ML19242D017

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Recommends That NRC Approve Application by Mitsui & Co to Export 756 Kg U-235,contained in 26,902 Kg U Enriched to 3.95% W/O Max,To Japan
ML19242D017
Person / Time
Issue date: 06/15/1979
From: James Shea
NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To:
Shared Package
ML19242D018 List:
References
SECY-78-671B, NUDOCS 7908140364
Download: ML19242D017 (3)


Text

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June 15, 1979 SECY-78-671B COMMISSIONER ACTION For:

The Comissioners Frem:

James R. Shea, Director Office of International Programs Thru:

Executive Director for Operations

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Subject:

PROPOSED LICENSE TO EXPORT LOW-ENRTCHED URANIUM TO JAPAN (XSNM-1432, SECY-78-671A)

Purpose:

Comission review of proposed issuance of subject license to Mitsui and Company.

Review Jates:

60-day period expires on July 29, 1979 120-day period expires on September 27, 1979 Discussion:

In December 1978, Mitsui and Company, Incorporated applied for a license to export 26,902 kilograms of uranium, enriched to 3.95% U-235,to Japan for use as reload fuel in the Hamacka, Unit 2 reactor. The material will be shipped to Sumitcmo Metal Mining Company for conversion and Japan Nuclear Fuel Company for fabrication into fuel assemblies.

The application was forwarded for Executive Branch review and comment on December 15, 1978. On May 29, 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 common defense and security; (2) confirmed that the material will be subject to all the terms and conditiens of the US-Japan Agreement for Cooperation; (3) confirmed that Japan has ad-hered to the provisions of its Agreement for Cooperation; and (4) advised that there were no material chanced circumstances since the submissfon of its detailed analysis of April 30, 1979 on a 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 Sumitomo Metal Mining Company, Japan Nuclear

Contact:

J. Dunn Lee l492-7984)

G. G. Op!inger (492-7866) gcc oe i

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. Fuel Company, and Hamaoka Unit 2 reactor.

The staff believes that there are no material changed circum-stances concerning exports to Japan which would affect the Commission's consideration of licensing criteria and which have occurred since issuance of export licenses (e.g. XSNM-1244 and XSNM-1365) for similar material to Japan after Com-mission review.

Based upon its independent analysis and review of the Executive Branch submission, the staff has concluded that the requirements of the Atomic Energy Act and the NNPA of 1978, or their equi-valent, have been met and that the proposed export would not be inimical to the common defense and security.

Assuming that Commissioner Bradford's questions ; discussed in SECY-78-498D, SECY-79-32, SECY-79-64, SECY-79-648, SECY 111, and most recently SECY-79-316) are resolved, the staff believes that this proposed export license may be issued.

This procedure is authorized by ] ll0.44(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 following documents are forwarded for Ccomission review of the subject application:(1) application of Decembe-8,1978 (Appendix A); (2) Executive Branch views of May 29, 9

(Appendix B); and (3) copy of proposed license (Appendix C).

NMSS Technical NMSS has received no information concerning IAEA safeguards Review:

implementation activities and problems in Japan other than from the source which was the basis for NMSS conclusions re-flected in Table VIII of the November 21, 1978 memorandum to Commissioner Gilinsky and document SI-79-10029 (Secret). The principal conclusion of the NMSS examination of these documents is that the available informatien on IAEA implementation is insufficient to permit an evaluation of the effectiveness of IAEA safeguards in Japan. However, NMSS notes that this ex-port does not significantly add to the scope of safeguards associated with the large quantities of SNM already possessed in Japan. Also, no information has been received concerning the state systems of accounting and control in Japan. Con-sequently, NMSS is unable to make any determination regarding the capabilities Lf the Japanese _ system to succort the effective application of IAEA ;afeguards.

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

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.. This action involves no new resource requirements.

Recommendation:

That the Comissioners approve issuance of the proposed li-cense to Mitsui and Ccmpany.

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.

J ector Office of International Programs Enclatures:

As stated DISTRIBUTION:

Commissioners Commission Staff Offices Executive Dir. for Opers.

Secretariat NOTE: Cocmissioner comments should be provided directly to the Office of the Secretary, by c.o.b.

Monday, June 25, 1979.

Commission staff office comments, if any, should be submitted to the Comissioners

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NLT June 21, 1979

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

If the paper is of such a nature that it requires additional time for analytical review and ccmment, the Comission and the Secretariat should be apprised of when comments may be expected.

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