ML19320B795

Recommends Return of Rockwell Intl Application for License to Export specially-designed Valve to India W/O Action. Executive Branch Prefers Returning W/O Action as Opposed to Denial Due to Political Differences Involved.Draft Ltr Encl

ML19320B795
Person / Time
Issue date:	06/19/1980
From:	James Shea NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To:
References
TASK-CA, TASK-SE SECY-80-298, NUDOCS 8007150050
Download: ML19320B795 (6)

Text

_ _ _ _ _

June 19,1980 SECY-80-298 COMMISSIONER ACTION For:

The Commissioners From:

James R. Shea, Director Office of International Programs

\\

Thru:

Acting Executive Director for Operations

Subject:

EXECUTIVE BRANCH RESPONSE ON EXPORT APPLICATION XCOM0382.

COMPONENT TO REPROCESSING DIVISION OF BHABHA ATOMIC RESEARCH CENTER IN INDIA

Purpose:

Commission review of proposed return of subject license application to Rockwell International without action.

Discussion:

On March 14, 1980, Rockwell International applied for a license to export one specially-designed valve, valued at

$1,600, to India for use in the Fuel Reprocessing Division of the Bhabha Atomic Research Center (Attachment 1).

The license application was forwarded to the Executive Branch for review on March 19, 1980.

By memorandum dated May 16,1980 (Attachment 2), the Executive Branch recommended the application be returned without action, and concluded it was not possible to determine that 1) the requirements of the Atomic Energy Act, as amended by P.L.95-242, have been met and 2) the proposed export will not be inimical to the comon defense and security of the United States.

The Executive Branch's judgment was based on the fact that the Bhabha Atomic Research Center is not safeguarded and is not covered by the U.S.-India Agreement for Cooperation; and further, it is not the policy of the United States to provide assttance to foreign reprocessing programs. The staff agrees with these conclusions. Accordingly, attached is a proposed letter to Rockwell International returning the license application without action.

Recently staff recommended denial of a proposed export of SNM to Iran even though the Executive Branch views had recommended that the application be returned without action (See SECY 80-247). Although State had no objection to our denying the Iranian export, State strongly prefers that the i

application for the proposed export to India be returned without action because of the political differences involve Staff sees no compelling reason to deny the application, rather than return it without action,since this is p by our regulations (Part 110) and the legal effect act:

respect to availability of judicial review, is

, IP (27984) (See also ELD's additional comments on this 340'21gination paragraph).

co oso

. Recommendation:

That the Comission approve the dispatch of the attached draft letter to Rockwell International returning without action their license application.

Coordination:

ELD notes that the State Department use of the " return

. ithout action" solution is apparently based on Department w

of Comerce practice.

However, the Export Administration Act specifically gives Commerce authority to return an export license application "without action" if the applica-tion is improperly completed or if additional infomation is required (50 USC App. 12409(b). Otherwise, the Secretary of Commerce is directed to formally issue or deny the license, (50USCApp.52409(f). No such authority or direction to the NRC is found in the Atomic Energy Act of 1954, as amended.

However, since the proposed course of action would have no legal effect as regards judicial review, and does not appear to be contrary to'the Atomic Energy Act or the Administrative Procedure Act, ELD has no legal objection.

James ea, Director JUN 171980 Offi of International Programs Attachments:

1.

Appli. dtd. 03/14/80 2.

Exec. Branch views dtd.

05/16/80 3.

Proposed ltr. to Applicant DISTRIBUTION:

Commissioners Comissior. Staff Offices Acting Exec. Dir. for Opers.

Secretariat Comissioners' ccaii:ents should be provided directly to the Office of the Secretary by c.o.b. Friday, June 27, 1980.

Commission Staff Office coments, if any, should be submitted to the Commissioners NLT June 25,1980, with an information copy to the Office of the Secretary.

If the paper is of sach a nature that it requires additional time for analytical review and comment, the Comissioners and the Secretariat should be apprised of when comments may be expected, i

I FORM N2> 7 U.t. NUCLE AR CE!ULATtCY COMMISSION APP.O!VE3 SY CA3 s.1a 225tRoss21 APPLICATION FOR LICENSE TO EXPORT NUCLEAR to a tio MATERIAL AND EQUIPMENT (seeinstructi:ns en R: verse)

1. APPUCANT*S la. DATE OF APPLICATION

e. APPLICANT'S REFERENCE 2.NRC

a. DOCKET NO.

D. U CENSK. NQ.

3-14-80 2929FE USE

- \\ \\ CD 10% D' %C h e322 uSE

s. APPuCANTS NAME AND ADDRESS l RIS

4. SUPPLIER'S NAME AND ADDRESS (RIS (Compiere it sophcont us not supoter of maternet)

Rockwell International-Flow Control Division

,,,, n ; f y.

f,

• * * * * * ~ " '

3. STREET ADDRESS a.NAME 400 North Lexington Avenue

c. CITY STATE ZIP CODE

n. STREET ADDRESS

.....,.e,.,-

Pittcburgh PA 15208

' "/jy " *"

e. T ELEPHON E NUMSE R #Arne Cooe - humoer - Ezrensatt

t. CITY

... d. e n t i..,35 A W ZIP CODE (412) 247-3315

5. FI,.ST SHIPMENT

4. FINAL. SHIPMENT 7. APPLICANT *S CONTRACTUAL 8. PROPOSED LICENSE

9. U.S. DEPARTMENT OF ENERGY SCHEDULED SCHEDULED DELIVERY DATE EXPlRATIoN DATE CoNTR ACT No. Ilf Knosws/

N/A April 1981 April 1981 April 1981

10. ULTIMATE CONSIGNEE l Ris

11. ULTIMATE END USE I-

~ - - - -'

• fl!Wlucle pient or facility name) a.NAME Govarnment of India-Dept. of Atomic Energy For use in Research & Development Units, Fuel Reprocessing Divisian, Bhabha

n. cTREET AcoRESS Pelton Road Atomic Research Center

c. CITY -. STATE - COUNTRY Bombey 400-001 India 11.. EST.oATE or plRST uSE

12. INTERMEDIATE CONSIGNEni

-l RSS

1. "%*W

13. INTERMEDIATE END USE

[

r'-*

NAuf None N/A

h. STs4ET ADDRESS

s. CITY - STATE - COUNTRY 13e. EST. DATE oF Ff RST USE

15. IldTERMEDIATE END USE l

13. INTERMCDIATE CONSIGNEE l RIS a.NAME None N/A

c. STnEET AcoRESS

s. CITY - STATE - COUNTRY 15s. EST. DATE oF FIRST USE 15.

17. DESCRIPTION

18. MAX. ELEMENT 19. MAX. 20. MAX 21.

NRC (include enemicalandphycncer tunn of nuciner meenrnet;gise dollar refue of

_ EIGHT WT. %

1SoTOPE WT.

UNIT W

uSE nucieer novioma,r a,e c<w.oona as Rockwe.11-Edward globe stop valve; metal L pC.

j diaphragm sealed, ASME III, 1521 special class rated, body & bonnet of SA182, Grade F316 stainless steel, manually operated.

Total dollar value $1,600.00 F.O.B.

1 Sulphur Springs, Texas factory.

1" fig 15104 T2

.gg g4.p 3

I p.--yOQ

22. COUNTRY OF ORIGIN.-

l-t M A 23. COUNTRY oF ORIGIN 4NM l

24. OoUNTRIES WHICH ATTACH

[

6 WHERE ENRICHED G7 ^ 7 oDUCED SAFEGUARDS (if Known) 4 U.S.A.

Q gy (TO

25. ADDITION AL INFORMATION (use seguener eastif anessesry/

CPCC Attached catalog V321 Rockwell Edward Forged Steel Valve for Nuclear Applications (

26. The appleasat eartifies the this angeliestion is propered in conformity withfitte to, Code of Federal Regulations, and that all information in this applicet6en is correct to saw boet of his/her knowloppe.

p

,/

J J),Sanik E b,

b. TITLE a.

GMA

27. AuTwCRizED oFFiclAL f

Senior Coordinator

/ m j,_

/

/.

-/,

ATTACHMENT 1 v

J

%C.cm o S 3 2 DEPARTM ENT OF STATE c.i n a w..

c.

o.c.==

. ;. w BUREAU OF OCEANS AND INTERNMT00ttat20 FM 4 34 ENVIRONMENTAL AND SCIENTIFIC AFFAIRS' r

. :;ili/!MP0fii U

MAY 161980

.rGuML SFGED3 Mr. James R.

Shea Director of International Programs United States Nuclear Regulatory Commission Room 6714 - MNBB Beth'esda, Maiyland

Dear Mr. Shea:

This letter is in response to the letter from your office dated March 19, 1980, requesting Executive Branch views as to whether issuance of an export license in ac-cordance with the application hereinafter described would be inimical to the common defense and security of the United States and whether the proposed export meets the applicable criteria of the Atomic Energy Act of 1954, as amended by the Nuclear Non-Proliferation Act of 1978 (P.L.95-242):

NRC No. XCOM0382 -- Application by Rockwell International for authorization to export to India one specially-designed valve for use.

in R & D Units, Fuel Reprocessing Division, Bhabha Atomic Research Center.

Value of the proposed export is $1,600.

The Executive Branch has reviewed this application and concluded it is not possible to determine that the requirements of the Atomic Energy Act, as amended.by P.L.95-242 have been met and that the proposed export will not be inimical to the common defense and security of the United States.

This judgment is based on the fact that the Bhabha Atomic Research Center is not safeguarded and is not covered by the U.S.-India Agreement for Coopera-tion.

Moreover, the export is intended for use in the Reprocessing Division of the Bhabha Center and it is not U.S. policy to provide assistance to foreign reprocess-ing programs.

ATTACHMENT 2

.eCopy to PDR and ACC 8 @

'Y h, Ph*v%

On the basis of the foregoing, the Executive Branch recommends that the license be returned to the applicant without action.

Sincerely,

/ > / / m-f

~

Louis V.

osen Deputy Assist nt Secretary 1

DRAFT Rockwell International Flow Control Division 400 North Lexington Avenue-Pittsburgh, Pennsylvania 15208 Attention: William J. Ofsanik

Dear Mr. Ofsanik:

This letter is in reference to your March 14, 1980 application for a license to export one specially designed valve, valued at $1600, to India for use at the Bhabha Atomic Research Center, Fuel Reprocessing Division, (XCOM0382, your reference number 2929FE).

After consultation with the Executive Branch agencies, we have concluded that we are unable to grant a license for the export of this coraponent as the proposed export does not meet the licensing criteria in Section 109b of the Atomic Energy Act of 1954, as amended, for the export of neclear equipment. The Bhabha f acility is not under IAEA safegards.

Fyrther, the proposed export is intended for use in the Reprocessing Division of the Bhabha Center, and it is not U.S. policy to provide assistance to foreign reprocessing programs.

We are, therefore, returning your export license application without action.

l Siricerely, 1

l l

James R, Shea, Director Office of International Programs

Enclosure:

Appli. dtd. 3/14/80 (XCOM0382)

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