ML20244C131

Requests Commission Review of Proposed Issuance of Export License to Edlow Intl to Export 961,632 Kg U to Euratom Countries

ML20244C131
Person / Time
Issue date:	02/25/1983
From:	Dircks W NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:
References
TASK-PINV, TASK-SE SECY-83-082, SECY-83-82, NUDOCS 8303110423
Download: ML20244C131 (16)

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POLICY ISSUE February 25, 1983 SECY-83-82 (Notat. ion Vote) 1 For:

The Commission From:

William J. Dircks Executive Director for Operations

Subject:

APPROVAL OF A PROPOSED LICENSE TO EXP0RT NATURAL URANIUM TO EURATOM COUNTRIES, XUO8559

Purpose:

Obtain Commission review of proposed issuance of subject license to Edlow International.

Discussion:

On November 16, 1982, Edlow International Company applied for a license to export 961,632 kilograms of natural uranium to EURATOM (Appendix A).

The material will be used as feed for enrichment in EURATOM and ultimately as fuel in light-water power reactors (LWRs) in EURATOM. The material will not be enriched above 5.0 percent. After enrichment, the material will supply approximately four reloads for a typical BWR reactor or six reloads for a typical PWR reactor. The material may be used in operating light-water power reactors, or in others under construction or on order within the European Community.

A number of conversion, enrichment, fabrication, and storage facilities located within the EURATOM Community will be involved as intermediate consignees.

While the actual intermediates have not been determined, they will be designated from among the following:

For Conversion Purposes:

1.

Comurhr.x, France 3.

RBU, W. Germany 2.

British Nuclear Fuel, United Kingdom CONTACT:

c Betty L. Wright, IP-(49-27984)

F QfD g393h 0 4) S U fl XA

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u The Comission 2

Discussion:

For Enrichment Purposes:

(Continued) 1.

URENCO, West Germany, Netherlands, United Kingdom 2.

EUP.0DIF, France For Fabrication Purposes:

1.

RBU, West Germany 4.

FBFC, France (CERCA) 2.

FBFC, Belgium 5.

Fabbricazioni Nucleari, 3.

BNFL; United Kingdom Italy 6.

Exxon, Lingen, West Germany For Storage Purposes:

1.

Urananlage E11weiler, West Germany (Before and after.

enrichment) 2.

R.S.B., Wesseling, West Germany (Before enrichment only)

Executive Branch Vi.ews:

In response to NRC's request for views on the proposed export, the Executive Branch, in a letter dated January 27, 1983 (Appendix B), advised that:

• the requirements of the Atomic Energy Act, as amended by the Nuclear Non-Proliferation Act of 1978 (NNPA), have been met j

and that the proposed export would not be inimical to the common defense and security of the United States;

• the material will be subject to all the terms and cor.ditions of the Additional Agreement for Cooperation between the United States and EURATOM; and

• the members of the EURATOM Community have adhered to the provisions of the U.S.-EURATOM Additional Agreement for Cooperation.

P_revious Executive Branch Analysis The last detailed Executive Branch Analysis for EURATOM regarding source material was submitted in SECY-81-355 dated June 4,1981 (XUO8427).

In view of Executive Order 12351 extending the duration of the period specified in the second proviso to Section 126a(2) of the Atomic Energy Act of 1954, as amended, to March 10, 1983, that analysis remains valid, The State Department has advised NRC staff that they expect j

the President to sign before the end of February a new Executive Order permitting nuclear cooperation with EURATOM for an additional twelve month period from March 10, 1983

)

through March 10, 1984.

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__-________._m.

.j The Commission 3

1 l

Since the proposed export of source material involves enrich-1 ment, it is subject to Section 402(a) of the NNPA of 1978. -

1 With regard to the requirements of that section, the Executive i

Branch views notes. (1) that the procedures for approval under i

Section 402(a) are identical to those for subsequent arrange-(

ments, and (2) the Department of Energy, as lead agency for

{

the preparation of subsequent arrangements, has. initiated the necessary procedures for approving the enrichment of this material. Staff has also confirmed with the Department of Energy that no other commitments from EURATOM are necessary with regard to enrichment.

The staff has informed DOE, in response to their request dated December 23, that NRC will withhold its final comments regarding the subsequent arrangement action reouired by Section 402(a) until after completion of Commission review of the export license application.

International The staff has identified no safeguards or physical security Safeguards and issues which would preclude issuance of the proposed license.

Forei gn NMSS has provided the attached comments-(Appendix:C) which Physical ~

provide further details regarding the relevant safeguards and Security physical security aspects of this case.

Review:

==

Conclusion:==

The proposed export involves essentially the same material and conditions as previously considered and approved in export license XUO8525 (SECY-81-583, dated October 7,1981) which was issued on November 3,1981.

The staff believes that there is no material change in circumstances concerning exports to EURATOM which have occurred since issuance of the export license XUO8525 and which affect the Commission's consideration of the licensing of this export.

Accordingly, the staff believes that the proposed license should be issued. This procedure is authorized by 3110.44(a)(2)of Part 110 and is based on section 126(a)(2) of the Atomic Energy Act of 1954 as amended by the Nuclear Non-Proliferation Act of 1978.

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L The Commission 4

Recommendation:

That the Commission:

1.

Authorize the issuance of license XUO8559 to Edlow International Company.

2.

Note that the staff will notify DOE that the Commission.

has authorized the issuance of license XUO8559 and that DOE may therefore complete its subsequent arrangement procedures with respect to the proposed enrichment of-n l

this material.

3.

Note that the license will be issued by the staff only after DOE has completed action on the subsequent arrangement procedures.

Scheduling:

The 60-day period for Commission review of this application expires on April 1,1983; the 120-day period expires on May 31,1983.

Willia J. Dirc Executive Director for Operations Appendices:

A - Application dtd. 11/16/82 B - Exec. Branch ltr. dtd.

1/27/83 C - NMSS Comments Commissioners' comments or consent should be provided directly to the Office of the Secretary by c.o.b. Monday, March 7, 1983.

Commission Staff office. comments, if any, should be submitted to the Commissioners NLT Thursday, March 3, 1983, with an information copy to the Office of the Secretary.

If the

. paper is of such a nature that it requires additional time for anaytical review and comment, the Commissioners and the Secretariat should be apprised of when comments may be expected.

DISTRIBUTION:

Commissioners OGC OPE OCA OIA

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APPENDIX A i

.,Pags 1 of 2 FIRM NRC-7 U.S. NUCLEAR REGULATORY COMMISSION APPROVED KY GAO

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so r iso <

APPLICATION FOR LICENSE TO EXPORT NUCLEAR dis 225mo3:2)

MATERIAL AND EQUIPMENT /seeInstructions on Reverse /

1. APPLICANT'S la. DATE OF APPLICATION

[a. DOCKET NO.)

D. APPLIC ANT'S REFERENCE 2.NRC tKLICENSE NO.

= Nov. 16, 1982 EIC-NUI-1 uSE

- u M ~3 3 a Mlo h59 uSE

3. APPLICANT'S NAME AND ADDRESS l rib

4. SUPPLIER'S NAME AND ADDRESS lRIS (Complete if apolocant is not Aapplser of material)

Edlow International Company

1'1W D h" Street, N.W.

Suite 404 various U.S. suppliers

c. CITY STATE ZIP CODE

b. STREET ADDRESS Washington, D.C.

20036

d. T E LEPHONE NUMBE R (Aree Code - humber - Esterision>

c. CITY STATE ZIP CODE (202) 833-8237 1

5. FIRST SHIPMENT

6. FINAL SHIPMENT '7. APPLICANT'S CONTRACTUAL 8. PROPOSED LICENSE

9. U.S. DEPARTMENT OF ENERGY SCHEDULED SCHEDULED DELIVERY DATE EXPIRATION DATE CONTR ACT NO. (If Known) eight yrs.

after 1ssue

10. ULTIMATE CONSIGNEE l RBS

11. ULTIMATE END USE l'

,y,yy.

(Include plant or facility namel Light Water Power Reactors located Fuel for poweg plant 6 ET ADDRESS

b. STR[11n the European Communities wit ara

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ca

c. CITY - ST ATE - COUNTR Y O'.'

T.

Various Countries 11a. EST. DATE OF FIRST USE

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12. INTERMEDIATE CONSIGNEE l RBS

. 13. INTERMEDIATE END USE ry.)

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1. RBU, FRG

2. FBFC, Belgium Fuelfabricat[org

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3. Fabbricazioni Nucleari, Italy (CERCA) g-

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4. BNFL, UK

5. FBFC, France a

6. Exxon, Lingen, FRG O'

13a. EST. DATE OF FIRST USE

14. INTERMEDIATE CONSIGNEE l RSS

15. INTERMEDIATE END USE l

NAME

1. URENCO, FRG Enrichment purposes.

2. URENCO, Netherlands

3. URENCO, UK

4. EURODIF, France 15a. EST. DATE OF FIRST USE 15.

17. DESCRIPTION

18. MAX. ELEMENT 19. MAX. 20. MAX 21 NRC (include chemicalandphysical form of nuclear material; give dollar value of USE nuclear eauroment and components)

WEICHT WT. %

ISOTOPE WT.

UNIT 961,632

.711 kgsa l

Natural uranium in the form of uranium ore concentrate or uranium hexaflouride.

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' Copy tt DR e Q LgG

22. COUNTRY OF ORIGIN.-

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23. COUNTRY OF ORIGINrSNM l*

24. COUNTRIES WHICH ATTACH l

SOURCE MATERIAL WHERE ENRICHED OR PRODUCED SAFEGUARDS (If Known) 6.

25. ADDITIONAL INFORM ATION (Use separate sheetif necessary)"

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see page 2 ld O t

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26. The applicant certifies that this application is prepared in conformity with Title 10. Code of Federal Regulations. and that all information In this tppfication is correct to the best of his/her knowledge.

27. AUTHORIZED OFelCIAL

a. SIGNATURE

b. TITLE

F.ORM NRC-7 U.S. NUCLEAR RESULATO3Y COMMIS$l!N' APPROVED BY CAD

[o C$$ 510 APPLICATION FOR LICENSE TO EXPORT NUCLEAR.

SiSo22stR03sti a

MATERIAL AND EQUIPMENT (seeInstructionsen Rev:nel

1. APPLICANT *S la. DATE OF APPLICATION D. APPLIC ANT'S REFERENCE 2.NRC

a. DOCKET NO.

b. LICENSE NQ, 11/16/82 ETC-NUI-1 uSE USE

3. APPLICANT'S NAME AND ADDRESS l RIS

4. SUPPLIER'S NAME AND ADDRESS

[RIS (Compute if apphcant as not suppher of material)

Page 2 of 2 '

3. STREET ADDRESS a.NAME l

l see page 1 l

3. CITY STATE ZIP CODE D. STRE ET ADDRESS 1

a. T E 4.EPMON E NUMBE R (Arse Coae - Nummer - f arensen/

c. CITY STATE ZIP CODE E. FIRST SHIPMENT

6. FINAL SHIPMENT 7. APPLICANT'S CONTRACTUAL 8. PROPOSED LICENSE

9. U.S. DEPARTMENT OF ENERGY l

l SCHEDULED SCHEDULED DELIVERY DATE EXPIRATION DATE CONTRACT NO. Ilf Known/

4

10. ULTIMATE CONSIGNEE l RIS

11. ULTIMATE END USE l

(include plant or facihry name) ygyy see page 1 S. STRE ET ADDRESS

c. CITY - STATE - COUNTRY tie. EST.DATE OF FIRST USE

12. INTERMEDIATE CONSIGNEE lRBS

13. INTERMEDIATE END USE l

u.we

1. Comurhex, France Conversion purposes.

2. BNFL, UK

3. RBU, FRG 13a. EST. D ATE OF FIRST USE

14. INTERMEDIATE CONSIGNEE l RSS

. 1S. INTERMEDI ATE END USE l

e.NAME

1. Urananlage E11weiler, FRG St rage purposes.

(before and after enrichment)

2. R.~S.B., Wesseling, FRG 1

(before enrichment only) 15e. EST. DATE OF FIRST USE 18.

17. DESCRIPTION

18. MAX. ELEMENT 19. MAX. 20. MAX 21.

NRC (lactuae chamicalandphysical fann sf nuclear materia /;pi e do//ar en/ue of WEIGHT -

WT. %

ISOTOPE WT.

UNIT

-USE nuclear eaurement and componena) see page 1

22. COUNTRY OF ORIGIN.-

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' 23. COUNTPY OF ORIGINr$NM l

' 24. COUNTRIES WHICH ATTACH l

SOURCE MATERIAL WHERE ENRICHED OR PRODUCED SAFEGUARDS (If Knower /

2S. ADDITIONAL INF ORMATION (Use separare sbeet //necessary)

I see page 1 f

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26. The applicant certifist that this application is prepared in conformity wrth Title 10. Code of Federal Regulations, and that all Information in this ap;lication is correct to the best of his/her knowledge.

O u

Andrew Shaw/ d /

Manager, Regulatory Approvals

b. TITLE

e. SIGNATURE

• AUTHORIZED OFFICIAL

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n 4. ite s :uu November 16, 1982~

'Ms. Elaine Hemby-Export / Import and' International Safeguards Office <of. International Programs

-U.S. Nuclear Regulatory Commission Mail Station.- EWS-414 '

-Washington, D.C.. 20555

Subject:

1 Application ~for. natural uranium export license

Dear.Ms..Hemby:

Enclosed please find a_two'page. application for.the export of

. natural uranium in the form of uranium ore concentrates or

. uranium hexaflouride'to.any of the member countries of the European Communities.

If you need any further information concerning this. application-l please let me knou.

To!the best of our knowledge there'are no material-changed circumstances since the issuance of license

.XUo8525.

iThank you for your kind cooperation in this matter.

Sincerely, EDLOW INTERNATIONAL COMPANY LCL % ! k 5 Andrew Shaw Manager, Regulatory Approvals l.

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Enclosure

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United States Departnient of State 3

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Wushington. D.C.

20520

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ENVIRONMENTAL AND SCIENTIFIC AFFAIRS g

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January 27, 1983 gy u

Mr. James R. Shea hN L

Director of International Programs E w h. /r 3 5 5 9 United States Nuclear Regulatory Commission x

Bethesda, Maryland

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Dear Mr. Shea:

l This letter is in response to the letter from your office dated November 24, 1982 requesting Executive Branch views 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 oi 1978:

NRC No. XUO8559 - Application by Edlow International Company for authorization to export to EURATOM member states 961,632 kilograms of natural uranium in the form of uranium ore concentrate or uranium hexafluoride to be used as feed material for enrichment in EURATOM. The low-enriched uranium produced from the export will be used as fuel for various light-water moderated power reactors in the European Community.

The proposed export of natural uranium would take place pursuant to the Additional Agreement for Cooperation Between the United States and the European Atomic Energy Community (EURATOM) as confirmed in a letter from the Delegation of the Commission of the European Communities, a copy of which is enciesed.

EURATOM has adhered to the provisions of its Agreement for Cooperation with the United States.

Export of this natural uranium for enrichment is subject to Section 402(a) of the Nuclear Non-Proliferation A ct.

Pending conclusion of negotiations to amend the U.S.-EURATOM Additional Agreement for Cooperation, export for enrichment in any of the member states of the European Community may take place pursuant to the present Agreement with the approval of the United States. The procedures for such approval are identical to those for subsequent arrangements as set out in Part E of the Executive Branch Procedures published in the Federal Register on June 9, 1978.

The Department of Energy as the lead agency for preparation of subsequent arrangements has initiated the necessary actions for approval under Section 402(a).

The Executive Branch has reviewed this application and concluded that the requirements of the Atomic Energy Act, as amended, have been met and that the proposed export will not be inimical to the common defense and j

security of the United States.

A detailed analysis for EURATOM g

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.r. !nc for%d..'ip)liegt,' gXU08427. In view of was sub'mitted November 22,1979 p

Executive Order 12351 extending the duratiori 6f the per16d specified in the first proviso to section 126 a(2) of the Atomic Energy Act, as amended, to March 10,1983, that detailed analysis reniain'1v111d. Rhere has been no other s

material change in circumstances since thq1pgkigig On the basis of the foregoing, the Executive Branch recommends that the license be issued.

Sincerely,

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q ames B. Devine De u y Assistant Secretary

Enclosure:

Assurance letter i -

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DELEGATION OF THE COMMISSION OF THE EUROPEAN, COMMUNITIES '

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'ONaEi k tSN D. b January 14, 1983 EURATOM SUPPLY AGENCY JM/ck.

Exii.77/l?.PO.li t.C miCTSAi'lSFGCS Mr. John-A. GRIFFIN I

' Director, Div. of Politico-Military Security Affairs i-Office of Int. Security Affairs i

US DOE Forrestal Building, Room 4 B 044 1000 Independence Ave.

S.W.

WASHINGTON D.C.

20585

Subject:

Edlow International Comp., application EIC-NUX-1 l

of. November 16, 1982, for export.of r.atural uranium to European Community

,'Ref er. :

XUa 8559 1

Dear Mr. Griffin,

i We certify that the material mentioned in this 961,632 kg of natural uranium and application, namely the transfer of this materia 3 will be subject to all terms and conditions of the Additional Agreement for Cooperation dated July 25, 1960, as amended.

Further, we certify that 1. RBU, FRG

2. FBFC/Belg.

5. FBFC/Fr.

l

3. Fabbricazioni Nucleari, Italy 4. BNFL, UK.

Lingen,FRG 7. URENCO, FRG. 8. URENCO, Metherld.

6. Exxon, UK. 10. EURODIF. France as intermediate con-

9. URENCO, signees are authorized by Euratom to receive and possess this material pursuant to the aforementioned Agreement for Cooperation.

The above mentioned material will be used for the fueling of various Euratem power reactors.

Sincerely N. -z. g[

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cc.: Mr.R. De LaBarre, Departmt. of State J. f.krchal Ms. Betty Wright, Secretary Nucl. Regul.Commiss.

Nuclear Sucph Mr. A' Crew Shaw EDLOW Intern. Como.

2100 M Street h# Swie 707 WasNngton DC 20037 I te* Bone- (202) EEP 9500 lie.es W,sNngton

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j DELEGATION OF THE COMMISSION OF THE EUROPEAN COMMUNITIES i

mm sm mm Washington D.C., January.19, 1 JM/ck.

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Si c_

Mr. John A, GRIFFIN E'

Director, Div. of Politico-l.

33 Military Security Affai::s

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C office of Int. security Affairs (e

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,Qf US DOE g f.

Forrestal Building, Room 4 B 044 E

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1000 Independence Ave.

S.W..

3 WASHINGTON D._C.

20585

Subject:

Edlow International Company application EIC-NUX-1 i

of November 16, 1982 for export of natural uranium to EURATOM Refer.t XUO 8559 4

Dear Mr. Griffin,

i This is to completc the listing of intermediate consignees appearing in our letter of January 14, 1983.

The additional intermediate consignees are:

1. Comurhex, France

2. Urananlage Ellweiler, FRG

3. R.S.B. Wesseling, FRG.

.c The other data of our letter of January 14, 1983, p

remain unchanged.

Sincerely, b

cc. : Mr. R. De LaBarre, i

Departmt. of State NC

1. Ma #

i1 Ms. Betty Wright, Nucl. Regul. Commission DB Ntdear Suph Mr. Andrew Shaw, Edlow Intern. Comp.

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APPENDIX C

4

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INTERNATIONAL SAFEGUARDS AND FOREIGN PHYSICAL SECURITY REVIEW (XUO8559) l The natural uranium to be exported in the form of concentrate or hexafluoride l

will be subject to IAEA export / import v.: porting requirements by both nuclear-weapon (NW) and non-nuclear-weapon (NhW) states. The hezafluoride will be subject to IAEA safeguards upon arrival at NNW states and while in storage at West Germany. The uranium concentrate is not expected to be subject to IAEA safeguards upon arrival because material in that form is considered to be "before the starting point" of safeguards.

However, once the natural uranium is " improved", i.e., typically reaches the stage of hexafluoride, the IAEA safeguards regime is triggered, as applicable, including inspections.

The export application identifies %termediate consignees in both NW and NNW states. All of the NNW states identified are NPT parties subject to full-scope safeguards. The recipient facilities in those countries have IAEA Facility Attachments in force, except the centrifuge enrichment facilities.

Staff does not have specific information on the present application of IAEA safeguards at the identified conversion and fabrication facilities.

A Facility Attachment is under negotiation. for the URENCO enrichment facility in the Netherlands, as with similar facilities in other NNW states, but it has not been completed because an international consensus has not been reached on a safeguards approach for this type of facility.

Limited IAEA inspections are being conducted at the facility.

The URENCO enrichment facility in West Germany is expected to be under IAEA safeguards by the time it receives nuclear material. Since the facility is in an early stage of construction, it is premature to expect a Facility Attachment to be negotiated at this time.

The material to be enriched and fabricated in NW states is not required to be subject to IAEA safeguards under the U.S. expor'. criteria. The material may come under IAEA safeguards pursuant to the U.K. and French " voluntary" safe-guards agreements with the Agency, but staff does not have current information as to specific facilities which may be involved under the respective agreements.

The U.K. has designated eligible facilities for IAEA safeguards under its agreement, but staff does not have infonnation that any designation has yet occurred under the French " voluntary" agreement.

J' -

, Planned ultimate consignees have been identified only generically, i.e., LWRs in EURATOM. - Those in the NNW states of EURAT0ft will be subject to IAEA safe-guards ' pursuant to the NPT. Staff believes that. it should be within the capabilities of the countries involved, as well as EURATOM and the IAEA, to control and account for LWR fuel elements on an item basis.

The source material as well as the special nuclea_r material to be produced from the source material is destined for EURATOM countries, all to which have provided written physical security assurances in accordance with 5110.43(b).

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _. _ _ _