ML19309E688

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Forwards Executive Branch Response on Pending Application for License to Export Highly Enriched U to Japan.Requests Identification of Issues to Include in Analysis
ML19309E688
Person / Time
Site: 07002805
Issue date: 03/03/1980
From: James Shea
NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To:
Shared Package
ML19309E689 List:
References
TASK-IR, TASK-SE SECY-80-120, NUDOCS 8004240181
Download: ML19309E688 (1)


Text

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Mb UNITED STATES NUCLEAR REGULATORY COMMISSION March 3,1980 WASHINGTON, D. C. 2065s SECY-80-120 INFORMATION REPORT 1

l For:

The Comissioners From:

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

Acting Executive Director for Operations 2 b

Subject:

EXECUTIVE BRANCH RESPONSE ON PENDING EXPORT APPLICATION I

XSNM01271, HEU, INITIAL FUELING OF THE KY0TO UNIVERSITY l

HIGH FLUX REACTOR (KUHFR) l

Purpose:

To infom the Comission of the above subject.

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Discussior.:

Enclosed for the information of the Comission are copies of the Executive Branch response on a pending export licerise app 1'ication. Also encicsed are copies of the original application. A copy of the Executive Branch coments has been placed in the Puolic Document Room. A Comission Action Paper will be fomarded soon.

Comissioners are requested to advise the staff of any

-I particular issues or information which they can identify at this stage and which they wish included in the staff's

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analysis.

dI

. Shea, Director MAR 3ISS3 Office of International Programs

Enclosures:

As stated DISTRIBUTION:

Contact:

Comissioners R.N. Moore (492-7984)

Comission Staff Offices J. D.' Lee (492-7984)

Executive Director for Operations Secretariat i

800.42'40181

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h DEPARTMENT OF STATE jfj

,(J XSNM01271 wawacoa.DA smo 7o-2 For M

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H BUREAU OF OCEANO AND INTE a FM a. 22 ENVIRONMENTAL AND SCIENTIF S

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February 29, 1980 AND M

INTERHAT*L SFGRDS gjE

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MEMORANDUM FOR JAMES R. SHEA

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NUCLEAR REGULATORY COMMISSION g

ab Enclosed is an Executive Branch review of a license lE application for export of highly-enriched uranium to Japan, 5

via the Federal Republic of Germany for conversion.

In M

accordance with the Nuclear Non-Proliferation Act of 1978 M

(P.L.95-242), the Executive Branch considered how the re-EE quirements of Section 126 a.(1) of the Atomic Energy Act, as amended, are met, including the specific criteria of T5i Sections 127 and 128, as well as certain additional factors, envisaged by Section 126 a. (1).

~ 5 55 The Executive Branch, on the basis of its review of the application, has concluded that the requirements of the 35 Atomic Energy Act, as amended by P.L.95-242, have been met HEi and that the proposed export would not be inimical to the common defense and security of the United States.

With re-E

' gard to the physical security for international transit, the Executive Branch understands that the material proposed for QS export will be shipped to the FRG by the German Air Force; f

and that subsequent reshipment of the material from the FRG fE to Japan will be made in accordance with a physical security y

plan which is acceptable to the concerned agencies.

EE 253 A detailed analysis for Japan was submitted April 30, M!i 1979 for NRC application No. XSNM01435.

In regard to the export to the FRG, a EURATOM member state, as intermediate

}g consignee, a detailed analysis for the FRG and the European M}

Community was submitted November 27, 1979 for application pii No. XUO8427.

There has been no material change in circum-g stances regarding Japan or EURATOM since those submissions.

M Moreover, Japan and EURATOM (for the FRG) have adhered to "F

the provisions of their Agreements for Cooperation with the M

United States.

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Ms kh im 5t$ 55 f.ME The President has approved the enclosed HEU request, the first for supply of a significant quantity of HEU for yg a new facility received since the April 1977 adoption of 52 the present HEU policy.

That policy, as amended December

$5 5,1978, provides that supply of significant quantities yg of HEU for projects or facilities to which the U..S.

has gg

' no existing commitment would be undertaken only if the gi project or facility were of exceptional merit and the use gg of lower enriched uranium clearly was not technically 55 feasible.

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The HEU proposed for export is intended for the 35 initial fueling of the Kyoto University High Flux Reactor

's (KUHFR).

Plans for the KUHFR were begun by Kyoto Univer-35 sity in the late 1960's, approved by the Japanese Prime 35 Minister in 1971 and funding authorized by the National SE Diet in 1975, well before the April 1977 adoption of our present HEU policy.

The Executive Branch after review of 35 the project concluded that it met the test of exceptional G$

merit, but, also decided that discussions should be ini-gp tiated with the Japanese to obtain their cooperation in a W:

joint study of possible conversion of the KUHFR to use of

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lower enriched fuel.

335 The joint study has determined that use of LEU in the

C KUHFR must await development and commercial availability '

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'of more advanced higher density fuels, but that use of in-2E termediate enriched fuel of 45% enrichment is feasible.

g Letters have been exchanged between the USG and the Govern-BE ment of Japan providing that the Japanese Government will make every effort to expedite its regulatory review of use J.J.

of 45% fuel after the test irradiation and critical experi-ce ments are completed, and both parties agreed that, as soon s.k as all experiments, tests and reviews were complete and WE the 45% fuel is commercially available, conversion of the 3;t KUHFR would commence.

jp On the basis of the above-described understandings the N

Executive Branch has recommended and the President has ap-proved the supply of HEU for the KUHFR on an interim basis 91 until conversion to use of 45% fuel is accomplished.

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&E Although the scheduled date for initiation of ~ opera-Mk tions for the KUHFR has been delayed until af ter mid-1983,

@h the Kyoto University urgently needs action on this export 53 v.= ;

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license request because it cannot spend the funds obli-y gated by the Japanese Government for the fuel unless the g

U.S. export license is issued.

If the license is not gg issued by March.31, 1980, the end of the Japanese fiscal y

. year, the University expects to encounter difflculty in

{3 obtaining the necessary authority to carry the funds over

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' to the next fiscal year.

The Executive Branch has con-cluded that in view of the valuable cooperation received Et from the Japanese to date in working towards conversion JE of the KUHFR to use of lower enriched fuel, it would be

~f counterproductive to withhold the export license approval H5 until the HEU is actually needed (circa mid-1981).

How-R?

ever, the Executive Branch recommends that actual shipment of the HEU af ter the license is issued be scheduled only E

on an as-needed basis.

Therefore, the Executive Branch 5E recommends issuance of the requested export ' license prior

it to March 31, 1980.

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h Louis V. N senzo FM Deputy Assista t Secretary cr F.T

Enclosure:

As stated

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M iMt ti"Li XSNM01271 8

Country:

Japan i)W 5.E Transaction:

The export of 39.186 kilograms of

[.K U-235 contained in 42 kilograms of Mi uranium in the form of uranium hexa-92 fluoride enriched to 93 3 percent to

$~i be converted to uranium metal by M

NUKEM, GmbH, Hanau, FRG and fabri-5 cated into fuel elements by Nuclear Fuel-Industries, Ltd'., Japan, for W.$

use in the Kyoto University High Flux y

Reactor.

Xi as Applicant:

Missho-Iwai American Corporation

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m-Date of Application:

February 8, 1978 h5

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Purnose of Export 69 f.*III 8.f The HEU proposed for export is to be converted to uran-lSt is ium metal by NUKEM GmbH, Hanau, FRG, and fabricated into f uel elements by Nuclear Fuel Industries, Ltd. of Japcn for M-the initial fueling of the Kyoto University High Flux Re-

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actor (FUHFR).

Building construction for KUHFR is somewhat MM behind schedule and may delay the planned reactor start-up nik

'date of mid-1983.

yl; The KUHFR is designed to be the premier research re-N actor in Japan for neutron beam experiments including mate-J TE rials testing, reactor physics, biomedical experiments and j;5 irradiation therapy.

Design power will be 30 Megawatts F

thermal.

The 42 kilograms of HEU requested will be suffi-y cient for approximately one-year's operation.

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

Division of International Security Affairs Department of Energy Washington, D. C. 20545 f

Subject:

License application XSNM-1271 (S934) - for the export _.

l of HEU to Japan, via Nukem GmbH, West Germany.

Reference:

Application NIAC-78-001 of February 8, 1978.

Dear Mr. Hudgins:

We certify that the material mentioned in this. application, namely 39.186 Kg of U-235, contained in 42 Kg of uranium, and the transfer of this material will be subject to all terzns and conditions of the Additional Agreement for Cooperation, dated July 25, 1960, as amended.

Further we certify that Nukem GmbH, Hanau, West Germany, as intermediate consignee, is authorized by EURATOM to receive and possess this material pursuant to the aforementioned i

Agreement for Cooperation.

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The above material, after conversion by Nukem, will be retransferred to Japan, subject to DOE's authorization.

Sincerely yours, C ' Y lh c

. SPAAK Head of Delegation cc: Mr.

R.

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

2100 M Stsvet NW Sude 701 wasnington DC 20037/ telephone:CO2Hr/2-8350 ( toesx:Weeningaan COMEUR 24465

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EMBASSY OF JAPAN

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2*20 MASSACHUS8US AVENU4 M.W.

wAsnmoron, ac. noons February 23, 1979 aan zu.a m.

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Colonel Vance H. Hudgins Assistant Director for Politico-Military Security Affairs Division of International Security Affairs Department o#2 Energy j

Washington, D.C.

20545

Dear Colonel Hudgins:

Concerning import of the special nuclear. material for the facility noted below Kyoto Univer,sitythis will confirm that.the Government 'of Japan appointed as an authorized person under the terms and conditions pursuant to Article VI of the Agreement for Cooperation between the Government of the United States of America and Government of Japan concerning Civil l

Uses of Atomic Energy which entered into force on July 10, 1968, a= ended by the Protocol on December 21, 1973.

Fuel for'the Kyoto University High Flux Reactor:

(93.30 7. maximum enrichment) contained in 42 kgs of uranium 39.

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Further, it i confirmed that the transfer of the special nuclear

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material identified above will take place under all the terms and j

conditions of the Agreement for Cooperation between our Governments, i

and that the appointee (s) named above have been authorized to receive and possess the material by both Governments.

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Also, the Government of Japan confirms that the. safeguards and guarantees l of the Agreement 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, U

~

Ka uo Suzuki First Secretary (Scientific)

F.s f :

This is in reference to~ the case number of XSri-1271 s:ated in your letter dated May 8, 1978.

The intermediate consignee, the Nuclear Fuel Industries, Ltd.

is also authorized to receive and possess the material.

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