ML20207H412

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Partially Withheld Draft Commission Paper Re Info Requested at 850201 Commission Meeting on Us Citizens at Koeberg Nuclear Power Plant in South Africa & Questions & Answers That May Be Useful in Upcoming Congressional Hearings
ML20207H412
Person / Time
Issue date: 02/26/1985
From: Dircks W
NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:
Shared Package
ML20207H410 List:
References
FOIA-87-3 SECY-85-069, SECY-85-69, NUDOCS 8808260470
Download: ML20207H412 (6)


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. cop!::. S:ns Febr_uary 26,1985' SECV-85-69 For: The Commission From: William J. Dircks Executive Director for Operations '

(U)

Subject:

U.S. CITIZENS AT THE K0EBERG NUCLEAR POWER PLANT IN SOUTH AFRICA (U)

Purpose:

' To (1) provide the Commission infomation requested at a February 1 Comission meeting on the above subject, and (2) forward for !.ommission review questions and answers that may be of use in upcoming Congressional hearings.

(U)

Background:

10 CFR Part 810, which implements Section 57.b of the Atomic Energy Act of 1954, as amended, requires that certain l assistance to foreign nuclear programs must be authorized by l the Secretary of Energy unless specifically authorized under an agreement for cooperation. Ir, February 1983, the Departmept of Energy issued an amended Part 810 that, among other things, requires case-by-case review of all such assistance to non-nuclear weapons states not parties to the NPT, except those accepting fullscope safeguards or for which the Treaty of Tlatelolco is currently in force. (Such reviews are also requiVed for Iran, Itiq, Libya, Syria, and Afghanistan.) Prior to that time, specific authorization for power reactor-related assistance to South Africa was not

e required. The final rule excluded frein coverage any activities prior to September 17, 1982.

(U) The Comission will recall that in September 1983 the Executive Branch authorized activities involving assistance to the safeguarded Koeberg Nuclear Power Plant in South Africa. Action on these long-pending requests had been awaiting development of a comprehensive policy regarding nuclear exports to South Africa. However, since that time only one additional activity covered by Part 810, the extension of a previously existing contract, has been Multiple Sources '

CONTACT:

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The Comission 2 authorized by DOE (in April 1984). Several additional Part 810 authorization requests for Koeberg continue to be held in an indefinite pending status because DOE has been unable to obtain Departinent of State concurrence.

(S) Discussion:

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(U) However, the staff's inquiries have disclosed that in l September 1984, NRC officials were made aware of possible South African recruitment efforts in the U.S. when Region 2 was requested orally by the South African utility E5COM to verify if certain individuals were NRC-licensed reactor operators. With concurrence of IP staff, Region 2 responded I to ESCOM on September 20, 1984, quoting data from the public i record (Appendix A). Later, on October 26, 1984, during a visit to the Catawba nuclear power plant in Region 2, Chairman Palladino also recalls being told that Duke Power Company was losing people to the South African nuclear program (See Appendix B for an extract from the transcript of the February 1 Comission treetirg at which t.he South African matters were discussed). ll' l ll ll l\ l l

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i The Commission 5 r l (C) ter onn ng onin on, e sta , on ebruary , e informed DOE that NRC had "no objection" to the State Department's reconsnendation that the then-pending and ! future Part 810 applications by American individuals to work j at Koeberg be denied. (C) l NRC's Current Involvement (U) At the present time, NRC's involvement in this matter is limited to the review of the Part 810 cases at hand. , However, in an effort to prevent future inadvertent violations of Part 810, the staff has prepared, ' in cooperation with DOE, a notice to infonn all NRC reactor  ; licensees, licensed reactor operators and appropriate NRC , l officials of the Part 810 requirements (Appendix D). (U) As a separate but related mctter, the South African  ! Atomic Energy Corporation has offer sition in its l anch to an NRC employee li l

                                                                   ! While NRC has not been                                        rectly invo            the arrange       ; for this employment, the staff has obtained a                                            !

copy (Appendix E) of a letter from 00E to the NRC employee i in which he is infonned in an advisory opinion that his  ; proposed employment is not subject to the provisions of Part , 810. l (U) Finally, the staff has learned that one current NRC employee I (a regional inspector) and a recent applicant for a position at NRC were fonnerly employed by ESCOM in South Africa. The NRC inspector was employed under contracts which apparently predate the February 1983 amendments to 10 CFR Part 810, but we are not sure of the situation with regard to the recent  ; applicant, whose work for ESCOM was between 1981 and 1984.  ! Copies of the correspondence in NRC files regarding these ' two individuals are attached at Appendix F. The staff plans to infonn DOE of these two individuals and will cooperate in any follow-up activities that DOE might request.  ; l I

                                        /

The Commission 6 Reonest from Representative Markey (U) On January 25, Representative Markey wrote to Chairman Palladino requesting infonnation on NRC's involvement in and knowledge of these matters. The staff has forwarded separately a proposed response to Representative Markey. Q's and A's _ (U) Attached at Appendix G are draft Q's and A's on this South Africa matter which the Comission may wish to use as appropriate during forthcoming Congressional hearings.

                                                                                                     ,    ..,3   .  .              . . -

(C)

Conclusion:

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(U) The responsible official at DOE has also agreed to brief the Commission on this matter should the Connission so request. N 45 William J. Dircks N. Executive Director for Operations Appendices: A. 9/20/84RegionII/ESCOM(U)  ; B. Unclassified Portion of February ' Comission Meeting (U) C. 2/1/85SNECMinutes(C) D. Notice to NRC Reactor Licensees onPart810(U) E. 12/20/84 Thorne/Norris(U) F. Correspondence re NRC employees DISTRIBUTION: previously emplo c issioners G. Q'sandA's(U)yedbyESCOM(U) gpg EDO ELD REGIONAL OFFICES SECY

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