ML20148C312
| ML20148C312 | |
| Person / Time | |
|---|---|
| Issue date: | 08/24/1978 |
| From: | James Shea NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP) |
| To: | |
| References | |
| SECY-78-471, NUDOCS 7811020011 | |
| Download: ML20148C312 (50) | |
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b dN August 24, 1978 SECY-78-471 COMMISSIONER ACTION For:
The Commissioners From:
James R. Shea, Director Office of International Programs Thru:
Executive Director for Operations (
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Subject:
PROPOSED LICENSE TO E' RT LOW-ENRICHED DR NIUM TO SWITZERLAND (APPLICAT ON XSNM-1227)
Discussion:
On November 10, 1977, G krabElectFil filed an appli-cation for a license to export _243,000 kilograms of uranium, enriched to 4.0% U-235, and 1.07 grams of uranium enriched to 93.5% U-235 to Switzerland.
The t
material, in the form of fabricated fuel bundles and neutron detection instruments, will be shipped over a five year period for use as the initial core, three reloads and spares in the Leibstadt Nuclear Power Plant. The reactor is scheduled to begin regular operation in 1981.
The fact that this application involves multiple reloads has complicated the Executive Branch review.
The Executive Branch forwarded views on March 23 and May 9 (detailed criteria analysis) recommending issuance of the requested export license, provided that the license be limited to authorize export of a total of 118,950 kilograms of uranium to cover the initial core loading, essential spares and the neutron detection instruments.
In anticipation of new USG policy and procedures governing the licensing of multiple reloads, the Executive Branch reserved judgment on the balance of the remaining material covered by this application until such policy and pro-cedures were formally adopted.
This information was conveyed by phone to the applicant. On May 26,
Contact:
G.G. Oplinger (492-7866)
J.G. Dunn (492-7984) 7811,,03 0 0(I DDR X T-X3Atl
, Discussion:
General Electric wrote to the NRC (Appendix C), to (continued) express its concerns over the possibility that the license might be limited as recommended by the Executive Branch, and.it-fear that this limitation
'1 might cause the reload vrder to be cancelled in favor of a European fabricator.
The staff discussed General Electric's letter with State, and the application was also discussed in the Subgroup on Nuclear Export Coordination (SNEC),
which currently has under consideration general criteria for approving multiple reloads. While criteria have not yet been adopted, it was the view of SNEC members that Switzerland would clearly qualify under any of the criteria being considered.
Following these discussions, the application was returned to the Executive Branch on June 7 for reconsideration of its recommendation.
On June 23, State forwarded a letter which noted among other things, that Switzerland is (1) a party.to the NPT; (2).a participant in INFCE, and (3) a strong supporter of non-proliferation goals shared by the U.S.
For these reasons, the Executive Branch anticipates that Switzerland will be included in any list of eligible countries which would be drawn up in connection with the formulation of procedures governing advance export approval for multiple reloads.
In light of this, the Executive Branch concluded upon reconsideration that it would be appropriate at this time to grant a one-time exception pending adoption of the general multiple reload policy.
The staff noted that, contrary to the erroneous state-ment concerning Section 128 of the NNPA contained in the Executive Branch analysis of May 9, 1978 (Appendix B),
the application states that shipment of this material will begin in June, 1980 and requests that the license be valid for 5 years.
Section 128 of the NNPA requires that for any application under which the first export would occur after March 10, 1980, it will be required that IAIA safeguards are maintained with respect to all peaceful nuclear activities under the jurisdiction of the recipient country.
Although shipment of the material in this case will begin after the March 10, 1980 deadline, Switzerland, as a party to the NPT, has accepted full-scope safeguards and therefore satisfies the requirement of Section 128.
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o i 1 Discussion:
Based upon its independent analysis and review of the (continued)
Executive Branch submissions, the staff has concluded that Switzerland currently meets ~all applicable statutory requirements of the NNPA for the issuance of this license.
General Electric has expressed apprehension that KKL and the Government of Switzerland may regard the failure 1
to~ issue a license for the full quantity of material as a contradiction of US reliabi'ity and may influence the Leibstadt customer to cancel the reload order in favor of a European fuel fabricator because of continuing uncertainty about U.S. export licensing actions.
- While, ideally, it might be desirable to wait until multiple reload criteria have been formally ado Branch before issuing this license for'pted by the Executive the full period requested, we believe the concerns and urgency expressed by General Electric should be given serious consideration, in spite of the fact that shipments are not expected prior to June 1980.
In view of Switzerland's NPT status and excellent non-proliferation credentials, the staff recomends approval. of the license as requested.
The written assurance on physical security required by 10 CFR 110.43(b) has not been obtained from Switzerland.
However, substantial physical security assurances have been received from Switzerland, and the U.S. expects to obtain more specific written assurance, pursuant to the require-ments of 10 CFR 110.43, from Switzerland.
Pending receipt of these additional written' assurances, the staff will issue an exemption from this requirement, as discussed in SECY 78-291 and 78-386, if the Commission approves issuance of this license.
The following documents are forwarded for Commission review of the subject application:
(1) staff review and conclusion that the proposed export meets statutory requirements (Appendix A); (2) Executive Branch views of March 23, May 9, and June 23, 1978 recommending issuance (Appendix B); (3) applic tian of November 10, 1977 (Appendix C); and (4) copy of proposed license (Appendix 0).
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e, 1 Recommendation:
Th6t the proposed. license be' issued to General Electric Company and General Electric' Technical Services Company, l
Incorporated.
Coordination:
0 ELD has no legal objection.
NMSS wishes to inform the Commission that it has not received country-specific information which permits it to make an independent conclusion as to the effectiveness of IAEA materidl control and accounting safeguards to deter and detect' diversion in Switzerland._ With respect to physical security, NMSS has reviewed the program in Switzerland and found it adequate for the purposes of the export.
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' g a ssv 4cce.<L James R. Shea, Director Office of. International Programs
Enclosures:
As stated NOTE:
Commissioner comments should be provided directly to the Office of the Secretary, by c.o.b. Friday. sentamhar 1 197a Commission staff office comments, if any, should be submitted to the Commissioners NLT Auaust 30. 1978
, with an information copy to the Office of the Secretary. If the piper is of such a nature that it requir'es 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 Opers.
Secretariat 1
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APPENDIX A p
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UNITED STATES
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July 28, 1973 MEMORANDUM FOR:
The File STAFF CONCLUSIONS REGARDING PROPOSED LICENSE TO EXPORT LOW-ENRICHED URANIUMTOSWITZERLAND(XSNM-1227)
In November 1977, Geteral Electric Company filed an application for a license to export 243,000 kilograms of uranium, enriched to 4.0% U-235, and 1.07 grams of uranium enriched to 93.5% U-235 to Switzerland.
The material, in the fonn of fabricated fuel bundles'and neutron detection instruments, will be shipped over a.5 year period.for use as the. initial core, three reloads and spares in the Leibstadt Nuclear Power Plant.
The Executive Branch forwarded views on March 23 and May 9 (detailed.
criteria analysis) recommending issuance of the requested export license, provided 'that the license be limited to authorize export of a total of 118,95. kilograms of uranium to cover.the initial core loading, essential spares and the neutron detector instruments.
In anticipation of new USG policy and procedures governing the licensing of multiple reloads, the Executive Branch reserved judgment on the remaining material until such policy and procedures were formally adopted.
This information was conveyed by phone.to the applicant.
1 On May 26, General Eltetric submitted.a letter in response to the Executive Branch's recomendation that the export be limited to the suggested quan-tity.
Due to questions and. concerns raised by the applicant and pursuant.
to our discussions with State, the application, was returned to the Executive Branch-on June 7 for reconsideration of its recomendation for the' export of this material.
(This application has also been discussed at a recent meeting of the Subtroup on Nuclear Export Coordination.)
On June 23, State fotvarded a letter which noted, among other things, that Switzerland is (1) a party to the NPT; (2) a participant in INFCE, and (3) a strong supporter of non-proliferation goals shared by the U.S.
For these-reasons, the Executive Branch anticipates that Switzerland will be included in any list of eligible countries which would be drawn up in connection with the formulation of procedures governing advance export approval for multiple l
reloads.
In light of this, the Executive Branch concluded upon reconsidera-i tion that it would be appropriate at this time to grant a one-time exception l
pending adoption of the general multiple reload policy.
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In response to our August 1,1977 and June 7,1978 requr? for views, the Executive Branch has (1) concluded that issuance of the %, sed license i
. ould not be inimical to the interests of the U.S., incluaing the comon w
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defense and security; and (2} confirmed that the material will be subject to all the terms and conditions of the Agreement for Cooperation between
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2 These views and license application analysis by the Executive Branch were forwarded by'the State Department memorandom of May 9,1978 and letter of June 23, 1978.
Confirmation of the applicability of the U.S.-Switzerland Agreement for Cooperation was also set forth in the letter of December,15.,._l'977 from the Embassy of Switzerland.
The staff has reviewed the subject application in light of the considera-tions below:
o Sa fe guards.
Although a party to the NPT, Switzerland has not yet concluded an NPT safeguards agreement with the IAEA pur-suant to INFCIRC/153.
Nevertheless, all materials or facilities proposed to be exported or previously e, ported pursuant to the U.S.-Switzerland Agreement for Cooperation and any U.S.-supplied nuclear material used in the facility, or produced through the use thereof, will be subject to IAEA safeguards under a tri-lateral U.S.-Switzerland-IAEA safeguards agreement based on INFCIRC/66/Rev. 2.
It is expected that IAEA safeguards pur-suant to INFCIRC/153 will be brought into force this year or in 1979.
o No Nuclear Exolosive Use.
As a non-nuclear weapon state party to the NPT, Switzerlano has undertaken the obligations not to receive the transfer from any transferor whatsoever of nuclear weapons or other nuclear explosive devices or of control over such weapons or explosive devices directly or indirectly; not to manufacture or othemise acquire nuclear weapons or other nuclear explosive devices; and not to seek or receive any assistance in the manufacture of nuclear weapons or other nuclear explosive devices.
o Physical Security.
The Executive Branch has assessed the phy-l sical security measures maintained in Switzerland with respect H
to nuclear material and facilities and has found them adequate for the material covered by this license.
The Executive Branch i
has also advised that Switzerland has implemented IAEA guidelines regarding the physical security for nuclear materials.
Based upon' the staff's assessment of information obtained through visits, reviews, and exchanges, and upon information provided by the Executive Branch, the physical security program in Switzerland is considered adequate to physically protect the materia.1 reauested in this license.
Although_the. written i
physical security assurance required Sy 10'CFR 110.43(b)'has q
not been obtained, an exemption from this recuirement will be j
issued pursuant to authority under 10 CFR 110.10(a).
0 Retransfer.
The US-Switzerland Agreement prohibits the retransfer of any material-supplied by the US, beyond the jurisdiction of Switzerland without. US approval to such. retransfer, and then only if:it is F
.within the scope of an agreement for cooperation between i
the US and the other nation or group of nations.
J Similarly; it prohibits the transfer of special nuclear material produced through the use of US-supplied material or fa,cilities without US approval.
o Reprocessing.- The US-Switzerland Agreement stipulates
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that any reprocessing of US-supplied _ material shall be performed in facilities acceptable to.both parties upon a joint determination that safeguards may be effectively.
applied.
o Sensitive Technology.
The prop'osed export does not involve sensitive technology.
.As more fully developed.in its memorandum dated May 9,.1978, the Executive Branch has determined that Switzerland currently meets all the criteria of P.L.95-242,-including the requirements of Section 126(a)(1) and the specific criteria of Sections 127 and 128 and that Switzerland has adhered to all the provisions of its Agreemeot for Cooperation with the US.
The staff has concluded that issuance of the proposed license would be consistent.with t.he recently enacted Nuclear Nonproliferation Act, including the specific criteria of Section 127.
In view of all.the considerations above, and as required by Section 57 of.the Atomic Energy Act and 10 CFR 110.44, the staff has concluded thc.t the export to be made pursuant to the proposed license (1) would be subject to the terms and conditions of the Agreement for Cooperation between the US and Switzerland, and (2) would not be inimical to the common defense and security of the United States or constitute an unreasonable risk to the public health and safety.
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. Neal Moore Senior Licensing Reviewer i
Office of International' Programs
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APPENDIX B t
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)(f fi/ M - 13 3 '7 70 -D~7Y f I-76 o MEMORANDUM FOR LEE V.
GOSSICK NUCLEAR REGULATORY COMIIISSION This export license application was being processed at the time of enactment of the Nuclear NoneProliferation Act of 1978, P.L.95-242.
While our analysis deal's, in-substance, with the~ extent to which the criteria in new section 127 (and section 128, if applicable) of the Atomic Energy Act are met,. the analysis is in'the~old format and is not.specifically keyed to these criteria. -The Executive Branch, in consultation with NRC staff, is currently developing new procedures pursuant to P.L.95-242 which will be applied to cases after they come into
-offect.
In view of the enactment of P.L.95-242, the Department has reviewed this license application to-ensure,that the requirements of section 126 a.
(1) of the Atomic Energy Act are met.
In this regard, as indicated in the analysis, the export criteria in section 127, or their equivalent, are met.
- Further, Switzerland has adhered to the, revisions of its agree-ment for cooperation with the n Lted States.
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March 23, 1978 MEMORANDUM FOR LEE V.
GOSSICK NUCLEAR REGULATORY COMMISSION
Subject:
Comments to NRC on Nuclear Export License Application Your letter of November 28, 1977, requested the views of the Executive Branch on the proposed license for the ex-port to Switzerland of 5,600 kilograms of U-235 contained in 243,000 kilograms of uranium enriched to a maximum of 4.0 percent U-235 content and 1 gram of U-235 contained in 1.07 grams of uranium enriched to 93.5 percent for use as a neutron detector.
On the basis of the factors covered by the attached analysis, the Executive Branch has concluded that issuance of the proposed license would not be inimical to the in-terests of the United States including the common defense and security and is of the view that'the license should be issued, provided that the license be limited to authorize export of a total of 118,850 kilograms of uranium for the initial core loading, essential spare fuel elements and the 1 gram of highly enriched uranium to be used as a neutron de-tecto'r for the Leibstadt Nuclear Power Plant scheduled to be-gin operation in Canton Aargau, Switzerland, in 1980.
Under the newly enacted non-proliferation legislation, we anticipate new U.S.
Government policy and procedures governing the licensing of multiple core. reloads as requested in this license application.
Pending the implementation of such policy and procedures, however, we believe it appropriate to recommend approval of a license covering material sufficient for the initial' core loading and essential spares only.
The supply of this low enriched uranium i subject to all the terms and conditions of the Agreement f r Cooperation between the United amept'of Switzerland as amended.
States of America and the Go r
l g n M Ma Peter Tarnof3 Executive Secretary Attachments:
1.
License Application Analysis
-2.
Letter from~the Embassy of Switzerland dated December 15, 1977
1 LICENSE APPLICATION ANALYSIS Transaction:
The export to Switzerland of 5,600 kilograms of uranium-235 contained in 243,000 kilo-crams of uranium enriched to a maximum of 4.0 percent U-235; and 1 gram U-235 contained in 1.07 grams of uranium enriched to 93.5 per-cent as neutron detectors.
Applicant:
General Electric Technical Services Co.,
Inc.
Applicant's
Reference:
KKL Date of Application:
November 10, 1977.
1.
What is the purpose of the export?
This enriched uranium in the form of already fabricated fuel bundles and neutron detection instruments will be shipped over a period of five years to Switzerland for the initial core, three reloads and spares for Kernkraftwerk Leibstadt AG (KKL) Leibstadt Nuclear Power Plant, Canton Aargau, Switzer-land.
The Leibstadt Nuclear Power Plant is a 942 megawatt electric boiling water reactor which is scheduled for regular power operation in 1980.
It is anticipated that shipments will be as follows:
1980 648 bundles core 118,584 kg. uranium 2 bundles spares 366 kg. uranium 1982 128 bundles reserve 23,424 kg. uranium 1982 212 bundles '-reload #1 38,796 kg. uranium 1983 176 bundles reload #2 32,208 kg. uranium 1984 156 bundles reload #3 28,548 kg. uranium 1,322 bundles 241,926 kg. uranium An additional allowance of 1000 kilograms of uranium has been requested in application for export license in case of damage to fuel bundles in shipping, fabricating or in loading into the reactor.
2.
Does the recipient country have an Agreement for Co-operation with the United States under Section 123 of the Atomic Energy Act, as amended?
And, if so, is the' export in question covered by tne Agreement?
s
The supply of this enriched uranium is subject to all of the terms and conditions of the Agreement for Cooperation between the United States of America and the Government of Switzerland, as amended.
This was confirmed in a letter from the Embassy of Switzerland dated December 15, 1977, a copy of which is attached.
The Agreement initially entered into force August 8, 1966', and was amended on January 29, 1974.
3.
Has the recipient country accepted and implemented IAEA safeguards and/or other appropriate supplementary bilateral conditions (including, where applicable, under-standings regarding reexport) imposed by the U.S.?
A trilateral agreement between the IAEA,'the Government of Switzerland, and the Government of the United States of America was signed and entered into on February 28, 1972 and safeguards are being applied under the provisions c f the agreement.
Under the bilateral agreement between the United States and Switzerland, "When any special nuclear material received from the United States... requires reprocessing, or any ir-radiated fuel elements containing fuel material received from the United States...are to be removed from a reacto7 and are to be altered in form or content, such reprocessing or alteration shall be performed in facilities acceptable to both Parties upon a joint determination that the provisions of Article X may be effectively appli'ed.
"No special nuclear material produced through the use of material transferred to the Government of Switzerland or to authorized persons under its jurisdiction, pursuant l
to this Agreement...wil1 be transferred to the jurisdiction l
of any other nation or group of nations, except as the Com-L mission may agree to such a transfer."
4.
In cases in which the recipient country is not required by the NPT to accept IAEA safeguards, does the recipient I
country or organization have accounting and inspection procedures such as to assure compliance with the re-quirements of the rel'evant U.S. Agreement?
A trilateral safeguards agreement between the United States, Switzerland, and the IAEA is in effect and is ap-plicable to this export.
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.. 5.
Does'the recipient country have adequate physical security' arrangements toLdeal with threats of sub-
' national diversion of significant quantities of nuclear weapon materials (plutonium or highly enriched uranium) ?
Switzerland has complied with IAEA guidelines for'the physical security of low enriched uranium which is not weapons grade material.
6.
What is the po'sition of the' recipient country with-regard to'non-proliferation (e.g., party to NPT, LANFZ, public statements)?
Switzerland is a party to the NPT.
7.
.What understandings.does the United' States have with-
.the recipient country with respect to the use of U.S.-
. supplied material or equipment to. acquire or develop nuclear explosive devices for any purpose,.and as to-
.the. recipient country's policies and-actions as'to such development using equipment and material from any source?
As a party to the NPT, Switzerland is committed not to develop nuclear explosive devices for any purpose.
8.
What other factors are there which bear on the issuance
,of the export license, such as f'urther U.S. under-standings with the recipient country, other. supplier countries or interested regional countries?
There are no other special factors not already covered in responses to the previous points.
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EMBASSY OF SWIf2Gl(LAND wast!!xcroN o c.2cws,
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AMBASSADE DE SUISSE 651.513 Leibstad'c - or December 15, 1977 ra,,
Colonel Vance II. Hudgins Division of International Security Affairs U.S.
Department of Energy Washington, D.C.
20545
Dear Colonel Hudgins:
Reference is made do your letter dated December 9, 1977 concerning the export of nuclear material by General Electric Technical Services Company, Inc.,
San Jos6, California, to the Nuclear Power Plant of Leibstadt, Switzerland.,
This letter serves kas attestation that the transfer of the material identified in Export License Application S-860 will be undertaken in accordance with the terms and conditions of the Agreement for Cooperation concerning civil uses of atomic energy between the Government of the United States and the Government of Switzerland.
In addition, I am in a position to confirm that the ultimate consignee, Leibstadt Nuclear Power Plant, and the intermediate consignee, Tracht AG, Basel, Switzerland, freight forwarders, are authorized to receive and possess the material in questipn..
Sincerely yours, C
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Dr. Christian Favre Scienttftc Counselor f
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May 9, 1978 MEMORANDUM FOR JAMES R. SHEA.
NUCLEAR REGULATORY COMMISSION Enclosed is an Executive Branch analysis covering a license application for the export of low-enriched uranium to Switzerland.
In accordance with P.L.
95'-242, the analysis explicitly addresses how the reciuirements of Section 126 a. (1) of the Atomic Energy Act are met, in-cluding the specific criteria of Sections 127 and 128, as well as certain additional factors, envisaged by Section 12 6 a. (1).
The Executive Branch, on the basis of its review of this application, has concluded that the requirements of the Atomic Energy Act and P.L.95-242 have been met and that the proposed export would not be inimical to the common defense and security of the United. States.
- Moreover, Switzerland has adhered to the provisions of its Agreement for Cooperation with the United States.
'The Executive Branch recommends issuance of the re-quested expore l limited to authorize export of a totalof118,k50gcense, kilograms of uranium for the initial core loading, essential spare fuel elements and the 1 gram of highly enriched uranium to be used as a neutron detector for the Leibstadt Nuclear Power Plant scheduled to begin operation in Canton Aargau, Switzerland, in 1980.
Under P.L.95-242, we anticipate new U.S. Government policy and procedures governing the licensing of multiple core re-loads as requested in this license application.
It is our intention to expedite transmittal of the Executive Branch judgement on the balance of the enriched uranium covered by this application as soon as the new policy and procedures with respect to multiple reloads havebeen adopted.
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Enclosure:
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EXPORT LICENSE APPLICATION ANALYSIS
.XSNM-1227 Country:
Switzerland Type of Material:
Low-enriched uranium Transaction:
The export to Switzerland of 5,600 kilograms of uranium-235 contained
'in"24'3,000 kilograms of uranium en-riched to a maximum of 4.0 percent U-235; and 1 gram U-235 contained in 1.07 grams of uranium enriched to 93.5 percent as neutron de-tectors.
Applicant:
General Electric Technical-Services Co., Inc.
Applicant's
Reference:
KKL Date of Application:
November 10, 1977.
Purpose of Export This enriched uranium in the form of already fabricated fuel bundles and neutron' detection instruments will be, shipped over a period of five years to Switzerland for the. initial core, three reloads and spares for Kernkraftwerk Leibstadt AG (KKL) Leibstadt Nuclear Power Plant, Canton Aargau, Switzer-land.
The Leibstadt Nuclear Power Plant is a 942 megawatt electric boiling water reactor which is scheduled for regular power operation in 1980.
It is anticipated that shipments will be as follows:
1980 648 bundles core 118,584 kg. uranium 2 bundles spares 366'kg. uranium 1982 128 bundles reserve 23,424 kg. uranium 1982 212 bundles reload #1 38,796 kg. uranium 1983 176 bundles reload #2 32,208 kg. uranium 1984 156 bundles reload #3 28,548 kg. uranium 1,322 bundles 241,926 kg. uranium An additional allowance of 1000 kilograms cf uranium has been recuested in application for export license in case of damagetofuelbundl{jEgffshipping, fabricating or in loading i
into the reactor.
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Applicable Agreement for Cooperation 1
The proposed export is subject to all of the terms and conditions of the Agreement for Cooperation between the Government of the United States of America and the l
Government of Switzerland concerning Civil Uses of Atomic Energy, which entered into force on August 8, 1966, as amended January 29, 1974.
This was confirmed in a letter from the Embassy of Switzerland to the Department of Energy dated December 15, 1977, a copy of which is at-l tached.
Switzerland has adhered to all provisions of its agreement with the United States.
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Extent to Which Export Criteria Are Met A.
Section 127 Criteria As provided in Section 127 of the Atomic Energy Act,
-l the following criteria govern exports for peaceful nuclear uses from the United States of source material, special nuclear material, production or utilization facilities, and any sensitive nuclear technology:
criterion (1)
"IAEA safeguards as required by Article III(2) of the Treaty will be applied wich respect to any such material or facilities proposed to be exported, to any guch material or facilities previously exported and subject to the applicable Agreement for Cooperation, and to any special nuclear mate-rial used in or produced through the use thereof."
Switzerland is a Pcrty tt the Treaty on the Non-Proliferation of Nuclear Weapons and deposited its instru-ment of ratification on March 9, 1977.
Switzerland has not yet concluded an NPT safeguards agreement with the IAEA pursuant to INFCIRC/153.
IAEA safeguards are applied in Switzerland to all materials or facilities proposed to be exported, as well as to any such material or facilities previously exported pursuant to the U.S.-Switzerland agree-ment for cooperation and to any U.S.-supplied special nu-clea.r material used in or produced through the use thereof under a trilateral U.S.-Switzerland-IAEA safeguards agree-ment based on INFCIRC/66 Rev./2, which entered into force on February 28, 1972.
Therefore, it is the Executive Branch view that criterion (1) is met.
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i Criterion (2)
"No such material, facilities, or sensitive nuclear technology proposed to be exported or previously exported and subject to the applicable Agreement for Cooperation, and no special nuclear material produced through the use of such materials, facilities, or sensitive nuclear tech-nology, will be used for any nuclear explosive device or for research on or development'of any nuclear explosive device."
As a Party to the NPT, Switzerland is committed not to develop nuclear explosive devices for any purpose.
Therefore, it is the view of the Executive Branch that cri-terion (2) is met.
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Criterion (3)
" Adequate physical security measures will be maintained l
with respect te such material or facilities proposed to be l
exported and to any special nuclear material used in or pro-i duced through the use thereof.
Following the effective date of any regulations promulgated by the Commission pursuant to Section 304 (d) of the Nuclear Non-Proliferation Act of 1978, physical security measures shall be deemed adequate if 'such measures provide a level of protection equivalent to that required by the applicable regulations."
The Commission has not, as yet, promulgated new regula-tions pursuant to Section 304 (d) of P.L.95-242.
The Executive Branch has assessed the ph'sical security y
measures maintained in Switzerland with respect to nuclear material and facilities and deter. tined that they are ade-quate for the material covered by this license application.
Therefore, it is the view of the Executive Branch that criterion (3) is met.
k k
Criterion (4)
"No such materials, facilities, or sensitive nuclear technology proposed to be exported, and no special nuclear material produced through the use of such material, will be retransferred to the jurisdiction of any other nation or group of nations unless the prior approval of the United States is obtained for such retransfer.
In addition to other requirements of law, 'the' United States may approve such retransfer only if the nation or group of nations des-ignated to receive such retransfer agrees that it shall be subject to the conditions required by this section."
Article IX A.
(3) of the 1966 U.S.
- Switzerland Agreement for Cooperation, as amended in 1974, stipulates that:
"No material, including equipment and devices, transferred to the Government of Switzerland or authorized persons under its jurisdiction pursuant to this Agreement or the superseded Agreement will be transferred to un-authorized persons or beyond the jurisdiction of the Govern-ment of Switzerland except as the Commission may agree to such a transfer to the jurisdiction of another nation or group of nations, and then only if, in the opinion of the Commission, the transfer of the material is within the scope of an Agreement for Cooperation between the Goverr. ment of the United States of America and the other nation or group of nations."
. Article X B.
provides, inter alia, that:
"B.
the Government of the United States of America, notwithstanding any other provisions of this Agreement shall have the fol-lowing rights:
" (2) With respect to any source or special nuclear material made available to the Government of Switzerland or any person under its jurisdiction by the Government of the United States of America or any person under its juris-diction and any source or special nuclear material utilized in, recovered from, or produced, as a result of the use of any of the following materials, equipment, or devices so made available:
" (a) source material, special nuclear material, modere ator material, or other raterial designated by the United States Commission,"
" (ii) to require that any such material in the custody of the Goserament of Switzerland or any person under its jurisdiction be subject to all of the safeguards pro-vided for in this Article and the guaranties set forth in Article IX;"
These articles give the U.S.
an unqualified approval right over the retransfer of material from Switzerland sup-plied by the U.S.
or produced'through the use of such mate-rial and allow retransfers only if it is determined to be
.within the scope of an agreement for cooperation with the recipient country.
This right would apply to irradiated fuel because it contains U.S.-supplied material.
Therefore, it is the Executive Brarrh view that, as the U.S.
has the right of prior approva over retransfer of U.S.-supplied material and material xduced through the use of U.S.
material, criterion (4)
's met.
e
/ -
h Criterion (5) o "No such material proposed to be exported and no special nuclear material produced through the use of such
~ '
material will be reprocessed, and no irradiated fuel ele-ments containing such material removed from a reactor shall be altered in form or content, unless the prior approval of the United States is obtained for such reprocessing,or alteration."
o Article VII Bis C.
of the U.S.
Switzerland Agreement for Cooperation provides that:
"When any special nuclear g
material received from the United States of America re-9 quires reprocessing, or any irradiated fuel elements con-taining fuel material received from the United States of trica are to ;m removed from a reactor and are to be altered in form or content, such reprocessing or altera-tion shall be performed in facilities acceptable to both g
Parties upon a joint determination that the provisions of Article X may be effectively applied."
As no joint determination under Article VII Bis C. can be made without the agreement of the United States, and since the facilities to be used must be acceptable to the U.S.
as one of the Parties, it is the view of the Execu-tive Branch that criterion (5) is met.
S O
d
Criterion (6)
"No such sensitive nuclear technology shall be ex-ported unless the foregoing conditions shall be applied to any nuclear material or equipment which is produced or con-structed under the jurisdiction of the recipient nation or group of nations by or through the use of any such ex-ported sensitive nuclear technology."
The proposed export does not involve sensitive nu-clear technology.
Criterion (6) is, therefore, not ap-plicable.
9
B.
Section 128 Criterion Section 128 a. (1) of the Atomic Energy Act establishes the following additional criterion:
"As a condition of continued United States export of source material, special nuclear material, production or utilization facilities, and any sensitive nuclear technology to non-nuclear-weapon states, no such export shall be made unless IAEA safeguards are maintained with respect to all -peaceful nuclear activi' ties in, under the jurisdiction of, or carried out under the con-trol of such state at the time of the export."
It should be noted that this criterion only applies to exports to take place after March 10, 1980 or pursuant to an application submitted after September 10, 1979.
We anticipate that this recommended export will occur before March 10, 1980.
In any case, as a Party to the 14PT, Switzer-land has accepted IAEA safeguards on all its nuclear ac-tivities thereby satisfying this criterion.
Accordina to the application of November 10, 1977, shipment of the material is schedules to begin on June 1, 1980.
State Deoartment (R, Delabarre) has been informed of this error.
T c,w
/15/78 S
3.
Additional Factors A.
Safeguards Implementation -- Significant infor-mation the Executive Branch possesses bearing on the effectiveness of implementation of IAEA safeguards in the recipient country, including any such information on steps being taken to correct any identified deficiencies in the ap-plication of IAEA'~sa'feguards in that country:
The IAEA Secretariat has concluded in its Spe;1al Safeguards Implementation Report that with regard to nu-clear material subject to IAEA safeguards, while some deficiencies exist in the system, "in none of the 41 states
~*
in which inspections were carried out was there any di-version of a significant quantity of nuclear material".
Although reccgnizing the need to correct existing de-ficiencies in safeguards implementation, the Executive Branch has no reason to believe that the IAEA Secretariat's conclusion is not a valid one with specific regard to nu-clear material subject to the IAEA-Switzerland-U.S. Agree-ment for Cooperation.
In the light of this and other factors associated with the proposed export, the Executive Branch believes the framework of commitments, assurances, and safeguards is adequate for the purposes of this export.
IAEA safeguards in Switzerland are currently being carried out under INFCIRC/66-type safeguards arrangements.
We anticipate that IAEA safeguards uhder INFCIRC/153 arrangements v.'l be brought into force this year or in 1979.
M e
B.
Limitation on Quantity of Export P.L.95-242 anticipates the development of procedures for the processing of export license applications which would minimize the period for such processing in certain instances, including the licensing of reloads for which earlier fuel exports have been licensed.
Pending this development,,our recommendation is limited to the 4.nitial core loading and essential spares.
It is our intention to expedite transmittal of the Execu-tive Branch judgment on th% balance of the enriched uranium covered by this application as soon as the new policy and procedures with respect to multiple reloads has been adopted.
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Inimicality Judgment, Based on review of the proposed export, it is the judgment of the Executive Branch that the proposed export will not be inimical to the comraon deferse and security, and that the license should be issued.
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'I' December 15, 1977 651513.Leibstadt
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Division of International-c Security Affairs i
U.S. Department of Energy l
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Washington, D.C.
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Dear Colonel Hudgins:
f Reference is made tio your letter dated December 9, 1977 concerningLthe export of nuclear material by General Electric Technical Services Company, Inc.,
San Jose, California, to the Nuclear Power Plant of Leibstadt,. Switzerland.j Thisletterserves!'asattestationthatthetransfer of the. material identif5.ed in Export License Application S-860 will~be undertaken in accordance with the terms and conditions of the Agreement for Cooperation concerning civil uses of atomic energy between the Government of the '
' United States and the Government of Switzerland.
In addition, I am in a position to confirm that the ultimate consignee, Leibstadt~ Nur: lear Power Plant, and the intermediate consignee, Fracht AG, Basel, Switzerland,:
' freight forwarders, are authorized to receive and possess the material in question.
Sincerely yours, 4
0 S CLG k Dr. Christian Favre Scientific Counselor "CEIVED 11.3. IGC 197813Y 9 'FM 4 32 F-'
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NUCLEAR REGULATORY COMMISSION
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NOV 2 b 1977 Mr. Peter Tarnoff Executive Secretary U.S. Department of State Washington, D.C.
20520
Dear Mr. Tarnoff:
Enclosed please find an application from General Electric Technical Services Company, Incorporated for a license to export special nuclear material to Switzerland.
Before taking action on this license application, we would appreciate your views, in accordance with established procedures and from the overall perspective of the Executive Branch, as to whether the issuance of the requested license would be inimincal to the interests of the United States, including the comon defense and security. and whether the export would fall within an Agreement for Cooperation.
Sincerely.
Le V sh Exe/fotlDirgetor
'vej Operst1Tn]s
Enclosure:
Appl. dtd November 10, 1977 (S-860,XSNM-1227) cc w/ enclosure:
Mr. Nelson F. Sievering, DOE
- gg,/r0 Mr. Richard L. Williamson, ACDA/Np/NX U.S. p;;c Dr. Maurice J. Mountain, 000 Mr. Alfred D. Starbird DOE Mr. Rauer H. Meyer, DOC 070 !!!Y 9 pp,; 4 32 l
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7730135 XsNm-Iw7 APPLICATION FOR LICENSE TO EXPORT
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- 3. CovNTRY OF ULTlW ATE CIC5 TIN ATICH O ATE OF A PPLIC ATICH Novembe r 10, 1977 KKL Switaerland
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S. ubTIN A rE CON 5BCNEE IN FORElCN COUNTmv 6
C A:f E OF A PPLICAN T (NQFne and addetssi General Electric Technical Services Co,Inc Kernkraftwerk Leibstadt AG (KKL) sT=ECT AeeaEss Postfach 8'022 175 Curtner Ave. - M/C 871 Zurich, Switzerland CiTT. st ATE. ANe zip CeeE
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San Jose, Ca. 95125 (Clw name
- 7. IF PumCM AsER IN roa tiCN CCuMTRY ($ QTHER TH AN
.s. INT E awe 0t ATE CCH 5tGN EE IN r om E tCH cou MT a v uLTIN ATE CON 51cNEE, CIVE N A ME AND ACORESS.
and ederss l/ sarne as utsimare consigner, state "Se,e. ")
t/t sa,e. star e "s-.r.")
Fracht Ltd.
Austrasse 95 Sa:ne Basel, Switzerland (b) CouwcolT Y cESC*tPTicN firrh de cWal amt physical /ermt /or s;resal meter.narnal and I. (a) cu ANTITY To sE SNIPPEC set untevrat also specsly isosepic centent: s/ sn a aavser. ndentily the dence. mcendactnr.
if.es nnstructrons on beet) kMd -ei raomar.)
(i) 5,600 kilograms (i) Contained in 243,000 kilograms of uranium enriched to e
4.0 W/O maximt=n as fuel bundles U-235 Contained in 1. 07 grams.U as detection instruments G /.5 4 (ii) I gram U-235 (ii)
(c) $ NIPPING AND P ACKING P9CCEOuM E5 (Reguired for spedal ruelee marrrial. See instruerrons on aces.)
Fuel bundles in GE model RA-3 shipping packages, USNRC certi.ficate No. USA /
4986/B()F.
Detection instruments exemet from 10CFR Part 71.
(Descrthe /ully, stating ueat wgil be #Mauced or meta /dets,rrd, whg gyrgy t
l ar matenat.)
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- enc usE or CONNcotTIE5 COVERED ev TNis APPt.lC ATICH:
unit be w.uiend. or the naturr o/ the researeb that w.'ll kr per/ormed.) (ser unstructnons on back for seresa nuc e Leibstadt initial cores plus 3 reloads. (Leibstadt reactor was exported under USNRC License No. XR-104, Docket 50-536). A statement of end use by the ultimate consignee dated October 25, 1977 accompanies this application.
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- 4. certify t/ist this arplics(
to. Tha spplicant. and any official esecucing tnis certifiesce on behalf of the applicant named in item 40 (I is prepared in conformity with Title 10. Code of Federal Replacions. Parts 30 and 36 (if for byprodu cnd that 311 information contained herein, including any suppleme 4
knowledge and belief.
General Electric Technical Servic (spriscans naned un Icem t) fq r~czty g U.3. llRC
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PCSTADAESSE PCSTFACH. 8022 20AICH TELEPHON Q1.320201 TELEX 53 c'O TELEGRAuME EL.EKTACWATT 2CRICH 20 RICH. EELLEAtVESTR.ASSE 30
' 02 065.02 October 25th,1977 1370 SCT/BL
Dear Sir,
It is our understanding that as a requisite to export license action, ' (* f #
the United States Atomic Energy Commission requires a statement con-cerning the end use of the special nuclear material in nuclear fuel
- T assemblies and instrument manufacturing facility to the Kernkraftwerk 3fh Leibstadt site in Switzerland.
Accordingly, it is hereby stated that the fuel containing approximately 5,600 kilograms of U235 in approximately 243,000 kilograms of uranium enriched in U235 to a maximum of four percent and the detectors (not i,
to exceed one (1) gram U235 as contained in 93.5 percent enriched E
uranium) will be used respectively to load the core of the Kernkraft-werk Leibstadt reactor located in Canton Aargau, Switzerland, and as t
part of its instrumentation system or held as spares for pcssible l,
subsequent installation.
Sincerely, I
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NUCLEAR ENERGY PROGRAMS DIVISION iNERAL ELECTRIC COMPANY,175 CURTNER AVE., SAN JOSE, CALIFORNIA 95125 g
MARKETING BD W-173 -77 s'
Novembe r 10, 1977 Dr. Michael A. Guhin
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Assistant Director Imports / Exports and InteImational Safeguards United States Nuclear Regulatory Commission Washington, D. C. 20555 Daar Dr. Guhin:
Pursuant to 10CFR Part 70, General Electric Technical Services Co., Inc.
hereby applies for a license to expcrt special nuclear material, in particular, low enriched uranium (except one gram as high enriched uranium in nuclear detectors) to Kernkraftwerk Leibstadt A.G. (KKL) in Switzerland.
The mate.dal to be exported consists of 5,600 kilograms of uranium 235 as further described in the attached form AEC-7 (1-67).
This mv.terial will be used for initialloading and three reloads for the Leibstadt reactor located in Canton Aargau, Switzerland. This is a nominal 1,000 MWe Gcneral Electric boiling water reactor which is scheduled to begin regular power oporation in 1981. It is ewned and operated by KKL.
A standard reload for this reactor uider normal operating conditions at approximate $
12 month intervals without adjustment of spares inventory is about 180 bundles which, in the aggregate contain from 30,000 to 33,000 kilograms of uranium at various percentages of enrichment with a maximum enrichment of 4% U-235.
The special nuclear material is of Canadian origin and will be owned by KKL at the l time of export. The General Electric fu'el fabrication plant at Wilmington, North Carolina will prepare and package the fuel for shipmen t.
~Ihe first shipment of this material is currently scheduled for June 1,1950. It is therefore requested that the license be issued on or before that time and be valid for 5 years after issuance.
Continued -
G E N E R AL,$ E LE CTRIC Dr. Guhin November 10, 1977 BDW-173-77 Page 2.
If additional information would be helpful in considering this application, please do*not hesitate to contact me.
i s
Ve ry truly. yours, Jf,.
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B. D. Wilson, Manager Govemment Relations and Export Licensing M/C 871 - 9251380
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lt ); v' DEPA RTM ENT OF STATE jhlf, ;,i-wa o..... v. o c. 20s20 BUREAU OF OCEANS AND INTERNATIONAL ENVIRONMENTAL AND SCIENTIFIC AFFAIRS i
June 23, 1978 XStVth - 12'1 Mr. James R.
Shea Director of International Programs 7d' O United States Nuclear Regulatory Commission Room 6714 - MNBB Bethesda, Maryland
Dear Mr. Shea:
This letter is in response to Mr. Gossick's letter dated June 7, 1978 requesting that the Executive Branch reconsider its earlier recommendation regarding the export of low-enriched uranium to Switzerland under application no. XSNM-1227.
In our letter of May 9, 1978, we had conveyed to you the Executive Branch recommendation that the requested license be limited to authorize export of a total of 118,950 kilograms of urani'um for the initial core loading only of the Leibstadt Nuclear Power Plant in Aargau Switzerland, plus essential spare fuel elements and 1 gram of highly-enriched uranium rather than the multiple reloads which had originally been requested.
The Executive Branch is currently developing a new policy and procedures under P.L.95-242 regarding such multiple reloads.
The approach which is under discussion will allow multiple reloads for a fixed number of years to countries which meet certain non-proliferation criteria.
Among the criteria we believe will be given heavy weight are whether the country is a party to the Non-Proliferation Treaty, has cooperated to renegotiate its Agreement for Cooperation and has participated in international non-3 1
proliferation initiatives such as the International Nuclear e
Fuel Cycle Evaluation.
i As stated in our lettAr"o~f May 9, we hadga,qticipated expeditious consideration and transmittal ofianL.;2xecutive Branch judgment of the balance of this requested license 03 28..i !i M
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, application as soon as the policy was adopted.
- However, the Executive Branch has reconsidered this application in light of the points raised in General Electric's letter of May 26, 1978 and a discussion was held regarding this case at the June 2, 1978 meeting of the Subgroup on Nuclear Export Coordination.
As you know, Switzerland is a party to the Non-Proliferation Treaty, a participant in INFCE and a strong supporter of non-proliferation goals shared by the U.S.
We anticipate that Switzerland will be in-cluded in any list of eligible countries which would be drawn up in connection with the formulation of procedures governing advance export approval for multiple reloads.
In light of this fact, the Executive Branch, has concluded upon reconsideration that it would be appropriate at this time to grant a one-time exception pending adoption of the general multiple reload,olicy.
Accordingly, the Executive Branch hereby recommends issuance of an export license for the entire amount of 64 2,926 kilograms of uranium as requested in the General uectric Company's application of November 10, 1977.,,
f Sincerely, I
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Dixon
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Acting Deputy Assistant Secr'etary This figure corresponds to the totals comouted in the Executive Branch's May 9 analysis for shipments of the core, spares, reserves, i
and reloads, olus an additional allowance in case of damane durina shipoina, fabrication, or in loadina. GE has rounded this figure up to 243,000 in their application (per Aug.10 conversation with R,Delabarre, DOS).,
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APPLICAT10H'FOR LICENSE TO EXPORT fo-MN!
, BYPRODUCT, SOURCE, OR SPECIAL NUCLEAR MATERIAL gg4g Submit in Triplicate
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Carefully Read Instructions on Back
(, 9hN1
- 1. D ATE CF A P PLIC A TION
- 1. A PPLIC AN T'S R EF ERENC E NO.
- 3. COUN TRY OF ULTIM ATE DESTIN ATICH November 10, 1977
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KKL Switze rland -
4 N AME OF A PPLIC AMT
$. ULTIM ATE CON $1CNEC IN FORElCN COUN TRY Ge'ncral Electric Technical Services Co,Inc Mene and address).
Kernkraftwerk Leibstadt AG (hKL) 3TREET AooREs3 175 Curtner Ave. - M/C 871 Postfach 8'022 CITY. sT4TE. ANe :iP CoeE San Jose, Ca. 95125 Zurich,' Switze riand
- 6. IN T E R MEQl A TE CCN $10N CE IM FCA ElCN COUNTRY (Giw name and aa. ress. // scree as ultimate consignet, state "Same. )
IF PURCH ASER IN FORElCN COUNTRY l$ OTH ER TH AN 7.
ULT MATE con $1CNE E, GIVE N A ME AND ADORE 53.
Fracht Ltd.
fil sane, state " Sane.")
Austrasse 95 Basel, Switzerland Same S. (a) CV ANitTY To eE $NtP*to (b) COMM00lTY OESCRIPTICH (Incis.de che meal and physical form; for special melee material ed (See instr 1.ctions on back) byproduct matersal also specify iso <opic content: el in a device, identily the devtce, meerulacxwer, and mdat nurnber.)
(i) 5,600 kilograms (i) Contained in 243,000 kilograms of uranium enriched to U-235
- 4. 0 W/O maximum as fuel bundles (ii) 1 gram U-235 (ii) Contained in 1. 07 grams.U as detection instruments G/.5h ic) SNIP *lNo ANO P ACKtNG PROCECURE$ (Required for special rasclea material, See instruction.s on berk.)
Fuel bundles in GE model RA-3 shipping packages, USNRC certificate No. USA /-
~
4986/B()F.
Detectican instruments exemet from 10CFR Part 71.
~ ENC USE OF COMMCQ) TICS C 3VEREO SY TNis A PPLICA TION:
-9 usil be rendered. or the nature of the research that tvill be performed.) (See instructsons on bacin for special nuclear Leibstadt initial cores-plus 3 reloads. (Leibstadt reactor was exported under USNRC License No. XR-104, Docket 50-536). A statement of end use by the ultimate consignee dated October 25, 1977 accompanies this application.
l i
The applicant, and any official executing this certificate on uehalf of the applicant named in item 4, certify that this applie to is prepared in conformiry with Title 10, Code of Federal Reptations. Parts 30 and 36 (il for byproduce material) or Par for source material), or Part 70 (if for special nuclear material), and Part 71 (for transport of radioactive material, if appli and that all information contained herein, including any supplements attached hereto, es true,and correct to che best of their knowledge and belief.
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General Electric Technical Services Co..
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Export Licensing E ' NT/!M,7al tra "Vorningt ; 18 U.S.C. Sect! n 1$0hAd-[T7vU 25,1943:
62 St. 749; makes it a criminal offense to make a willfully forse state.
j ment or representation to any decortment or agency c e the United States os to any matter within its lurisdiction.
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PCSTA ORE SSE POSTFACH. 8022 ZCRICH TELEPHON
- 01. 32 C2 01 TELEX S3 030 TELEGRAMME ELEKTROWATT 2CRICH ZGRICH. BELLERtVESTRASSE 30 02 056.02 October 25th,1977 1370 SCT/BL
Dear Sir,
It is our understanding that as a requisite to export license action, the United States Atomic Energy Commission requ. ires a statement con-
'4g cerning the end use of the special nuclear material in nuclear fuel
[8*# g assemblies and instrument manufacturing facility to the Kernkraftwerk dy [ebO Leibstadt site in Switzerland.
Accordingly, it is hereby stated that the fuel containing approximately 5,600 kilograms of U235 in approximately 243,000 kilograms of uranium enriched in U235 to a maximum of four percent and the detectors (not to exceed one (1) gram U235 as contained in 93.5 percent enriched uranium) will be used respectively to load the core of the Kernkraft-werk Leibstadt reactor located in Canton Aargau, Switzerland, and as part of its instrumentation system or held as spares for possible subsequent installation.
Sincerely, KERNKRAFTWERK LEIBSTADT AG g
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bb[dbbkbQbbbbSbfb NUCLEAR ENERGY PROGRAMS DIVISION 3ENERAL ELECTRIC COMPANY,175 CURTNER AVE., SAN JOSE, CALIFORNIA 95125 INTERNATIONAL MARKETING BD W-17 3 -77 Novembe r 10, 1977-Dr. Michael A. Guhin Assistant Director Imports / Exports and International Safeguards United States Nuclear Regulatory Commission Washington, D. C. 20555
Dear Dr. Guhin:
Pursuant to 10CFR Part 70, General Electric Technical Services Co., Inc.
hereby applies for a license to export special nuclear material, in particular, low enriched uranium (except one gram as high enriched uranium in nuclear detectors) to Kernkraftwerk Leibstadt A.G. (KKL) in Switzerlan.d.
The material to be exported consists of 5,600 kilograms of uranium 235 as further described in the attached form AEC-7 (1-67).
This material will be used for initia11oading and threc reloads for the Leibstadt reactor located in Canton Aargau, Switzerland. This is a nominal 1,000 MWe General Electric boiling water reactor which is scheduled to begin regular power operation in 1981. It is ovmed and operated by KKL.
A standard reload for this reactor under normal operating conditien at approximately 12 month intervals without adjustment of spares inventory is about 180 bundles which, in the aggregate contain from 30,000 to 33,000 kilograms of uranium at various percentages of enrichment with a maximum enri ciment of 4% U-235.
The special nuclear material is of Canadian origin and will be owned by KKL at the time of export. The General Electric fuel fabrication plant at Wilmington, North Carolina will prepare and package the fuel for shipmen t.
The first shipment of this material is currently scheduled for June 1,1980. It is therefore requested that the license be issued on or before that time and be valid I
for 5 years after issuance.
Continued -
i
G E !! E S A L Q. ELECTRIC Dr. Guhin November 10, 1977 B DW-173 -77 Page 2.
If additional information would be helpful in considering this application, please do.not hesitate to contact me.
Ve ry truly yours,
/.
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VVv B. D. Wilson, Manager Government Relations and Export Licensing M/C 871 - 9251380
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G EId E R A L h E LE CTRIC NUCLEAR ENERGY PROGRAMS DIVISION iENERAL ELECTRIC COMPANY,175 CURTNER AVE., SAN JOSE, CALIFORNIA 95125 MARKETING DEPT.
BDW-002-78 January 5,1978 y.g/nt-lD 7 7#~
Dr. Michael A. Guhin Assistant Director Export / Import and International Safeguards Office of International Programs U.S. Nuclear Regulatory Commission Wa s hington, D.C.
20555 Subje c t: APPLICATION FOR EXPORT LICENSE XSNM 1227
Dear Dr. Guhin:
By letter dated November 10, 1977, General Electric requested the subject license for Leibstadt, Switzerland, reactor fuel and detectors.
This letter supplements that application, as follows:
1.
The special nuclear material is of U.S. and South African origin; not of Canadian origin.
2 The number of KKL's Department of Energy enrichment contract is E (49-14) UES/SD/100.
We trust this information will be helpful in continued action on the application.
Very truly yours, 1
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B. D. Wilson, Manager i
Government Relations and 1
Export Licensing M/C 871 - 9251380 i 10 fli IU ilj,, g,,
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GENER AL $ ELECTRIC
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ERAL ELECTRIC COMPANY,175 CURTNER AVE., SAN JOSE, CALIFORNIA 95125 OPERATIONS MARKETING DEPARTMENT y3pg-& 2 ?
BDW-064-78 7 f
.2 7 9's May 26,1978 y_gg Mr. James R. Shea, Director
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Office of International Programs U. S. Nuclear Regulatory Commission Washington, D. C. 20555 3ubj ect: APPLICATION FOR LICENSE XSNM 1227 LEIBSTADT SWITZERLAND - INITIAL CORE AND RELOADS 3 ear Mr. Shea:
- During our brief, informal discussion of the subject case in your office on May 5, 1978, Mr. Charles H. Peterson and I outlined General Electric's concerns over the possibility that the Leibstadt (KKL) fuel export license, XSNM 1227, when is sued, authorizing shipment to Switzerland might be limited to only enough uranium to cover instruments, the initial core, and two spare fuel bundles, as recommended in the recent letter from the Department of State, rather than the entire amount ordered by KKL and requested in our application. While it is clear that the U.S. government can terminate an export license at any time, in our experience the refusal to approve only a part of an export license to Switzerland is an extraordinary action.
It is the purpose of this letter to reiterate our concerns over such a limitation and to request additional information about the basis for the Executive Branch views.
As stated during our discussion, KKL and the Government of Switzerland could well regard the failure to issue a license for the full amount requested as a contraindication j-if not a contradition - of U.S. nuclear export policy (as set forth in the Nuclear Non-Proliferation Act of 1978) to "act reliably in meeting its commitment to supply nuclear fuel t'o nations which adhere to effective non-proliferation policies. "
E i
lAn export license limited in quantity might influence the Leibstadt customer to cancel
- the reload order on the basis of continuing uncertainty about U.S. export licensing actions. Without exception, Mr. Shea, our experience demonstrates that once a
' European reactor customer accepts a European fuel supplier, GE has never been able to obtain further reload fuel orders. We believe that this is a legitimate concern which should be addressed before the license is issued.
t Continued -
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GESER AL @ ELECTRIC
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3..R. Shea May 26,1978
- BDW-064-78 s
Page ?..
In view of these concerns, could you please provide answers to the following questions:
- 1.
' All previous GE applications for multiple core reloads have been granted in accordance with our requests. Would the proposed limitation on amount be the first of a kind for low enriched uranium? Are similar limitations expected as a matter of some new policy or procedure and if so, will this practice be put krth' for public. comment?
2.
Subsequent to the State Department letter referred to above, has ynr office received Executive Branch; views on any other applications involving reloads (with or without initial cores)? Were those views conditioned by limitations against reloads similar to those recommended in the case of XSNM 12277 -If those views were not so conditioned or limited, who were the applicants and to which countries were the exports destined?
3.
What is the current target date for establishing and disseminating procedures for the preparation of Executive Branch judgements on export license appli-cations covering multiple core reloads?
4.
What action could be taken by NRC and/or GE to obtain supplemental views by the Executive Branch enabling.imely issuance of the license as requested in the application?
'In summary Mr. Shea, we shall appreciate your intervention to permit issuance of
' this license for the full quantity for which the application was filed. Such action
- must be completed reasonably soon to assure that the KKL reactor reloads will be
. available in a timely manr.e r.
In order to withdraw the reload order from GE and award it to a European fabricator,
^ the customer would be required to act six years prior to the required delivery date.
The six years are needed for contract negotiations, fuel design, prototype-testing and development, qualification, fabrication and delivery of the reload fael. Failure to obtain an export authorization in4%near future will force our customer to make a decision, which may be adverse to 'thefinteres't'of GE and the U.S. Government. The customer could either shift his order to a European fuel supplier or hold his order with GE and take the risk,'@.at an export license would not be granted, i o...
-s Continued -
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GENER ALM ELECTRIC'
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- May 26,1978 BDW-064-78 j
Page 3
'We are confident that this ' case can b'e handled in a mutually satisfactory manner.
.We are most anxious to cooperate with the Commission and its' advisory agencies towa'rd that end. Please tell'us how' best to proceed.
Ve ry truly. yours,
9,
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- .B. D. Wilson, Manager
- Government Relations and Export Licensing thi/C 871 - 9251380
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Mr. Dixon Hoyle DOS Mr. Vance Hudgins DOE Mr. Richard L. Williamson ACDA 4
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GENER AL @ ELECTRIC J. R. 'Shea May 26,1978 BDW-064-78 Page 3.
We are confident that this case can be handled in a mutually satisfactory manner.
We are most anxious to cooperate with the Commission and its advisory agencies towaid that end. Please tell us how best to proceed.
Ve ry truly yours,
.fp GL L & c.i.uc. %
.B. D. Wilson, Manager Government Relations and E>: port Licensing hi/C 871 - 9251380
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Mr. Dixon Hoyle DOS Mr. Vance Hudgins DOE Mr. Richard L. Williamson ACDA s
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I!nitch States of Autcrita xiNn-1227 f
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Nuclear Regulatory Commission p
p Pursuont to the Atomic Energy Act of 1954,os omended.ond the the licensee, o license is hereby issued to the licensee author- '
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Energy Reorganization Act of 1974 and the regulations of the izing the export of the moteciols ond/or production er utilizolion
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r Nuclear Regulatory Comn.ission issued pursuant thereto, and in facilities listed below, subject to the terms and conditions herein. k
, l, rel:ence on statements and representations heretofore made by b
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uCENSEf UtilMATI CoNstGN(( (N FettlGN COUNTRY p
General Electric Technical Kernkraftwerk Leibstadt AG (KKL) p N,u
- NAu, Services Company, Inc.
Postfach 8022 6
175 Curtner Avenue - M/C 871
,;,,,, Zurich, Switzerland
,,,,,33 San Jose, California 95125
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Attn:
B. D. Wilson 2:
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5, 500 kilograms uranium-235' Contained in 242,926 kilograms uraniuni 6
j enriched to 4.0 w/o maximum, as fuel
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bundles.
~ 1 gram uranium-235 Containedin1.07gramsuraniumenriched,y to 93.5 w/o maximum as detection jj j
instruments.
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s Conditions 3,6, and 8 on page two of this license apply to this export. 'D l
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3 Neither this license nor any right under this license shall be ossign.
rHis uctNsf is (NVAuO uNLf$$ slGNEo sELow d
p, ed or otherwise transferred in violation of the provisions of the p Aumon@o NRC REHf5ENTAnyt i
g Atomic Energy Act of 1954, as amended and the Energy Reorgan.
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Gerald G. Oplinger, Assistant Director E; l
lq ization Act of i974.
l I5 Thii license i. subieet to.the right of recapture or control by section Export / Import and International y
[g los of the Atomic Energy Act of 1954.as amend, 3 allof the Safeguards id g
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- U S GOYCRNMENT PR8NUNC OFFICE: 191 S-C 30-7 3 3 mga4N Poge 2 of 2 Fogn U.S. NUCLE.AR REGULATORY COMMISSION EXPORT LICENSE Conditions License Number YRtm.p?7 Condition 1 - Licensee shcIl file with the Customs Officer or the Postmaster two copies,in addi-tion to those otherwise required, of the Shipper's Export Dectoration covering each export and mark one of such copies for transmittal.to the U.S. Nuclear Regu.
lotory Commission, Washington, D.C. 20555. The following declaration should oc-company or be placed on the Shipper's Export Declarations for such exports:
"This shipment it being made pursuant to specific license number (specific license number) filed et(location of Customs office where license is filed),
on (date license was filed). Thds license expires An (expiration date.of license), and the unshipped balance remaining on this license is sufficient to cover the shipment described on this declaration."
Condition 2 - Exports authorized in any country or destinction, except Country Groups C., S, W, X, Y, and Z in Port 370, Supplement No.1, of the Comprehensive Export Schedule of the U.S. Department of Commerce.
Condition 3 - This license covers only the nuclear content of the material.
Condition 4 - The material to be exported under this license sha!! be shipped in accordance with the physical protection requirements for special nuclear morerial in 10 CFR 73.
Condition 5 - Special nuclear material authorized for export under this license shall not be transported outside the United States in possenger corrying circraft in shipments exceeding (1) 20 grams or 20 curies, whichever is less, of plutonium or uranium 233, or (2) 350 grams of utonium 235.
Condition 6-This license authorizes export only and does not authorize the rece;pt, physical possession, or use of the nuclear meteriol.
Condition 7 - The licensee shall complete and submit on NRC Form 741 for each shipment of source material exported under this license.
Condition 8 - The licensee shall advise the NRC in the event there is any change in the designo-tion of the company who will package the nuclear materici to be exported under this license, or any change in the location of the packaging eperation, at least three weeks prior to the scheduled date of export.
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