ML20209E953

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Discusses govt-industry Meeting on Nuclear Export Policy Held on 751022 According to Plans Described in SECY-75-616. Provides List of Presentations,Attendance & Summary of More Important Questions & Answers
ML20209E953
Person / Time
Issue date: 12/04/1975
From: Lafleur J
NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To:
Shared Package
ML20209E648 List:
References
SECY-75-616-C, SECY-75-698, SECY-75-698-R, NUDOCS 9907150186
Download: ML20209E953 (5)


Text

. 0 NUCLEAR REG ION December 4, 197 75- 698 1

i For: The Commissioners .

)

l 7 rom: Joseph D. Lafleur, Jr. cting Director, Office of International l and State Programs Thru: Executive Director o perations Sub'j e ct : GOVERNMENT-INDUSTRY MEETING ON NUCLEAR EXPORT POLICY 10/22/75 I

1 The subject meeting was held according to the plans described in SECY 75-616. The spokesmen of the Government agencies simply summarized the role of their, agencies in export policy. The ,

floor was opened to industry questions. The following are a j list of presentations and attendance and a summary of the more ,

important questions and answers.

Agenda

1. Deputy Secretary of State Ingersoll* -

5 minutes

2. Dr. Seamans,,ERDA - 15 minutes
3. Mr. Kratzer, Department of State - 15 minutes
4. Mr. Ikle, ACDA - 15 minutes 1
5. Commissioner Kennedy - 10 minutes
6. General Discussion - As required I

Government Attendees n

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Giambusso Christopher Lafleur D'ewar O'Connor ,

State NSC Ingersoll Dave.Elliot Kratzer Jenkins Bengelsdorf SECY. NOTE: Background Information related Nosenzo . to SDCY-75-697. ' at l

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Contact:

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Joseph D. Lafleur, ISP -

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  • Acting Secretary of State Ingersoll arrived'about 10:00 a.m. and welcomed i the guests, encouraging frank discussions and answers.

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Industry Attendees George Stathakis - CE Louis Weissert - B&W Jas Birle - GE Al Bethel - Westinghouse Socrates Christopher - CE Dwight Porter - Westinghouse Paul Schheifer - GGA. . James Ramey - Stone & Webster Robert Wolf - GCA Seymore Baron - Burns & Rowe A. Lawton Hammett - Burns & Rowe Harvey Brush - Bechtel A. Parkes Honeywell - Burns & Rowe Donald Couchman - NUS Baron (Burns & Rowe) asked whether the outcome of the Suppliers' Group Conferences would avoid another " caper" like the recent one in Brazil. Kratzer answered that we only hope to agree on a " floor" of common measures and that there would unfortunately still be room for detailed differences in national policies to affect individual deals.

Porter (Westinghouse) expressed concern that the Suppliers' Group objectives are only another " superstructure" on the existing " edifice" that means more restrictions on U.S. industry but did not stop the Germans from keepir.g U.S. companies out of

' Brazil. I Stathakis (GE) said we have to be able to provide services to other countries if we expect them to continue to go along with NPT and nonproliferation objectives. This applies to reprocessing as well as to enrichment.

Brush (Bechtel) said since Iran will not need a reprocessing plant for about 20 years, it is foolish to refuse to talk to them, an NPT member, about reprocessing, in the name of nonproliferation.

Next, he said both our government and industry have let down the utilities in not providing adequate enrichment capacity, reprocessing plants, etc., and have experienced so many delays that if he were a prudent foreign businessman or statesman, he would go elsewhere for his secure supplies and services. Brush said Iran wants to buy many things for its whole integrated program. The performance of the German companics is being guaranteed by the German Government.

Christopher (CE) said the same thing is happening in Iran as happened in Brazil.

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. 3 Kratzer said the issue is whether we insist on greater controls over the Iranian fuel cycle activities (such as reprocessing) .

U.S. has said that we would demand that Iran accept multi-national or other controls on their reprocessing of fuel we furnished. Iran says they are NPT members,and that should be enough.

Bechtel (Westinghouse) asked if this could mean the U.S.

companies would not be able to export reactors. Kratzer said it could mean that. He said we are now saying (since reappraisal after Indian explosion) that we want multinational reprocessing (even only two countries). Several potential buyer countries have said they think this is a good idea, but they want to be able to go ahead alone if a multinational deal cannot be reached.

Brush (Bechtel) asked if U.S. is not satisfied with IAEA safe-guards (since we are demanding more). Ikle said some facilities, such as reprocessing plants, technically are very dif ficult to safeguard effectively and that our additional demands are a recognition of this.

Stathakis (GE) asked if we treat Germans (for example) the same as we are treating Iran. "Are we requiring the Germans to build only multinational plants and plants that are easy to safeguard?"

Kratzer said we have not yet had to face up to this with countries like Germany. Kratzer said we have left the implication that, at least for new countries, we will make such demands.

Baron (Burns and Rowe) asked what we will do in Spain. Kratzer says the Spanish deal is one of the most liberal we have made.

The Spanish Agreement for Cooperation is not very strict about some critical parts of the fuel cycle such as reprocessing; and this could give us trouble in the future.

Dave Elliot (NSC) said we would accept an Iran-France joint reprocessing plant as neeting our multinational plant demand.

Also, he said the U.S. agencies at this meeting cannot make decisions alone. It is likely that if we do not demand stiff terms of Iran, for example, Congress will not approve the Agreement for Cooperation. I l

Weissert (B&W) asked if the same problems will affect any possi-  !

ble deal with Israel. Kratzer said the Near-East countries  !'

understand our concerns and will probably accept multinational reprocessing. Of course, "other problems" might affect the Israel  ;

reactor deals. '

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4 Kratzer (State) mentioned another approach to provide protection.

Both French and Germans recently signed agreements saying, in effect, that any materials reprocessed in national plants (e.g. ,

of Korea, Brazil) will be subject to safeguards. These supplier countries feel that this is a better way to assure nonproliferation than demanding multinational reprocessing plants.

In answer to questions on the progress multinational reprocessing plants, Ikle,ofsaid the the IAEA studies whole U.S.on package on multinational reprocessing plants could be available in a year or two.

Wolf (CGA) said other countries are concerned about our policy of U.S. reprocessing of foreign fuel. He suggested a vigorous U.S. Government effort to support multinational reprocessing services.

Stathakis (GE) asked what he said is the basic question of the meeting: We know how to build and sell reactors. Are we defeating our purposes if we make this impossible in order to '

go after other unattainable nonproliferation goals?

Brush (Bechtel) asked whether one of the multinational countries in a deal has to be one of the advanced countries.

Kratzer says the members must not be a group of politically

" biased" countries , none technically capable of good safeguards.

For this reason, we have talked in terms of a supplier nation in the Iran reprocessing plant ownership.

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J eph 9. Lafleur, f .

Ag ing Director V Office of International and State Programs

DISTRIBUTION NO. OF COPIES Srcretary 5 Chairman Anders 4 Commissioner Rowden 2 4

Commissioner Mason 2 Commissioner Gilinsky 2 Commissioner Kennedy 3 i

Exec. Dir. for Operations 2 1 Acst. Exec. Dir. for Operations 1 Congressional Affairs 2 Public Affairs 2 Grneral Counsel 5 '

Inspector & Auditor 2 Exec. Legal Director 2 )

Administration 3 Policy Evaluation 2 Planning & Analysis 1 {

International & State Programs 3 Nuclear Reactor Regulation 2 Standards Development 4 Nuclear Material Safety & j Safeguards 2 j

Materials & Fuel Cycle I

Facility Licensing 1 Safeguards 1 Inspection & Enforcement 3  !

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