ML19247B838

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Recommends NRC Approve Application by Mitsubishi Intl Corp for License to Export 11,983 Kg U-235,enriched to 2.85%,to Japan
ML19247B838
Person / Time
Issue date: 06/01/1979
From: James Shea
NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To:
Shared Package
ML19247B839 List:
References
SECY-79-282A, NUDOCS 7908130618
Download: ML19247B838 (4)


Text

OW (ttRC PUDUC DOCUME June 1,1979 SECY-79-282A COMMISSIONER ACTION

_For:

The Commissioners

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From:

James R. Shea, Director Office of International Programs

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Executive Director for Operations Y -

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Subject:

PROPOSED LICEtlSE TO EXPORT LOW-E!iRICHED URAtlIUM TO JAPAtl (XStiM-1405, SECY-79-282)

Purpose:

Comission review of proposed issuance of subject license to Mitsubishi International Corporation.

Review Dates:

60-day period expires on June 17, 1979 120-day peried expires on August 16, 1979 Discussion:

In October 1978, Mitsubishi International Corporation applied for a license to export 11,983 kilograms of uranium, enriched to 2.85% U-235 to Japan for use as reload in the Mihama Unit 3 reactor. The material, in the form of uranium hexafluoride, will be shipped to Mitsubishi ?!uclear fuel Company for conversion and fabrication into fuel assemblies.

I The application was forwarded for Executive Branch re/iew and comment on tiovember.22, 1978. On April 16, 1979, the Executive 3 ranch (1) advised %C that issuance of the proposed license would not be inimicai to the interests of the US, including the ccamon defense and security; (2) confirmed that the material will be subject to all the ter.s and ccnditions of the US-Japan Agreement for Cccceration; (3) confirmed that Japan has adhered to the provisions of its Agreement for Cocceration; and (4) aavised that tnere were no material changed circumstances since the suonission of its cesalieo analysis of Decemcer 3, 1973 on seven prcpcsed execrts of icw-enriched uranium (discussed in SECY-79-64, classified, dated January 24, 1979).

Ccntact:

J. Dunn Lee (492-7984)

G. G. Colinger (192-7S66)

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Under 10 CFR 110.40(b)(2), the staff would normally be authorized to process this application as a routine reload without referral.to the Commission.

However, due to concerns raised by Commissioner Bradford as oiscussed in SECY-78-4980, SECY-79-32, SECY-79-64, SECY-

" 648, SELY-79-lli,and most recently SECY-79-316 all c,assified confidential, the subject application,is being forwarded for Commission review.

The staff has been informed that facility attachments have been completed for the Mihama 3 reactor and Mitv.Dishi Nuclear Fuel Company.

The staff believes that there are no material changed circumstances 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 Commission 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 equivalent, have been met and that the proposed export would not be inimical to the common defense of the U.S.

Assuming that Cornissioner Bradford's questions are resolved, the staff believes that this proposed export license may be issued. This procedure is authorized by gl10.44(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 folicwing documents are forwarded for Cccmission review of the subject application:(1) acclicaticn of October 31, 1978 (Apcendix A); (2) Executive 3 ranch views of April 16, 1979 (Appendix B), and (3) copy of procosed license (Appendix C).

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3-NMSS Technical tiMSS has received no infomation concerning IAEA safeguards implementation activities and problems in Japan other than

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from the source which was the basis for NMSS conclusions reflected in Table VIII of the November 29, 1978 memorandum to Commissioner Gilinsky and docume6t SI-79-10029 (Secret).

The principal conclusion of the NMSS examination of these documents is that the available information on IAEA imple-mentation is insufficient to permit an evaluation of the effectiveness of IAEA safeguards in Japan. However, NMSS notes that this export does not significantly add to the scope of safeguards associated with the large quantities of SNM already possessed in Japan.

Also, no infomation has been received concerning the state systems of accounting and control in Japan. Consequently, NMSS is unable to make any determination regarding the capabilities of its system to support the effective appli-cation of IAEA safeguards.

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

This action involves no new resource reaniremants, Recommendation:

That the Commissioners approve issuance of the proposed license to Mitsubishi International Corporation.

Coordinaticn:

ELD has no legal objection.

NMSS views on the adequacy of the accounting and control system, the effectiveness of IAEA safeguards implementation, and tne adequacy of the physical security program in Japan are as stated above.

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.v-James R. Shea, Director Office of International Programs

Enclosures:

As stated c16319

. DISTRIBUTION:

Commissioners Commission Staff Offices.

Executive Dir. for Opers.

Secretariat NOTE:

Commissioner comments should be provided directly to the Office of the Secretary, by c.o.b.

Monday, June 11, 1979 Commission staff office comments, if any, should be submitted to the Commissioners NLT June 7, 1979

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

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

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