Hendricks indicated that South Africa was 
ready to move forward on a series of collaborative endeavors, 
and assured Ambassador Frazer that positive answers to the 
letters of Secretary Rice and Secretary Bodman were 
forthcoming.  She agreed that South Africa's collaboration on 
nuclear energy is part of broader bilateral relations with 
the United States.  Noting the constructive meeting between 
President George W. Bush and President Thabo Mbeki on June 
10, Hendricks commented, "From my side, South Africa has good 
relations with the United States, and I don't see why it 
should change.  You have my commitment and assurance that 
this won't change." 
 
JSCNEC 
------ 
 
3. (SBU) Hendricks told Ambassador Frazer that both sides 
only needed to "do what needs to be done to establish" a 
Joint Standing Committee on Nuclear Energy Cooperation 
(JSCNEC).  She noted that her officials had already created a 
list of potential areas for cooperation.  When asked how we 
should move forward, Hendricks replied that "I suppose we 
have the highest levels voice their commitment in the 
presence of our officials, then leave it to our officials" to 
follow through.  With a chuckle, she reassured Ambassador 
Frazer that the creation of a JSCNEC "should not give you 
sleepless nights." 
 
4. (C) Ambassador Frazer noted that Secretary Rice may be 
visiting South Africa in the near future, and that this could 
present an excellent opportunity to launch the Joint Standing 
Committee, since the State Department led for the United 
States and the Department of Minerals and Energy (DME) led 
for South Africa.  There ensued some discussion as to what 
would be the best way for both sides to publicly express 
their commitment to closer relations in this area, with 
agreement that we needed to chart the way ahead in an 
exchange of letters. 
 
Research and Development Agreements 
----------------------------------- 
 
5. (SBU) Hendricks said that South Africa viewed the research 
and development agreements with the United States, one on 
nuclear energy and the other on nuclear materials safeguards 
technologies, as "part of a bigger package" regarding nuclear 
bilateral cooperation on which South Africa was almost ready 
to move forward.  She said that DME had consulted with ESKOM, 
the Nuclear Energy Corporation of South Africa (NECSA), and 
PBMR, Ltd.  While there had been some contentious issues 
surrounding the annex on intellectual property rights, 
somehow DME would work around them.  Both sides agreed to 
explore venues for a signing ceremony. 
 
6. (SBU) In a related exchange, DME Chief Director for 
Nuclear Policy Tseliso Maqubela assured Econoff that all 
interagency hurdles had been overcome on the research and 
development agreements, including those on intellectual 
property rights.  However, the agreements still needed to be 
approved by the Minister and might need to go to Cabinet for 
general approval.  In a separate exchange, Chief Director for 
Nuclear Policy Tseliso Maqubela told Econoff -- which 
Hendricks confirmed to the Ambassador -- that Minister 
Hendricks would not be attending the IAEA General Conference 
in Vienna September 26-30 because South Africa would be 
hosting the 18th World Petroleum Congress in Johannesburg 
September 26-29.  In her place, Deputy Minister Lula Xingwana 
would attend only IAEA's opening ceremony.  For this reason, 
a signing ceremony on the margins of the General Conference 
with Secretary Bodman, as had been suggested by the 
Department of Energy, did not seem viable.  Maqubela further 
explained that South Africa viewed the R&D agreements as a 
significant step forward in bilateral relations, and 
therefore preferred a venue affording more attention than "a 
five-minute signing on the margins of a multilateral event." 
Maqubela said that they were looking at organizing an event 
either in Washington or Pretoria "but not inbetween."  In her 
general discussion with Ambassador Frazer about developing 
the bilateral relationship with the United States, Hendricks 
seemed to echo this sentiment. 
 
Safari Reactor Conversion 
------------------------- 
 
7. (SBU) Minister Hendricks mentioned that her announcement 
to convert the SAFARI Research Reactor to non weapons grade 
fuel was one of few memos that she has submitted to her 
Cabinet so far.  In reference to Secretary Bodman's July 22 
letter of congratulations and Former Senator Sam Nunn's very 
supportive statement on behalf of the Nuclear Threat 
Initiative, she chuckled, "I guess the United States is very 
happy with that."  In response to the Ambassador's question 
about South Africa taking further steps to remove U.S.-origin 
HEU fuel assemblies, Hendricks seemed at first unaware of the 
program, but once Deputy Director General Magubane mentioned 
the "Spent Fuels Take Back Program," Hendricks confirmed that 
there seemed to be "no problems with moving ahead on that." 
She later confessed to still reading into her new portfolio. 
 
State of Relations 
------------------ 
 
8. (C) Overall, the meeting was very constructive, reflecting 
that both sides were very close to entering a new chapter of 
bilateral cooperation in this very important area.  The fact 
that the South Africans view closer bilateral relations with 
the United States in nuclear energy as part of a bilateral 
program rather than a set of piecemeal activities is 
encouraging. 
FRAZER