ML20009C861

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Discusses Proposed License to Export Natural U to Republic of Korea.Issuance of Requested License to Edlow Intl Co Recommended
ML20009C861
Person / Time
Issue date: 07/01/1981
From: Dircks W
NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:
Shared Package
ML20009C862 List:
References
TASK-PINV, TASK-SE SECY-81-402, NUDOCS 8107220055
Download: ML20009C861 (7)


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POLICY ISSU July 1, 1931 SECY-81-402 (Notat. ion Vote)

For:

The Comissioners From:

William J. Dircks Executive Director for Operations

Subject:

PROPOSED LICENSE TO EXPORT NATURAL URANIUM TO REPUBLIC 0F KOREA, XUO8520 Review Dates:

60-day period expires on August 15, 1981 120-day period expires on October 15, 1981 Discussion:

On March 31, 1981, Edlow International Company filed an application to export 10,176 kilograms of natural uranium, in the form of U308, to South Korea for use by the Korea Advanced Energy Research Institute (KAERI), a large, gov-ernment-supported complex established in 19,73 to conduct a wide range of nuclear-related research and development programs (AppendixA).

These programs include nuclear technology, personnel training in nuclear areas, cancer and nuclear medicine, fand production of radioisotopes. The proposed uranium cxport will be used in test opert tions of a newly completed natural UO2 conversion plant at KAERI's Nuclear Engineering Center.

This center, which is still under construction, will also house laboratories and ancillary facilities for nuclear fuel fabrication and uranium ore extracting.

In a letter dated June 12, 1981 (Appendix B), the State Department informed NRC that the Executive Branch has (1) concluded that the requirements of the Atomic Energy Act, as amended, have been met; (2) determined that the proposed export will not be inimical to the common defense and security of the United States; (3) confirmed that the material will be subject to the Agreement for Cooperation between the United States and the Republic of Korea, as confirmed in a letter from the Embassy of Korea (Appendix CONTACT:

E.Hemby, IP (2-7984) 8107220055 810701 Os4 2 PS

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.The Commissioners Discussion:

C); (4) noted that the Republic of Korea has adhered to i

(Continued) all the provisions of its Agreement for Cooperation; and

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(5) advised that there are no material changed circumstances regarding exports to Korea since submission of its detailed analysis of February 23, 1979 on application XUO8436. This license request, however, was not reviewed by the Comission because the quantity of material involved fell within the staff's delegated authority.

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International As a party.to the NPT, Korea has accepttd IAEA safeguards Safeguards and on all source and special nuclear material under its juris-Foreign Physical diction.. Its NPT safeguards agreement entered into force on Security Review:

November 14, 1975.

In response to our request, the Executive Branch, in a letter dated June 15 (Appendix D), notes that the IAEA has confirmed that the KAERI conversion plant has been declared to the Agency and that a facility attachment is in force for the plant. Staff has no infonnation on the im-plementation of IAEA safeguards at this conversion plant.

Since this type of plant straddles the starting point of IAEA safeguards, it is not clear whether the entire operation i

I will be covered by safeguards, i-

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Conclusion:==

The staff believes that there are no material changed cir-cumstances concerning exports to the Republic of Korea which would affect the Commission's consideration of L

licensing criteria and which have occured since prior export licenses (e.g., XSNM01412, SECY-79-182B; XSNM01458, SECY-79-1438; XB-133, SECY-80-336; and XSNM01750, SECY '106) to the Republic of Korea were issued after Comission t

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Recommendation:

That the Commission authorize the issuance of the requested license to Edlow International Company.

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William T. Dircks Executive Director for Operations ALoendices:

Appendix A: Application dtd 3/31/81 Appendix B: Exec Branch ltr dtd 6/12/81 Appendix C:

Embassy of Korea and Republic of Korea 1trs dtd 6/1/81 and 5/15/81 Appendix D: Exec Branch 1tr dtd 6/15/81

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3 Comissioners' coments or consent should be provided directly to the

- Office of the Secretary by c.o.b. Friday, July 10, 1981.

Comission' Staff Office coments, if any, should be submitted to the Comissioners NLT duly 8,1981, 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 coment, the Comissioners and the Secretariat should be apprised of when coments may be expected.

DISTRIBUTION Comissioners

- Comission Staff Offices Exec Dir for Operations

. Exec Legal Director

-- Secretariat a

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