ML19270F860

Summary of Status of Application by Transnuclear,Inc for License to Export 5.088 Kg U to Japan.Recommends License Be Issued

ML19270F860
Person / Time
Issue date:	02/27/1979
From:	James Shea NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To:
References
SECY-78-657B, NUDOCS 7903270633
Download: ML19270F860 (34)

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s February 27, 1979 SECY-78-657B COMMISSIONER ACTION For:

The Commissioners From:

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

Executive Director for Operations A'

Subject:

PROPOSED LICENSE TO EXPORT HIGH-ENRICHED URANIUM TO JAPAN (APPLICATION N0. XSNM-1190, SECY-78-657)

Purpose:

Commission review of proposed issuance of subject license to Transnuclear Incorporated.

Review Dates:

60-day period expired on February 10, 1979.*

120-day period expires on April 11, 1979.

Discussion:

In August 1977, Transnuclear applied for a license to export 5.088 kilograms of uranium enriched to 93.3% U-235 to Japan for use in the Kyoto University Critical Assembly (KUCA). The application was amended in October 1978 to read 4.9 kilograms of uranium, enriched to 93.3%, containing 4.572 kilograms of U-235 (application and letter amendment at Appendix A).

The material, in the fonn of U308, will be shipped to NUKEM in the FRG for conversion.

It will then be shipped to the Nuclear Fuel Industry in Japan for fabrication into fuel assemblies.

KUCA is located at the Kyoto University Research Reactor Institute in Osaka, Japan. This assembly first achieved criticality in August 1974.

In response to our September 8, 1977 request for views, the Executive Branch has (1) concluded that issuance of the proposed license woulo i be inimical to the common e

Contact:

J. Dunn Lee (492-7984)

G. G. Oplinger (492-7866) 7903270 Q 3 u

fy e staff was unable to meet the usual 40-day target in this case, in because the Executive Branch recommendation with respect to diate consignee was not received until February 8, 1979.

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% defense and security of the United States; (2) confirmed that the material will be subject to the terms and conditions of the US-Japan Agreement for Cooperation and, during the time it is in the FRG, the US-EURATOM Additional Agreement for Cooperation; and (3) concluded that all the criteria of the NNPA or their equivalent currently are met (State memoran-dum of December 12, 1978 with attachments and letter of February 7, 1979 at Appendix B).

The Executive Branch's b'ecember 12 analysis notes

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among other things that:

1.

KUCA has three cores; in the A and B cores, square plate type fuel is utilized; in the C core, a long flat type plate is used.

The A and B cores combined use about 10 kilograms of uranium per loading; the C core utilizes another 10 kilograms of HEU.

2.

The Research Reactor Institute has 20 kilo-grams of HEU on hand for the three cores.

This application is intended for an experi-ment related to the thorium fuel cycle, utilizing fuel plates of different dimensions (long and curved).

3.

The Japanese request is under the 5 kilogram limit and therefore a technical and economic justification is not deemed necessary.

The Executive Branch has concluded that the US has assurance that Japan is committed to providing adequate physical security for its nuclear program, including a level of protection compatible with that envisaged by the recommendations in IAEA INFCIRC/225/Rev.l.

, Based upon visits of physical security review teams, and subsequent exchanges and reviews, the staff has concluded that the physical security programs in Japan and the FRG are adequate to protect the material covered under the proposed license.

The written assurance (as required by 10 CFR 110.43 (a)) that physical security measures providing as a minimum protection comparable to that set forth in INFCIRC/225/Rev. l., will be maintained has been obtained from the Government of Japan but not from the FRG.

Instead, the FRG has provided written assucances based on the Suppliers Group physical security guide-lines which the Commission has determined to be acceptable.

The staff wishes ;o emphasiza the fac' chot this export i:

c being shipped to the FRG for conversion purposes only and will be retransferred to Jaoan immediately after conversion for fabrication and ultimate use in the KUCA facility.

Since this proposed export is not for end-use within EURATOM, the staff does not believe that EURATOM-wide physical. security assurances are necessary, and therefore no exemption from Criterion 3 is required.

With respect to export licensing requirements of the Atomic Energy Act, application XSNM01190 does.not differ in its merits from previous exports to Japan via the FRG approved by the Ccmmission. Upoo review of the Executive Branch analyses and the supportive documentation, and based upon its analysis in SECY-78-498 dated September.3, 197S for similar material, the staff concurs in the Executive Branch's determination that the requirements of the Atomic Energy Act and the NNPA of 1978 have been met and that the proposed export.would not be inimical to the common defense and security of the US.

Japan, as a party to the NPT, has accepted IAEA safeguards for its nuclear installations.

In recent informal conver-sations with State, the staff understands that the exchange of notes between Japan and the IAEA bringing into force the subsidiary arrangements to Jaoan's Safeguards Agreement may mean that all the facility attachments to the subsidiary arrangements have been c0molated. We have asked State for confirmation of this.

In any event, with regard to f acilities specific to this tnis acolication (KUCA and Nuclear Fuel Industry in Jacan and NUKEM in the F2G), the staff has recently received a cable which advises that facility attacnments have been ccmoleted for these facilities.

, With regard to Commissioner Bradford's questions as discussed in SECY-78-4980, SECY-79-32, SECY-79-64, SECY-79-6AB and SECY-79-ill, all classified confidential, the staff is of the opinion that for this HEU export, the problem of produced material is negligible. The staff believes that the agreement for cooperation adequately covers the supplied material.

The Japanese have expressed an urgent need to move this material from the US to Germany by the end of March.

In order to meet this schedule, an export license must be issued by early March. The staff believes that no further reasons exist at this time to delay issuance of the proposed license to Jaoan and believes the license should be issued promptly.

The following documents are forwarded for Commission review of the subject application: (1) application of August 17, 1977 and letter of October 24, 1978 (Appendix A); (2) Executive Branch views of December 12, 1978.and February 7, 1979 recommending issuance (Appendix B); and (3) copy of proposed license (Appendix C).

NMSS Technical NMSS has received no details on the state. systems of Review:

accounting and control in the Federal Republic of Germany and Japan.

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In addition, NMSS has not received any information concern-ing IAEA implementation activities and problems in the FRG and Japan other than from the source which was the basis for NMSS conclusions in Tables IV and.VIII of the memoran-dum to Commissioner Gilinsky dated November 29, 1978. The principal conclusion of the NMSS examination is that the available information on IAEA imolementation is not sufficient to permit NMSS to evaluate the effectiveness of IAEA safeguards in the FRG and Japan.

With respect to physical security, NMSS has reviewed the programs in the FRG and Japan and found them adequate for the purpose of this export. Since the sum of the HEU in this acclication plus the U.S. origin HEU presently on site at Kyoto University prcbably exceeds the 5 Kg.

Categcry I threshold, an analysis of the chysical security program at the Kyoto Research Reactor is being forwarded under separate cover,

4 Recommendation:

That the proposed license be issued to Transnuclear Incorporated.

Coordination:

OELD has no legal objection.

NMSS views on the acequacy of the State's physical protection and =aterial control and accounting programs and the effectiveness of IAEA safeguards. implementation in the FRG and Japan are as stated above.

.T

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4 U..A d ka-L James R. Shea, Director Gffice of International Programs

Enclosures:

As stated Commissioners' comments should be provided directly to the Office of the Secretary by close of business Thursday, fiarch 8,1979.

Commission Staff Office comments, if any, should be submitted to the Commissioners NLT March 6,1979, 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 comment, the Commissioners and the Secretariat should be apprised of when comments may be expected.

DISTRIBUTION:

Commissioners Commission Staff Offices Exec. Dir. for Opers.

Secretariat

e APPENDIX A

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The undersigners certify that the following material, :.. e.

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• S" "^I 5.064 kgs U centaining u.7a7 kgs U-235 enriched to 33.30 percent shall be purchased by us from NUKE:1 gmbH, Hanau Federal Re-i':blic of German *,,

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'.f Eice of International Proqrams 7735 Old Georgetown P.oad Bethesda, Maryland 20014 PO:

Export License Application for 6.0 Kgs U308 NUK-186 298/01

Dear Mr. Moore:

Encicsed is an Export License Application, in triplicate, for your handling on the following:

6.0 Kg U308 (containing 5.088 Kg U, 4.747 Kg U235) enriched to a maximum 93.30 percent U235.

Thankir.g you in advance for your help and cooperation.

Sincerely,

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Manager 'dashington Operations BJ/ktb

Enclosure:

Export Licenac Application Original End Use Statement Reactor Checklist e

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l ySpot oll9 0 g.)f 88 October 24, 1978 Mr. N. M::cre Nuclear Regulatory Cc:=ission office of :'nternational Programs 7735 Cid Georgetcwn Frad Sethesda, Maryland 20014 Re: Expert License Applicatien nunber X5:Od.-1190 TN REF:

(NCK-lS 6) 77-298/01 Cear.VJ.

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"'his letter is being written to request that the quantity of naterial listed on our license application be reduced, and should therefere read as follows:

5.778 Kg C308 centaining 4.900 Kg C and 4.572 Kg 0235 enriched to a m i _"__ cf 93.30 per:ent U235.

Thanking you in advance for your help and cocperation.

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APPENDIX B

JAPAN XSNM-1190 5 ' iD.

.i <W D EPA RTM ENT OF STATE wasmagton. D.C.

05:0 EEQly{g BUREAU OF OCEANS AND INTERNATIONAL U.S.NRC ENVIRONMENTAL AND SCIENTIFIC AFFAIRS 9 3 OEC l2 g/ 5 December 12, 1978 MAYN...

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MEMORANDUM FOR JAMES R.

S HEA NUCLEAR REGULATORY COMMISSION Enclosed is an Executive Branch analysis covering a license application for the export of highly-enriched uranium to Japan.

In accordance with P.L.95-242, the analysis explicitly addresses how the requirements of Section 126 a.(1) of the Atomic Energy Act are met, in-cluding the specific criteria of Sections 127 and 128, as well as certain additional factors, envisaged by Section 126 a.

(1).

The Executive Branch, on the basis of its review of this case, has concluded that the requirements of the Atomic Energy Act and P.L.95-242 hi = been met and that the proposed export would not be inimical to the common defense and security of the United States.

Moreover, Japan has adhered to the provisions of its Agreement for Cooperation with the United States.

Therefore the Execu-tive Branch recommends issuance of the requested export license.

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Nosen:o Deputy Assistant Secretary

Enclosure:

As stated.

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XSNM-1190 Country:

Japan Oransaction:

The expert of 4.572 kilegrams of U-225 contained in 4.9 kilogra=s of uraniu= in the form of U,Og enriched to a maxi =um of 93.3~ percent U-235 Applicant:

Transnuclear, Inc, Applicant's

Reference:

NUK-186 77-298101 Date'ef Application:

August 17, 1977 Purecse of the Ex;crt The highly-enriched uranium will be shipped to Nukem, GmbH, Eanau, Federal Republic of Ger=any for conversion.

The highly-enriched uranium dioxide will then be shipped to the Nuclear Fuel Industry for fabrication inte fuel assemblies fer the Kyoto Cc=pany University Critical Asse=bly.

Shipment of this material is scheduled for (KUCA) at the.Kycto University Research Reacter Institute, Osaka, Japan.

This research f acility first achieved criticality en August 6, 1974.

This critical assembly has three cores--in the A and 3 cores square plate type fuel is utilized; in the C core a 1cng flat plate type fuel is utili:ed.

The A and 3 ceres combined use about 10 kilegrams of uranium per Icading; the C core utili:es another 10 kilegrams of highly-enriched material.

The Research Reactor Institute has 20 kilogra=s of highly enriched uranium on hand for cores A, 3 and C.

The present application cf apprcxi=ately 5 kilogra=s is intended for ana+w c+ee experi=ent utilicing fuel plates of different dimensiens (leng and curved). rd dea +o & 4.l,,w wd wk -

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DELEGATION OF THE COMMISSION OF THE EUROPEAN COMMUNITIES June 20, 1978 JM/aks Mr. Vance H. Hudgins Assistant Direc'wr for Politico-Military Security Affairs Division of International Security Affairs Department of Energy Washington, D. C.

20545

Subject:

License application XSNM-1190 - S-791 - for the export of HEU to Japan, via Nukem GmbH, West Germany.

Reference:

Transnuclear Inc. application NUK-186 77-298/01 of August 17, 1977.

Dear Mr. Hudgins:

We certify that the material mentioned in this application namely 4.747 Kg of U-235, contained in 5.088 Kg of uranium, and the transfer of this material will be subject to all terms and conditions of the Additional Agreement for Cooperation, dated July 25, 1960, as amended.

Further we certify that Nukem GmbH, Hanau, West Germany and Transnuklear GmbH, Hanau, West Germany as intermediate consignees are authorized by EURATOM to receive and possess this material pursuant to the aforementioned Agreement for Cooperation After conversion at the Nukem plant, the above material will be retransferred to Japan, subject to US DOE authorization.

Sincerely yours, bMg F. SPAAK Head of Delegation ec: Mr.

R.

Delabarre, State Department Ms. J. Dunn, Nuclear Regulatory Commission Ms.

V. Matson,Transnuclear Inc.

EMBASSY OF JAPAN 23 0 MA55Actust1TS AVF.NUE. H.W.

WASHINGTON. D.C. 2lXlCd November 9, 1978

,m Colonel Vance H. Hudgins Assistant Director for Politico-Military Security Affairs Division of International Security Affairs Department of Energy Washington, D.C.

20545

Dear Colonel Hudgins:

Concerning import of the special nuclear material for the facility noted below, this will confirm that the Government of Japan appointed The Kyoto University as an authorized cerson under the ter=s and conditions pursuant to Art 2.cle VI of the Agreement for Cooperation between the Government of the United States of America and Government of Japan concerning Civil Uses of Atomic Energy which entered into force on July 10, 1968, amendi by the Protocol on December 21, 1973.

Fuel for the Kyoto University Criticci Assembly:

4,747 grams of U-235 (93.30 percent enrichment)

Further, it is confirmed that the transfer of the special nuclear material identified above will take place under all the terms and conditions of the Agreement for Cooperation between our Governments, and that the appointee (s) named above have been authorized to receive and possess the material by both Governments.

Also, the Government of Japan confirms that the safeguards and guarant of the A peement for Cooperation will always apply to this special nuclear material, except for that material subsequently retransferred with the written approval of the United States.

Sincerely yours,

'M f

Kazuo Suzuki First Secretag (Scientific)

Ref:

This is in reference to the case number of S-791 stated in your letter dated May 8, 1978.

(XSNM-1190)

The intermediate consignee, the buclear Fuel Industr~ Comoanv Ltd. is also authorized to receive and possess the nhteriil.',

EXPORT LICENSE APPLICATION ANALYSIS The proposed export is subject to all of the terms and conditions of the Agreement for Cooperation between the Government of the United States of America and the Govern-ment of Japan concerning Civil Uses of Atomic Energy, which entered into force on July 10, 1968.

This fact has been confirmed by letter from the Embassy of the Government of Japan, a copy of which follows the description of the transaction.

Japan has adhered to the provisions of its Agreement for Cooperation with the United States.

2.

Extent to Which Exoort Criteria Are Met A.

Section 127 Criteria As provided in Section 127 of the Atomic Energy Act, the following criteria govern exports for peaceful nuclear uses from the United States of source material, special nuclear material, production or utilization facilities, and any sensitive nuclear technology:

Criterion (1)

"IAEA safeguards as required by Article III(2) of the Treaty will be applied with respect to any such material or facilities proposed to be exported, to any such material or facilities previously exported and subject to the ap-plicable Agreement for Cooperation, and to any special nu-clear material used in or produced through the use thereof."

Japan is a Party to the Treaty on the Non-Proliferation of Nuclear Weapons and deposited its instrument of rati-fication on June 8, 1976.

This Japan /IAEA Safeguards Agree-ment pursuant to the NPT entered into force on December 2, 1977.

Therefore, it is the Executive Branch view that criterion (1) is met.

Criterion (2)

"No such material, facilities, or sensitive nuclear technology proposed to be exported or previously ex-ported and subject to the applicable Agreement for Co-operation, and no special nuclear material produced through the use of such materials, facilities,or sensi-tive nuclear technology, will be used for any nuclear ex-plosive device or for research on or development of any nuclear explosive device."

Pursuant t'o Article X A.

(2) of the Agreement, Japan has guaranteed that no material or equipment transferred thereunder and no special nuclear material produced there-from, will be used for atomic weapons, or for research or development of atomic weapons, or for research or de-velopment of atomic weapons, or for any other military purpose.

Japan, as a party to the NPT, has pledged not to manufacture or otherwise acquire any nuclear weapon or other nuclear explosive devices.

Further, in accord-ance with the Safeguards Agreement, Japan is precluded from engaging in any research and development on any nu-clear explosive device involving any US-supplied material or facilities or any special nuclear material derived therefrom.

Since these commitments will apply to the proposed export and to any special nuclear material produced through its use, it is the view of the Executive Branch that criterion (2) is met.

Criterion (3)

" Adequate physical security measures will be maintained with respect to such material for facilities proposed to ce exported and to any special nuclear material used in or pro-duced through the use thereof.

Following the ef fective date of any regulations promulgated by the Commission pursuant to Section 304(d) of the Nuclear Non-Proliferation Act of 1978, physical security measures shall be deemed adequate if such to that measures provide a level of protection equivalent required by the applicable regulations."

A USG physical security review team visited Japan in in July 1977 to follow up surveys made by security teams June 1975 and February 1976.

During the 1977 survey, the Team met with concerned officials of the Government of Japan and visited a number of typical nuclear facilities including the Kyoto University Research Institute where the KUCA critical assembly and its fresh fuel storage vault were seen.

The Team determined that Japanese physical security measures as a minimum the levels envisaged by INFCIRC 225.

met On September 22, 1978, the Ministry of Foreign Affairs of-Japan provided the following assurance to the Embassy of the United States in Tokyo:

"The Government of Japan confirms that the maintenance of physical protection measures providing as a minimum a level of protection comparable to that set forth in IAEA document INFCIRC/225/Rev. I with respect to nuclear materials and facilities exported from the United States to Japan and with respect to nuclear material used in or produced through the use of such materials and facilities, conforms to the policy of the Government of Japan, and that adequate and will be, physical protection measures as necessary are, implemented in accordance with the relevant laws and regula-tions and also through the administrative actions by the to the governmental authorities concerned with respect aforesaid materials and facilities.

It is the understanding of the Government of Japan that as from the date of this note verbale, the United States Government does not intend the Government of Japan on a case-by-case basis to request to make written confirmation concerning physical protection in connection with each case of license application for the exports of nuclear materials."

On the basis of the Physical Security Review Team visits, and the assurance from the Government of Japan, the Execu-tive Branch has determined that the physical security measures maintained in Japan with respect to nuclear mate-rial and facilities are as a minimum ccmpatible with the in ma-4

level of protection envisaged by IAEA INFCIRC/225/Rev 1 and are therefore adequate for the material covered by these license applications.

Therefore, it is the viaw of the Executive Branch that criterion (3) is met.

Criterion (4)

"No such materials, facilities, or sensitive nuclear technology proposed to be exported, and no special nuclear material produced through the use of such material, will be retransferred to the jurisdiction of any other nation or group of nations unless the prior approval of the United States is obtained for such retransfer.

In addition to other requirements of law, the United States may approve such retransfer only if the nation or group of nations des-ignated to receive such retransfer agrees that it shall be subject to the conditions required by this section."

Article X(A)(3) of the 1968 U.S.-Japan Agreement for Cooperation stipulates that:

"No material, including equip-ment and devices, transferred to the Government of Japan or to authorized persons under its jurisdiction pursuant to this Agreement or the superseded Agreement will be trans-ferred to unauthorized persons or beyond the juridiction of the Government of Japan, except as the United States Com-mission may agree to such a transfer to another nation or international organization, and then only if, in the opinion of the United States Commission, the transfer of the material is within the scope of an Agreement for Cooperation between the Government of the United States...and the other nation or international organization."

Article VIII E.

provides that:

"Special nuclear material produced through the use of material transferred to the Government of Japan or to authorized persons under its jurisdiction pursuant to this Agreement or the superseded Agreement may be transferred to any other nation or inter-national organization provided that such nation or interna-tional organization has an appropriate agreement for coopera-tion with the Government of the United States of America or guarantees the use of such special nuclear material for peaceful purposes under safeguards acceptable to the Parties."

Therefore, it is the Executive Branch view that, as the U.S.

has the right of prior approval over retransfer of U.S.-supplied material and the equivalenc for material pro-duced through the use of U.S. material, criterion (4) is met.

While it is the U.S. position that Article VIII E.

accords the United States the equivalent of a consent right, the provision does not explicitly stipulate whether the U.S.

or the other party is responsible for making the determina-tion whether an " appropriate" Agreement for Cooperation exists.

(This is more than a pro forma finding that an agreement exists, since the word " appropriate" conveys the intent that the contemplated transfer is fully within the scope of the agreement.)

Rowever, it should be noted that the only way in which special nuclear material covered by Article VIII E could become available for transfer is through Japanese reprocessing of U.S.-supplied source or special nuclear material.

So long as the produced material remains in the spent fuel it is not separable from the U.S.-supplied material, which is subject to the provisions of article x(A)(3).

Criterion (5)

"No such material proposed to be exported and no special nuclear material produced through the use of such material will be reprocessed, and no irradiated fuel ele-ments containing such material removed from a reactor shall be altered in form or content, unless the prior approval of 1.he United States is obtained for such re-processing or alteration."

Article VIII C. of the U.S. - Japan Agreement for Cooperation provides that:

"When any special nuclear material received from the United States of America re-cuires reprocessing, or any irradiated fuel elements containing fuel material received from the United States of America are to be removed from a reactor and are to be altered in form or content, such reprocessing or alter-ation may be performed in Japanese facilities upon a joint determination of the Parties that the provisions of Article XI may be effectively applied, or in such other facilities as may be mutually agreed."

As no joint determination under Article VIII C.

can be made without the agreement of the United States, and since the facilities to be used must be cceeptable to the U.S. as one of the Parties, it is the Executive Branch view that criterion (5) is met.

B.

Section 128 Criterion Section 128 a.(1) of the Atomic Energy Act establishes the following additional criterion:

"As a condition of continued United States export of source material, special nuclear material, production or utilization facilities, and any sensitive nuclear technology to non-nuclear-weapon states, no such export shall be made unless IAEA safe-guards are maintained with respect to all peaceful nu-clear activities in, under the jurisdiction of, or carried out under the control of such state at the time of the ex--

port."

As a Party to the NPT, Japan has accepted IAEA safe-guards on all its nuclear activities thereby satisfying this criterion.

Criterion (6)

"No such sensitive nuclear technology shall be ex-ported unless the foregoing conditions shall be applied to any nuclear material or equipment which is produced or constructed under the jurisdiction of the recipient nation or group of nations by or through the use of any such exported sensitive nuclear technology."

The proposed export does not involve the transfer of sensitive nuclear technology.

Criterion (6) is, therefore, not applicable.

3.

Additional Factors A.

Safeguards Implementation The IAEA Secretariat has noted in its Special Safe-guards Implementation Report that with regard to nuclear material subject to IAEA safeguards, while some deficiencies exist in the system, no diversion of a significant quantity of nuclear material was detected in any of the 45 states in which inspections were carried out.

Although recognizing the need to correct existing deficiencies in safeguards im-plementation, the Executive Branch has no reason to believe that the IAEA Secretariat's report is not valid.

In the light of this and other factors associated with the proposed export, the Executive Branch believes the framework cf ccm-mitments, assurances, and safeguards is adequate for the purpose of this export.

B.

Special Non-Proliferation and Other Foreign Policy Considerations The Japanese request is for 4.747 kilograms of U-235, under the 5 kilogram limit, and therefore, a technical and economic jutification is not deemed necessary.

Moreover, the application was filed on August 17, 1977, substantially prior to the November 30, 1977, implementation by the Executive Branch of the requirement inter alia for an economic and technical justification for all export license applications for HEU received af ter that date.

4.

Inimicality Judgment Based on review of the proposed export, it is the judgment of the Executive Branch that the proposed export will not be inimical to the common defense and security, and that the license should be issued.

NME")/ \\

\\

l DEPARTMENT OF STATE

\\

IY O wasningtoe. O C.

20520 b

/

..';. :CC

{

BUREAU OF OCEANS AND INTERNATIONAL ENVIRONMENTAL AND SCIENTIFIC AFFAIRS 57? FEB 8 Ei k I" February 7, 1979

- ".:: ? ~i T g.,.gy-[ 37 tp,33 Mr. James R.

Shea l

Direc tor o f International Programs United States Nuclear Regulatory Commission Xf/V#18 II90 Room 6714 - MNBB

-y d-J 4 72 f

Bethesda, Maryland i

I t

Dear Mr. Shea:

I refer to my memorandum o f December 12, 1978, which enclosed an Ex e c u t i'v e Branch analysis and favorable recommendation with respect to a license application for the export of highly-enriched uranium to Japan, which inadvertently failed to include the favorable Executive Branch recommendation for the intermediate consignee in the Federal Republic of Ger-many, as described below:

NRC No. ISNM01190 -- Application by Trans-nuclear Inc. for authorization to export to Japan via the Fede711 Republic of Ger-many 4.572 kilogams or U-235 contained in 4.9 kilograms o f uranium in the form of U30g enriched to a maximum o f 9 3. 3 percent U-235.

The U 0 8 will be shipped to Nukem, 3

GmbH, Hanau, FRG, for conversion to UF6, then transferred to the Nuclear Fuel In-dustry Company, Ltd.,

Osaka, Japan for fabrication into fuel assemblies for the Kyoto University Critical Assembly.

The proposed export to the intermediate censignee in the FRG would take place pursuant to the Additional Agreement for Cooperation Between the United States and The European Atomic Energy Community ( E U RATOM) as con-i firmed in a letter from the Delegation to the Commission of the European Communities dated June 20, 1978.

EURATOM has adhered to the provisions of its Agreement for Co-operation with the United States.

The Executive Branch has reviewed this application and concluded that the requirements o f the Atomic Energy Act and P.L.

9 5-242 have b een met and that the proposed export will not be inimical to the common defense and security of the United States.

A detailed analysis for I

2 the FRG and the European Community was submitted December 8,

1978 (NRC No. ISNM-1241).

There has been no material change in circumstances regarding the European Community since that submission.

On the basis of the foregoing, the Executive Branch i

recommends that the license be issued.

Sincerely,

/f/

p 6 /, s. p a

Louis V.,hosea;p Deputy Assistant Secretary

Enclosure:

Assurance letter 1

~.

DELEGATION OF THE COMMISSION OF THE EUROPEAN COMMUNITIES June 20, 1978 JM/aks Mr. Vance H. Hudgins Assistant Director for Politico-Military Security Affairs Division of International Security Affairs i

Department of Energy Washington, D. C.

20545

Subject:

License application XSNM-1190 - S-791 - for the export of HEU to Japan, via Nukem GmbH, West Germany.

Reference:

Transnuclear Inc. application NUK-186 77-298/01 of August 17, l'977.

'c

Dear Mr. Hudgins:

I We certify that the material mentioned in this applicati namely 4.747 Kg of U-235, contained in 5.088 Kg of uranium, and the transfer of this material will be subject to all terms and conditions of the Additional Agreement for Cooperation, dated July 25, 1960, as amended.

Further we certify that Nukem GmbH, Hanau, West Gemany and Transnuklear GmbH, Hanau, West Germany as intermediate consignees are authorized by EURATOM to receive and possess thi material pursuant to the aforementioned Agreement for Cooperati After conversion at the Nukem plant, the above material will be retransferred to Japan, subject to US DOE authorization Sincerely yours, (f.j (N lh &

F. SPAAK h4$ k Head of Delegation f' /.1 cc: Mr.

R.

Delabarre, State Department Ms. J. Dunn, Nuclear Regulatory Commission Ms.

V. Matson,Transnuclear Inc.

1 I

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U.S. NUCLEAR REGULATORY COMMISSION h

EXPORT LICENSE I

License Number XSNM01190 h

Conditions t-Condition 1 - Licensee shall file with the Customs Officer or the Pestmaster two copies,in cddi-tion to those otherwise required, of the Shipper's Export Dec!cretion covering r-each export and merk one of such copies for transmittel to the U.S. Nuclear Regu-

[

lotory Commissicn, Washington, D.C. 20555. The following decieration should oc-F company or be placed on the Shipper's Export Declarations for such exports:

[p "This shipment is being made pursuant to specific license number (specific license number) filed et (location of Customs office where license is filed),

b E-on (date license was filed). This license expires on (expiration date of license), and the unshipped belance remaining on this license is sufficient to

[.

cover the shipment described on this dec!cration."

{

u Condition 2 - Exports authorized in any country or destinction, except Country Groups Q, S, W, f()

X, Y, and Z in Port 370, Supplement No.1, of the Comprehensive Export Schedule b.....

of the U.S. Department of Commerce.

Condition 3 -This license covers only the nuclear content of the material.

{

Condition 4 - The meterial to be exported under this license shcIl be shipped in accordance with

[

the physical protection requirements for special nuclear materici in 10 CFR 73.

[

L.-

Condition 5 - Special nuclecr materici outhorized for export under this license shall not be

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transported outside the United States in pcssenger.ccrrying circroft in shipments I

exceeding (1) 20 grams or 20 curies, whichever is less, of plutonium or uranium 233, or (2) 350 grams of uranium 235.

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Condition 6-This license cuthorizes export only and does not cuthorize the receipt, physical

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t possession, or use of the nuclear metericl.

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Conditien 7 -The licensee shcIl complete end submit on NRC Form. 741 for ecch shipment of

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source meterici exported under this, license.,

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Condition 8 - The licensee shall odvise the NRC in the event there is any change in the designo ' "

tion of the company who will~ package the. nuclear material to be exported under this license, or any change in the location 'of the packaging operation, et,feest three weeks prior to the scheduled dcte of export.

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