ML20203Q051
| ML20203Q051 | |
| Person / Time | |
|---|---|
| Issue date: | 04/11/1986 |
| From: | Stello V NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| To: | Palladino NRC COMMISSION (OCM) |
| Shared Package | |
| ML20203Q049 | List: |
| References | |
| NUDOCS 8605080580 | |
| Download: ML20203Q051 (3) | |
Text
UNITED STA
[
j NUCLEAR REGULATOR
{gg WASHINGTON, D. C. 20555 j
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APR 111986 MEMORANDUM FOR:
Chainnan Palladino FROM:
Victor Stello, Jr.
Executive Director for Operations
SUBJECT:
BACKGROUND ON NRC REVIEW 0F THE PHILIPPINE REACTOR EXPORT Enclosed, in response to a request from a member of your staff, is some background information which you may draw on if you are asked about NRC's role in regard to allegations concerning Westinghouse's business dealings in the sale of a power reactor to the Philippines in the late 1970's.
ictor S[ello, t
r.
Executive Director for Operations
Enclosure:
As stated cc: Comissioner Roberts Commissioner Asselstine Comissioner Bernthal Comissioner Zech SECY OGC CPE I
8605000580 860422 PDR COMMS NRCC CORRESPONDENCE PDR
t Background on NRC Review of the Philippine Reactor Export The export license application for the Philippine reactor (XR-120) was submitted by Westinghouse Corp. on November 18, 1976.
In its review of this license, the NRC followed stardard export licensing procedures developed in cooperation with relevant Executive Branch agencies.
These procedures accorded with the statutory requirements of the Atomic Energy Act (as originally formalized in the Executive Order 11902 and subsequently amended by
{
the NNPA of 1978),
i On December 12, 1977 the Executive Branch recommended issuance of the license, I
but retracted that position on January 25, 1978 pending review of certain allegations involving site suitability and contractual irregularities. The 4
issue of contractual irregularities was also among the several factors raised by individuals who subsequently intervened with the Commission to oppose this export.
(However, the primary focus of the intervention reauests, and subsequent court challenge of the Commission's export licensing decision were healthandsafetyissues.) Representative Clarence D. Long, Chairman of the House Appropriations Committee, also wrote to NRC Chairman Joseph Hendrie on January 4, 1978 to inform him that he opposed the export.
Rep. Long noted.
1 among other issues, the possible conflict of interest situation and financial irregularities arising from the relationship between the Marcos family, Asia i
Industries (which represented Westinghouse Corp. in the Philippines, and was headed up by Herminio Disini--a long-term Marcos friend and in-law of Mrs.
Marcos) and Westinghouse Corp. Rep. Long alluded to millions of dollars allegedly paid by Westinghouse to Disini to land the reactor contract, and other contractual arrangements involving Disini and Westinghouse.
i i
s With regard to the factors appropriate for consideration by NRC in making its export licensing decisions, the Commission is required by statute to consider the impact the proposed export would have on:
- The US public Health and Safety (including US and global enmnens environmental considerations), and The US Common Defense and Security Under these broad criteria, the NNPA of 1978 also established several additional export licensing criteria related to nonproliferation considerations.
None of the export licensing criteria refer to corruption as a matter requiring consideration. Accordingly, in the Philippine case, matters of financial irregularities, graft and corruption, etc. were considered by the Commission to be outside NRC's direct purview, and therefor,e not be considered directly Juring its deliberations. To the degree these issues required consideration in the export licensing process, they were under the purview of the State and Justice Departments, which prepared and advised the NRC of the Executive Branch's overall position on the export. Favorable Executive Branch views on the Philippine reactor export were forwarded to NRC on September 28, 1979 and made no reference to the corruption issue. The Ccmmission is also not aware of the extent to which corruption related-matters were considered by the Executive Branch in making its judgment on the case.
The Commission subsequently issued the reactor export license on May 6,1980.
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