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Cablegate: China Shows Interest in Details of 123 Agreement

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OO RUEHCN RUEHGH RUEHVC
DE RUEHBJ #5042 2140909
ZNR UUUUU ZZH
O 020909Z AUG 07
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0385
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUCNNSG/NUCLEAR SUPPLIERS GROUP COLLECTIVE
RUEHIL/AMEMBASSY ISLAMABAD 6572
RUEHNE/AMEMBASSY NEW DELHI 4386
RUEHTV/AMEMBASSY TEL AVIV 2056
RHEHNSC/NSC WASHDC
RHMFIUU/DEPT OF ENERGY WASHINGTON DC

UNCLAS BEIJING 005042

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: BEXP ENRG ETTC MNUC PARM PREL TRGY KNNP
SUBJECT: CHINA SHOWS INTEREST IN DETAILS OF 123 AGREEMENT
WITH INDIA

REF: STATE 104171

1. (SBU) Emboffs met with MFA Department of Arms Control
Nuclear Division Deputy Director Xia Tian to deliver reftel
nonpaper and a copy of the U.S.-India Joint Statement
regarding the United States-India Agreement for Peaceful
Nuclear Cooperation (123 Agreement). DOE China Executive
Director placed special emphasis on India's commitment under
the 123 Agreement to establish a new civilian national
enrichment facility under International Atomic Energy Agency
(IAEA) safeguards dedicated to reprocessing safeguarded
nuclear material. Emboffs urged Xia to treat the nonpaper as
"NSG Confidential."

2. (SBU) Xia, using notes prepared in advance, slowly and
deliberately commented that "While China in principle
supports such international cooperation, there remains some
divergence in the Nuclear Suppliers Group (NSG) for which
time will be needed to discuss the details of this agreement.
The next meeting of the NSG Advisory Group will be critical."
Continuing to refer to his prepared notes, Xia then raised
several concerns. Specifically, he asked:

--Does the Agreement include the transfer of enrichment or
reprocessing technology or equipment?
--What happens if India tests again?
--Is the right-of-return written into the Agreement?
--Will the Agreement be voted on by the U.S. Congress before
being presented to the NSG Advisory Group?

Xia noted that discussions in the NSG could be "problematic"
if the 123 Agreement is not first approved by the U.S.
Congress. Emboffs were able to answer all questions on the
basis of reftel guidance, the U.S.-India Joint Statement, and
Under Secretary Burns' On-The-Record Briefing.
RANDT

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