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### Viewing cable 03THEHAGUE2338, CHEMICAL WEAPONS CONVENTION (CWC): SCENESETTER FOR

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Reference ID | Created | Released | Classification | Origin
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03THEHAGUE2338 | 2003-09-17 10:54 | 2011-08-24 01:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy The Hague

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    UNCLAS SECTION 01 OF 07 THE HAGUE 002338

    SIPDIS

    SENSITIVE

    STATE FOR AC/CB, NP/CBM, L/ACV, IO/S
    SECDEF FOR OSD/ISP
    JOINT STAFF FOR DD PMA-A FOR WTC
    COMMERCE FOR BIS (GOLDMAN)
    NSC FOR CHUPA
    WINPAC FOR FOLEY

    E.O. 12958: N/A
    TAGS: PARM PREL ETTC AORC RS CWC
    SUBJECT: CHEMICAL WEAPONS CONVENTION (CWC): SCENESETTER FOR
    34TH SESSION OF THE OPCW EXECUTIVE COUNCIL, 23-26 SEPTEMBER

    REF: A. A: STATE 259237 (NOTAL)
         ¶B. B: STATE 245962

    This is CWC-92-03.

    (U)  GUIDANCE REQUESTS/RECOMMENDATIONS -- see paras. 13, 14
    and-------
    Summary
    -------

    ¶1. (SBU) There will be one major topic for discussion at
    EC-34 (budget), a number of key issues of importance to the
    U.S. on which there may be substantial discussion (U.S.
    destruction deadline extension, Article VII) and one question
    that will be difficult to avoid discussing (the ILO decision
    on former DG Bustani).  The U.S. is favorably placed on the
    budget discussion: we are seeking an increase of no more than
    7.5% while most delegations are in the 5-6% range or lower.
    Reaching agreement on a specific number will be quite
    difficult, and may well not be achieved in this EC.  The
    extent to which the U.S. request for an extension of the 45%
    destruction deadline will be an issue will depend much on our
    presentation to the other delegations (particularly on the
    question of the 100% deadline), and whether we will have
    secured Russian agreement to dampen discussion on this
    matter.  On the Article VII action plan, the U.K. facilitator
    is working hard to achieve U.S. goals, but due to objections
    from NAM countrie
    s, there will not be a draft Plan of Action finalized for
    consideration by this EC.  Finally, while we may minimize
    formal Council discussion of the ILO decision on former DG
    Bustani, it will be the elephant in the corner for EC-34, and
    there will be repeated informal queries on how the U.S. wants
    to respond to the decision.  End Summary.

    ----------------------------------
    Draft Annotated Agenda Item Three:
    Statement by the Director General
    ----------------------------------

    ¶2.  (U)  Del expects the DG's statement will focus on
    priorities and his efforts to promote administrative reform.

    ---------------------------------
    Draft Annotated Agenda Item Four:
    Status of Implementation of the
    Convention
    ---------------------------------

    ---- 2002 Verification Implementation Report ----

    ¶3.  (U)  Delegations held no consultations on the 2002
    supplemental Verification Implementation Report since
    mid-July.

    ---- Report on the project to assist States Parties in
    identifying new declarable facilities under Article VI of the
    Convention ----

    ¶4.  (U)  The Council is requested to further consider the
    DG's report on this issue (EC-33/S/4 dated 19 June 2003).

    ---- Planned increase in the Article VI Inspection Programme
    for 2003 ----

    ¶5.  (U)  The Council is requested to note the DG's Note on
    this topic (EC-34/DG.11, dated 4 Sept. 2003).

    --------------------------------------------- --
    Draft Annotated Agenda Item Five:
    Recommendation for the Conference of the States
    Parties concerning plan of action regarding the
    Implementation of Article VII obligations
    --------------------------------------------- --

    ¶6.  (U)  The Council is requested to prepare a recommendation
    regarding the implementation of Article VII obligations, with
    the objective of fostering the full and effective
    implementation of the Convention by all States Parties to
    enable CSP-8 to develop a plan of action.  Consultations on
    this issue began in early August and a draft Plan of Action
    is under discussion and includes a timetable for full
    compliance by CSP-10 and consideration by the tenth
    Conference of remedial measures if necessary.  Several
    delegations are opposed to the concept of deadlines, a few
    are reluctant to agree to the tenth CSP, and several of the
    more radical NAM are opposed to consideration of any
    reference to Art. XII, including a watered-down reference to
    remedial measures.  Given this opposition, the Facilitator
    (Matthews/UK) indicated he will schedule an additional round
    of consultations post-EC-34 and will strive to achieve
    consensus during subsequent consultations ahead of CSP-8.

    -----------------------------------------
    Draft Annotated Agenda Item Six:
    Draft Report of the Organization for 2002
    -----------------------------------------

    ¶7.  (U)  One consultation took place on the Draft Report of
    the OPCW and several technical corrections were made.  An
    attempt was made to change the statement that all States
    Parties had met the 40% destruction deadline for CWPF's.  The
    Technical Secretariat (TS) argued against this change in
    order to be consistent with the VIR.  However, the statement
    remains technically incorrect at this point because Bosnia
    and Herzegovina have yet to begin destruction activities.
    Del has not received a revised copy of the document.

    --------------------------------------
    Draft Annotated Agenda Item Seven:
    Report of the Executive Council on the
    Performance of its activities
    --------------------------------------

    ¶8.  (U)  During informal consultations, Del suggested that a
    reference to the extension of deadlines for destruction of
    Category 1 chemical weapons stockpiles should note that the
    CSP had not approved Russia's request for extensions of the
    45% and 100% deadlines.  The TS proposed to cross-reference
    the OPCW report to clarify that point, and Russia did not
    object so long as the EC report did not introduce any new
    language on the issue.  On Facility Agreements, the ROK
    requested that the report note that the EC had considered a
    draft facility agreement with the ROK, as well as with
    Belgium.

    ¶9.  (U)  Iran sought to include references to Review
    Conference mandates under confidentiality issues and matters
    concerning Article XI as "Matters under consideration by the
    Council," and requested a reference to the Review Conference
    deliberations on Article XI.  Both Iran and India proposed
    adding references to ISO as a matter under consideration by
    the EC.  The TS explained the rules of procedure covering
    what activities are included in the list, and it is not clear
    whether those proposals will be accepted.

    -----------------------------------------
    Draft Annotated Agenda Item Eight:
    Extension of deadlines for destruction
    of Category 1 chemical weapons stockpiles
    -----------------------------------------

    ---- Russian Deadline Extension Request ----

    ¶10.  (U) The local Russian delegation has no information
    about the status of the Russian Federation Request.  Del has
    received multiple indications that a trip by a limited number
    of EC experts and the EC Chairman is planned for the week of
    October 6th to Russian demil sites at Kambarka, Schuch'ye,
    and Gorniy.  The Russian Federation may envisage substantive
    discussion of this issue only after such a trip and thus only
    after the upcoming Council session.

    ---- A State Party Deadline Extension Request ----

    ¶11. (U) Del anticipates that A State Party will provide a
    comprehensive presentation during the destruction informals
    on 22 September on its request for an extension of the 45%
    destruction deadline.  Based on such a presentation, Del
    believes it should be possible to join consensus on a
    recommendation to the Conference to grant this request.

    ---- U.S. Deadline Extension Request ----

    ¶12.  (SBU) Del has encountered no overt opposition to the
    U.S. proposal, as outlined in our information paper (Ref B)
    and Decision Document, but there has been keen interest and a
    distinct discomfort, most notably but not exclusively from
    the German delegation, as to how the U.S. intends to
    explain/address the issue of creating a 45% deadline which
    exceeds the present 100% deadline.  Del believes that this
    question is going to be foremost in the minds of many other
    delegations and anticipates that we will be asked repeatedly,
    if only informally "in the hallway," to explain.  Del also
    does not rule out the possibility of a request for an
    explanation to the WEOG.

    ¶13.  (SBU) Talking points included in the background paper on
    this issue are helpful in elaborating U.S. methodology in
    deciding to pursue this course of action, but do little to
    address concerns about whether a 45% deadline that exceeds
    the 100% deadline is consistent with the Convention or is
    even logical.  Recommendation:  Del believes Washington
    should give strong consideration to pursuing an extension in
    principle of the U.S. 100% deadline.  The U.S. demil program
    enjoys widespread admiration among delegations (based on
    thorough and transparent briefings offered in the past about
    the program and its progress), and Del is frankly concerned
    that this one element of our request will needlessly create
    concern over a request that would otherwise be taken in
    stride.

    ¶14. (SBU) Recommendation:  We note that draft guidance
    permits the possibility of accepting an extension in
    principle of the final deadline as a fallback measure, but
    believe that the process would be much smoother and our
    request much more positively received if an extension in
    principle were part of our initial proposal.

    -------------------------------------
    Draft Annotated Agenda Item Nine:
    Detailed plans for the destruction of
    chemical weapons
    -------------------------------------

    ---- Aberdeen ----

    ¶15.  (U) Del believes, based on recent conversations with the
    Russian delegation, this document and its counterpart
    Facility Agreement will continue to be held hostage by the
    Russians pending resolution of their concerns over the
    definition of end point of destruction.

    ---------------------------------------
    Draft Annotated Agenda Item Ten:
    Detailed plans for the destruction or
    Conversion and verification of chemical
    weapons production facilities
    ---------------------------------------

    ---- Russian Combined Plans for Conversion
    or Destruction ----

    ¶16.  (U)  The Russian delegation is unaware of the status of
    these documents.  Del will explore with the Russians their
    response to U.S.-requested changes during the session and
    respond accordingly.

    -----------------------------------
    Draft Annotated Agenda Item Eleven:
    Conversion of chemical weapons
    Production facilities for purposes
    not prohibited under the convention
    -----------------------------------

    ---- Russian Conversion Requests ----

    ¶17.  (U)  Del has received no information from the local
    Russian delegates with respect to this issue.  Russian
    delegation indicated that further information would only
    become available with the arrival of their delegation from
    Moscow.

    ---- U.S. Conversion Requests ----

    ¶18.  (U) The substance of this request has been agreed and
    the TS is, at this time, awaiting our response to their
    informal provision of the DG note announcing this TA.  As
    reported via e-mail, the TS intends to append the actual TA
    to the DG's note.

    -----------------------------------
    Draft Annotated Agenda Item Twelve:
    Facility Agreements
    -----------------------------------

    ---- Belgian facility agreement ----

    ¶19.  (U) Del understands that the Belgians intend to defer
    consideration of this FA due to ongoing discussions over its
    content, presumably with the TS and presumably as a result of
    U.S.-proposed changes adopted by Belgium.

    ---- U.S. facility agreement ----

    ¶20.  (U) See para 15 above (Under Combined Plans)

    ---- Republic of Korea facility agreement ----

    ¶21.  (U) Del understands that the Republic of Korea intends
    to defer consideration of this FA due to ongoing discussions
    over its content, presumably with the TS and presumably as a
    result of U.S.-proposed changes adopted by Republic of Korea.

    -------------------------------------
    Draft Annotated Agenda Item Thirteen:
    Chemical Industry Issues
    -------------------------------------

    ¶22. (U)  The Council will consider a decision regarding
    "Captive Use," circulated by the facilitator (Ruddock/UK) on
    8 Sep 03.  The decision applies to Schedule 2 and 3
    chemicals, an element considered essential by the U.S. during
    consultations.  The decision provides for an effective date
    of 1 Jan 05 for Schedule 2 chemicals and 1 Jan 06 for
    Schedule 3 chemicals to accommodate the Russian need to
    substantially change its domestic legal requirements for
    declarations.  Currently, Russia does not declare Schedule 3
    chemicals unless they are shipped off-site as final products.
     This decision merely clarifies that once a chemical is
    produced above applicable concentration and quantity
    thresholds, regardless of subsequent physical handling
    activities, the production must be declared.  Recommends:
    The decision meets U.S. substantive criteria for a decision
    and Del recommends joining consensus.

    ¶23.  (U)  The EC is likely to be presented with a decision
    text regarding "Clarification of Declarations."  Although
    this facilitation technically falls under the purview of the
    Legal Cluster, it routinely meets during the Industry Cluster
    sessions.  The facilitator (Williams/US) continues to work
    with a few States Parties (India, South Africa, Iran) who
    still have concerns with the timelines in the text, but
    believes consensus may be achieved prior to the EC's
    commencement.  The decision codifies a political commitment
    by SPs to facilitate TS clarification requests regarding SP
    declarations within 60 days.  For those issues arising from
    ambiguous declarations (e.g., incomplete declarations or
    clerical/administrative errors) which affect the
    inspectability of a plant site, if no response is received by
    the SP to the clarification request, the TS would inform the
    EC and consider the plant site inspectable until such time
    that an answer, including a partial answer, is provided.  The
    decision also codifies SP support for the TS to continue its
    efforts to engage SPs in releasing confidential information
    to facilitate clarification requests when an accredited
    representative is either not present in The Hague, does not
    attend regular meetings of the OPCW, or lacks secure means of
    communicating with their capitals other than diplomatic
    pouch.

    --------------------------------------
    Draft Annotated Agenda Item Fourteen:
    Fostering of international Cooperation
    for Peaceful Purposes in the Field of
    Chemical Activities
    --------------------------------------

    ¶24.  (U) One consultation was held on 12 September.
    Delegations were unable to agree on which draft decision
    document to begin discussions.  Western delegations preferred
    a Canada/Sweden document which nearly achieved consensus
    during the Sixth Conference; Iran proposed beginning
    discussion using a draft it put forward just prior to the
    RevCon.  At issue is fundamental disagreement regarding trade
    restrictions and the impact of the Australia Group on full
    and effective implementation of Article XI.  No further
    consultations are scheduled before EC-34, and no draft
    decision will be tabled for discussion.

    ------------------------------------
    Draft Annotated Agenda Item Fifteen:
    Assistance and Protection Against
    Chemical Weapons
    ------------------------------------

    ¶25.  (U)  Consultations are scheduled for 17 September to
    discuss a UK draft declaration format for national protective
    programs.  As this is the first consultation held in months,
    no issues under Article X are ripe for decision.  Del expects
    the facilitator to present an oral report on the status of
    discussions.

    ------------------------------------
    Draft Annotated Agenda Item Sixteen:
    2002 OIO Report
    ------------------------------------

    ¶26.  (U)  Brazil is no longer seeking to amend the text of
    the OIO report.  Instead, it provided a number of questions
    to the DG on various administrative issues, seeking to cast
    doubt about present practices.  Brazil has yet to comment on
    the responses provided by the DG, and Del understands Brazil
    is currently seeking to make a statement at the EC on the OIO
    report, possibly requesting that it be noted by the EC as a
    national view.

    --------------------------------------
    Draft Annotated Agenda Item Seventeen:
    2002 External Auditor's Report
    --------------------------------------

    ¶27.  (U)  Consultations were held on 1 September and most
    interventions centered on the same specific issues of concern
    to the U.S. (Smartstream, materiality, accounting issues,
    procurement issues, and frauds and losses).  The facilitator
    plans to present an oral report to the EC highlighting areas
    of concern and more specifically calling on the TS to prepare
    a report on the remaining work, cost estimation and likely
    timeframe of fully implementing the Smartstream
    administrative software.  Del informally spoke with the
    Director of Administration regarding the U.S. concern on the
    2001 cash surplus.  However this issue was not raised during
    formal consultations.

    -----------------------------------------
    Draft Annotated Agenda Item Eighteen:
    Implementation of the Recommendations of
    the External Auditor and OIO
    -----------------------------------------

    ¶28.  (U)  The Council is requested to consider the subject
    reports.  Del understands that Washington has no objections
    to the reports.

    ---------------------------------------
    Draft Annotated Agenda Item Nineteen:
    Draft OPCW Programme and Budget for 2004
    and all items pertaining to this budget
    ---------------------------------------

    ----- 2004 Budget -----

    ¶29.  (U)  Informal budget consultations resulted in agreement
    on the broad outlines of the 2004 budget, but clearly could
    not resolve wide variations on a possible budget increase.
    On the overall net increase, most delegations' positions fell
    in a band between 5.0% maximum increase (Belgium) and 7.5%
    (U.S., per Ref A), with Japan and South Africa holding out
    for zero nominal growth and the UK arguing for 6.8%.
    Stability Pact countries led by France argued for no more
    than a 5.5% increase (most of this being non-discretionary).
    The facilitator (Beerwerth/FRG) suggested that 6.1% or 6.2%
    were at the middle of that range of the delegations' figures
    and speculated that final consensus might emerge at around
    that level, but there was little support for the proposal.
    The facilitator commented that the TS would have considerable
    discretion in preparing a revised budget proposal for EC-34
    drawing on this guidance.

    ¶30.  (U)  The facilitator reached consensus on reducing the
    draft 2004 budget in a number of the areas that participating
    delegations had explored.  None of the proposed cuts affects
    the core activities of verification or ICA.  The recommended
    reductions include funding for consultants, per capita staff
    turnover costs, common services, information systems,
    inspector training, non-staff costs of destruction
    verification, the exchange rate, and P staff salaries.  The
    facilitator noted that some of these savings were also
    recommended in the XIV ABAF report.  The facilitator and TS
    estimated that these reductions would total roughly 1.7
    million Euros.

    ----- Draft Medium-term Plan -----

    ¶31.  (U) In a Sept. 16 informal consultation, Del noted that
    the draft plan is in Washington for consideration and that we
    leave open the right to provide comments in the future.
    Though most capitals are still reviewing the document, the
    MTP has been well received at OPCW, with delegates commenting
    that it is more concise and readable than last year's
    version.  One delegation pointed to uncertainties about
    on-call inspectors, future rates of destruction, and spending
    tracks on ICA to question some key assumptions included in
    the MTP.

    ------------------------------------
    Draft Annotated Agenda Item Twenty:
    Proposed Amendments to the OPCW
    Financial Regulations
    ------------------------------------

    ¶32.  (U)  Amendments to OPCW financial regulations
    recommended by ABAF and the TS have been pending for two
    years.  Informal consultations the week before EC-34 sought
    to identify non-controversial amendments that could find
    consensus in the EC.  The facilitator cited 12 amendments
    recommended by both ABAF and the TS that he believed might
    obtain quick agreement.  Some of the proposed changes
    clarified existing practice or reflected necessary changes.
    Others include proposals for the DG, in exceptional
    circumstances, to submit supplementary budgetary proposals to
    the CSP through the EC; for the EC, rather than the CSP, to
    allow the DG to transfer appropriated funds between programs
    within a budget chapter; for the DG, with the prior
    concurrence of the EC, to enter into commitments for future
    financial years; for the DG to authorize the write-off of
    losses of funds, stores, equipment and other assets other
    than arrears of assessed contributions and the payment of
    Article IV and V verification costs not exceeding 500 Euros
    per item or 10,000 Euros in a year, without the prior
    approval of the EC; for recognizing a monitoring function for
    the OIO; and other proposals.  Other, more controversial
    proposals are to be postponed until after the CSP.

    ------------------------------------
    Draft Annotated Agenda Item Twenty:
    Proposed Amendments to the OPCW
    Financial Regulations
    ------------------------------------

    ¶33.  (U)  Del understands that Washington wishes to have the
    Council request the TS revisit the proposed amendments in
    light of ABAF comments and produce an updated set of
    proposals.

    ---------------------------------------
    Draft Annotated Agenda Item Twenty-One:
    Financial Issues
    ---------------------------------------
    ----- Income and Expenditure Situation of the OPCW -----

    ¶34.  (U)  The Council is requested to note the DG's reports
    on this matter (EC-34/DG.6, dated 24 July 2003, and
    EC-34/DG.7, dated 18 August 2003).

    ----- Regularization of contractual agreements -----

    ¶35.  (U)  The Council is requested to consider the DG's note
    on this issue and approve the draft decision
    (EC-34/DEC/CRP.3, dated 28 August 2003).

    ----- Working Capital Fund -----

    ¶36.  (U)  The Council is requested to note the DG's report
    for submission to the CSP (EC-34/DG.12, dated 12 Sept. 2003).

    ----- Report of the 14th Session of the ABAF -----

    ¶37.  (U)  The Council is requested to consider the subject
    report (AFAB-14/1, dated 23 June 2003).

    ----- Composition of the ABAF -----

    ¶38.  (U)  The Council is requested to approve appointments to
    ABAF, as noted in the annotated agenda.

    ---------------------------------------
    Draft Annotated Agenda Item Twenty-Two:
    Dates for Regular Sessions of the EC
    ---------------------------------------

    ¶39.  (U)  Proposed dates for 2004 EC sessions are March
    23-26, July 6-9, Oct. 12-15 and Dec. 14-17.

    -----------------------------------------
    Draft Annotated Agenda Item Twenty-Three:
    Any Other Business
    -----------------------------------------

    ¶40.  (U)  This would be the formal point on the agenda at
    which delegations would be able to raise the Bustani issue.

    -----Adjustment of the Director-General's Salary -----

    ¶41.  (U)  Council is requested to approve the draft decision
    on this matter (EC-34/DEC/CRP.1, dated 29 July 2003).

    ----- Credentials of Representatives of the Council -----

    ¶42.  (U)  The DG's report on this issue has not yet been
    distributed.

    ----- Request to Reclassify Two Posts -----

    ¶43.  (U)  Del understands that Washington has questions
    regarding this proposal, and is working with the TS to ensure
    that the requested reclassification has been thoroughly
    reviewed and that the posts are currently graded incorrectly.

    ¶44.  (U)  Ito sends.

    SOBEL

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