ML19207B372

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Commissioner Action Recomminding Issuance of License to Marbeni America Corp to Export U-235,contained in 25,723 Kg U Enriched to 3.9%,to Japan
ML19207B372
Person / Time
Issue date: 07/24/1979
From: James Shea
NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To:
Shared Package
ML19207B373 List:
References
SECY-79-222B, NUDOCS 7908240520
Download: ML19207B372 (4)


Text

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-Q July 24, 1979 SECY-79-222B COMMISSIONER ACTION

_For:

The Commissioners From:

James R. Shea, Director Office of International Programs s

Thru:

Executive Director for Operations

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Subject:

  1. PRCPOSEILLICENSE TO EXPCRT LOW-ENRICHED URANIUM TO JAPAN (XSNM-1484,SECY-79-222A)

Purcose:

Commiisionreviewofproposedissuanceofsubjectlicenseto Marubeni America Corporation.

Review Dates:

60-day period expires on August 24, 1979 120-day period expires on October 23, 1979 Discussion:

In March 1979, Marubeni America Corporation applied for a license to export 25,723 kilograms of uranium, enriched to 3.90% U-235, to Japan for use as reload fuel in the Fukushima I Unit No. 4 reactor. The material, in the form of uranium dioAide powder, will be shipped to Japan Nuclear Fuel Company fdr fabrication into fuel assemblies.

In a letter dated May 11, 1979 (attached at Appendix A), the applicant advises that the material requested in the application at hand, XSNM-1484,and a similar application XSNM-1473 (SECY-79-IS4);which is being forwarded separately, will be used in.the same reactor as its second reload fuels.

Two applications were filed, however, because the XSNM-1473 portion will be exported as UF6 in September 1979 and the XSNM-1484 portion will be exported as UO2 powder in December 1979. Furthermore, since two different companies submitted separate orders for these export arrangements, the applicant found it more convenient to file two separate applications.

The application was forwarded for Executive Branch review and comment on March 26, 1979. On June 22, 1979, the Executive Branch (1) advised NRC that issuance of the proposed license would not be inimical to the interests of the US, including the cormon defense and security; (2) confirmed that the material will be subject to all the terms and conditions of the US-Japan Agreament for Cooperation; (3) confirmed that

Contact:

J. Dunn Lee (492-7984) e, q~

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2-Japan has adhered to the provisions of its Agreement for Cooperation; and (4) advised that there were no material chanced circumstances since the submission of its detailed analysis of April 30, 1979 onia proposed export of high-enriched uranium to Japan (see SECY-79-14A dated May 11, 1979).

The staff has been informed that facility attachments have been completed for Japan Nuclear Fuel Company and Fukushima I Unit No. 4.

The staff believes that there are no material changed cir-cumstances concerning exports to Japan which would affect the Com1ssion's consideration of licensing criteria and which have occurred since issuance of export licenses (e.g. XSNM-1244 and XSNM-1405) for similar materia 7 to Japan after Commission review. Accordingly, the staff believes that this proposed export license may be issued. This procedure is autnorized by } 110.44(a)(2) of Part 110 and is based on section 126(a)(2) of the AEA as amended by the Nuclear Non-Proliferation Act of 1978. The staff notes that the issue of exports to Japan and whether such exports meet criteria 4 and 5 of section 127 of AEA (discussed in SECY 4980, SECY-79-32, SECY-79-64, SECY-79-648, SECY-79-lli, and most recently SECY-79-316) remain to be resolved, but the staff believes this issue should not delay Comission action on the pending cases.

The following documents are forwarded for Commission review of the subject application (1) application of March 20, 1979 and letter of May 11,1979 (Appendix A); (2) Executive Branch views of June 22, 1979 (Appendix B); and (3) copy of proposed license (Appendix C).

This action involves no new resource requirements.

NMSS Tec.knical No description has been received of the state system of ac-Review:

counting and control in Japan. Consequently, NMSS is unable to make any deternination regarding the capability of the

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Japanese system to support the effective application of IAEA safeguards.

NMSS conclusions concerning IAEA safeguards implementation activities and problems in Japan are reflected in Table VIII of the November 29, 1978 memorandum to Commissioner Gilinsky. The principal conclusion of NMSS is that available information on IAEA implementation 12 insufficient to permit an evaluation of the effectiveness of IAEA safeguards in Japan.

NMSS has reviewed the physical security program in Japan and found it adequate for the purpose of this export.

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That the Comissioners approve issuance of the proposed Recomendation:

license to Marubeni America Corporation.

Coordination:

ELD has no legal objection. NMSS views on the adequacy of the accounting and control system, the effectiveness of IAEA safeguards implementation, and the adequacy of the physical security program in Japan are as stated above.

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c.t James R. Shea, Director Office of International Programs

Enclosures:

As stated DISTRIBUTION:

Comissioners Comission Staff Offices Executive Dir. for Opers.

Secretariat NOTE:

Comissioner coments should be provided directly to the Office of the Secretary, by c.o.b.

n urt hy, 'u;uct 2, !?'0.

Comission staff office coments, if any, should be submitted to the Comissioners NLT c,1, v 3a,a

, with an information copy to the Office of the Secretary.

If" the'pape'r is of such a nature that it requires additional time for analytical review and ccament, the Comission and the Secretariat should be apprised of when comments may be expected.

I APPENDIX A

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