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Viewing cable 08UNVIEVIENNA664, GENEVA GROUP MOVES TO IMPLEMENT IAEA RULES ON

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Reference ID Created Released Classification Origin
08UNVIEVIENNA664 2008-12-22 07:27 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY UNVIE
VZCZCXYZ0007
OO RUEHWEB

DE RUEHUNV #0664/01 3570727
ZNR UUUUU ZZH
O 220727Z DEC 08
FM USMISSION UNVIE VIENNA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8861
INFO RUEHXX/GENEVA IO MISSIONS COLLECTIVE PRIORITY
RUEHII/VIENNA IAEA POSTS COLLECTIVE PRIORITY
RUEHRO/AMEMBASSY ROME PRIORITY 0394
RHEBAAA/DOE WASHDC PRIORITY
RHEGGTN/DEPT OF ENERGY GERMANTOWN MD PRIORITY
RUEHFR/USMISSION UNESCO PARIS PRIORITY
RUCNDT/USMISSION USUN NEW YORK PRIORITY 1425
UNCLAS UNVIE VIENNA 000664 
 
SENSITIVE 
SIPDIS 
 
FOR IO, T, ISN 
 
E.O. 12958: N/A 
TAGS: IAEA AORC KNNP TRGY UN PREL SZ
SUBJECT: GENEVA GROUP MOVES TO IMPLEMENT IAEA RULES ON 
PROCEDURES INVOLVING EXPENDITURE 
 
1. (SBU) Summary:  This is a guidance request (see paragraph 
7).  Geneva Group members have reached consensus to request 
the IAEA Secretariat to report in writing on the financial 
implications of resolutions introduced for consideration by 
the Board or General Conference.  Such reporting conforms 
with IAEA rules that are already in place but not 
implemented.  Geneva Group Members view the implementation of 
these rules as a component of good governance, and hope that 
a short summary of the costs involved might focus Member 
States, attention on resolutions that actually add value 
rather than promote politics.  Mission has considered the 
possibility that some Member States could use written cost 
estimates to complicate important safeguards verification 
resolutions by complaining about or diverting attention to 
the costs involved.  Notwithstanding this concern, post 
recommends joining Geneva Group consensus and conveying a 
paper requesting the implementation of the rules (together 
with the UK as Geneva Group co-chair) to Deputy Director 
General Waller.  End Summary. 
 
2. (SBU) The 16 members of the Geneva Group have agreed in 
principle to send a letter to the IAEA Secretariat requesting 
the implementation of Rule 34 of the &Rules of Procedure of 
the Board of Governors8 and Rule 67 of the &Rules of 
Procedure of the General Conference.8  The Rules state that 
all proposals involving expenditure by the Agency &shall not 
be voted upon in the absence of a report from the Director 
General on the administrative and financial implications of 
the proposal.8 
 
3. (SBU) In practical terms, implementing Rules 34 and 67 
would require the Secretariat to provide a short report 
outlining the approximate costs of any resolution heading for 
a vote or decision.  Currently, the Secretariat makes no 
reports, but rather keeps a budget representative on hand in 
the Board Room or General Conference to answer questions 
orally. 
 
4. (SBU) Post does not know why Rules 34 and 67 have never 
been implemented (though most General Conference resolutions 
now include a sentence affirming that implementation of the 
resolution &be subject to the availability of resources8). 
Similar rules regarding written cost estimates apply at the 
UN in New York and are known as Program and Budget 
Implication reports (PBIs).  According to Geneva Group 
members, similar reports are also employed at other 
international organizations. 
 
5. (SBU) The Swiss have attempted to encourage this type of 
financial reporting at the IAEA for the better part of a 
year, most recently by informally floating the proposal on 
the margins of the September Board of Governors meeting (the 
U.S. and other like-minded Member States indicated general 
support for the so-called &Swiss proposal8).  The 
Secretariat resisted, however, and the Swiss reluctantly 
opted against raising the issue in the Board plenary and risk 
engaging in a last-minute and doomed battle with the Director 
General.  Since then, the Geneva Group has taken up the issue 
and concluded that the application of Rules 34 and 67 would 
not be overly time-consuming or bureaucratic, and could 
accomplish the following goals: 
 
-  Improve the quality and transparency of debate while 
reducing the number of resolutions that are frivolous and/or 
overly politicized. 
 
-  Give the Secretariat an opportunity to explain the 
consequences of Member States, actions. 
 
-  Enhance the accountability of the Secretariat in its 
implementation of program and budgeting decisions. 
 
6. (SBU) More privately, Post is concerned that Board Rule 34 
in particular could be used to hold up safeguards 
verification resolutions in the Board of Governors. 
Emphasizing costs is an effective way to reduce enthusiasm 
for any proposal, and Rule 34 would make for a convenient 
tool.  A Secretariat financial projection on a resolution 
requiring the continuation or expansion of investigative 
efforts could conceivably contain grist for resolution 
opponents to pick it apart or misdirect the debate.  For 
example, Iran, Syria and their NAM supporters would very 
 
likely adopt such tactics relative to any proposed resolution 
on their portfolios.  Because Rules 34 and 67 are identical, 
it is intellectually problematic to implement General 
Conference Rule 67, imposing a documentary requirement on the 
Secretariat, without doing the same on Board Rule 34. 
 
7. (SBU) Comment and Recommendation: Mission views the 
implementation of Rules 34 and 67 as contributing to our long 
term goals of transparency in international organizations. 
Despite concerns that Rule 34 could be used against us in 
certain contexts, Mission recommends joining Geneva Group 
consensus and conveying a letter to the Secretariat by 
December 24 requesting the implementation of Rules 34 and 67. 
 Mission requests guidance to do so. 
 
 
 
SCHULTE