ML19320B630

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Requests Review of Proposed Issuance of License for GE to Export Components to Finland.Equipment Destined for Country Not Previously Authorized to Export Per Nuclear Nonproliferation Act of 1978.Recommends Issuance
ML19320B630
Person / Time
Issue date: 06/20/1980
From: James Shea
NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To:
Shared Package
ML19320B631 List:
References
TASK-CA, TASK-SE SECY-80-301, NUDOCS 8007140539
Download: ML19320B630 (3)


Text

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June 20,1980 SECY-80-301 COMMISSIONER ACTION For:

The Commissioners From:

James R. Shea, Director Office of International Programs

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Acting Executive Director for Operations k O/I M.

Subject:

PROPOSED LICENSE TO EXPORT COMPONENTS TO FINLAND (XCOM0057)

Purpose:

Commission review of proposed issuance of component export license to General Electric Company. This license request is being forwarded for Commissioner review in accordance with 10 CFR 5110.40(b)(5) because the proposed export of eauf pment is destined to a country to which the Commissioners have not previously authorized an export pursuant to the NNPA of 1978.

Review Dates:

60-day period expires on July 22, 1980.

120-day period expires on September 22, 1980.

Discussion:

By letters dated September 13, 1978 and January 30, 1980, General Electric applied for a license to export specially designed parts and components, valued at less than $100,000, to Finland for installation in the monitoring and electrical penetration systems of D.its 1 and 2 of the TVO nuclear power plant located at 01kiluoto (Appendix A). TV0's Units 1 and 2 are 520-megawatt boiling water reactors utilizing slightly enriched uranium.

It is the view of the staff that Finland meets the three export licensing criteria in Section 109b of the Atomic Energy Act of 1954, as amended, for the export of nuclear equipment. The first two criteria, (1) application of IAEA safeguards to the equipment and (2) no nuclear explosive use of the equipment, are met by Finland's adherence to the Non-Proliferation Treaty and therefore, its commitment to maintain IAEA safeguards with respect to all of its peaceful nuclear activities and its pledge not to produce or other-I wise acquire any nuclear explosive device. The third criterion, agreement not to retransfer any U.S.-supplied components without prior U.S. approval, is met by Finland

Contact:

as confirmed in a letter dated May 16, 1980 from the E E. Hemby,IP (49-27984)

Peterson,IP(49-28155) 8007140

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of Finland which was forwarded by the Executive Branch (AppendixB). Although Executive Branch review was not i

required for the proposed export as it falls within the j

categories of materials not nomally reviewed by the Executive Branch (less than $100,000 in value), the Exec-

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utive Branch concluded that Finland meets the applicable

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licensing requirements in Section 109b for the export of nuclear equipment in its review of a prior proposed export of components to Finland's TVO 1 and 2 nuclear power stations I

(XCOM0121). The staff has found that there are no material i

changed circumstances associated with the subject export license application from those existing at the time of issuance of XCOM0121 to Finland on September 19, 1979.

4 In view of the above considerations and as required by Section 109b of the Atomic Energy Act, the staff has con-cluded that the proposed export would not be inimical to the comon defense and security of the United States.

International Safeguards Rev'iew:

The nuclear material at the TVO facilities is covered by IAEA safeguards under a facility attachment which is in force under an NPT-type safeguards agreement. Although little information is available on the application of IAEA safeguards in Finland, staff believes that control of and accounting for the reactor fuel elements are within the capabilities of both Finland and the IAEA.

The components themselves, of course, would not be subject to IAEA safeguards since application of safeguards under Article III(2) of the NPT is limited to source or special fissionable material. However, staff believes that Criterion 1 for export of components is met because the nuclear material associated with the reactors in which the components will be utilized is covered by IAEA safeguards.

Recommendation:

That the proposed license be issued to General Electric Company (Appendix C).

Coordination:

ELD has no legal objections. NMSS views are presented in the context of the International Safeguards Review.

" y' 9-r Jame hea, Director Off of International Programs Appendices:

Appendix A (Applis dtd.

O_ISTRIBUTION :

09/13/78 & 01/30/80)

Commissioners Appendix B (Ltr. fm. Gov't.

Commission Staff Offices of Finland dtd. 05/16/80)

Acting Exec. Dir. for

- Appendix C (Proposed Opers.

License)

Secretariat

. Comissioners' coments should be provided directly to the Office of the Secretary by c.o.b. Monday, June 30, 1980.

Comission Staff Office coments, if any -hould be submitted to the Comissioners NLT June 26, 1980, with an information copy to the Office of the Secretary.

If the paper is of such a nature that it rt.yuires additional time for analytical review and coment, the Comissioners and the Secretariat should be apprised of when coments may be expected.

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GENER AL h ELECTRIC nuctsAn susnov PROJsCTS DIVISION GENERAL ELECTRIC COMPANY,175 CURTNER AVE., SAN JOSE, CALIFORNIA 95125

$Cm ooS9 September 13, 1978 IIN I N BDW-125-78 Mr. Gerald G. Oplinger Assistant Director Office of International Programs U.S. Nuclear Regulatory Commission Washington, D.C. 20555

Subject:

APPLICATION FOR EXPORT LICENSE FOR NUCLEAR EQUIPMENT COUNTRY:

FINLAND

Dear Mr. Oplinger:

Pursuant to 10CFR110, Sections 110.31 and 110.32, General Electric hereby applies for a license authorizing export of equipment, parts and components specially designed or prepared for use in nuclear reactors and as further described below.

Applicant:

General Electric Company Nuclear Energy Business Group 175 Curtner Avenue, Mail Code 871 San Jose, California 95125 Consignee (s):

End Use:

fkh TVO Power Company Olkiluoto, TVO Kutojantie 8 02610 Kilo Reactors Modification Suomi, Finland and/or Maintenance Intermediate:

AB ASEA-ATOM Purchaser for ultimate Vaestrans, Sweden consignee Proposed Schedule FiMsFqWEEt: December 1, 1980 First Shipment: December 1, 1978 1E 0 dWl/1E M ~.

Contract Delivery:

January 15, Proposed Expirtation:

Same 1979 E3 6 '#f El C3 M j

Needed Abroad:

Same Continued - @ h Q

OTI Ta g()\\

Y 03AG W 7-

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31 g

c q[sf[1E DkTD, byw -M, \\o\\%oht (APPENDIX A)

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er-r G EN ER AL([' ELECTRIC

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Mr. Gerald G. Oplinger September 13, 1978 General Description of Components Unspecified parts or components, other than those set forth in 10CFR Part 110, Appendix A, Items (a)(1) through (a)(8),

specially designed or prepared for repair or replacement of equipment, systems, components, or parts of the nuclear reactor named above not to exceed $100,000. per export.

Examples of equipment to be exported under authority of the license granted pursuant to this application are: signal amplifiers, electrical penetration modules, radwaste drum cappers, wire rope for refueling platform, underwater TV, etc.

Ver truly yours,

/NVL

/4. D. Wilson, Manager

/GovernmentRelationsand Export Licensing Mail Code 871, (408) 925-1380 mg l

l (APPENDIX A) l

.