ML19332B300

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Application by GE to Amend License to Export U to Switzerland by Adding Fabricazioni Nucleari as Intermediate Consignee
ML19332B300
Person / Time
Site: 05000536
Issue date: 09/16/1980
From: Wolfe B
GENERAL ELECTRIC CO.
To:
References
NUDOCS 8009260466
Download: ML19332B300 (2)


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September 16, 1980 Chairman John F. Ahearne Nuclear Regulatory Commission 1717 H Street, N.W.

Washington, D.

C.

20555 Re:

Docket 50-536 Export License No. XR-104

Dear Mr. Ahearne:

We request your assistance in having the NFC act promptly on a very minor amendment to an export license covering equipment for the Leibstadt plant in Switzerland.

The amendment - adding Fabbricazioni Nucleari (FN) in Italy as an intermediate consignee - has essentially no significance from a non-proliferation policy point of view.

The principal impact of further delay in processing the requested amend-ment will be on the nuclear program in Italy, which to our knowledge has not been the subject of any particular U.S.

non-proliferation concerns.

The amendment is intended simply to permit FN to perform a part of the fuel fabrication work which was originally planned to be performed at General Electric's North Carolina 1

plant.

The reason for this change was to provide some workload to the FN plant which would otherwise have been without work for eighteen monthe starting after October 1980.

Near the beginning of this year officials of FN, which is owned by the Italian government, urgently requested that General Electric Company assist in finding some work for FN to avoid shutting down the FN facility.

Such a shutdown would cause losses, both financially and in capability to perform - because of the loss of the experienced work force which has been built up during the five years of FN's oper-ations.

The failure to obtain the license amendment thus would hurt the Italian nuclear power program as well as GE's position in that program.

It would also reflect adversely on U.S.

supply credibility in the eyes of both the Italians and the Swiss.

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FN is currently fabricating the uranium pellets for the fuel and needs the hardware (tubing, spacers, end plates, etc.)

covered by the requested amendment by the end of this month in order to continue the fabrication process.

GE is contract-ually committed to deliver the hardware to FN by October 1.

This commitment can be met (by use of high cost air freight rather than the planned ocean transport) if the license amendment is issued by September 26.

I We do not know why the license amendment has not been granted.

The application for the amendment was filed on April 23, 1980, four months prior to the planned shipment date.

The Executive Branch views dated August 11, 1980 support the amendment.

FN has the requisite authority from Euratom to receive and possess the fuel bundle hardware and is the authorized intermediate consignee on other currently effective export licenses (XSNM-463 and XSNM-852) for nuclear fuel shipments to Italy.

The same hardware could be shipped directly from the U.S.

to Switzerland under currently effective export licenses - as separate components under the equipment license or as part of the fabricated fuel under the fuel license.

We have been informed that the NRC, for reasons involving classified information (but apparently not considered dis-positive by the Executive Branch in this case), is withholding action on various export matters involving Switzerland.

Al-though we are not privy to these reasons, we would suggest that the current effectiveness of the export licenses for the Leibstadt equipment and fuel, the total lack of significance from a non-proliferation perspective of this amendment and the adverse impact of further delay on the Italian nuclear power program, together with what we regard as serious questions as to U.S. supply credibility, all weigh heavily in favor of issuing the amendment.

We therefore urge that the NRC issue this amendment no later than September 26, 1980.

Very truly yours, L[M 9

BW/rhm cc: Mr. Louis Nosen:o U.S. Department of State Washington, D.

C.

20520