ML20203H232

Requests Commission Review of Proposed Issuance of License to Honeywell,Inc Authorizing Export of Process Control Sys for Arroyito Heavy Water Production Plant in Argentina

ML20203H232
Person / Time
Issue date:	01/13/1999
From:	Jun Lee NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To:
References
SECY-99-009, SECY-99-009-01, SECY-99-009-R, SECY-99-9, SECY-99-9-1, SECY-99-9-R, NUDOCS 9902220291
Download: ML20203H232 (21)

Text

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POLICY ISSUE January 13, 1999 (Notation Vote) stcy_99_oo9 FOR: The Comrr.issioners FROM: Janice Dunn Lee, Acting Director Office of International Program

SUBJECT:

PROPOSED LICENSE TO EXPORT A PROCESS CONTROL SYSTEM FOR THE ARROYlTO HEAVY WATER PRODUCTION PLANT IN ARGENTINA (XCOM1107)

PURPOSE:

To request Commission review of the proposed issuance of a license to HoneywellInc.,

j authorizing the export of a process control system for the Arroyito Hea ty Water Production Plant j in Argentina. The application is being referred to the Commission in accordance with 10 CFR

) 9110.40(b)(4).

DISCUSSION:

On December 23,1997, Honeywell Inc., applied for a license (Attachment 1) to export a Honeywell Total Plant Solution System to Argentina. The system will provide process controlin the production of heavy water at the Arroyito Heavy Water Production Plant.

In response to NRC's request for Executive Branch views, the Department of State, in a letter dated December 17,1998 (Attachment 2), recommended approval of the proposed export and advised that it is the judgment of the Executive Branch that the proposed export will not be inimical to the common defense and security of the United States and is consistent with the provisions of the Atomic Energy Act of 1954, as amended by the Nuclear Non-Proliferation Act of 1978. \

f CONTACT: B. L. Wright, OlP/NEMR 415-2342 g;y g p q g w2-99o222o291 990Ti3 '"

PDR SECY b "s a p , I-99-oo9 R PDR

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- i The Executive Branch also advised that Argentina, as a party to the NPT, has committed itself to maintain lAEA safeguards on all of its peaceful nuclear activities and has pledged not to produce or l otherwise acquire any nuclear explosive devise, therefore satisfying criteria (1) and (2) of Section l

109b of the A.tomic Energy Act, as amended, for exports of nuclear components, substances or items. l The remaining criterion, agreement not to retransfer any U.S -supplied component, substance or item without prior U.S. consent, has been satisfied by the receipt of written assurances dated December 9, 1998, from the Government of Argentina.

Regarding international safeguard,, on March 4,1994, Argentina entered into a Quadripartite Agreement with Brazil, the Brazilian-Argentine Agency for Accounting and Control of Nuclear Materials (ABACC) and the IAEA and accepted IAEA safeguards on all source and special nuclear materialin their nuclear activities. The IAEA Board of Governors has concluded that the agreement is compatible with the NPT. Argentina ratified the NPT on February 10,1995. Argentina also ratified the Treaty for the Prohibition of NucPur Weapons in Latin America and the Caribbean (Tlatelolco Treaty) and waived into force Article 28 of the Treaty on January 18,1994.

Although Argentina accepts lAEA safeguards on all source and special nuclear material in its nuclear activities, we note that nuclear components are not subject to IAEA safeguards while in NPT countries under Article 111(2) cf the Treaty.

There are no foreign physical protection requirements applicable to this export.

CONCLUSION:

The staff concurs with the Executive Branch judgment that the proposed export will not be inimical to the common defense and security of the United States and concludes that all criteria required for the issuance of license XCOM1107 are met. The Office of the Executive Director for Operations concurs.

The Office of General Counsel has no legal objection.

RECOMMENDATION:

That the Commission authorize the issuance of export license XCOM1107 to Honeywell Inc.

161 .E4 b Lusx -

A anice J Dunn Lee, Acting Director

/ Office of International Programs Attachments: 1. 12/23/97 HoneywellInc., Application (XCOM1107)

2. 12/17/98 Executive Branch views, R. Stratford to C. Stoiber l

l

l l Commissioners' completed vote sheets / comments should be provided directly to the Office of the Secretary by c.o.b. Januarv 7*.1999.

Commission staff office comments, if any, should be submitted to the Commissioners NLT i

January 21.1999. with an information copy to SECY. If the paper is of such a nature that it requires additional review and comment, the Commissioners and the Secretariat should be apprised of when comments may be expected.

DISTRIBUTION:

Commissioners OGC  ;

OCAA C3 OPA OIP OCA ClO CFO l EDO SECY i

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4 NWC Fo4M 7 U.S. NUCLE.AA eEGU ORY CoMM14&loN aper oess to ames (3 94) agg 335 g7

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10 Cfa 180 E3%.AfD 3;;f L(0 PIB 811P345( 70 C0hfP T Nf7h 743 Nf 3RMATIG4 COL 1 Tim stout!T 11

]^ APPLICATION FOR LICENSE TO EXPORT "' " ' ' " ' ' ' " ' " " ' ' ' ' " " ' ' " ' ' " " * ' ' * ' " " " ' * ' * * '

- RIGULATDtT. AMC P3UCT C3410CF ATK348 AAI $47'UED. FORWUC Couwavis etEanDe=G NUCLEAR MATERlAL AND EQUlPMENT anoov ir=An To 74 weekcim ao escoens uacEmr umca rt s m e avCan l RIGULATORT (CaeELS:m. R A$28738 DC 7.EiG!WII!1. AND TO T4 PA.De3pt it3UCTDi l j ISee /nstructions on paversef P'f AtiD%an A Oss<t of Mam AGtuthi arc si;paET aAsHNET3v.Dc 20ml '

a t. APPLtCANT's . DA TE Of AMuCA T.ON e AmicANT & RUERENCE 2. NRC ** O ' N bM A UsE > 12/23/1997 ARN-C03/97 ust >

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, 3. APPLICANT'S N AME AND ADORE 55 [8MS Mas i *^ "# 1

4. SUPPLIER'S N AW AND ADDRES.5 l 1 Honeyue11 Inc. icomosere or ooueent ,, ner suoow er mar ~n i D STREET ADDRESS t/ee,tary 5,rel l

a. N A ME

) 1100 Connecticut Ave.. N.W. #710

c. CITY Honeywell Inc.

d.STATI . IIP CODE b. STREET ADDRESS

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, Washington, D.C. 20036 16404 N. Black Canyon Hwy.

f TELEPHONE NUMBER /Ar.e Coos . NumAer Dr.nsent c. CITY d. STATE . ZIP CODE 202/857-9809 Phoenix AZ 85023

6. Ffp57 EMIPMENT 4. FtNAL SMiPMENT 7. APPLICANT'S CONTRACTU AL 8. PROPOMD LICENM S U.S. DEP ARTMENT OF ENEROY SCHE DUL ED $CHEDULED DELivtRY DATE EXPmATION DATE CONTRACT NO. #1 Ane.at

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i ASAP 1 30 UtfiuATE FORoON CONsONEE !Rio n. UtriMATE END Ust gusE cOoe

, unes,oe o.nr er r.eary nomes t

NAME Empresa Neuquina de Honeywell TSP (Total Plant Solution)

Servicios De Ingeniera a STREET ADDRESS ofecetary Soteo System will provide prccess control 1

j g tg3h*kk"i2ygsada in the production of hean water.

c. CITY .. COUN TRY

, Arroyito Neuquen Argentina 11.. D ATE REQUIRED 1

12. tNTE RMEDIATE F OREION CON 5aONEE 13. iNTERAEDIATE END UM lsts [UM CODE 3 NAME None

b. STREET ADVES$

I' i e. CITY c. COUNTRY

! 13.. DATI REQUIRED SA. iNTERueDiAiE FORE,0N CONS ONEE ps is. TERuLDiaTt END UM jueE coda

, s. NAME i

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. T ADOREss ,s. ,,,, S.,e , -

c. C;TY o COUNTRY 16.. D ATE REQUIRED

18. COM 17. DESCRIPTION 18. MAX. ELEW8d7 1s. MAK. 20. MAX. t$0 TOPE 21.

CODE #^*'"# * ** * * * # * " # * **# ###* * # ***#**' ** #"#*' 8** ### ** "'* *# WEIOMT WT.% WOOMT UNIT nuer.or eevement and comoonental Honeywell TPS Process Automation System.

This system will provide additional super-visory control on a currently installed Foxboro System.

Value of System $432.724

22. COUNTRY OF OReOIN - l 23. COUNTRY OF ORIGIN - SNM -24. COUNTRIE6 WHICM ATT ACH l SOURCE MATERIAL WHERE ENRICHED OR PRODUCED { g Arg ogamos (fr ane.nj 26 ADDITION AL INFORMATION ON CON 53ONIE E. END USE S. AND PRODUCT DE SCRIPTION fuse seperste sAeer [n.57s rvi The end user produces heavy water for a nuclear power reactor in Argentina and has a contract to supply heavy water to Canada. g3 :h y [g gj gij

2. Tn...m.....a....*,..,=....i.,,,,..in.....-e,,.Tw.iO.C....,F....R..wi.........in.,..i,,,......i,....,......

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27 AuTwCRizf D OmCIAL ssON AT/y /

[ , Director Trade Administration f/t V /. . . . .9 V L 1i hDl2 > .D < 5 a is b= V > Jha %rd 1

g eg Honeyw211 Charles R. Hough HoneyweIIlac.

Suite 110

. Director i 1100 Connecticut Ave.,N.W.

Trade Administration Washington, D.C. 20GM 202 857 9809 202 857-9858 Fax December 23,1997 1

Mr. Ronald Hauber Director, Non-proliferation, Exports and Multilateral Relations Division Office ofInternational Programs U.S. Nuclear Regulatory Commission '

l One White Flint North Building 04E9  !

11555 Rockville Pike Rockville, MD 20852-2738

Subject:

Application to export Honeywell TPS process automation system to Argentina

Dear Mr. Hauber:

Please find enclosed an application for an export license to cover Honeywell TPS process automation equipment to be experted to a heavy water facility in Argentina which is operated t

by Empresa Neuquina de Servicios de Ingeneria. I have also enclosed a check in the amount of $8,100 to cover the processing fee.  ;

l This equipment is in addition to the equipment previously sent to Argentina as detailed in my l October 21,1997 letter to you. The equipment on this application does not provide any j higher level of control or technology than the equipment described in my earlier letter. This equipment will extend the automation system to additiorial parts of the plant.

l' I hope this application is in order and can be processed as quickly as possible. If any additional information or details are needed, please don't hesitate to phone me.

Sincerely, f

Charles R. Hough I

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APPLICANT: HONEYWELL, INC.

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UL'IIMATE CONSIGNEE: EMPRESA NEUQUINA DE SERVICIOS DE INGENIERA (*ENSI")

Ruta 237 KM 1278 Arroyito Neuquen, Argentina CONSIGNEE'S BUSINESS: PRODUCTION OF HEAVY WATER PRODUCT DESCRIPTION: Portions of process control system and interface to be integrated with existing Foxboro Process Contrcl System installed in late 70's or early 80's.

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l Messrs Iloneywell Inc.

14505 Commerce Way, Suite 500 Miami Lakes, FL 33016-1556 UNITED STATES OF AMERICA BUENOS AIRES, October 21' 1997.-

CERTIFICATE For its presentation to the expon control authorities of the Government of the United States of America,in accordance with the regulations stating that the granting of an export permit is subject to presentation of a certificate indicating end use, this Nuclear Regulatory Authority, as a part of the Government of the Argentine Repub'ic, hereby confirms that the equipments delivered by Honeywell Inc. and detailed in Annex I to this cenificate, are to be used in alarms and regulatory control in the process for the production of heavy water in Arroyito's Plant. The equipments are to be operated by the firm Empresa Neuquina de Servicios de Ingenieria S.E. (ENSI S.E.) at Ruta 237, Km.1278, Arroyito, Prosincia del Neuquen.

We declare that the equipments are to be used solely for peaceful and non explosive purposes, therefore not contributing to any military purpose.

We also declare that the equipments shall not be re-exported to third countries.

Asa HON s

ICENCl Do ^^""5'_ :. TU m

. ERNAL RELATIONS DfdSloN HEAD, NON PROUFERATION DEPARTMENT

- - . - _ - _ _ _ _ . - _ _ . - _ _ - - - - - - - _ - - - - _ _ _ - . - _ . - _ _ - - - - - _ - _ - - - - . _ _ - - - - - - - - _ _ - - - - - - - - _ _ _ ~ - - - - - - _ - - - - - - - - - - _ _ - . . - - - - - - - - - - - - - _ - - - - - - - - - - - - - _ _ - . . _ - - - . - - - - _ . . _ _ - _ - - - - _ . - _ - - _ _

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CONSOttDATED BILL OF MATERIAL - 3

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CUSTOMER lHoneywell LAD

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PROPOSAL NO. il71-07 96-359 I(PURCHASE ORDER NUMBER 990581, D-3304)

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. ._ . 1 ._ _ , $ . ._. . __ . . _ _ _ ..___.._. . .. . . . . .. __ _ . _ _ _ _ _ _ _ _ _ _ _ _ . . .

DESCRIPTION UNIT ISTP UNIT

_lTM l QTY _ {MODEL EXTEND ISTP EXTENDED STD DISC.

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T . . _ _ ! . ~~ _ _ _ ___ . . . . . .. . . . __ .

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_ 51195479-200 _ If0 LINK CABLE FOR THREE FILES 79 237 , 25 76 _ _ 68% _

2 _i 3_. _ Si20iS6 M m .___ Hm REDUNDANCY CABLE 100 306 300 32 , 96 _ _88%_

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_ 51303642400] ANNUNCIATOR ASSEMBLY FOR GUS 2142 168 1178 45%

1 _. ___.__f. . .__. 51304Q200 NER,g,R ME_FOR FAN) _

21 64 , _7, , , ,

, , 27 ,__,g _  ;

5, . ,5 j 5130811,1#J2 , ,LCN COAX CABLE SEi(2M PAIR) 118 590 38 189  ;

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, 68% _

Q e 2 51308112 003 'LCN COAX CABLE SET (3M PAlR) 150 300 48 96 68%

7 9 1 HlBASES1 GUS BASE SYS INTEL-TDC3000 CUSTOM '9000 81000 3600 65%

' ' _32400 1350 9450 45%

7, _'_8...-__.__.7 1 HI-CT.S_C00_-100 _ ._21-TO_U.C.H SCRN IST CRT G. US CONS.OL

. . .._743 .. . _ -. . 5198_ . .__

j 9 l, 9 } Hl-OSPMX1 DISPLAY MAX GUS (INTEL) DSPLY UNL ,

6000 54000 2400 21600 60% ,

10, { _9 1 , MC_. FAN 511 _

jCABINET FAN WFALARM ASSM. (240,VA, ,

_ ,750 6750 240 _,

2160 , , ,68% [

13 i 29 i MC-GAlH13 HLAl/ST! GINS FTA RED. V#COMPRN 5280 153120 1690 48998 68%

_ !2_ _ b. . #2 1_ ._ C-GAO_g2 i 3,0 yE_D) G,l/IS FTA (8PT) COMPR ,_ _2640 110880 ,845, _ 35482 68%

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_ 13 _ ! . 18 M

.__ _ C-GPRD02_._. PWR DIST. PANEL FOR GIAS.FTAs _ _

300 5400 ._96 __ _ __ 1726 68% t

..J 7S F3 EMC HmRoi HeMM BOARD SET . REDUNDmi 39=0 1117000 j2480.f- .__Juo - -~~68s-~~  ;

!._'42 i_.MC.HmSci _. _

HmM BOARD SET - SiNGtE 20500 2125 20500 6560 _. _ _ 6_560 _68%_

68%

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_17._ _ -. _ _ MC_-PAinos __ HiGe tEvEt.ANatOG INPUT PROCESSOR _ _ e9250 680, _ _ 28560 j S 82 MC.PAOx03 ,_ ANatpGpVTPUT PROCESSOR (8) 2250 9 500 720 _ . _ _30240 68 %  ;

O _ [ , _3 {MC.PDtx02 OtGITAL INPUT PROCESSOR (32) 1425 4275 456 1368 68% l MC-PDOXO2 1450 15950 464 5104 68%

20 _ 1 11 OtGITAL OUTPUT PROCESSOR (16) ,

i si  ;, 17 MC PLAM02 LLAI MULTIPLEXOR PROCESSOR (32) 2450 41650 784 13328 68 % f 22 l 4 MC.PSRB04 REDUNDANT POWER SYSTEM (20 AMP)W 6600 26400 2112 8448 68 % +

23 i 14 MC_TAlH52 HLAl(16) . STI (16) FTA . SCREW T 650 9100 208 2912 68% i e

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i 1370 1 4110 438 1315 2_4 . 3..___ MC.TDtD_52. -_QDIGlTAL INPUT 24 VDC F TA (32)- S

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25 11 1300 3 14300 416 4576

. _ . , MC-T_OO. R62.-. .s'DO 240VAC/125VDC RELAY FTA (16)-

68 %

ITO I QTY MODEL ' DESCRIPTION UNtf EXTEND ISTP UNIT ISTP EXTE_ND_E_D

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26 l 16 MC-T4.PA02 POWER ADAPTER FTA 350 5600 112 1792 68%

27 2 MP-DNCF02-400 4000

,DUAI. NODE CARD FILE CE . 8000 1280 _ _ 25d _68%(( _

28 ' 6 MP-F HSP10-100 SUPPORitNG MONtTOR mig KIT (LOWER 1350 8100 743 4455 45%

29 7 MP FLSPO4-100 PRIMARY MONtTOR MTG KIT (LOWER /UP 1350 9450 743 5198 45%

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__l MP-FLSW34100 TABLE TOP W/ PAPER 1 REED WORKSURF AC _ j.

800 7200 440 3960 45%

MP-MMCBS5-300 , , CONSOLE BASE SUPPORT MEDIUM (700m 1300 20800 715 11440 45%

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. _ _3 3 _ [ . _ 8 . - MP-MMEP54100] UPPER TIER AlfGNME_NT KtT (30 deg) , _

950 _ , ,57VO_ 523 ,_ _ 3135 , 45% _

34

{1] MP-NIMR73-100 . RED NETWORK t/F MOD EPNI K4LCN_SS 37500 37500 12000 12000 68 %

i CABINET DUAL ACCESS ( BW X BD X2H 4475 20850 1432 35_ _ _ [ 6 , MU-C_BDX01 8592, __ _ 68%

36 3 VERTICAL TRIM PANEL SET - FULL l'E 300 900

[ ~ l MU~ CTVF01 96 288 68 %

37 34 MU-KDPROS POWER D1ST ThA CABLE (24 VD (5M) '

55 1870 18 598 68%

38 39 I MU KFTA00 FTA t/O CABLE (LOCAL CABINET USE) 50 1950 16 624 68%

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39 76 MU-KFTA10 FTAl!O CABLE (10M) 75 5700 24 1824 58 40 14 MU.KGPR00 PWR CABLE IN CABtNET USE FOR G1/1 20 280 6 90 l' ,_ .

68% _

41 52 MU-KGPROS PWR CABLE GI/IS FTAs (5M) 25 1300 8 416 68 %

43 f 7 . MU.NKD000 ,U C N RG4 DROP CABLE PAIR (tN-C 85 595 27 190 68 %

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2 MU.NKD002 U C N RG-6 DROP CABLE PAIR (2M) 85 170 27 54 68%

' E4 1 '! ' MU-NKT025 U C N RG-11 TRUNK CABLE PAIR (20 200 200 64 64 68%

C5 I MU-NTAP02 U C N TAP PAIR Wr2 DROPS 190 190 61 1 61 68 %

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275

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_J 18 MU PFPX01 BLANK FILLER PLATE FOR 1/0 SLOT 40 720 13 230 68 %

C8 1 38 i MU-TMCN02 FTA MNTG CHANNEL. NARROW W/ SHIELD 300 11400 96 3648 68 %

4D 1 TP-C3100-100 GUS MODEL 3.1.STD OP CONS SYS 2 C 27300 27300 15015 15015 45% e f 5, 50 6 TP-C4100-100 GUS MODEL 4.1 DUAL CRT CONS SYS Z 33000 198000 18150 108900 45% V

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_ _$ _1_ _2 ' 3P b25__._200G_U_iMObEl_i5T'b UPT'R_OkSM-Sibb_SY_..

ihbb 1050 ___I.I.2_7U_ 22550 45%

CRAND TOTC1. LIST . .... . . . .

1316263 TOTAL. STQNDARD ISTP DISCOUNT . . ......... ... ... ... . . . . . . . . . . . . . . . . . . 509087 SPECIAL 15 % DISCOUNT AS ATTACHED LETTER . . . . . . . . . . . . . .

76363 TOTAL NET _ , __

432724

I . . United States Department of State  !

Weshington, D.C. 20520 POR December 17,1998 h.%E n..iSS ,

Mr. Carlton R. Stoiber IDE/3R l Director, International Programs )(CO /N I } O 7CCAMSS United States Nuclear Regulatory Commission Rockville, Maryland J

Dear Mr. Stoiber:

i I refer to the letter from your office dated January 9,1998 requesting the views of the Executive Branch as to whether issuance of an export license in accordance with the application hereinafter described meets the applicable criteria of the Atomic Energy Act of 1954, as amended by the Nuclear Non Proliferation Act of 1978:

NRC No. XCOM1107 - Application by Honeywell Inc. for authorization to export to Argentina a process control system, with a total value of $432,724, for th'e Arroyito Heavy Water Production Plant.

It is the judgment of the Executive Branch that the proposed export will not be inimical to the common defense and security of the United States, and is consistent with the provisions of the Atomic Energy Act of 1954, as amended by the Nuclear Non Proliferation Act of 1978.

As a party to the NPT, Argentina has committed itself to maintain IAEA safeguards on all of its peaceful nuclear activities and has pledged not to produce or otherwise acquire any ,

nuclear explosive device, therefore satisfying criteria (1) and (2) of Section 109b of the Atomic l Energy Act, as amended, for exports of nuclear components, substances and items.yThe remaining criterion, agreement not to retransfer any U.S. supplied component, substance or item without prior U.S. consent, has been satisfied by the receipt of written assurances De(ember 9, 1998 from the Government of Argentina.

On the basis of the foregoing, the Executive Branch recommends that the license be issued. -

l Sincerely, I (

MW RichardJ.K. tratford Director Office of Nuclear Energy Affairs

Enclosures:

assurance certificate and MFA transmittal note p . g7 g3 g1323 0661 d10 G3/J20 3 0HachnenE .1

3 United States Department of Sttte l . %hington. D.C. 20520 l l

BUREAU OF POLITICAL MILITARY AFFAIRS OFFICE OF NUCLEAR ENERGY AFFAIRS December 18,1998 TO: BETTY WRIGHT Division of Non-Proliferation, Exports and Multilateral Cooperation  !

l Office of International Programs United States Nuclear Regulatory Commission l PH: 301415 2342; FAX: 301415 2395 FROM: PM/NE - ROBIN DELABARRE

! PHONE: 647 3978 l FAX: 647 0775 l

SUBJECT:

XCOM1107- Honeywell Application to Export to Argenina Process Control Equipment for Arroyito Heavy Water Plant l

Transmitted as discussed is a better translation (done by Dept of State Language Services) of the Argentine Foreign Ministry note transmitting the GOA assurances for the subject case.

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l mwr_weereseruserwes-r:me-xsrmesmwemmw _mvf=4em.wwrm j

U.d. Department of State 1 Office of Language Services Trenslating Divisin l

l LS No.1290501 HKE/JPM Spanish I

i Ministry of Foreign Relations, International Trade, and Worship No. DIGAN 1447/98 The Ministry of Foreign Relations,Intemational Trade, and Worship, Office of Intemational Security and Nuclear and Space Affairs, presents its compliment. to the Embassy of the United States of America and is pleased to enclose a note from the Executive Secretariat of the National Control Commission for Sensitive Exports and War Materiel and the attached copy oithe certificate ofimportation issued to the Empresa Neuguina de Ingenierta Sociedad del 1

Estado (ENSI, S.E.) [Neuquina Engineering, Govemment Corporation] upon request by '

Honeywell, Inc., to authorize importation of a control room console with six Gus Z double-1 monitor stations, one Gus Z single-monitor station, and two Gus Desktop stations; three high performance process managers (HPM), and various supplies for this equipment.

1 The above-mentioned certificate ofimportation reflects the input of the Ministries of Defense; Foreign Relations, International Tr'ade, and Worship; and Economy, Public Works and Services, as members of the National Control Conunission for Sensitive Exports and War Materiel.

Embassy of the United States of America, i

Scientific Section, l Attn: Mr. D. Covington.

1 1 The Ministrf of Foreign Relations,Intemational Trade, and Worship, Office of i i

' l Intemational Security and Nuclear and Space Affairs, reiterates to the Embassy of the United l

States of America the assurances ofits most distinguished consideration.

Buenos Aires, December 9,1998

[ Initialed)

[ Ministry stamp) l i

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l Mirist:rio de Relacionzs Exteriores, \

, C omercio Intemacionaly Culto l l

(.etra:Di Nro:44 p 9 f

[ EL MINISTERIO DE RELACIONES EXTERIORES, .

COMERCIO INTERNACIONAL Y CULTO -Direcci6n de Seguridad Internacional, Asuntos Nucleares y Espaciales- presenta sus atentos 4

satodos a la EMBAJADA DE LOS ESTADOS UNIDOS DE AM$RICA, y tiene el

.agrado de remitirle nota de la Secretaria Ejecutiva de la Comisi6n Nacional de Control de Exportaciones Sensitivas y Material B61ico adjuntando copia del

Certificado de importaci6n que le fuera emitido a la Empresa Neuquina de i Ingenieria Sociedad del Estado (ENSI S.E.) a solicitud de la Empresa l HONEYWELL INC, para autorizar la importaci6n de una consola de sala de i- control con seis estaciones Gus 2 de monitor doble, una estaci6n Gus Z j monitor simple y dos estaciones Gus Desktop; tres High Perfomance Process Manager (HPM) y repuestos varios para dichos productos.

Dicho Certificado de importaci6n conforma la intervenci6n de los Ministerios de Defensa, Relaciones Exteriores, Comercio Internacional y Culto y de Economia y Obras y Servicios P65ficos como integrantes de la i

Comisi6n Nacional de Control de Egortaciones Sensitivas y Material B6lico.

l EL MINISTERIO DE RELACIONES EXTERIORES, COMERCIO INTERNACIONAL Y CULTO, -Direcci6n de Seguridad Internacional, Asuntos Nucleares y Espaciales- reitera a la EMBAJADA DE ESTADOS UNIDOS DE AMERICA. las seguridades de su consideraci6n mis distinguida.-

. Aires,9 de diciembre de 1903

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, INFORMAL TRANSLATION

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The Ministry of Foreign Relations, International Commerce and Religion, Directorate of International Security, Nuclear and Space Affairs, presents its compliments to the Embassy of l

the United States of America and has the honor to transmit the note from the Executive l Secretary of the National Commission for Control of Sensitive Exports and Mur.itions together with copies of the Import Certificate issued by Neuquin Engineering Comps.ny S.E. (ENSI S.E.), regarding the application by the company Honeywell Inc. to authorize the import into Argentina kof a control room console with six Gus 2 workstations with double monitors, a Gus Z workstation with single monitor, two Gus desktop workstations, three High Performance Process Manager (HPM) units and replacement parts for the referenced equipment.

The referenced Import Certificate was issued by the National Commission with the concurrence of the Ministries of Defense, Foreign Affairs, International Commerce and Religion, and Economy, Labor and Public Works.

The Ministry of Foreign Relations, International Commerce and Religion, Directorate of International Security Affairs, Nuclear and Space Affairs avails itself of this opportunity to renew to the Embassy of the United States of America the assurances of its highest consideration.

Buenos Aires, 9 December 1998 SEAL (initials)

Embassy of the Unites States of America Office of the Counselor for Scientific Affairs Attn: Mr. D. Covington

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Minist5rio de Rsl:cion2s Ext:riores, Com:rcio Int:rn:cionsty Culto j

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l EL MINISTERIO DE RELACIONES. EXTERIORES, .

COMERCIO INTERNACIONAL Y CULTO -Direcci6n de Seguridad  :

internacional, Asuntos Nucleares y Espaciales- presenta sus atentos l saludos a la EMBAJADA DE LOS ESTADOS UNIDOS DE AMERICA, y tiene el i agrado de remitirle nota de la Secretaria Ejecutiva de la Comisi6n Nacional de i

.' Control de Exportaciones Sensitivas y Material B61ico adjuntando copia del l Certificado de importaci6n que le fuera emitido a la Empresa Neuquina de  !

Ingenieria Sociedad del Estado (ENSI S.E.) a solicitud de la Empresa '

- HONEYWELL INC, para autorizar la importaci6n de una consola de sala de i

control con seis estaciones Gus Z de monitor doble, una estaci6n Gus Z i monitor simple y dos estaciones Gus Desktop; tres High Perfomance Process I Manager (HPM) y repuestos varios para dichos productos. i i Dicho Certificado de importaci6n conforma la intervenci6n de los Ministerios de Defensa, Relaciones Exteriores, Comercio Internacional y Culto y de Economia y Obras'y Servicios P blicos, como Integrantes de la

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Comisi6n Nacional de Control de Exportaciones Sensitivas y Material B6lico. j EL MINISTERIO DE RELACIONES EXTERIORES, I COMERCIO INTERNACIONAL Y CULTO, -Direccl6n de Seguridad i Internacional, Asuntos Nucleares y Espaciales- reitera a la EMBAJADA DE i ESTADOS UNIDOS DE AMsRICA, las seguridades de su consideraci6n mas i distinguida.-

.i jos Aires,9 de diciembre de 1998 t-h

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- INEORMACION' COMPLEMENTARIA - ADD 1710NAL INFORMATION: LOS YATERZA--

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LES TDAN U'11LIZ760f, LP.5TCXRT.NIF. [ATW CL CCNTACL DE AL.WAS Y VARIA-BLES REGUIM oRIAS DEL P %CE.".O DE PRODUCCION DE AGUA PESALA.---------

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.' NEl abajo firmante manir>erta que is importacion we destina a la nerc blica AtEcubnt, clejaiids erydma 1 tecatancia que los prrsductos descriptos en el hem 3 no serin transferidos ni t+hpodadot a btro destmo,  !

i bin actminci6n expresa de hs suioridades del pais de origen, comprototiisndete & hetificat a li

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- si se producen Nacional cambios ende los Control de Exportacianes hechos o intenciones aqui expuestas. sensitivas Asimismo s6yintap Material Bilico de la Re@%T:i i .l .! P los procedimientos de verifienci6n de entrep de los productos ingresades a li ReNblict Argentma, l i  ;  !. E

/ pemitiendo ja realiuei6n de las inrpecciones requeridas por las autoridades a

! .I 1 recep66n. parn verificar las ins'ateciones y posterior uno de acuerdo con los inttmndY de 11 edtoriid6i6dM

,, de exportacion para los pn.ducios y tecnologins importadas. t 9 l l: . . . . {

Y The undersigned declares that the impnrt is to be destined to the Argentine Republic, dhder the states $ent f that the gonds deperibed in the Dem ?,, will not be trsnsferred nor tv.xpcited to LWh6f destinatioh,

8. %ithout explicit authoriutice of the country of origin. He commits himself to notify th5 'Cotntnisiotrfot-I the Control of Sensitive and War Material Exports

• about any changes in the facts of (Etetsid set f6rth

' berein. In the case of goods already within the tenitory of Argentina, the tBderQflui Will Ec6tTfthu i

codcerning verification pm%s allowing the inspection that the Arvectice tulhoiilies inight iidtsire i t with the participation of an official of the exporting country. The veri 6 cation could b5 beld b&fole the

, granting of the beense or after the entrance of the goods. Both the icstallations and final bse will be due to

: verification under the 1erms of the export nuthoriution for imported goods and technologies

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W fc m Wa d a br/cr57 Y h r cmoerrs os a mtseeea ce u a ARN C05/97.-

Messrs HoneywellInc.

14505 Commerce Way, Suite 500 Miami Lakes, FL 33016-1556 UNITED STATES OF AMERICA l

BUENOS AIRES, October 21' 1997.- l l l CERTIFICATE I i

For its presentation to the expon control authorities of the Government of the United States of America, in accordance with the regulations stating that the granting of an expon permit is subject to presentation of a cenificate indicating end use, this Nuclear l

Regulatory Authority, as a pan of the Government of the Argentine Republic, hereby l

confums that the equipments delivered by Honeywell Inc. and detailed in Annex I to this cenificate, are to be used in alarms and regulatory control in the process for the production of heavy water in Arroyito's Plant. The equipments are to be operated by the firm Empresa

Neuquina de Servicios de Ingenieria S.E. (ENSI S.E.) at Ruta 237, Km.1278, Arro>ito,

! Provincia del Neuqu6n.

We declare that the equipments are to be used solely for peaceful and non explosive purposes, therefore not contributing to any military pugose.

We also declare that the equipments shall not be re-exponed to third countries.

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, EMAL RELATONS DMSON

' MEAD,M>N PP.OUFEAATON DEPARTMENT 1

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Ministry ofDefanso Buenos Aires September 16,1998 EMPRESA NEUQUINA DE SERVICIOS DE INGENIERIA SOCIEDAD DEL ESTADO (ENSI) S.E.

To the President '

Dear Sir,

I am writing to you in cosmection with File CONCESYMB N' MS 219, by which this Company requests authorization to import, from the United States of Arneica, one (1) contre! room console with six (6) double monitor Gus Z stations, one (1) sing!c monitor Gus Z station and two (2) Gus Desktop stations, three (3) High Performance Process Manager (HPM) and spare parts for the said products We hueby infonn you that the National Commission for control of Sensitive and War Materials Exports (Comisi6n Nacional de control de Exporta:iones sensitivas y Material Bdlico) has duly a chorized the business transaction according to the tenns of the Irnport Certificate in Exhibit 1, the original document being hereto attac.hed in four (4) sheett Dr. Gladys Mirta Rield General Directorate ofPlanning

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• SESOR DIRECIUR:

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Tengo el agrada de diri tirme a uswA. con relaci6n al Expediente CONCF.SYMB N MS 219. por el cual la EMPRESA NI:UQUINA DE SERVICIOS t DE INGENIERIA SOCIEDAD DEL ESTADO (ENSI S.I.L) solicita autorizacion p importar una (1) consola de sala de control con sei.* 1,6) estaciones Gus 2 de debic, tras (1) estacian Gus 7 de monitor Simple y dos (2) esaciones Gu= Deskinp; (3) Righ Perfanninw Pr<wu M;mager OIPM) y repinn ks varios para diche pr:xluctos desde ESTADOS UNTX)S DE AMERICA.

Al rwpecto, y atento a lo solici:nde psr la Embajada de ins Estados Unidos de Au> erica, agna Nota N' 1393141m DIG AN del 20 de noviembre de 199 remite copia del correspondiente Certificado de Impcrucion, emitido el 15 de setiembre de 1998, y h cual fuera cursada con anterioridad, per Note C.1. y P. N* 2919 del 17 de-setiembre de 199R, en custrn (4) fnjas.

Sedua. a usted con atenta consideraci6n.

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, AL SEROR DIRECf0R DE SEGURIDAD INTERNACIONAL, ASUNTOS NUC1 TARES Y ESPACI AlI,S DEL MINIS'IERio DE RFI,AClONES EXTERIOTd',S, COMERCIO INTERNACION A) Y CIR.TO Minisuo D. Pedro Vif.lAGRA del,GADO L. l O .

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• IMPORT CERTIFICkTE.

ITEM 3 GOODS: DETATT in IN ITEMS 1,2 AND 3 OF PRODUCT DESCRIPHON.

ITEMS la 2, AND 3: 9032.89.39 ,

l DFACRIPDON OF GOODS: TITM 1: ONE (1) CONDtOL ROOM CONSOLE WD l DOUBLE MohTTOR GUS Z STATIONS, ONE (3) SINGLE MONITOR GUS Z STATION i

AND TWO (2) GUS DESKTOP STATIONS. ITEM 2: THREE (3) HIGH PERFORMANCE PROCESS MANAGER (HPM). ITEM 3: SPARI PARTS FOR TIEMS 1 AND 2.

ADDITIONAL INFORMATION: MATERIALS WILL BE BASICAl1Y USED FOR CONTROL OF ALARMS AND REGULATORY VARIABLES OF THE HEAVY WATER PRODUCDON PROCESS.

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