IAEA REASSESSMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85M00364R000801330013-6
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 22, 2016
• Document Release Date: September 9, 2010
• Sequence Number: 13
• Content Type: MEMO

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ACTION MEMORANDUM
DRAFT , S/S
TO: The Secretary
FROM: S/NP - Mr. Richard Kennedy
SUBJECT: IAEA Reassessment
ISSUES FOR DECISION
Whether to resume participation in IAEA activities and at
what level. When to contribute funds for 1982 and 1983. These
decisions are necessary in connection with preparations for US
participation in the February meeting of the IAEA Board of
Governors.
ESSENTIAL FACTORS I
An Interagency Group (representing State, DOE, DOI),
Commerce, ACDA, NSC, OMB, CIA and NRC) was established shortly
after the United States withdrew from the IAEA General
Conference in September. It has been reassessing US policy
regarding participation in the IAEA.
The IG is unanimous in the belief that the IAEA contributes
significantly to US national security interests because of its
role in helping to prevent the spread of nuclear weapons. The
IG believes that it is essential for the US to participate in
the IAEA as long as we judge that body capable of carrying out
its safeguards functions effectively. We plan, however, to
study alternatives to the IAEA should we decide in the future
that the IAEA can no longer perform its functions to our
satisfaction. Therefore, the IG recommends that the US resume
participation in IAEA activities and that an announcement in
some form should be made to that effect by mid-January.
Ambassadors Kirkpatrick and Kirk concur in this recommendation.
The IG produced a strategy paper (attached at Tab ) which
lays out a short term strategy for achieving our three primary
objectives: (1) the right of all member states to participate
in all IAEA activities, (2) strictly adhering to the :IAEA
Statute, and (3) reducing divisive controversy and bloc
confrontation. In addition, we will need to address the
specific problems of Israeli and South African participation in
the IAEA, of strengthening the IAEA's safeguards systam,'and of
convincing the G-77 that the US is contributing more than its
share in the non-safeguards areas.
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A number of key IAEA members have told us they will. join in
efforts toward achieving our short term objectives, the
Secretariat and the Director-General appreciate the seriousness
of our concerns, and some G-77 moderates seem to be willing to
cooperate in keeping the IAEA as a technical agency in which
all members have the right to participate equally. Success in
Nairobi at the ITU and in New York at'the UNGA since September
has further strengthened our position. Your strong statement
on October 14 threatening to withhold financial contributions
to any UN agency denying Israel the right to participate was
most helpful in this effort. In announcing that we have
decided to resume participation, we would make it clear that we
will keep developments in the IAEA under close review and that
future US participation will depend on those developments. We
would tailor our announcement to reflect the option chosen
below on the level of resumed participation.
The advantage of resuming participation is that we can
begin fighting from within to achieve our objectives.
Participation in the February Board of Governors meeting, for
example, would allow us to speak out strongly on those issues
of importance to us, such as rights of membership and
safeguards, as well as allow us to cast our vote. It would
reassure our allies, friends and others (the Soviet Union) that
want us back in. It would show the Secretariat and the rest of
the membership that we mean business while at the same time we
are willing to try to work with the members on a reasonable
basis.
There is not complete agreement, however, within the IG as
to how we should implement and characterize our return? Some
favor announcing a return to normal participation now, while
others favor putting our return on a selective basis, stating
that we are keeping all our options open for the indefinite
future. There is also disagreement on when to pay our
remaining 1982 and our 1983 contributions, with some agencies
favoring payment earlier than others.
RECOMMENDATION
That you approve a US return to participation in IAEA
activities (favored by all IG participants).
Approve
Disapprove
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ANALYSIS OF OPTIONS
One issue to be decided is how to characterize that
return. Another issue is when to pay our remaining 1982 and
our 1983 contributions.
A. Normal Participation
Our announcement would state that the US has decided to.
resume participation in IAEA activities, noting that it will as
a practical matter take several months to resume the level of
participation similar to the level preceding September 26.
Pros:
permit us to begin working from within;
conveys a positive US attitude toward resolving the
problems in the IAEA; I
reduce criticism that US is politicizing the IAEA;
decrease chance of provoking challenges by radicals
just to embarrass the US; and
responds positively to urgings of our allies and the
Secretariat.
may create the impression that all US concerns have
been satisfied;
may reduce our leverage to counter objectionable actions
in the future; and
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does not send signal that US will be selective after
its return, making distinctions between friends and
adversaries.
B. Selective Participation
Our announcement would state that the US has decided
to resume participation in IAEA activities in a selective
manner. This means that we would participate in some acti-
vities but not in others based on criteria to be decided.
A return to normal participation would not be expected
to be reached for an unspecified period (presumably not
before the 1983 General Conference in October) during which
we would constantly assess progress in achieving our objectives.
Lack of progress might delay our complete return even longer.
Pros:
emphasize that the U.S. is not yet satisfied with
the situation in the IAEA;
stimulate the friends of the IAEA to prevail on
the rest of the members to keep politicization
within tolerable limits;
permit some discrimination in programs, bilateral
as well as multilateral, we,would support.
Cons:
opens us to- criticism of politicizing the IAEA;
opens us to criticism that we only support those
activities (safeguards, safety) of interest to us;
may stimulate further challenges to Israel or
South Africa to test our resolve.
Recommendation
That you, approve Option A, favored by
Approve Disapprove
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Alternatively
That you approve, Option B. favored by
Approve Disapprove --
C. Pay Remaining 1982 Contribution in Early 83
For 1982, the US owes approximately 8.5 million dollars
of its assessed contribution of and approximately
$300,000 of its voluntary contribution of . The 1983
assessed and voluntary contributions would not be paid in
any event until the last quarter of 1983 pursuant to the
Administration's budget policy of deferring contributions
to Interantional Organizations. These monies would be paid
upon or shortly after our resumption announcement, if per-
mitted by U.S. statutory restrictions. The Continuing Re-
solution enacted on December 21, 1982 precludes payment of
funds to the IAEA unless the IAEA Board of Governors certifies
to the U.S.G. that Israel is allowed to participate fully as
a member in Agency activities. We are separately reviewing
the impact of this restriction and how to deal with it.
signal our good faith in returning to normal
participation as soon as practicable;
reduce opportunity to be criticized over our late
payment (due by December 31; 1981)
our withholding these funds makes no difference to
Agency solvency so there is little leverage.
If the US need succeeds in getting the certification
about Israel at the February Board, early payment
would indicate US good faith.
signal that we were back to business-as-usual;
lose whatever leverage we might have gained by
withholding our financial contribution for a longer
period.
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D. Deferring our remaining 1982 contributions.
We would not pay our remaining contributions ($8.5
million assessed and $3 million voluntary) until late
1983 or in any case after the October IAEA General Con-
ference.
makes clear that all the U.S. concerns have not yet
been resolved;
demonstrates we are willing to deny or delay our
financial contributions to international organizations
that violate their statutes.
provides some, if perhaps limited, leverage to the
.US to persuade the members of the need to reduce
controversy if the US is going to continue to partici-
pate.
encourages charges that the US is trying to coerce
the membership to follow the dictates of the Agency's
major fiancial contributor;
deferral would have no actual impact on Agency programs
because it will not experience shortages due to US
non-payment until late 1983;
could be interpreted perhaps as undercutting our
decision to resume participation.
If US successfully obtains a Board certification regarding
Israel's participation in IAEA, failure to pay the US
1982 contributions would be seen as US bad faith.
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E. Deferring our 1983 assessed contribution
In line with the recent US decision. to defer all
assessed contributions to UN agencies until late in the
calendar year on which they are pledged, the-$ for
1983 would not be paid until after the October General
Conference in any case. Regarding paying the 1983
voluntary contribution, the IG recommends that we
fund our in-kind contributions-(support for US laboratories
and other expenditures incurred in the US) to the extent
consistent with US law. Otherwise, US support for safeguards
programs and activities would be seriously disrupted, causing
immediate, and severe reductions in our laboratories. This
would not be in the best interest of the United States. Funding
for the voluntary cash portion of our 1983 contribution must be
deferred because of lack of funds in the present Continuing
Resolution.. Since we have committed ourselves to providing
a certain amount of funding (4.75 million dollars), we would
have to find a way of funding it before the end of 1983.
RECOMMENDATION
Approve, supported by , option C to pay our
remaining'1982 obligations upon or shortly after our announce-
ment to resume participation, if statutorily possible.
Approve Disapprove
Alternatively
Approve, supported by , option D to defer
final 1982 payments until late in 1983.
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