ML19331E186

Recommends Authorization to Issue Proposed License for B&W to Export Components to Korea.Proposed Export Would Not Be Inimical to Us Common Defense & Security Per Atomic Energy Act

ML19331E186
Person / Time
Issue date:	08/15/1980
From:	James Shea NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To:
Shared Package
ML19331E187	List: ML19331E186 ML19331E190 ML19331E192
References
TASK-CA, TASK-SE SECY-80-383, NUDOCS 8009090056
Download: ML19331E186 (4)

Text

_ _ - - - _ - _

.9 l

August 15, 1980 SECY-80-383 l

l CQMMISSJONER ACTIOg For:

From:

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

Acting Executive Director for Operations

Subject:

PROPOSED LICENSE TO EXPORT COMP 0NENTS TO THE REPUBLIC OF KOREA (XCOM0431)

Purpose:

Comission review of proposed issuance of nuclear equipment export license to Babcock & Wilcox Company. This license request is being forwarded for Comissioner review in accord-ance with the Comissioners' decision on delegations of authority in export-related areas (SECY-80-221).

Review Dates:

60-day period expires on September 25, 1980.

120-day period expires on November 11,1980.

Discussion:

By letter dated July 18, 1980, Babcock & Wilcox Company applied for a lice 1se to export specially designed nuclear equipment, _ valued at less than $100,000, (specifical_1y $30,867),

to the _R.epublic of Korea _for_ installation _in.the KO-RL Nuclear Power Plant. Unit No.1 1.ocated at._Tangnae-Kums _(Aapenuix_ A)._ KO-RI

_ Unit No.1 is a pressurized water reactor with a power level of_ _

1,732.5 megawatts thermal.

The U.S. has been supplying nuclear equipment to the Republic of Korea for use in K0-RI since May 4, 1973 when AEC issued a license to Westinghouse Ele.ctric (XR-83) for the export of the reactor facility plus. associated equipment amounting to over $50,000,000.

It is the view of the staff that the Republic of Korea 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 South Korea's adherence to the Non-Proliferation Treaty and, therefore, its comitment to maintain IAEA safeguards with respect to all of its peaceful nuclear activities and its pledge not to produce or otherwise acquire any nuclear explosive device.

The third criterion, agreement not to retransfer any U.S.-supplied THIS DOCUMENT CONTAINS.

]

mby, IP (49-27984) on, IP (49-27984) N I

~

80090900 74 '.

i*,

I The Comissioners 2

Discussion:

components without prior.U.S. apprcval, is met by the cont.

Republic of Korea as confirmed in a letter dated April 18, 1979 from the Embassy of the Republic of Korea which was forwarded by the Executive Branch on April 26, 1979 j

(Appendix B). While Executive-Branch review is not required for the proposed export as it falls within the categories i

of materials not normally reviewed by the Executive Branch (less than $100,000 in value), the Executive Branch has concluded that South Korea meets the applicable licensing requirements in Section 109b for the export of nuclear equipment in connection with its review of a previously proposed export of components to South Korea (XCOM0263).

The staff has car' fully reviewed the.elevant factors pertaining to this case, including the recent political development in South Korea and the Executive Branch's response to our request for additional information on this matter as discussed in SECY 80-336, classi fied.

Pursuant to 1110.42(a)(2), we have concluded that there are no material changed circumstances with respect to the applicable export licensing criteria of the Atomic Energy Act that would affect the Commission's consideration of this case from those existing at the time of issuance of XCOM0263 for export of nuclear equipment to the Republic of Korea on August 22, 1979.

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

International Safeguards Review:

As a party to the NPT, Korea has accepted IAEA safeguards on all source and special nuclear material under its jurisdiction.

Its NpT safeguards agreement entered into force on November 14, 1975.

.The nuclear material at the KO-RI I reactor is covered by IAEA safeguards under a facility attachment which is in force.

Although little information is available on the application of IAEA safeguards in Korea, the staff believes that control of and accounting for fuel elements on an item basis are within the capabilities!of both Korea and the IAEA. A technical assessment of safeguards in Korea was transmitted to the Commission in SECY 79-593.

The components themselves will, of course, not be subject to IAEA safeguards. Application of safeguards under Article III(2) of the NPT is limited to source and special fissionable material. Accord-t ingly, the staff believes that Criterion 1 for exports of reactor components is met because the nuclear material associated with the reactor will be covered by IAEA safeguards.

The Commissioners 3

Recommendation:

That the Commi'ssion:

1.

Authorize issuance of the proposed license to Babcock &

Wilcox Company (Appendix C).

t 2.

Note that, in accordance with the Commissioners' policy on delegations of authority in export-related areas, specifically paragraph 3 of the July 28, 1980 classified memorandum, the staff will process all future routine exoorts of ' nuclear equipment to the Republic of Korea without Commissioner review.

Coordination:

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

[&b

(-( Office of Interna ional Programs James R. Shea, Di ctor AUG 13 G00 Appendices:

DISTRIBUTION:

Appendix A ( Appl.

Commissioners dtd. 07/18/80)

Cmsn. Staff Offices Appendix B (Ltr.

Acting Exec. Dir. for Opers.

from Gov't of Secretariat Rep, of Korea dtd. 04/18/79)

Appendix C (Proposed License)

Commissioners' comments should be provided directly to the Office of the Secretary by c.o.b. Auoust 25, 1980.

Commission Staff Office comments, if any, should be submitted to the Commissioners NLT August 21, 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 comments may be expected.

l

r -

.4-.

I I

APPENDIX A l

l 1

i

~

(v) s 7y v

Babcock &Wilcox go, c.,,,,u,, c,,,,

P.O. Box 1260. Lyncheurg. Va. 24505 Teleonoce: (804) 384-5111 July 18, 1980

' Assistant Director for Export / Import-and International Safeguards U.S. Nuclear Regulatory Commission Washington, D.C.

20555

Subject:

Application for License to Export Nuclear Material and Equipment

Dear Sir:

Enclosed please find our export application for Reactor Vessel "O" Ring Gaskets, Retaining Clips and Retaining Clip Screws for delivery to Korea Electric Company in Seoul, Korea.

Please see that this receives the appropriate review and processing for the issuance of an export license.

Thank you for your assistance regarding this matter.

Very truly yours, THE BABCOCK AND WILCOX COMPANY 5.

6 H.

. Mu.

III Attorney Nuclear Power Generation Div.

HSM:ddr Enclosure nO cc:

H.H.

Stevens C5h h

N. E i4 m

Gz v.

Y74

G -=

=1R 4 :-3 pm a

=-

gg g~

c Y

4

. )44$ -

} 3(CQ

- The Baccock & Wilcox Ccmpany / Estactished 1867

.~. =.

r -

~~

~-

7 -----

~

~'... ; = - "

[y

=...=m=-

32.... ~ - -. - - -

v rew Nac.-T u.s. nucle 44 aEcu(AT nY cor.o4tssicN Ar**cvEo sY c Ao

..:n No.

sa tis APPLICATION FF. LICENSE TO EXPORT NUCLEAR MATERIAL ANC cCUIPMENT /see /ns.wence s on Asvecel AnuCArvrs i. 2 ATE ca A**uCATieuse. As u:AaT s ausalses 12. NaC

{ ucs~st no.

c 13.occx87NC.

v:E

' JULY 17, 1980 i 788-998052-51 i vst

%t;o M 4 Ml\\ tee 1\\ G

a. AraucANrs NAME ANo Accatss I nis

4. sup=uta s NAMs ANo AconESs lais

.t..

tcene.m of now.cmaris set waao. e of moresit BABC0CK & Wit _C0X COMPANY, NPG0 s.1Tht A? AccmE Naut j OLO FOREST $0A0

a. 0;rr STATE ILP CCOE

e. STRE ET AOC AESS LYNCHBURG VA 24503 7161Pwc ee 6 Nw u s t m sAr.e case - tvurn e - sounseens I,w. (804) 384-5111 Ext. 3550 6 CITY STATE ZIP CCQS

f. AIAST 3MIPMENT l E. PIN AL SHIPMENTJ 7. APPuCANT"3 CONTR ACTUAL E. PROPOSED UCENSE l '9. U.S. CEP A ATMENT CF ENERGY l SCN EDULED t SCHEDULED JEOVERY OATE EXPf RAT 13N DATE l _ CONTR ACT NO. /// Kraiwit OCTOBER 1980 0CTOBER 1980 NOVEMBER 1980 JANUARY 1981

!?Q. Ut.T1M ATE CONSICNEE kiRIS).dMEN#-M 11. ULTIMATE ENO USE l * "i% 'fr *'E-*Y.W~ '

<,,yayg (incluce poent or fooliry namet.

I KOREA ELECTRIC COMPANY SPARE PARTS FOR KO-RI UNIT NO. 1 I a. STE E ET A C OM ES.S C.P.O. BOX NO. 740

4. CITY = STATE - COUNTRY I

SE0UL, KOREA 11a. EST. OATE CS PIRS* USE JANUARY 1981

!!:. INTERMEO8 ATE CONS 3CNEE h RtS. "MiaIG.D'd 13. INTERMEDIATE ENO USE l-2 C P M*. 0'-e "..

~

s. rs AM E I

a. STHEET AcomESS l s. ::TY = STATE = COUNTMY l

,3a. rST D ATT OF SIRST USS l14 INT 2;tMEDI ATE CCNS3CNEE

t. AtOW.

-~.A--ZW 15. INTERMEDI ATE ENO USE l~

- " s

'c " ~ - ~

8 4. NAMS 6

s. STF.EET ACC AE55

s. :P = $ TATE = COUNTRY 15a. EST. cati op atasT USE

17. OESCRIPTION

18. MAX. ELEMENT 19. M AX. 20' MAX

'1*

i

. E. NJ'.C USE.

flacknee cn.m* cal and anysocal tonn et nue:sv matenal;grve actine woe of w-. -

nuetear sov,oment and comoanearr/

W E ! CH T_,,,,,,,,,,

WT. %

(SCTOPE WT.

UNIT

..2-E5M 0uanti ty Descriotion MAitRIAL

. - W-5M 2

Reactor Vessel "0" Ring inconel 7.18 Total Weight C'S %w:

Gaskets (Mark 24) 1000#

JM E

2 Reactor vessel "0" Ring Inconel 718 PW-E Gaskets (Mark 25)

~,5 mN 30 Reactor Vessel Gasket TP304.S.S.

h:

Retaining Clips (Mark 28) gj:c_;-:

-CGE:

Tdy

,-g 30 Reactor Vessel Gasket 18-8 S'S.

-MM, Retaining Clip Screws (Mark 27) pg.pgTotalContract$30,867C&FSeoul O. 200NTRY CF CRICIN.I l..= --J j _

,.s.. 31 w G r. w. 4-SNM f82:W l24. 00UNTMtES WHIOM A7"ACM p-*f-< 1Y. M SOURCI MATERI AL WHERE ENRfCMED CM PRODUCEO l

SAFEGUA ACS (/f Known/

tAA I

$. AccmcNAL weaMAT1cN tuu uo,m merif o.e-,Yi 0

v a :7 t o *'"'='

==a w a 1 e2. T, o7 gg 7

g y' % 3 g

^*w T.

==

M

?I e,f.

MM N

,0.

w.... ne

,,,t i en n en....

n.,.

.n n..r

,y..in Tm.1 o.

.., p.a.,.

a.,uiu n. in,.a.n

.,,n u, n.n en,,

, u.;. o.n ;. -,.<, io v. i,.< e., ~..

m h AuTucas:2,q,g,nTd'IR, $II

"'k5. M T FAfttNney

' " ^

Accendix a

~

-W p sh ye eg em m

WM k.

'p.

s a

b AFPENDIX B l

I i

.