ML19309H065

Recommends That Commission Authorize Issuance of Proposed License for Nissho-Iwai American Corp to Export 42 Kg U, Enriched to 93.3%,to Japan.Draft License Encl

ML19309H065
Person / Time
Issue date:	03/17/1980
From:	James Shea NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To:
References
TASK-CA, TASK-SE SECY-80-120A, NUDOCS 8005080289
Download: ML19309H065 (9)

Text

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8 0 05 g g g,gg March 17,1980 SECY-80-120A COMMISSIONER ACTION For:

The Commissioners l

From:

James R. Shea, Director l,

Office of International Programs Thru:

Executive Director for Operations N Mh

Subject:

APPROVAL OF A PROPOSED LICENSE TO EXPORT HIGH ENRICHED URANIUM TO JAPAN (XSNM01271, SECY-80 '20)

Purpose:

Comission review of proposed issuance of subject license to Nissho-Iwai American Corporation.

Review Dates:

60-day period expires on May 2, 1980.

120-day period' expires on July 1, 1980.

Discussion:

In February 1978, Nissho-Iwai American Corporation applied for a license to export 42 kilograms of uranium, enriched to 93.30%, containing 39.186 kilograms of U-235 to Japan. The 1

original application stated that the material, in the form of uranium hexafluoride, will be converted to uranium metal by NUKEM in the FRG and fabricated into fuel elements by Nuclear Fuel Industries, Ltd. in Japan for the initial fueling of the Kyoto University High Flux Reactor (KUHFR).

In a March 7,1980 meeting with Japanese representatives from Kyote University, Nissho-Iwai, and the Embassy of Japan, the staff was informed that NUKEM would no longer be involved in the process of converting the materia). The Japanese'.wil.1 i

make arrangeitients with the DOE to obtain the material in the form of uranium ~metaT. Therefore,the material will be shipped directly to Nuclear Fuel Industries, Ltd. for fabrication of fuel elements. The Department of State was advised of this change by phone.

In response to our February 23, 1978 request for views, the Executive Branch advised on February 29, 1980 (prior to notification of the additional information referred to above) that it had (1) concluded that issuance of the proposed l

license would not be inimical to the common defense and security of the United States; (2) confirmed that the material

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will be subject to the term 3 and conditions of the US-Japan Aareement for Cooperation and, during the time it ntact:

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is in EURATOM,the US-EURATOM Additional Agreement for Cooperation; (3) noted that Japan and EURATOM have adhered to the provisions of their. Agreements for Cooperation; (4) concluded that the requirements of the Atomic Energy Act, as amended by the Nuclear Non-Proliferation Act of 1978, have been met; and (5) advised that there were no material changed circumstances since submission of its detailed analyses of April 30, 1979 on a proposed export toJapan(seeXSNM01435,SECY-79-14C)andofNovember 27, 1979 on a proposed export to EURATOM (see XUO8427, SECY-79-640).

Among.other things, the Executive Branch memorandum notes that:

o The President has approved the proposed export.

It is the first approval for supply of a significant quantity of HEU for a new facility received since the April 1977 adoption of the present HEU policy. That policy, as amended on December 5,1978, provides for supply of significant quantities of 'IEU for facilities or projects to which the U.S. has no existing commitment, only if the project or facility were of exceptional

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merifind the use of lower enriched uranium clearly was not tEchhfcilly~ feasible.

o The proposed export is intended for the initial fueling of the KUHFR. Plans for the KUHFR were started by Kyoto University in the late 1960's, approved by the Japanese Prime Minister in 1971, and funding was authorized by the National Diet in 1975, well before the April 1977 adoption of our present HEU policy. The Executive Branch, after review of the KUHFR project concluded that it met the test of exceptional merit, but also decided that discussions should be initiated with th,e Japanese to obtain their cooperation in a joint study of possible conversion of the KUHFR to use of lower enriched fuels.

o The joint study has determined that the use of LEU l

in the KUHFR must await development and commercial availability of more advanced higher density fuels.

However, the use_of intermediate. enriched fuel of 45% enrichment appears feasible. The Japanese Government has noted that it will make every effort to expedite its regulatory review for use_of 45% enriched fuel.after test irradiation and critical experiments are completed. Both the U.S. and Japan have agreed that as soon as all experiments, tests, and reviews are complete and the 45% fuel is commercially available.

l conversion of the KUHFR would commence.

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• Based on the above, the Executive Branch has recommended, with the President's approval, the supply of HEU for the KUHFR on an interim basis until conversion to use of 45%

fuel is accomplished.

With regard to the' merit of this project, the staff is informed that the KUHFR is designed to be the premier research reactor in Japan, with an unusual flexibility to perform a variety of neutron beam experiments including materials testing, reactor physics, biomedical experiments and irradiation therapy.

The KUHFR will be widely utilized by a large number of researchers from many universities and public institutions throughout Japan. All of the planned projects are unique and based on human needs.

It is especially significant that this reactor will be actively used for medical applications such as therapeutic irradiation of cancer and production of radioisotopes for medicine.

In view of the above, the staff believes that the test of exceptional merit has been met in this Case.

The design power level of the KUHFR will be 30 megawatts thermal.

The 42 kilograms of HEU requested will be sufficient for approximately one year of operation.

In examining the question of whether it would be possible to operate the KUHFR on uranium of lower enrichment, the staff notes that the joint study between Kyoto University Research Reactor Institute (KURRI) and Argonne National Laboratory concluded that the use of medium enriched fuel in the KUHFR probably is feasible based on current fuel fabrication tech-nology that has been utilized in the U.S. with 93% enriched uranium for a number of years. The use of low enriched fuel, l

however, will be dependent upon the development of advanced fuel fabrication technology. The staff is advised that DOE has a program of such development underway. The development, demonstration, and commercialization of this advanced technology may be completed within the next five years.

However, in order to meet domestic Japanese regulations, the use of 45% enriched fuel in the KUHFR will require additional study, including critical experiments and possibly limited additional fuel irradiation tests. A review of safety analysis and, ultimately, permission by the Govern-ment of Japan will also be required. Therefore during this i

4 interim period of regulatory review, the Government of Japan and KURRI have requested that the U.S. supply the 93% enriched fuel covered by this license application.

The staff notes that the enrichment reduction of the KUHFR fuel to 45% is only an intermediate goal based on established fuel fabrication technology. Research will continue with the aim of high uranium density fuel and less than 20% enrichment. Success in this program will play an important role in convincing other operators of high flux test reactors to cooperate with the U.S. ir, the development of test reactor fuels of. lower enrichment.

The staff notes that facility attachments are in effect at the Nuclear Fuel Industries in Japan. The staff is not aware that a facility attachment has been completed for the KUHFR.

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-1190 and XSNM01435) for high-enriched uranium to Japan after Commission review. Accordingly, the

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be staff believes that this proposed export license may(2) of issued. This procedure is authorized by 5110.44(a)

Part 110 and is based on section 126(a)(2) of the AEA as amended by the Nuclear Nonproliferation Act of 1978.

The staff urges expeditious Commission consideration of this application in view of expressions of urgency by the Exer.utive Branch, the Japanese, and.the. applicant.

The Executive Branch's February 29, 1980 memorandum notes that although the scheduled date for start-up of the KUHFR has been delayed until after mid-1983, the Kyoto University. urgently requests that a license be issued as soon as possible because. funds for_ procurement of the

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material must.be spent before expiration _of_the. current Japanese fiscal year on March ~31, 1980.

If the license is not'TssiiedTy March ~~31,~ ~1980, the Uriiversity expects to

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encounter difficulty in obtaining the necessary authority to carry the funds over to the next fiscal year. In view of the valuable cooperation received from the Japanese to date in working towards conversion of the KUHFR to use lower l

enriched fuel, the Executive Branch believes it would be l

counterproductive to withhold the export license approval until the HEU is actually needed (around mid-1981).

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The Executive Branch's February 29, 1980 memorandum also recommended that actual shipment of HEU be scheduled only on an as-needed basis. A condition is being added to the license which states that shipments of the material shall not commence before September 1,1980. This will allow approximately six months of shipping time for the material to reach Nuclear Fuels Industries, Ltd. for fabrication.

The following documents are forwarded for Commission review of the subject application:

(1) application of February 8,1978 (Appendix A); (2) Executive Branch views of February 29,.1980 (Appendix B); and (3) copy of proposed license (Appendix C).

This action involves no new resource requirements.

NMSS Technical NMSS has little information on the effectiveness of IAEA Review:

safeguards implementation at the Nuclear Fuel Industries fabrication facility. A facility attachment is in effect for this facility, which has been under IAEA safeguards for several years.

Our understanding is that no facility attachment is in effect for the High Flux Reactor at Kyoto University, undoubtedly due to the early stage of construction of this reactor.

For the purpose of this export, the licenseeand consignee have decided to transport the material in less than 5 kg quantities. Accordingly, the license will be conditioned to limit individual shipments to less than a formula quantity.

With respect to physical security, NMSS has reviewed the physical security program in Japan and found it adequate for the purpose of this export. A supplemental report (CNSI) regarding physical security will be forwarded to the Commission under separate cover.

Recommendation:

That the Commission authortze the issuance of the proposed license to Nissho-Iwai American Corporation.

Coordination:

ELD has no legal objection. NMSS comments are as stated above.

l 1

. Scheduling:

Commission approval of the proposed license is requested as soon as possible. The problem of funding is iminent and is dependent upon issuance of an expert license by March 31,1980.

NAR 171550 g

James R.!Shea, Director Office of International Programs

Enclosures:

As stated DISTRIBUTION:

Comissioners Comission Staff Offices Executive Dir. for Opers.

Secretariat Comissioners' comments should be provided directly to the Office of the Secretary by c.o.b. Wednesday, March 26, 1980.

Comission Staff Office comments, if any, should be submitted to the Comissioners NLT March 24, 1980, 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 coments may be expected.

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U.S. ATCMIC ENERGY COMMISSION (

3'ene spos==ed (2-47)

Sedset se Ma, 10 cPR 30,40 Washington, D.C. 20545 33,ggggy, 1

gg m-311 APPLICATION FOR LICENSE TO EXPORT RC 78 ~*2 3

BYPRODUCT, SOURCE, OR SPECIAL NUCLEAR MATERIAL J-q 3 ({

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Carefully Read Instructions on Back NWN fh

1. D ATE Or AppuCATiON

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3. COUNTRY OF us.t.idtsozst:iierfiOw

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iin Februarv 8. 1978 NIAC-78-001 Jav an...---...A li,a E

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STREET ADDRESS Kyoto University

'Q 1211 Avenue of the Americas Kumatori-cho Sennan-gun

'3g CITY. STATE. AND zip CoOE Osaka, Japan R

Nsw York, New York 10036 EE

4. INTERMEDIATE CON SIGN EE IN FOREIGN COUNTRY (cite nere

7. IF PURCN ASER IN FOREIGN COUNTRY IS OTHER TH AN

..c and address. Il sesse as ultsmate consegnet, state "Sent. ")

ULTIMATE CONSIGNEE. GIVE N Ah4C AND ADORE 53.

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(if sene, state "Sene.")

3 NUKEM GmbH

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645 Hanau Postfach 869 Same

,.y West Germany 1-M S. (al CU ANTITY 70 eC $ NIPPED (b) COMM001TY DESCRIPTION (include chemical mui physscal forne f,or special nuclee nearerial need E

(See unstructnons on back) b>9eaduct numersal also spectiy isotoose content. if ure e device, ide urify abe devece. maneaufactaner, mui model neonber.)

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C 39.186 Kg U-235 contained in 42Kg of uranium enriched to a maximum of Ts 93.30 percent 5

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(c/ SNIPPING AND P ACKING PROCEDURES (Respssred for special ranclear marertal. See instructions on be-4.)

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The shipment will be packaged in accordance with 10 CFR part 71.

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9. ENC USE Or COMMODITIES COVERED BY THIS APPUC ATION: (oescM6e fully. statang tahst uall be produced or,sseus/actspeg, g4er spyyece Y

aall be rendered. or the nature of the research that sail be performed.) 15ee anstructrons on bacin for speciat nuclear mmersan.)

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10. Th2 applicant, and any official executing this certificate on behalf of the applicant named in Itern 4. certify char thin applicatioc f.?h in prepared in conformity with T!ste 10, Code of Federal Repalations. Parta 30 and 36 (if for bypsod.act material) or Part 40 (if fit source material), or Part 70 (if for special nuclear s.aterial). and Part 71 (for transport of radsoective material, if app!! cable) sad that all infonnation contained herein, including any supplements attached hereto, la true and coevece to the best of their

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verning: 18 U.S.C. Se. n,n 1001; Act of June 25, 1948:

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Our Rcf: MACPJ-1034-NT Nisshc>lwai Anwican acr zo 1..s. Nr.c Rockefeller center

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1211 Avenue of tne Arnencas New York. N.Y.10036 212/730 2000 For Infortnat4on Direct Nurncor

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F.CA 232641/233567 Q2yo,5

• • Echad A. M.in, u

7 ssi.s252 w uie20 912 Assistant Director wo 2s110/12329 Export / Import and International Safeguards Office of International programs eranen omces:

Nuclear Regulatory Commission San Francisco Washington, DC 20555 Les Angeles Pomand y,jj,

Subject:

Highly Enriched Uranium Export Application / Kyoto University Houston 0;treit St. Louis Ancnorage

Dear Mr. Guhin:

Atlanta We, Nissho-Iwai American Corporation, on behalf of Kyoto University herewith enclose the application documents as follows:

1.

Application for license to export by-product, source or special Nuclear material.

(Applicant's reference No. NIAC-78-001).

2.

End Use Statement and Explanation This is the application based on our previous meeting which was held among Mr. Guhin, Dr. K. Kanda (Kyoto University), Mr.' Nakagome, Mr. Suzuki (Science Attache) and the undersigned on November 30, 1977 at your office.

Your consideration shall be highly appriciated.

Yours very truly, NISSHO-IWAI AMERICAN CORPORATION j

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Assistant Manager Machinery Project Development Dept.

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-r s-RESEARCH REACTOR INSTITUTE."E0ElVED

,;,3, sp,0 KYOTO UNIVERSITY NUMATORI-cHO, SENNAN GUN OSAKA, JAPAN gis Fa 10 m Ii 01 EX?CRT/i?

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Jhifu&It SEQRfS1978 United States Nuclear Regulatory Commission Sashington, D.C.,

20555 U.S.A.

Dear Sirs:

END USE STATEMENT

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We, the undersigned certify that the following material is to be used by us for the fuel of Kyoto University High Flux Reactor in our Research Reactor Institute, Kumatori-cho, Sennan-gun, Osaka.

After conversion to uranium metal at NUKEM GmbH, Hanau, West Germany, fuel will be fabricated by Nuclear Fuel Industries Co., Ltd., Kumatori-cho, Sennan,-gun Osaka, Japan.

==

Description:==

Enriched Uranium Hexafluoride Enrichment :

Maximum 93.30% (93.15 plus/minus 0.15%)

Quentity 42 KgU U-235 39.186 Kg U-235 We authorize Nissho-Iwai American Corporation,'1211 Avenue of the Americas, New York, New York 10036 to apply for the export licence, and necessary works corresponding to delively of this commodity.

Sincerely yours, j

Kycto University l

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Toshikazu Shib ta Director l

Research Reactor Institute Kyoto University s

1. Introduction The Besearch Beactor Institute, Kyoto Chiversity (KURRI) was established in 1963, for the purpose of cocperative use of a research reactor and at-tached facilities by all universities and public research instituticns in Japan. The Kyoto University Peactor, KUR, became first critical and reached to its jnitial nominal pcwer of 1,000 W in 1964. In 1968 its neal pcwer was inemased up to 5,000 W.

This is the cnly one asearch reactor which can be used for various types of neutrcn beam and irrsdiaticn experiments e

by university g:usps. About 150 research projects (about 8,000 man days) are accepted annually to use KUR. Visiting professors frcm other countries also use the facilities. In 1974 we began to use it for therapeutic irradi-aticn to cancer.

Frcm not very later after the ccupleticn of KUR, large nunber of msearch-en ers in various fields hcped to ccustmet a high flux msearch reactor which i

was capable of neutrcn team experiants. It has beccme strong circumstance

1. thiversity Reactors in Japan 1

i Reactor Type Fuel Enrichment Power

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Kinki Chiv. Reactor

'JfR 90 %

1 W

YAYOI (Chiv.'of Tokyo)

Fast 93 %

2 W

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Rikkyo thiv. Feactor TRIGA 20 %

100 W i

Pusashi Inst. Tech. Peactor TRIGA 20 5 100 kW KUR Tank type 93 %

5,000 W i

1. 1. High Power Research Peactors in Japar. (P > 1 W)

Beactor Type Power JER-4 Fully Enriched U, F 0; Shielding Pasearch & Irradiatien 25W 7

KUR Fully Enriched U, H 0; Seam & Irradiatien 5

W 2

JER-2 Fully Enriched U, F 0; Beam & Irradiation 10 W

7 JRE-3 Natural U, D 0; Seam & Irradiaticn 10 W

2

.T7.7T*Q W11tr hwi nkaA T? TJ A. TwwoA4 m+-4 m (h haom 1iti al 40 MJ

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in Japan and then, in June 1971, the reco:=endation was presented..to the Prime Minister of Japan from the Science Council of Japan on the future program of

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atomic energy research b, universities in Japan, in which the construction of a high flux reactor was e=phasizu a seen the most irportant item in this program. KURRI decided to construct a high flux reactor as the second research reactor and made a demand for budget to the Ministry of Education. 'Ihe budget was approved by the National Diet in 1975 Then, various surveies, calculations, and design tasks were carried out in 1975 and the safety report of this reactor was handed to the Japanese Government in 1976. The safety er=Wtion of const-ruction permission has been almost finished. Already one third of the fabrication was done.

2.

Uses of High Rux Reactor This reactor will be widely utilized by huge number of researchers frcm many universities and public institutions throughout Japan. All of the planned projects are unique and are based on human needs. It is especially signifi-cant that this reac'ters will be actively used for medical application such as therapeutic irradiation to cancer and production of radioisotopes for medicine.

The fundamental research facility for reactor therapy was estdblished in j

KURRI in 1976.

l Main fields to use this reactor can be classified as:

l (1). Reactor physics and reactor engineering, (2) Therapectic irradiation (cancer therapy),

(3) Bicmedical expeiments, (4) Neutron diffraction related to analyze molecular and crystalline structures,*

(5) Special neutron beam experiments such as neutren guide tube etc.,

t (6) Nuclear physics and chemistry to study and measure nuclear processes such as fission and neutron capture, (7) Radio-chemistry and radiation chemistry includirs various activation

analyses, (8) Irradiation experiments to study the effects of radiation on materials and, (9) Education training.

All of the above are strictly limited to peaceful purposes only.

3.

Fundamental Aspects (1)

As a center of the basic research by all universities and public research institutiens in Japan, the reactor must have a higher capability which make possible of experimental works of the world's highest level.

From the standpoints of operating cost, condition of site, water supply etc., its thermal power was determined to be 30 MW.

(2)

'Ihe reactpr must be designed to be as safe as possible. Designs are based on the experience and techniques gained frem KUR ard Kyoto University Critical Assemblies, KUCA.

In safety design, " fail safe" ard T

" fool proof"* principles are adopted.

'Ihe safety of the gencral public can be guaranteed, even in the event of most unlikely accident, by the provision of multiple protective barriers to guard ngMust the scatteries of radioactive fission products fon::ed in the fuel.

The construction and arrangement are designed such that there would be no significant loss of functioning or safet'/ characteristics arising from natural phencmena such as earthquake, typhocn and flood.

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(3)

Dose rate for the general public around the site and the personnels including visiting researchers during the nonnal operation of the reactor is to be minimized'as low as practicable (ALAP). For this purpose arti-ficial air, in which the content of argen is dtninished to 1/50 will be used at the place where thennal neutron flux is high.

(4)

The physical protection system for the nuclear fuel is to be designed strictly *. An independent storage building for new fuel will be built and it will be kept a strict watch night and day.

(5)

The renewal of the contract to reprocess the spent fuel of the reactor is progressive will DOE of the United States. Also we are independently negotiating the contract of the reenrichment after the reprocess of the fuels.

(6)

This reactor is a substitution of KUR. 'Iherefore after ccznplation of the reactor, KUR will be modified to a TRIGA-type pulsed reactor of lower power, in which 20 % enriched uranium will be used instead of highly enriched uranium.

(7)

'Ihe reduction of enrichment to 20 % according to the suggestian of i

the U. S. Government was examined. 'Ihe result is " impossible" frcm the viewpoints of technical problems.

4 i

'Ihe physical protection system cf KUraI was investigated by V. H. Hudgins and J. L. Hodges of DOE and D. J. Kasun cf NRC in 1977 and was recognized to be excellent by them.

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DEPARTMENT OF STATE

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yi BUREAU OF OCEANS AND INTERNATJQ. b W 5 22 5 52 ENVIRONMENTAL AND SCIENTIFId W.

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$5 February 29, 1980 E.?RT[fr; FORT g;

1:4TERHAI*L SFGROS fy T.9 9*'*

2 MEMORANDUM FOR JAMES R. SHEA E

NUCLEAR REGULATORY COMMISSION

$=5 if5-si Enclosed is an Executive Branch review of a license 5f) application for export of highly-enriched uranium to Japan, via the Federal Republic of Germany for conversion.

In accordance with the Nuclear Non-Proliferation Act of 1978 4M (P.L.95-242), the Executive Branch considered how the re-is quirements of Section 126 a.(1) of the Atomic Energy Act, isi as amended, are met, including the specific criteria of Wg Sections 127 and 128, as well as certain additional factors, y

envisaged by Section 126 a. (1).

pp si The Executive Branch, on the basis of its review of

[

the application, has concluded that the requirements of the

$1 Atomic Energy Act, as amended by P.L.95-242, have been met He and that the proposed export would not be inimical to the f

common defense and security ou the United States.

With re-E gard to the physical security for international transit, the G.F.

Executive Branch understands that the material proposed for f

export will be shipped to the FRG by the German Air Force;

[F and that subsequent reshipment of the material from the FRG EA to Japan will be made in accordance with a physical security Un E8bs}.

$1an which is acceptable to the concerned agencies.

A detailed analysis for Japan was submitted April 30, bh 1979 for NRC application No. XSNM01435.

In regard to the

[$

export to the FRG, a EURATOM member state, as izitermediate 7.7 consignee, a detailed analysis for the FRG and the European if Community was submitted November 27, 1979 for application ns-No. XUO8427.

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

Moreover, Japan and EURATOM (for the FRG) have adhered to d.L the provisions of their Agreements for Cooperation with the

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United States.

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The President has approved the enclosed HEU request,

$$[i the first for supply of a significant quantity of HEU for EWM a new facility received since the April 1977 adoption of

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1 the present HEU policy.

That policy, as amended December EHM

' g%

y?gm 5, 1978, provides that supply of significant quantities of HEU for projects or facilities to which the U.S. has no existing commitment would be undertaken only if the project or facility were of exceptional merit and the use ggg of lower enriched uranium clearly was not technically SEg feasible.

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

$$;5 (KUHFR).

Plans for the KUHFR were begun by Kyoto Univer-l@F sity in the late 1960's, approved by the Japanese Prime g;.;

Minister in 1971 and funding authorized by the National py;jk Diet in 1975, well before the April 1977 adoption of our g-;g,

present HEU policy.

The Executive Branch after review of "T; '

the project concluded that it met the test of exceptional ifi merit, but,.also decided that discussions should be ini-

.:7:#

tiated with the Japanese to obtain their cooperation in a MMf joint study of possible conversion of the KUHFR to use of lower enriched fuel.

M;:::

The joint study has determined that use of LEU in the 3.3M KUHFR must await development and commercial availability isl.,'

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

E5-(p.}3 F

Letters have been exchanged between the USG and the Govern-ment of Japan providing that the Japanese Government will make every effort to expedite its regulatory review of use i4E; of 45% fuel after the test irradiation and critical experi-hp-ments are completed, and both parties agreed that, as soon IEJ as all experiments, tests and reviews were complete and

@51 the 45% fuel is commercially available, conversion of the f.;.,

KUHFR would commence.

.us On the basis of the above-described understandings the ff?.h/

Executive Branch has recommended and the President has ap-Eif"-

br proved the supply of HEU for the KUHFR on an interim basis until conversion to use of 45 fuel is accomplished.

bk.

bb:

Although the scheduled date for initiacion of ' opera-E!.

tions for the KUHFR has been delayed until af ter mid-198 3, the Kyoto University urgently needs action on this export g,{@

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gated by the Japanese Government for the fuel unless the

{.i.j U.S. export license is issued.

If the license is not

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issued by March 31, 1980, the end of the Japanese fiscal wi.529

. year, the University expects to encounter difficulty in

'"fiM obtaining the necessary authority to carry the funds over f '"!

I to the next fiscal year.

The Executive Branch has con-i.[

cluded that in view of the valuable cooperation received h??"~

l from the Japanese to date in working towards conversion

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of the KUHFR to use of lower enriched fuel, it would be counterproductive to withhold the export license approval

jp until the HEU is actually needed (circa mid-1981).

How-liji' ever, the Executive Branch recommends that actual shipment

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of the HEU af ter the license is issued be scheduled only

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l on an as-needed basis.

Therefore, the Executive Branch b.i:;g recommends issuance of the requested export' license prior to March 31, 1980.

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Enclosure:

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As stated

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XSNM01271

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Country:

Japan l

siin Transaction:

The export of 39.186 kilograms of RF U-235 contained in 42 kilograms of RE uranium 'n the form of uranium hexa-EE?!

fluoride enriched to 93.3 percent to

!.n be converted to uranium metal by

.j?f NUKEM, GmbH, Hanau, FRG and fabri-Ti cated into fuel elements by Nuclear E+

Fuel Industries, Ltd., Japan, for g.g use in the Kyoto University High Flux y

Reactor.

p.ig h=b Applicant:

Nissho-Iwai American Corporation

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Date of Application:

February 8, 1978

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N Purpose of Export

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llffE The HEU proposed for export is to be converted to uran-ium metal by NUKEM GmbH,.Hanau, FRG, and fabricated into

[j.

fuel elements by Nuclear Fuel Industries, Ltd. of Japan for the initial fueling of the Kyoto University High Flux Re-25 actor (KUHFR).

Building construction for KUHFR is somewhat h,{

.behind schedule and may delay the planned reactor start-up 57#

date of mid-1982.

E" 5'f.

The KUHFR is designed to be the premier research re-actor in Japan for neutron beam experiments including mate-rials testing, reactor physics, biomedical experiments and

m..

irradiation therapy.

Design power will be 30 Megawatts i!?

thermal.

The 42 kilograms of HEU requested will be suffi-i--"

cient for approximately one-year's operation.

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J DELEGATION OF THE COMMISSION OF THE r.UROPEAN COMMUNITIES June 20, 1978 JM/aks Mr. Vance H. Hudgins Assistant Director for Politico-

~

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

Subject:

License application XSNM-1271 (S934) f.- the export.

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

Reference:

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

Dear Mr. Hudgins:

i We certify that thd 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 terms 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 l

and possess this material pursuant to the aforementioned Agreement for Cooperation.

The above material, after conversion by Nukem, will be

(

retransferred to Japan, subject to DOE's authorization.

l Sincerely yours,

. f }h c 1

. SP:adC Head of Delegation cc: Mr.

R. Delabarre, State Department Ms. J. Dunn, Nuclear Regulatory Commission 2100 M Street NW Suite 707 Washegton DC 20037 / teleonone:(202)S72-8350 t te6e Mrase*rg::m CCMEUR 244$f r

EMBASSY OF JAPAN l

}Sh;l$

2323 MAssACHusstrs AYDius. H.W.

wAsamorca, o.c. scoes February 23, 1979 co:n zu.2 u.

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 Hudg' ins:

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

Fuel for'the Kyoto University High Flux Reactor:

39.186 kgs of U-235 (93.30 7. maximum enrichment) contained in 42 kgs of uranium e

Further, it i 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 guarantee:

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 l

First Secretary (Scientific) n.s f :

This is in reference to the case nu ber of XS:OI-1271 s:s.ted 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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THIS LICENSE IS INV AL10 UNLESS StGNED isELOW h*

,'i: Neither th:s'ilcense nor any right under 'tnis license shall be assigned or S.Y. AUTHORt:ED.NRC R.EPRE. SENTATivE.

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EXPORT LICENSE Conditions License Number XSNM01271 Condition 1 - Ucensee shcIl file with the Customs Officer or the Fo:tmoster two copies,in cddi-tion to those otherwise recuired, of the Shipper's Ex~ port Decicrotion <.overing each export and mark one of such ccpies for transmit;ct to the U.S. Nuclect Regu-letory Commissicn, Wcshington, D.C. 20555. The following dec!cration should oc-compcny or be p!cced on the Shipper's Export Declerctions for such experts:

"This shipment is being mcde pursucnt to specific lic2nse number (specific license number) filed ct(location of Customs office where license is filed),

on (dcte license was filed). T.his license expires on (expiration date of license), and the unshipped bc!ance remcining on this license is sufficient to cover the shipment described on this dec!cretion.'

Condition 2 - Exports authorized in.cny country or destinction, except Country Groups C, S, W, X, Y, cnd Z in Port 370, Supplement No.1, of the Comprehensive Export Schedule of the U.S. Department of Commerce.

Condition 3 - This license covers only the nuclect content of the meterici.

Condition 4 - The meterial to be exported under this license shall be shipped in accordance with the physical protection recuirements for specici nuciecr meterict in 10 CFR 73.

Condition 5 - Specici nuciecr meterici cuthorized for export under th;s license shoil not be transported outside the United States in pcssenger carrying circraft in shipments exceeding (1) 20 grcms or 20 curies, whichever is less, of plutonium or urcnium 233, or (2) 350 grams of urenium 235.

Condition 6-This licen:e cuthorizes export only and does net cuthorize the rece;ot, physical possession, or use of the nuc' eor meterial.

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

source material exported under this license.

Condition 8 - The licensee shcIl cdvise the NRC in the event there is any change in the designo.

tion of the compcny who will pcckage the nuclear morerial to be exported us. der this license, or cny change in the locction of the pcckesing cperation, et lecst three weeks prior to the scheduled dcte of expert.

Condition 9 - The material to be exported under this license shall be protected in transit, while within U.S. jurisdiction, in accordance with the requirements of 10 CFR 73 and the licensee's approved security plan.

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P. age 3 3-Condition 10 - Each shipment of material under this license shall contain less than a formula quantity.

Condition 11 - flotwithstanding the requirements of 10 CFR 73.24 (b) (1),

for any series of shipments by sea the licensee may release a subsequent shipment after confirming that the prior shipment is on board a seagoing vessel which has left U.S.

jurisdiction and passed into international waters.

Condition 12 - The licensee shall assure that arrangements have been made for the consignee to pick up each shipment as soon as it reaches port in Japan.

Cendition 13 - The first shipment under this license for the KUHFR shall not take place before September 1,1980.

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