ML20207H440

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Partially Withheld Rept of EDO Informal Inquiry Conducted to Obtain Info & Documents Needed to Respond to Congressman Markey 850125 & 0301 Ltrs Re Unauthorized Employment by Us Citizens in Nuclear Power Program of South Africa
ML20207H440
Person / Time
Issue date: 03/08/1985
From: Dircks W
NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To: Palladino
NRC COMMISSION (OCM)
Shared Package
ML20207H410 List:
References
FOIA-87-3 NUDOCS 8808260509
Download: ML20207H440 (5)


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I NUCLEAR REGULATORY COMMISSION W ASHING TON. D. C. 20555 MAR 0 81985

,Infwm3 tion la this teccrd wn deletej n accordance w,tt the freccom of Information Act, exemptions.

T0lA_O-L 1:EliORAMDUM FOR:

Chairman Palladino FROM:

William J. Dircks Executive Director for Operations (U)

SUBJECT:

EDO STAFF INQUIRY INTO MATTERS RAISED IN LETTERS FROM CONGRESSMAN MARKEY ON SOUTH AFRICA (U) This is a report of the infomal inquiry made by the EDO staf f in erder to obtain information and documents needed to respond to Congressman Markey's letters to you of January 25 and March 1,1985 regarding possible unauthorized employment by U.S. citizens in South Africa's nuclear power program (Exhibit 1).

(U) Congressman Markey requested by "imediate" response, the following:

"... complete infomation about your knowledge or that of any other NRC officials relating to activities by U.S. citizens.in South Africa which are subject to section 57(b).

Your response should specify when both you or any other official of the Comission first became aware of the situation, how you were made aware of the situation and what actions were taken in response and when."

(U)

... copies, classified or otherwise, of all of the following:

1) all cables, comunications, and documents or any other exchanges between the NRC and the U.S. Embassy in South Africa or between the U.S. Government and the Government of South Africa or ESCOM regarding U.S. citizens providing technical assistance to ESCOM or to any other part of the nuclear power program in South Africa; 2) all.

citi, letters, documents or other comunications between NRC ano U.S.

tens regarding activities in South Africa; and 3) all documents, records, notes,. letters, correspondence, memoranda, telephone records and logs.

briefing and pnsition papers, or any other document regarding comunications with'in or between the NRC, the Department of State, the Justice Department, the Tennessee Valley Authority, the Department of Energy, the White House or any other agency on this issue.

In the case of any relevant, classified documents in your possession which were originated by another agency, j

... provide a full identification of those. documents to pemit them to be requested from the originator."

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(U)

In order to obtain an early response to this request, I asked that the Director and Deputy Director of the Office of International Programs (IP) call or talk directly with the directors of the NRC staff offices and regional offices that might possibly have such knowledge or documents and to report any. relevant information, including any indications of South African efforts to recruit U.S. nationals, however inconclusive such knowledge nr documents might be.

(U) The Director, IP, called the following staff members:

Director, Office of Nuclear Reactor Regulation (NRR)

Director, Office of Nuclear Material Safety and Safeguards (NMSS)

Director,OfficeofAdministration(ADM)

Direcor, Division of Organization and Personnel, ADM (U) TheDeputyDirector,IP,calledthefoilowingNRCofficials:

Director, Office of Inspection and Enforcement Deputy Executive Director for Regional Operations and Generic Requirments Deputy Director (Acting Director), Office of Nuclear Regulatory Research; Regional Administrator, Region I (Philadelphia, Pa.)

Deputy Regional Administrator, former (through January 1985) Regional Administrator, and Director, Division of Reactor Safety, Region II (Atlanta,Ga.)

Regional Administrator, Region !!! (Chicago, Ill.)

Deputy Regional Administrator, Region !Y (Dallas, Tex.) (who also responded for the new regional director, who just arrived in Region IV)

Regional Administrator, Region V (San Francisco, Cal.)

(U) The following are the results of this infomal inquiry:

(U) 1.

Some members of the NPC Office of International Programs and of NRC's Region 11 in Atlanta became aware in September 1084 that U.S. nationals were being recruited to work in South Africa's nuclear power program.

During September, a representative of the South African utility ESCOM, who had formerly worked for a U.S. nuclear utility, asked a Region 11 staff

, member if certain individuals were licensed NRC operators, and the Region answered, with headquarters staff concurrence, identifying those who were, since this is public information.

As the staff note attached to the response to ESCOM, indicates (Exhibit 2), this verbal inquiry was assumed by'the NRC staff processing the request to be related to South African nuclear recruiting activities in the U.S.; there were no indications at that time of any illegal activities or that necessary authorizations had not been obtained.

In this connection, there had been at least one report inthepress(inSeptember1983) indicating MOMBmAt' s

Chaiman Palladino 3

that ESCOM was seeking reactor operations personnel internationally other than in France (Exhibit 3).

While the U.S. was not specifically identified in this article as a source of such personnel, the U.S. is the only likely country where a significant number of qualified operators of this U.S.-designed reactor could be found.

(U) 2.

Chainnan Palladino recalls that, during a visit to the Catawba (South Carolina) nuclear plant nn October 26, 1984, he was told that Duke Power Company was losing people to the South African nuclear pro he recalls not being told that this activity was illegal. gram, although (See Exhibit 4 a portion of a transcript of the February 1,1985 Cemission meeting on nuclear export matters at which the South Africen hiring problem was discussed.) He says that the possible legal ramifications did not occur to him until he saw the. press accounts of the employment of U.S.

citizens in South Africa.

(The earliest of several press reports on this matter found by the staff was on January 20, 1985 in the Washington Post.)

(Exhibit 5),

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(U) 4 Through information provided by the Executive Branch, we have learned since then of the names of some U.S. citizens wno may be working in South Africa without DOE authorization.

In this report we have not included these names or other data from infortnation provided by the Executive Branch as this would require approval of the originating agencies under the "third agency rule."

(U) 5... The Department of Energy infortned us recently that in November of last

' year an NRC Region !! employee requested an advisory opinion regarding any

_ Nart 810 requirements with respect to providing regulatory assistance to South Africa's Atcmic Energy Corporation and was advised by) DO proposed activities were not subject to Part 810 (Exhibit 6.

(U) 6.

The staff has also learned of two other situations insolving Americans who worked for ESCOM prior to being employed, or seeking employment,,<itn NRC.

One of these, a recent NRC job applicant, worked in South Africa as a reactor simulator instructor / consultant both before and af ter the February 1983 amendments to DOE's Part 810 regulations went into effect, and NRC is

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Chaiman Palladino 4

not aware whether any of his activities were subject to subsection 57b of the Atomic Energy Act Exhibit 7).

been employed as a reg (onal inspector for NRC after wo 4

i Africa (from December 1980 to December 1983) as a consulta simulator instructor, under contracts apparently predating the new Part 810 specific authorization requirement (Exhibit 8).

the staff also heard unconfimed reports that two other American nuclea specialists (one a fomer NRC empicyte) have been in South Africa since the Part 810 restriction took effect.

situations will be passed to DOE for their review.Information on all of the ab (g) 7.

Several of the attached docurrents which pertain to the cases described above include names and personal information on individuals who may be t subject of investigation and who have not been informed about this or given the opportunity to give their side of the story.

These will be turned over to 00E, and NRC will cooperate fully with DOE in any follow-up they request.

This information should not be made public until further advice from NRC, pending the outcome of the DOE review.

(y) 8.

On February 1, DOE requested the Comission's coments on 12 requests, under 10 CFR Part 810, for authorization for U.S. citizens to work in South Africa.

On February 8, the Comission in accordance with its statutory review responsibilities, provided its position to the Executive Branch during a meeting of the interagency Subgroup on Nuclear Export Control.

These were the first Part 810 requests for South Africa to be reviewed by the Comission since we were consulted on several requests, which were approved by DOE, in September of 1983 and February 1984, and l

which allowed for certain ongoing U.S. comercial support to Koeberg.

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I (U) The staff found no indication that NRC has any infomation, other than as described above, that would be responsive to Congressnan Parkey's request.

W MiesI, Erett William J. Dircks Executive Director for Operations 1

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EXHIBITS 1.

Le'aters t' rom Congreseman Markey on South Africa dtd 1/25/85 and 3/1/85.

2.

NRC Region !! letter to ESCOM, dtd 9/20/84 with IP staff note dtd 9/26/84.

3.

Nucleonics Week article on South Africa, dtd 9/1/83.

4.

Portion of transcript of 2/1/85 Commission meeting.

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Pre'ss reports on US citizens working in South Africa, 1/20 1/29/85.

6.

Letter from DOE with advisory opinion, 12/10/04 7.

Application for job at NRC, dtd 2/2/85.

8.

Documents on NRC staff employee, 1952-83.

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January 25, 1985 The Honorable Hunzio Palladino Chairman

!!uclear Regulatory Commission Washington, D.C.

20555 Dear Chairman Falladino Information has come to my attention that a number of 0.5..

citizens formerly employed as nuclear reactor operators by the l

Tennessee Valley Authority and by other private utilities may nov be or may previously have been employed in similiar capacities in l

South Africa by the Electricity Supply Commission of South Africa (ESCod).

I understand that these indivi. duals do not have the specific authorization of the Secretary of Energy required to engage legally in these activities.

If true, this raises serious questions as to whether they are in violstion of Section 57(b) of the Atomic Energy Act of 1954 as amended.

As you know, a violation of Section 57 of that Act is a crime subject to imprisonment of up tc 10 years or a fine of up to 510,000 or both.

I am concerned that of ficials of the United States government may have known of the activities of these U.S. citizens in South Africa for as long as a year but failed to take action to correct this situation.

I request that you provide me with complete inf ormation about your knowledge of or that of any other officials of the Nuclear Regulatory COccission relating to activities by U.S. citizens in South 4 Africa which are subject to Section 57 (b)'.

Please specify when both you or any other official of the Commission f.rst became.

aware of the situation, how you were made aware of the situation and what actions were taken in response and when.

In addition. please provide copies, classified or otherwise, of all the following:

1) all cables, communications, and documents or any other exchanges between the NRC and the U.S.

Embassy in South Af rica or betwee'n the United States government and the government of South Af rica regarding U.S.

citizens 3

providing technical assistance to ESCOM or to any other part of 1

documents or other communications between the Nuclear Regulator)p. h the nuclear power program in South Af rica;

2) all letters, U

Cocaission and U.S. citizens regarding activities in south Africa SUMIO Y/#

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and 3) all documents, records, notes, le t t e r s, cor r esponde nce,

memoranda, telephone records and logs,- briefing and position papers, or any other document regarding com.ur.ications within or be tw e e r. th e Nucl e a r F.e gul a tory Comn.is sior., the Department of State, the Justice Department, the Tennessee Valley Authcrity, the Department of Energy, or the White House on this issue.

Because of the serious nature of this matter your immediate response to this request is desired.

Sincerely, f

EdwardJ.Markey!

Member of Cc.. ress S

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2G5 March 1, 1985 The Honorable Nunzio Palladino Chairman Nuclear Regulatory Commission Washington, D.C.

20555 Dear Chairman Palladinot on January 25, 1985 I wrote to you concerning information

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that had come to my attention that a number of U.S. citizens formerly employed as nuclear reactor operators by the Tennessee Valley Authority and by some private utilities were now or had previously been employed in similiar capacities in South Africa by the Electricity Supply Commission of South Af rica' (ESCOM).

I also stated that it was my understanding that these individuals did not have the specific authorization of the Secretary of Energy required to engage legally in these activities and that they were potentially in violation of Section 57(b) of the Atomic Energy Act of 1954 as amended.

Since then I have become Chairr.n of the House Subcommittee on Energy Conserv'ation and Powere v.Jue jurisdiction includes oversight over all laws, programs, Lnd government activities t

affecting nuclear energy.

It is in this e pacity that I will continue ey inquiry into this matter using the full authority of l

the Subcommittee's jurisdiction.

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l Accordingly, I repeat my request that you provide me with

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l complete inf ormation abcut your knowledge or that of any other l

officials of the Nuclear Regulatory Commission relating to l

activities by U.S. citizens in South Africa who are subject t o'

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Sec':: inn 57 (b).

Your response should specify when both you or any other official of the Commission first became aware of the situation, how you were made aware of the situation and what actions were taken in response and when.

In addition, please provide copies, classified or otherwise, of all the following:

1) all cables, communications, and documents or any other exchanges between the NRC and the U.S.

Embassy in South Af rica or between the United States government and the government of South Africa or ESCOM regarding U.S.

citizens providing technical assistance to ESCOM or to any other MS !$ 0 $$$ Qf

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M. : I t. : :.0 Fage 2 part of the nuclear power program in South Africa;

2) all letters, documents or other communications between the Nuclear Regulatory Commission and U.S.

citizens regarding act(vities in South Africa; and 3) all documents, records, notes, letters, correspondence, memoranda, telephone records and logs, briefing and position papers, or any other document regarding communications wit.hin or between the Nuclear Regulatory Commission, the Department of State, the Justice Department, the Tennessee Valley Authority, the Department of Energy, the White House, or any other agency on this issue.

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any relevant, classified documents in your possession w..en were originated by another agency, please provide a fu.11 identification of those documents to permit them to be requested f rom the originator.

I note that more than a month has now passed since my initial request, yet I have not received a restanse to my letter of January 25, 1985. I have received no satisfactory explanation for your delay.

I request that this letter be answered by March 8, 1985 and that you will forward voluntarily all the documents I have r equested.

If there are any questions regarding this request they should should be directed to Dr. Gerald Brubaker of tue Subcommittee staff (226-2424).

Sincerely, Edward J.

arkey Chairman EJM:mb

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