ML19270G301
| ML19270G301 | |
| Person / Time | |
|---|---|
| Site: | (XSNM-1379) |
| Issue date: | 04/24/1979 |
| From: | James Shea NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP) |
| To: | |
| References | |
| FOIA-80-336 SECY-79-233A, NUDOCS 7906060071 | |
| Download: ML19270G301 (3) | |
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NUCLEAR REG T
Y COMMisslON INFORMATION REPORT For:
The Comissioners From:
James R. Shea,. Director Office of International Programs Thru:
Executive Director for Operation L/
Subject:
PROPOSED LICENSE TO EXPORT LOW ENRICHED URANIUM TO INDIA (XSNM-1379 - SECY-79-233)
Purcose:
To inform the Comission of the staff's preliminary coments on the proposed license.
Review Dates:
60 day period expires on May 28, 1979.
120 day period expires on July 7,1979.
Discussion:
I.
Backcround On September 20, 1978, Edlow International Company applied for XSNM-1379 to export a maximum of 19,858.8 kilograms of uranium, in the fonn of UF6 and enriched to a maximum of 2.71% U-235, to India for conversion and fabrication into fuel elements for the Tarapur Atomic Power Station (TAPS).
On March 23, 1979, the Ccmission by a 3-2 vote authorized the issuance of the earlier license appli-cation XSNM-1222 for the export of low-enriched uranium fuel to India.
On March 29, the Comission received the views of the Executive Branch recomending approval of XSNM-1379.
IP's preliminary analysis, based upon the Executive Branch's coments on XSNM-1379, indicates that (1) the fuel covered by XSNM-1222 should permit operation of the Indian Nuclear Fuel Complex (NFC) in Hyderabad until about January,1980, and satisfy the needs of the TAPS reactors until early 1984 (at current usage rates) or late 1982 (at optimum operation rates), and (2) the fuel covered by XSNM-1379, if approved, would extend these dates by approximately one additional year.
We
Contact:
M. R. Peterson, IP (492-8155)
G. G. Oplinger, IP (492-7866) 2273 J46 7906060011
. Discussion:
understand that OPE plans to do a more detailed analysis (Continued) of the fuel need situation.
II.
Developments Since Aporoval of XSNM-1222 The staff has identified only two significant factors affecting XSNM-1379 which were not present during the review of XSNM-1222.
The first factor is the later shipping dates for XSNM-1379.
This is significant because of the impending deadline for achieving full-scope safeguards in India as required by section 128 of the Atomic Energy Act of 1954, as amended by the Nuclear Nonproli_feration Act of 1978. Section 128 requires that the first fuel shipment which would be covered by XSNM-1379 must begin before March 10,1980. Neither the NFC fuel fabrication operations nor reactor operations would be seriously disrupted if the fuel covered by XSNM-1379 were shipped after March 10, 1980. At the same time, however, it is clear from an analysis of the available information, including the Executive Branch analysis, that the proposed shipment dates of from March through August 1979 are consistent with past shipping schedules of fuel to India.
The date of the license application is also consistent with the previous Indian pattern of applying for one export license per year and does not reflect any " bunching up" of applications in contravention of the intent of the NNPA.
Finally, if shipment is postponed until after March 10, 1980, shipment by air would be required.
This is an abnormal shipping mode for low-enriched uranium and more expensive by a factor of ten.
Prior to making a final assessment of the fuel need question, the staff would like to explore this matter with State Department and consider it further within the staff.
The second factor which may possibly affect the Commission's review of XSNM-1379 is the recent activity concerning Pakistan's alleged clandestine enrichment project and the resulting cutoff of U.S. aid to Pakistan.
It is uncertain at this point what the impact of these events has been on India's general position on nonproliferation matters or the likelihood of Indian acceptance of full-scope safeguards.
While these developments have been highlighted in several 2273 ;47
e
. Discussion:
recent State Department cables, the staff believes it (Continued) would be advisable for the Comission to be briefed by the Executive Branch on developments in Pakistan and Indian reaction to them prior to making a decision on XSNM-1379. At such a briefing the Comission could also be updated on the status of U.S. attempts to negotiate full-scope safeguards and on Indian ~rea.ctions to approval of XSNM-1222 (insofar as they relate to subsequent fuel shipments). State Department officials have informally advised the staff that they would be willing to brief the Comission at an early date.
III. Conclusion The staff is deferring recomendations on XSNM-1379 until after completion of an Executive Branch briefing on developments bearing on this export, in particular Indian reaction to the Pakistani situation.
Updated NMSS technical coments regarding the proposed export will also be provided in connection with the staff's final recomendations.
Ja R. Shea, Director Of ice of International Programs i
DISTRIBUTION:
Comissioners Comission Staff Offices Exec. Dir. for Opers.
Secretariat 2273 348
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