ML20149J393

Partially Deleted Secy,Advising Commission of Proposed Technology Transfer to Peoples Republic of China Per 10CFR810

ML20149J393
Person / Time
Issue date:	10/19/1982
From:	Dircks W NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:
Shared Package
ML20079A503	List: IA-92-436, Partially Deleted Secy,Advising Commission of Proposed Technology Transfer to Peoples Republic of China Per 10CFR810 ML20149H907 ML20149J393
References
FOIA-92-436 SECY-82-420, SECY-82-420-01, SECY-82-420-1, NUDOCS 9501050177
Download: ML20149J393 (22)

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POLICY ISSUE (Information)

For:

The Comission From:

William J. Dircks Executive Director for Operations 1

Subfect:

PROPOSED TECHNOLOGY TRANSFER TO THE PEOPL?S REPUBLIC OF CHINA PURSUANT TO 10 CFR PUti 810 Purpose :

To advise the Comission of the subject requests.

Discussion:

Attached for the Commission's information are two requests from Westinghouse Electric Corporation forwarded to NRC for review by 00E pursuant to 10 CFR Part 810. Both l

requests involve the transfer of proprietary commercial nuclear power plant technology to the Peoples Republic of China (PRC). Specifically the requests involve:

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' _This request was sent to c...'d:4.M._'$epten6er 28,1982 (Appendix B).

NRC by DOE on The 00E staff states in its transmittal letters that it intends to recomend approval of the two requests subject to receipt of assurances from the PRC, as appropriate, that: (1)the reactors equipnent,and material transferred will be used exclusively for peaceful purposes for production of electricity; (2) U.S.-origin technology will not be transferred or used for other than production of the proposed reactors without the prior approval of the U.S. Government; (3) the reactors would be subject to IAEA safeguards or equivalent U.S. bilateral safeguards; and (4) any nuclear fuel used in the reactors w111 not be reprocessed or otherwise disposed of without prior U.S.

government approval.

After reviewing these requests, the staff determined that there is insufficient information to permit the NRC to fulfill its statutory consultation responsibilities., dix 8) requesting Accordingly, the staff has fomarded letters to DOE (Appen additional analysis of the cases. When advised informally of the results of the NRC staff's preliminary review, 00E acknowledged that the analyses were incomplete and added that 00E does not expect the interested agencies to be able to complete their reviews until additional information is made available.

As soon as the revised DOE analyses are received, the staff will conplete its review of these cases and fomard its recomendations to the Comission for consideration.

g 4.._ _ l WillianrJ. Dircks Executive Director for Operations Appendices :

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Enclosed is a request by Westinghouse Electric Corporation of Pittsburgh, Pennsylvaniet for authorisation pursuant to 10 CFR Part $10 to transfer proprietary commercial nuclear plant technology to the Peoples Rapublie

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n The DOE staff currently intends to recommend that the Secretary of Energy approve this Westinghouse request, subject to the following assurances from the PRC 1.

That the reactors, equipment and material transferred will be used exclusively for peaceful purposes for production a

of electricity;

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That u.c U.S. origin technology to be transferred will.not be retransferred or used for other than.producti.on'of the.tvo.

proposed reactors without the prior,' approval'of.t,he U.S..

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That the two reactors will ' tee s'ubject.co safeguard of the International Atomic Energy Agency-(IAEA) or equivalent U.S.

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That any nuclear fuel used in these reactors will not be reprocessed or otherwise disposed of without prior U.S.

Covernment approval.

l In addition to the above criteria relating to the transfer of the nuclear reactor technology, we recognize that additional foreign i

policy and nonproliferation issues are being addressed by the Department of State which may impact upon the final determination of this request by Westinghouse.

Your views and comments along with any information pertinent to this appliestion are requested.

If no comments are received within 30 days of receipt of this letter, ISA will assume that you havt no objection to tne proposed recommendation.

Sincerely,

.Wr$ff D red or, Division a Politico-(

Military security' Affairs

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Secretary of Energy U.S. Department of Energy

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Attention: Mr. J. A. Griffin

Subject:

Request for Authorization to Transfer Technology to the People's Republic of China (PRC) - Guangdong Project Dea' Mr. Griffin:

Thi request is being submitted pursuant to 10CFR81b.

810 9a (1) Applicant:

l Westinghouse Electric Corporation P. O. Box 355 a

Pittsburgh, Pennsylvania 15230 Westinghouse Electric Corporation is incorporated in the state of Pennsylvania with headquarters located in,Pittsburgh, Pennsylvania.

Westinghouse Electric Corporation is not owned, controlled or dominated by an alien, a foreign corporation or any foreign government.

810.9a (2) Statement of Procosed Activity:

This request is for a specific authorization for Westinghouse Electric Corporation (W) to transfer Westinghouse commercial proprietary

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Westinghouse offers the following additional information in support of this request:

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The technology under consideration does not include any " sensitive nuclear technology" as defined in Public law 95-242 of March 10, 1978.

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In no instance would technology spesifnally developed'by Westinghouse I

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application be transferred to the PRC.<*

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Equivalent technology to the technology under consideration is readily available to the PRC from several other countries.

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Activities conducted under the requested authorization would generate income to Westinghouse, thereby favorably affecting U.S. balance of payments and supporting continued employment of Westinghouse nuclear power related engineers and scientists.

In order for Westinghouse to promptly and adequately respond to-the~

customer's needs, and recognizing the interest expressed by other non.

U.S. suppliers, we would appreciate your expedited processing of this request.

Please note the proprietary classification of this document due to the commercial information contained herein.

Please do not hesitate to call me if you have any questions or need any additional information.

I Very truly yours.

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M. M. Hersch

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oct 0 1 1981 Mr. John A. Griffin, Director Division of Politico-Military Security Affairs U. 5. Departnent of Energy Washington, D.C.

20585

Dear Mr. Griffin:

This refers to your September 201etter reg 6rding Westinghouse's request to transfer proprietary comercial nuclear power plant technology to the j

PeoplesRepublicofChina(PRC).

As discussed with Mrs. Johnnie Raynend of your office, the International Prograns staff believes this request raises issues which will require more extensive considerations than those presented in your analysis. Specifically, we believe this proposed transfer should address those factors [(contained in 10 CFR Part 810.8(b)] to be considered by the Secretary of Energy prior to approval. In addition, we believe the analysis should include the following:

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A statement of the Executive Branch's policy regarding U.S. nuclear exports to the PRC.

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The Executive Branch's oosition regarding the application of safeguards (IAEA or otherwise) with respect to exports by the U.S. or other nations to the PRC.

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$[p g g g Mr. James R. Shea Room 406 East South U.S. Nuclear Regulatory Commission 4430 East-West Highway Washington, DC 20555 Dear Mr. Sheat Enclosed is a request by Westinghouse Electric Corporation of Pittsburgh, Pennsylvania for authorization pursuant to 10 CFR Part 810 to transfer proprietary commercial nuclear plant technology to the Peoples Republic of China (PRC). Specifically, Westinghouse is requesting authorization

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Secretary of Energy approve this Westinghouse request subject to the following assurances from the PRC:

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That the reacto', equipment, and material transferred will r

be used exclusively for peaceful purposes for production of electricity; 2.

That the U.S. origin technology to be transferred will not ce retransferred or used for other than production of the proposed reactor without the prior approval of the U.S.

Government; 3.

That the reactor will'oe subject to safeguards of the International Atomic Energy Agency (IAEA) or equivalent U.S.

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That any nuclear fuel used in this reactor will not be reprocessed or otherwise disposed of without prior U.S.

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Government approval.

In addition to the above criteria relating to the transfer of the t.uclear reactor technology, we recognize that additional foreign policy and nonproliferation issues are being addressed by the Department of State which may impact upon the final determination of this request by Westinghouse.

Your views and comments along with any information pertinent to this application are requested. If no comments are received within 30 days of receipt of this letter, ISA vill assume that you have no objection to the proposed recommendation.

Sincerely, f.

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Secretary of Energy U.S. Department of Energy Office of International Security Affairs Washington, D.C.

Attention: Mr. J. A. Griffin

Subject:

Request for Authorization to Transfer Technology to the People's Republic of China (PRC) - 728 Project

Dear Mr. Griffin:

This request is being submitted pur.suant to 10CFR810.

810.9a(1) Applicant:

Westinghouse Electric Corporation P. O. Box 355 Pittsburgh, Pennsylvania 15230 Westinghouse Electric Corporation is incorporated in the state of Pennsylvania with headquarters located in'Pittsburgh, Pennsylvania.

'I Westinghoust Electric Corporation is not owned, controlled or dominated by an alien, a foreign corporation or any foreign government.

810.9a(2) Statemer;t of Prooosed Activity:

This is a request for a specific authorization for Westinghouse Electric Corporation to directly transfer proprietary Westinghouse com.ercial nuclear plant technology to the People's Republic of

China, i

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Westinghouse offers the following additional information in support of this request:

1.

The technology under consideration does not include any " sensitive nuclear technology," as defined in Public Law 95-242 of March 10, 1978.

Except for the involvement of a "non-generally authorized country,"

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In no instance would technology specifically developed by Westinghouse in support of the U.S. Naval Reactors Program or any other military application be transferred to the PRC.

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raa.d.i.ly.a.v.-ai.l.abla to the )RC f. rom several other countries.

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,f relitionship and could provide the PRC added incentive to reach an agreement with our government allowing for even broader future U.S.

participation in this and other nuclear power projects. A potential exists for generating substantial income and employment within the U.S.

Recognizing b D desire to promptly proceed with this project, and the current interest of non-U.S. suppliers, we would appreciate your expedited processing of this request.

Please note the proprietary classification of this document due to the comercial f.1 formation contained herein.

Please do not-hesitate to call-me if you have any questions or need any additional information.

Very truly yours, 7474.)Uy/

M. M. Hersch International Business Development

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h 0CT 121982 W. John A. Griffin, Director Division of Politico-Military Security Affairs U. S. Department of Energy Washington, D.C.

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Dear Mr. Griffin:

This refers to your Septeder 28 letter regarding Westinghouse's request to transfer proprietary comnercial nuclear power plant technology to the PeoplesRepublicofChina(PRC).

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. As discussed with Mrs. Johnnie Raymond of your office, and as mentioned in our October 1 letter to you in connection with a similar request, the NRC staff believes this request raises several issues which will require more extensive consideration than has been addressed in your analysis. Specifically, we believe this proposed transfer should address those factors [ contained in 10 CFR Part 810.8(b)] to be considered by the Secretary of Energy prior to approval.

In addition, we believe the analysis should include a statement of l

the Executive Branch's policy regarding U.S. nuclear exports to the PRC, and the Executive Branch's position regarding the application of safeguards (IAEA or otherwise) with respect to such exports.

Upon receipt of the revised DOE analysis, the NRC staff will > complete its l

review and submit the case to the Comission for consi Sin:erely, w

i Ja nes V. Zimmerrian, Assistant Director Export / Import a d International Safeguards Office of Inter) national Programs l'

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gy' ME:MORAN DUM CONF 4DENTIAL Date May 20.1975 Sena' tors Ribicoff and Glenn To:

Paul Leventhal and Leonard Bickwit From:

t Suggested issues to be raised at meeting with Deputy

Subject:

Secretary of State Ingersoll WHY SHOULDN'T KNOWLEDGE OF THE NUCLEAR SUPPL 1.

CONFERENCE BE MADE PUBLIC AT THIS TIME?

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(a) Isn' t there a need to focus public attention on the dangers of nuclear proliferation without adequate safeguards?

(b) Wouldn' t such attention strengthen the U.S.

negotiating position by developing strong Congressional and publi demand for a meaningful suppliers' safeguards agreement?

WHAT MAKES FRANCE SO DIFFICULT TO DEAL WITH7 2.

(a) Doesn't France perceive the danger to itself and

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to the world community in the export of French plutonium reproces South Korea,' ##I ing plants tii).such insecure nations as' Taiwan,I Pakistan and Argentina?

(b) Why isn' t the.U.S. even prepared ro ask France to agree to refra'in from making nuc1' ear crports to nations which ar.

unwilling to P ace their entire fuel cydle under IAEA safeguards l

(c)' Similiarly, why won' t the U.S. even ask France to refrain from exporting reprocessing plants, pending completion o an IAEA study with respect to safeguarding and regionalizing suc plants?

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-n' (d) Wh t proscuros is tha U.S. properad to cpply to 6

France to win greater cooperation on internctionci sofoguards?

j curtailpent of U.S. uranium fuel enrichment services J

(For example, WHAT ROLE CAN THE RUSSIANS BE EXPECTED TO PLAY?

3.

(a) Is it true that they are deeply coiicerned by the threat of inadequately safeguarded nuclear proliferation on their borders?

-(b) is the U,ni,ted States seeking Russian cooperation in For example, winni g safeguards concessions from the French?

would the Russians agree to withhold uranium enrichment services from the French?-

(A joint U.S.-U.S.S.R. enrichment boycott would leave France unable, to fuel many of its own reactors).

(c) Is the upcoming nuclear ' suppliers conference on the agenda of the cyrrent Kissinger-Gromyko talks on nuclear arms control in Vienna?

If not, why not?

ARE PRESENT IAEA SAFEGUARDS DANGEROUSLY INADEQUA 4.

(a) Is it in our nationdl ' interest to continue to rely on IAEA sa[egd,ards, particularly safeguards applied to non-NPT nations, which are generally weaker 4:han those applied to NPT nations?

(b) fs' it realistic to rely on safeguards which, in turn rely so heavily on the good will and croperation of nations being

' inspected an6 ' audited by the'IAEA?

(c) To what extent are the nuclear-supplier nations com-mitted to upgrading IAEA safeguards?

Specific' ally, what is to be conference?

done in. this reg'ard at the suppliers' e

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i HOW VULNERABLE ARE NUCLEAR FACILITIES.AND MATROIALS 5.

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TO TERRORIST ATTACK?

in which each nation has (a) Can the present system, sovereign control over the physical security of its nuclear facilities and matenals, prevent sabot age, theft and the 1-fashionine of crude A-bombs by terrorists?

I (b) Why isn't the United States pressing for an inter-national convention on physical security at the suppliers' What is cur position on physical security at the

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suppliers' conference?

WILL THE NPT REVIEW CONFERENCE PRODUCE ANY MEANINGFUL 6.

RESULTS7

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(a) Has all the "cction" shif ted to the suppliers con-What lajor, upgrading of international safeguards can be, >

ference?

I accomplished at the NPT review?

I (b) What is the present assessment of the likelihood thati I

Nigeria and,other Third World nations will drop out of ths.NPT in protest over. lack of U.S.-U.S.S.R. progress on nuclear arms t

(Nigeria is privately threatening to bolt before the control?

conference ends.)

(c) Why isn't the United States prepared to give "negativ to non-nuclear weapons p'arties to the NPT (i.e.,

assurances" assurance's that we will not use nuclear weapons on them so long as they do not ally themselves with nuclear-weapons nations against Does our refusal to give negative assurances jeopardize the us).

NPT?

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(d) Are the Kissinger-Gromyko-talks likely to produce results that will demonstrate good' faith by the superpowers before the NPT Review Conference ends?

7., WH T IS BEING DONE TO PROVIDE INCENTIVES FOR NATIONS TO JOIN OR STAY IN NPT, TO UPGRADE SAFEGUARDS AND TO INTERNATIONALIZE

' THE NUCLEAR FUEL CYCLE?

(a) Is the United States exploring with other suppliers the need to provide technological incentives for nations to achieve the above purposes,Particularly international management of enrichment, reprocessing and other critical fuel cycle operations?

(b) Should the IAEA be made a repository for the latest fuel-cycle technology as a " carrot" to induce nations to accept great er restrictions on their nuclear activities?

(c) Might ah agreement to subsidize internationalized R&D under the auspices of the IAEA provide additional " sweetening"?

(d) What about," negative assurances" and agreements with the Soviet, Union to improve controls. vertical proliferation?

(e) Are these " carrot" approaches being seriously explored at the NPT review or at the suppfiers' c.onferences?

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HOW CAN THE COMMITTEE BILL BE STRENGTHENED to PROMOTE ADEQUATE INTERNATIONAL SAFEUGARDS?

(a) Should the safeguards comparab[lity standard be

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broadened to require safeguards on U.S. exports that are adequate to meet the actual risk of diversion, theft and sabotage in l

I narticular nations?

l (b) Wouldn' t such a standard, applied by the NRC as an

o Jndependent regulatory agency, provide an added incentiva fbr -

the State Department to win comparable safeguards concescions from the other exporting nations?

Wouldnt the threat of competitive disadvantage lead the U.S. nuclear industry to petition for uniformly strict safeguards worldwide--something it is not doing now?

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