ML20009C994
| ML20009C994 | |
| Person / Time | |
|---|---|
| Issue date: | 06/30/1981 |
| From: | Dircks W NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| To: | |
| Shared Package | |
| ML20009C995 | List: |
| References | |
| TASK-PINV, TASK-SE SECY-81-400, NUDOCS 8107220352 | |
| Download: ML20009C994 (4) | |
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June 30, 1931 sea-81-400 POLICY ISSUE (Notation Vote)
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William J. Dircks
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Subject:
PROPOSED LICENSE TO EXPORT SOURCE MATERIAL TO ALL DESTINATIONS EXCEPT CUBA, KAMPUCHEA, NORTH KOREA AND VIETNAM, XM08522
Purpose:
Comission review of proposed issuance of subject license to Gerard Kluyskens Company, Inc. This application is being forwarded for Comissioner review in accordance with the Comissioners' decision on delegations of au-thority in export-related areas (SECY-80-221).
Review Dates:
60-day period expires August 15, 1981 120-day period expires October 15, 1981 Viscussion:
On April 2,1981, Gerard Kluyskens Company, Inc. applied for a broad,10-year license to export unlimited quantities of rare earth polishing compounds (primarily cerium oxide),
contaminated with small amounts of natural uranium and/
or thorium in concentrations ranging from 0.05 percent to 0.25 percent, to all countries except Cuba, Kampuchea, North Korea, and Vietnam (Appendix A).
The compounds are used in glass polishing operations, such as polishing of ophthalmic lenses, flat glass, mirrors, and television tubes.
In a letter to NRC dated June 12, 1981 (Appendix B), the Executive Branch concluded 1) that the proposed export may be made without being subject to the terms of an Agreement for Cooperation, since source material may be licensed under Sections 62 and 64 of the Atomic Energy Act,without the prerequisite of a Section 123 Agreement; 2) that the 8107220352 proposed export would not be inimical to the comon defense 63o PDR SECY and security of the United States, provided that the total 81-400 PDR amount of contained natural uranium and thorium to be CONTACT:
E. Hemby, IP (2-7984)
The Ccmmissioners,
1 Discussion:
exported does not exceed 500 kilograms to any one country (Continued) par year or 10,000 kilograms to all countries combined for the duration of the license; and 3) that the proposed export is ccnsistent with the provisions of the Atomic
'tnergy Act of 1954, as amended.
The staff agrees that the proposed export may be made without being subject to the terms of an Agreement for Cooperation, in accordance with the Atomic Energy Act.
The staff also agrees with the Executive Branch's rec-rmmendation to limit the quan12ty of material that can be exported under the proposed license. The applicant was informed of tnis and has no objection.
The proliferation concern of this source material is neg-ligible as it is not economically practicable to extract the small amounts of uranium / thorium contaminant from the cerium oxide.
Furthermore, exports would be limited to a total of 500 kilograns contained uranium / thorium per country per year.
The staff believes the quantity of material propcsed for export for the stated end use appears reasonable. These compounds have been in widespread commercial use for polishing purposes for some time. The applicant has been supplying this material to customers throughout the world on a regular basis for over 16 years under licenses issuec by the AEC and later the NRC.
Under its current NRC license, the applicant exported a maximum of 625 pounds (284 kilograms) of uranium / thorium contained in 249,878 pounds (113,344 kilo-grams) of cerium oxide in 1980. Although the 10,000 kilo-gram limit over 10 years, proposed by the Executive Branch on this new license request, may seem excessive in light of 1980 sales, the applicant indicates that sales of the polishing compounds have been increasing sharply. The proposed license will allow the applicant to ship to any l
country wilere it may expect future orders.
If this license is issued, Gerard Kluyskens Company will return its existing export license,which does not expire until March 1982.
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Conclusion:==
Based on the above considerations, the staff has concluded that the proposed export would not be inimical to the common defense and security of the United States and is consistent with the requirements of the Atomic Energy Act, as amended.
The Commissioners Recommendation:
That the Commission authorize issuance of the proposed export license to Gerard Kluyskens Company, Inc.
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'J s Wilitas J. Dircks Executive Director for Operations Appendices:
Appendix A:
Application dtd 4/2/81 Appendix B:
State 1tr.
dtd 6/12/81 Commissioners' comments or consent should be provided directly to the Office of the Secretary by c.o.b. July 10, 1981.
Commission Staff Office comments, if any, should be submitted to the Commissioners NLT July 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 comment, the Commissioners and the Secretariat should be apprised of when comments may be expected.
DISTRIBUTION:
Commissioners Commission Staff Offices Exec Dir for Operations Exec Legal Director Secretariat l
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APPENDIX A
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