ML25260A552

SECY-78-65: Proposed License to Export Mixed Oxide Fuel to Switzerland (License Application No. XSNM-954)

ML25260A552
Person / Time
Issue date:	01/31/1978
From:	James Shea NRC/OIP
To:	Commissioners NRC/OCM
References
SECY-78-65
Download: ML25260A552 (1)

Text

{{#Wiki_filter:UNITED ST A TES NUCLEAR REGULATORY COMMISSION ~ONf t§,ENffA~ua anuary 31, 197a lNFORMA TION REPORT SECY-78-65 or: rom: ,ru: Jbject: Jrpose: iscussion: 1 I ~

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~ ~ r: ~ I tf-l D D ~ ~ 0 n, D D ntact: The Commissioners James R. Shea, Director Office of International Programs Executive Director for Operations PROPOSED LICENSE TO EXPORT MIXED OXIDE FUEL TO SWITZERLAND . (LICENSE APPLICATION NO. XSNM-954) To provide advance information to the Commission of proposed issuance of subject license to Westinghouse Electric Corporation In June 1976 Westinghouse filed an application for a license to export 51.086 kilograms of plutonium as plutonium oxide and 1,550 kilograms of natural uranium to Switzerland (application and end-use statement at Appendix A). The material, in the form of mixed oxide fuel rods and skeletons, will be shipped to Franco-Belge de Fabrication de Combustibles, S.A. (FBFC} Dessel, Belgium, for final fabrication into four fuel assemblies to be used in the Beznau I reactor located in Baden, Switzerland. Beznau I is a 350 MWe pressurized water reactor which began regular power operation in December 1969. It is owned and operated by Nordostschweizerische Kraftwerke AG, Baden, Switzerland. In response to our July 9, 1976 request for views, the Executive Branch has (1} concluded that issuance of the proposed license would not be inimical to the interests of the United States, including the common defense and security; and (2) confirmed that the material will be subject to all the terms and conditions of the Agreement A~ Guhin (492-7866) Dunn (492-7984) Classifie\\i hv~/

• irector, IPEI

( iL-. (Title ] IAL SECURlrd

• CONFIDBffiAL SU.BJECT TO GENERAL DECt.ASSlFICAnON SCHEDULE~

~ECUTIVE ORDER 11652 AUTOMATICALLY DOWNr.RAnF="r.

Discussion: (continued) .-GONf lB.fNTIAL for Cooperation between the United States and Switzerland and to the US-EURATOM Agreement during the time it is fabricated and transiting Belgium (State memorandum of December 13 with attachments at Appendix B). The Executive Branch response at Appendix B notes that this fuel loading is part of an in-depth research program . which will last from four to six years. The program will enable Switzerland to obtain first hand experience with the operation of mixed oxide fuel, to evaluate its various characteristics, and to determine the future suitability of mixed oxide fuel. Among other things, the State Department memorandum furthe notes that,although it is not the current policy of the Executive Branch normally to support the export of kilogra quantities of plutonium, the Executive Branch recormnenda-tion on issuance of this export license is based upon considerations that:

1.

The plutonium was brought into the US under an NRC import license substantially before development of the present policy generally limiting plutonium export during the International Fuel Cycle Evaluation (INFCE) to less than kilogram quantities.

2.

Switzerland is an NPT party which shares overall US non-proliferation objectives.

3. Switzerland is an active participant in the INFCE and has offered to make the results of this mixed-oxide work available through INFCE.

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~---

• ... -4. __ Ih~ _ _cteve1QPITJ~nt_RrQqf_~f!1 i~_r:_-elatively small_ ?.~al_e.

,-5. Switzerland--oiaiistoniale-no d~cision for at least --six -years on corrmercfa1 -use of mT~e~.:a~x*i_de_fuel in -.. - ----f,ght water reactors _unti_l the results of the _ '----~~zryau program are known. Furthennore, no more *majcir.. - mixed-oxide development work will be undertaken before that time. '. This.?PJ:> 1 i Ga1;_i_Q~L!:~2!:_~s-~n_t~ --°-~-~ _of -~h_ree pencffng cases involving exports of kilogram quantities of pluton~fu---- discussed in the NSC Ad Hoc Group memorandum at Appendix C. The memorandum notes the Group's recommendations that, while the US should make no new co1T1T1itrnents to export

Discussion: (continued) significant quantities of plutonium during the course of the INFCE period, the three pending cases involving such quantities of plutonium should be approved as exceptions to current policy. In the case at hand, the Group noted that, since the plutonium was brought into the US with the knowledge that subsequent re-export was planned, failure of the Executive Branch to recommend approval of the license would be considered grossly inequitable by the Swiss and would raise political and legal issues. Switzerland and Belgium are parties to the NPT and are committed, under agreements for cooperation, to use US-supplied material for peaceful purposes only. The material will be subject to EURATOM safeguards while in Belgium and IAEA safeguards in Switzerland. As noted in State's memorandum at Appendix B, (1) the IAEA-EURATOM safeguards agreement has come into fore~ and subsidiary arrangements are now being negotiated to bring IAEA verification into practical effect; and (2) the IAEA has the right to apply the verification procedures of the safeguards agreement prior to completion of the subsidiary arrangements. the US-EURATOM Agreement provides for the reprocessing and r.etransfer of separated special nuclear material produced within the Community. However, the Commission will note that the material under this proposed license is not to be irradiated within tne Community. The US-Switzerland Agreement for Cooperation, as amended, (1) provides that US-supplied material or material pro-duced through the use of US-supplied material may not be transferred beyond Switzerland without US approval; and (2) stipulates that any reprocessing of US-supplied material shall be performed in facilities acceptable to both parties upon a joint determination that safeguards may be effectively applied. -f.flNFl.nFNTIM-

Discussion: (Continued) 4 Based on a 1976 visit of a US physical security review team, subsequent exchanges, and reviews, the physical security program in Switzerland is considered adequate to protect trigger quantities of special nuclear material As noted in the State Department memorandum at Appendix B the US has assurance that Switzerland is committed to providing a level of protection con~'istent with the recomnendations in IAEA INFCIRC/225. However, the staff is still concerned with the level of protection in Belgium, particularly at the fabri-cation facility at Dessel. In reviewing a proposed export of HEU to Belgium in the summary of 1977, it was noted that the protection program at the MOL facility would need significant upgrading to conform to international standards. As noted in my memorandum of November 7, 1977 (SECY-77-376A) Belgium has taken several upgrading actions. A recent communication, however, indicates that the improvement program has not been completed (Appendix D). The staff, in coordination with DOE and State, is seeking assurances that physical security at the Dessel facility (which was not visited by the review team) will be equivalent to the measures being taken at MOL. A quick response is expected and a recorrmendation on this application will be forwarded after receipt. The information contained in and attached to this memorandum is being forwarded at this time because of the urgency associated with the license and so that the Commission can begin its review. The applicant has expressed urgency associated with this license on several occasions (Westinghouse letter at Appendix E). The material was scheduled to be shipped on December 5,. 1977.. Having missed this schedule, the applicant requests expeditious handling of the appli-cation and informs us that the material will be shipped as soon as the license is issued. -&ONf lfJ,BfflAt

Coordination:

Enclosures:

L 60.HF!G.L'!llAl 5 On several occasions in discussions with the staff, the Swiss Embassy has also expressed the importance and urgency Switzerland attaches to this license. The Embassy has recently written me, enclosing a copy of the fuel fabrication schedule prepared by Westinghouse and indicating that, if deadlines are missed, the R&D program associated with this fuel and the related contribution to the INFCE would be set back about a year. This would occur because the May 1978 shutdown period for refueling of the Beznau power reactor, during which the research experiment is to be installed, would be missed (Appendix F). To meet the planned schedule, which includes surface shipment (as required by law for plutonium), the applicant states that an export license is needed by February 3. The Swiss Ambassador has also recently written the Chairman expressing the importance and urgency Switzerland attaches to this li.cen,se (AptJendixG). This infonnation nas been prov1dea to enaule to Commission to begin its review of the proposed -export pending receipt of infonnation concerning the adequacy of physical security measures in Belgium and the subsequent forwarding to the Co1T111ission of t he staff recommendations concerning issuance of the export license. ELD has no legal objection. NMSS concurs, but wishes to infonn the Commission that it has not received country-specific information which permits it to make an independent conclusion as to the effectiveness of IAEA and EURATOM material control and accounting safe-guards to deter and to detect national diversions in Belgium and Switzerland. ~-~ Ja a, Director Ot e f I ternational Programs

1. Appendix A - Application dtd 6/9/76 and end use statement dtd 6/14/76

2.

Appendix B - State memorandum dtd 12/13/77 with attachments

3.

Appendix C - NSC Ad Hoc Group memorandum dtd 11/14/77

'"UU,Nt tUtfl I tAL 6

4.

Appendix D - Cable dtd 1/12/78

5.

Appendix E - Westinghouse letter dtd 11 /29/77

6.

Appendix F - Letter to NRC from Swiss Embassy dtd 1/20/78

7.

Appendix G - Letter to Chainnan from Swiss Ambassador dtd'l/20/78 DISTRIBUTION: Comnissioners Commission Staff Offices Exec. Dir. for Opers Secretariat -CONFIDENTIAL -

0 u.s~ ATOMIC ENERGY COMMISSION Woshington. D. C. 2C54S FMn,* (Tf',OV~ Cud!]et U11,.ou )1, 38-P.t:007. APPLICATION FOR LICENSE TO EXPORT BYPRODUCT~ SOURCE, OR SPECIAL NUCLEAR MATERIAL XsJIM-. c; ::;-

• s - 3 i I Submit in Triplicalt!

Carrfully Read Instructions /,~ Ba~k ,PPLICA TIOH 1e 9, 1976

l. APPLICANT'S REFERENCE NO., 3. COUtlTRY OF UL TIUATE OESTINATIOH

<ii a,ryJ Switzer 1 and ,Pl"'LICANT itinghouse Electric Corporation S. ULTIMATE COtlSIGHEE IN FOREIGN COUNTRY (N-and address) )CRESS O. Box 1918 'E, AtlO ZIP CODE

ts burgh, PA 15230 Nordostschwei~erische Kraftwerke A.G. (NOK)

• Baden, Switzerland IA:E COHSIGI.Ela IN FOREIGN COUNTRY (Cive r.amc

. If scme as r.ltfr~at~ con:ignC!t!, sta!I! "Same.")

7. IF PURCHASER IN FOREIGN COl!NTR*Y IS OTHC<t THAM UL T1!-4ATE CONSIGNEE. GIVE NAME ANO ADDRESS.

-Belqe de Fabrication de 1bustibles -S.A. (FBFC) aan 12 essel, Belgium (lf samf!, stc:tf! "Samr. ") Same TY TO t'E SHIPPC:D riorrs orr ba....-i:.j (b) CC~~MCOITY OESCR!PTIO!-f ( l -nclt:.de cl;:-.r.irr:I a,~-{ pr.-,1sic:nl /=rr.* /or.-;:,,c:ial n:"--lr:!r r:-:at1-rir.l rr~ by:,rudi.,ct r.-..atCTiai also.specify iso:opic cvr.:enL: i/ ira a device. idi:n!i/y,;JC d1.AJicr. m;,111,fac:11.*n-r, and,r.od,../,:;,m'i,rr. J tachment #1 Mixed plutonium and natural uranium dioxide power cornrressed into ~ellets and encapsulated in anprox. 788 zircaloy 4 clad fuel rods, or fuel rods as defined in above sentence to be assembled into 4 fuel assemblies. G ANO PACl<lt,G PftOCEOUF<ES (R<'r:-.u*r,..d for s,ecial nuc:lear r.iat.crir.l. S<-e instructions on hr.cit:.) ging varies according to the shipping plan* to be used as defined in attachment ~ COM~tOOITl!:!; COVC:REO ev Tlil'i "PPLiCA TICN; (Ve-scribe frilly. struin;:,,tat U'1il be (1:-oducr,,' "' mt1,.:,/.*ct1.7t".i. i.iJtt:.*,...,. I< -,rd. or th<' n-:tttnr o/ th<' r1.*:s<'t:reb thai u,i/1 be performed.) (Sl:'t' i11:r:r.1ctions on l,acie /or st1ec:icJJ 11..iclcar r.:a1.-r1*,,1.) uel assemblies are for installation in ,-dll be used to generate electricity. ~rland. An end use statement has been region 9 of the Beznau 1 nuclear plant The olant is located in Baden, requested by customer and will fo11ow.

• ,HH,.;nd ::ny oilicial ci.l'.:-t>rin,i; t'.,i:, <"l"rtiii.:a~c oa t-t+.~ If of 1hc- :,i';-:lic:lnt 11.1n1~-J in l1c*n1 i. * *.-~ti~;* l!l;!t : ;,:, ~:*- '.;.

.I in,:onfo1-:!lic~* v, i:!1 Tit!~ iO, C:c,.~,: cl F.:-:k,.11 l{er.uliici:,:is, P..:11s.rn :.:id 36 (if {or l,y:"!-'<.l:.ict r....!tc:ri.~!\\,,. P :.,: :'.' :o: 1n:ir<"rini}, c; P~rt 70 (if for !;f'<"l:i~I nucle.1r m:11 *.-ri:il), ead ;.>art 71 (:ur tr:u,srort o! raJi.,:ictin* r,1:irl*ri-,l, if.;*;:,,*..,.:: .I ir,/onn:tcion cor:taincd herein. induJin& :iny sur1*lc-1ucnu at!.ichcd herc10. is true anJ corrc-ct 10 the l,~:;, 1*1 ;;*!"i:

• .. n.f bdic-f.
• i bed and sworn to before me this d~y cf June 1976.

Westinohouse Electric CornoratioQ __ (l'i:,(Jl1c-t1nt n,u:ud 1,1 /:,*, *,,.,

0. A. Kenerson, Enn~neer

ATTACHMENT #1 mixed oxide fuel will be manufactured and export packaged in accordance with of the following plans: n l 1 rods will be manufactured and export packaged by: tinghouse Plutonium Fuel Dev. Lab - NFD

iWi ck Avenue

). Box 217

wick, Pennsylvania 15024

>e exported to: 1co Belgium de Fabrication de Combustibles, S.A. (FBFC) >pl aan 12 J Dessel, Belgium manufacturing into fuel assemblies to be shipped directly to Beznau 1 nuclear !rating plant (NOK). rods will be packaged in Westinghouse model RCC type container in accordance 1 USNRC certificate of compliance no. 5450, docket no. 71-5450; US DOT IAEA

ificate no. USA/5450/BF, rev. 3.

1 II rods will be manufactured by: inghouse Plutonium Fuel Dev. Lab - NFD wick Avenue . Box 217 wick, Pennsylvania 15024 shipped to: inghouse Nuclear Fuel Division .. Drawer R nbia, South Carolina 29250 nanufacturing int~ fuel assemblies and export packaged for shipment by H ~ick to Beznau 1 {NOK) nuclear generating plant. assemblies will ship in mixed oxide fuel assembly shipping containers. re oresently awaiting approval of these containers. Aoolication was made '76 to the NRC. Uo to 11. l kilograms of U235 contained in 1550 kilograms of natural uranium. 31 grams of fissile plutonium contained in up to 51,086 grams of total plutonium 1um enrichment 2.75 weight oercent Pu.

~ lt.Lt:.l""HUN : BADEN \\056/ ~2 41 01

• ZURICH ( 01} 32 72 00
• TELEGRAM ME : NOROOSTKRAFT TELEX : 52086

,j~s/1e~ 3:()() ?.ni. Westinghouse Electric Corp. P.O.Box 1918 Pittsburgh, Pa. 15230 / USA attn. Mr. D.A.Kenerson 1/ZEICHEN 1/NACHRICHT VOM U/ZEICHEN CH-5401 BAOEN (SCHWEIZ) PARKSTRASSE 23 Cl-Ar/br June 14, 1976 Nuclear Power Plant Beznau I 7ol/74o Plutonium fabrication Statement Dear Mr. Kenerson We hereby certify that the four mixed oxide fuel assemblies to be furnished by Westinghouse Electric Corporation will be installed in Beznau Unit I nuclear electric generating plant located in Doettingen, Switzerland. Total nuclear materials content:

a.

11.1 kilograms of uranium 235 contained in 1550 kilograms of natural uranium

b.

40181 grams of fissile plutonium ~. 51086 grams of plutonium as plutonium oxide Ile hope this information is cf use to you and remain sincerely yours Nordostschweizerische Kraftwerke AG ,7/1 ;&((/?U-, // APPFNnTX A-1

• tnghouse

-ric Corporation June 22, 1976 Power Systems Company Mr. Roscoe Pressley Agreements & Export Branch Division of Materials & Fuel . Cycle Facility Licensing Nuclear Regulatory Comrriis$ion Washington, D.t. 20545

Dear Mr. Pressley:

• Water Reactor Divisions Marketing International Operations Box 1918 Pinsburgh Pennsylvania 15230 Y s.NM *i

Subject:

End Use Statement for NOK Mixed Oxide Fuel Shipment \\ttached is the end use statement from Nordostschweizerische Kraftwerke A.G. (NOK) showing the end use of the mixed oxide fuel assemblies covered by the Fuel license application submitted to your office on June 8, 1976. [f you have any questions please contact this office. My number is (412) !56-4633. iincerely, ~*~'-,,,_) I. A. Kenerson nternational Customer Services ljc ttachment c: J. P. Butler APPENDIX A-4

nghouse

• ic Corporation
• June 8,. 1976 Power Systems Company Mr. G. Wayne Kerr, Chief Agreements and Export Branch Division 6f Materials and Fuel Cycle Facility Licensing Nuclear Regulatory Commission Washington, D.C.

20545

Dear Mr. Kerr:

-Water Reactor Divisions Marketing International Operations Box 1918 Pittsburgh Pennsylvania 15230 Attached is our application for an export license covering the supply of nuclear fuel for shipment to Beznau 1 nuclear power generating plant located in Baden, Switzerland. This application is issued on behalf of Westinghouse Electric Corporation, incorporated in the State of Pennsylvania with headquarters located in Pittsburgh, Pennsylvania. Westinghouse Electric Corporation is not owned, controlled or dominated by an alien, a foreign corporation or any foreign government. A decision will be made at a later date as to whether we will shin fuel assemblies directly to the NOK site or ship fuel rods to FBFC (our intermediate consignee) for assembly into fuel assemblies and subsequent shipment by FBFC to NOK site. Therefore we have developed alternate shipping plans as defined in Attachment #1. Because of current restrictions placed on us we plan to ship by ocean from a port other than Ne\\'/ York City ports. '.)ur earliest scheduled sh i o date is January 1977 as fuel rods. Therefore, we 1ould appreciate having the license by October 15, 1976 to allow us sufficient time to arrange for shinping and in-transit security. Also, we would like to ~ave a validity date of May 1977.

age 2

r. G. Wayne Kerr une 8, 1976 he uranium and plutonium is being furnished by NOK.

lease address any co::,ments or questions that you may have to me. My phone Jmber is (412) 256-4633.

!gards,

. A.- Kenerson 1temational Customer Services J. P. But 1 er

DEPARTMENT OF STATE Wa ~hington, O.C. 20520 ,XS IV/11-C/S~ "'.,:~Ei'r'~Q 70*.)j 1 .* :.S. 1!?:C

• December 13, 1977

'i'JTT C2C !4 P.\\1 I L; I MEMORANDUM FOR LEE V. GOSSICK NUCLEAR REGULATORY COMMISSION

Subject:

Comments to NRC on Nuclear Export License Application Your letter of July 9., 1976, requested the views of the Executive Branch on the issuance of a proposed license for the export to Switzerland of 40.181 kilograms of fis-sile plutonium contained in 51.086 kilograms of plutonium as plutonium oxide and 11.l kilograms of U-235 cont~ined in 1,550 kil ograms of natural uranium. On t he basis of the factors covered by the.attached analysis, the Executive Branch has concluded that issuance of the pr oposed license would not be inimical to the interests of the United States including the common defense and secu-rity and is of the vi~w that the license should be issued. The Executive Branch has concluded that the U.S. Government has assurance that the recipient country is committed to pro-viding adequate physical security for their nuclear program, including a level of protection compatible with that envis-aged by the recommendations in IAEA INFCIRC/225. The supply of this plutonium and natural uranium is subject to all the terms and conditions of the Additional Agreement for Co-operation between the United States and the European Atomic Energy Community (EURATOM), as amended and the Agreement for Cooperation between the United States and Switzerland, as amended. Attachments: Peter Tarnoff Executive Secretary

l.

License Application Analysis r

2.

Letter from the Delegation of the Commission of the European Communities dated August 9,* 1976

3.

Letter from the Embassy of Switzerland dated July 30, 1976 f\\OOCP.lnTV D 1

Transaction: LICENSE APPLICATION Ai.'\\JALYSIS 40.181 kilograms of fissile plutonium con-tained in 51.086 kilograms of plutonium as plutonium oxide and 11.1 kilograms of U-235 contained in 1,550 kilograms of natural uranium to Switzerland. Applicant: Westinghouse Electric Corporation Date of Appl:+/-ca~jon: June 9, 1976

l.

What is the purpose of the export? This supply of plutonium and natural uranium in the form of mixed oxide fuel rods and skeletons will be shipped to Franco-Belge de Fabrication de Combustibles, S.A. (FBFC), Dessel, Belgium, for the final fabrication of fuel assemblies for the Beznau I nuclear power plant located in Baden, Switzer-land. Beznau I is a pressurized water reactor with a net power output of 350 megawatts (electric). It began regular power operation in December 19~9 arid is owned and operated by Nordostschweizerische Kraftwerke AG, Baden, Switzerland. This fuel loading is part of an in-depth research program which will last four to six years. The purpose of this program is to enable Switzerland to obtain first hand ex-perience with the operation of mixed oxide fuel and to eval-uate its variou~ characteristics. ~he plutonium and natural uranium involved will be incorporated in four mixed o::ide fuel assemblies to be used in a total core complement of 121 assemblies. Information gained from this progra..-n will pro-vide valuable additional data for Swiss utilities and regu-latory authorities to use in the determination of the future suitability of mixed oxide fuel.

2.

Does the recipient country have an Agreement for Co-operation with the Unitec States under Section 123 of the Atomic Energy Act, as amended? And, if so, is the export in question covered by the Agreement? During the time that this plutonium and natural uranium is in Belgium for the fabrication of fuel assemblies ana in transport within the European Community (EC), it will be subject to all of the terms and conditions of the Additional Agreement for Cooperation between the United States and the European Atomic Energy Community (ETJRATOH), as amended. This was confirmed in a letter from the Delegation of the Commission of the European Communities dated August 9, 1976, a copy of which is attached. The Additional Agreement first entered into force on July 25, 1960.

2 - Thereafter, the plutonium and natural uran~um will be subject to all of the terms and conditions of the Agreement for Cooperation between the United States. of America and the Government of Switzerland, as amended. This was con-firmed in a letter from the Embassy of Switzerland dated July 30) 1976, a copy of which is attached. The Agreement initially entered into force August 8, 1966, and was amended on January 29, 1974.

3.

Has the recipient country accepted and implemented IAE.Z\\ safeguards and/or other appropriate supplementary bi-lateral conditions (including, where applicable, under-standings. regarding reexport) imposed by the

• u.S.?

Under the Additional Agreement for Cooperation of 1960, the Community undertakes the responsibility of establishing and implementing a safeguards and control system designed to give maximum assurance that any material supplied by the U.S. or generated from such supply will be used solely for peace-ful purposes ("EURATOM safeguards system"). The.?\\.gree.raent further provides that the Community will consult and exchange experiences with the IAEA with the objective a£ establishing a system reasonably compatible with that of the latter. The Community is responsible for establishing and maintaining a mutually (with respect to the U.S.) satisfactory and effective safeguards and controls system in accordance with stated principles. All of the member states of the Community, with the ex-ception of France (a nuclear weapons state), are parties to the NPT. ~.n agreement for the IAEA application of safeguards pursuant to the NPT was signed by the I?-..EA and Belgium*, Denmark, the FRG, Ireland, Italy, Luxembourg, the lletherlands, and the European Atomic Energy Community (EURAT0!-1) on April 5, 1973. (As a nuclear weapons state, the United Kingdom permits the application of IAEA safeguards pursuant to the NPT under a voluntary offer which was signed on September 6, 1976.) On February 17, 1977, the *Commission of the European Communities notified the IAEA that all of the necessary steps had been taken for the IAEA/EURATOM Safeguards Verification Agreement to. come into force. As a part of this action, the EURATOM accdUnta.oility system had been adapted to that of the IAEA through the publication of Commission Regulation 322/76, which came into force during January 1977. Currently, EURATOM and the IAEA are negotiating the Subsidiary Arrangements and Facility Attachments which are necessary to bring IAEA veri-

3 - fication of EURATOM *safeguards into practical effect. Pe~ding the completion of thes*e negotiations, the IAEA has the right to apply the procedures of.the EUR.~TOH-IAEA-Safeguards Vari-fication Agreement even though the Subsidiary Arrangements_ have not entered into force. The Additional Agreement prohibits the reexport of special nuclear material suppli~d. by the United States beyond the con-trol of the Community, unle-ss the tr.s. Government agrees to such transfer and then only if it is within the scope of a bi-lateral agreement for cooperation between the United States and the nation to which it is being transferred o.; within an appropriate multilateral agreement. ( Since the u.s.-supplied material will not be irradiated within the EC, there will be no special nuclear material produced which is subject to provisions of the Additional Agree-ment. Under the U.S.-Swiss agreement, "When any special nuclear material receiyed from the United States requires reprocessing, or any irradiated fuel elements containing fuel material re-ceived from the United States... are to be removed from a re-actor and are to be altered in form or content, such reprocess-ing or alteration shall be performed in facilities acceptable to both Parties upon a joint determination that the provisions of Article X may be effectively applied. No special.nuclear material produced ~hrough the use of material transferred to the Govern.~ent of Switzerland or to authorized persons under its jurisdiction, pursuant to this , Agreement... will be transferred to the jurisdiction of any other nation or group of nations, except as the Commission may agree to such a transfer." A trilateral safeguards agreement between the United States, Switzerland, and the IAEA entered into force on February 28, 1972, and is applicable to this export.

4.

In cases in which the recipient country is not required by the NPT to accept IAE11. safeguards, does the recipient country: or org~nization have accounting and inspection procedure~ such as to assure compliance with the require-ments of the relevant U.S. Agreement? The EURATOM safeguards system presently applies to all U.S.-supplied special nuclear material. As noted previously, under the U.S. -EURATOH Agreement, the* principles of_ the EURATOM

4 - safeguards system are compatible with those required by the IAEA and followed by that agency in the implementation of* safe-guards under the NPT. Further, under the Agre err.en t, the EURATOM materials* accountability system and that of the U.S. are required to be reasonably comparable. As mentioned previously, IAEA safeguards are applied to this export to Switzerland under the terms of a trilateral agreement which entered in -f~rc~ on February 28, 1972.

5. - Does the recipient country have adequate physical security arrangements to deal with threats of subnational diversion of significant quantities of nuclear weapon materials (plutonium or highly enriched uranium)?

During April 1976, a team of U.S. Government experts visited Belgium and Switzerland for an exchange of views on physical security, including visits to certain facilities at which this material will be processed, stored and utilized as well as other facilities with similar characteristics. The fixed site reviews included (1) security. forces, (2) physical barriers, (3) detection and alarm apparatus, (4) corn.iunication and response capabilities, (5) access and exit controls, (6) accountability and reporting procedures, and (7) physical security organization. In the area of transportation, procedureE and equipment for protecting nuclear materials while in transit were examined. The team jµdged Belgium's and Switzerland's physical protection systems, equipment and procedures and equipment for transportation security adequate to physically protect the material at the facilities in the respective countries, in transit and the material requested in this license application.

6.

What is the position of the recipient country with regard to non-proliferation (e.g., party to l*1PT, LANFZ, public statements)? . Belgium and Switzerland both are parties to the NPT.

7.

What understandings does the United States have with the recjpient bountry with respect to the use of U.S.- supplied material or equipment to acquire or develop nuclear explosiv~ devices for any purpose, and as to the recipient country's policies and actions as to such development using equipment and material from any source? As parti es to the NPT, Belgium and Switzerland are com-mitted not to develop nuclear explosive devices for any purpose.

5 -

8.

What other factors are there which bear on the issuance of the export license, such as further U.S.. understandings with the recipient country, other supplier countries or interested regional countries? Although it is not the current policy of the Executive Branch normally to support t~e export of kilogram quantities of plutonium, there are a number of extenuating circumstances in this instance which have-led it, after extensive review and consideration, to recommend iss1.J.ance of _this particular export license. These considerations*.include the fact that (a) the plutonium was brought into the United States under an NRC import license substantially before development.of the present policy generally limiting plutonium exports during the INFCE to less than kilogram quantities; (b) Switzerland is an NPT party which shares overall U.S. non-proliferation objectives; (c) Switzerland is an active participant in the INFCE and has offered to make the results of this mixed-oxide work available through the INFCE; (d) the development program is relatively small scale (four mixed-oxide assemblies in a total core of 121 assemblies); and (e) Switzerland plans to take no decision on commercial use of mixed-oxide fuel in LWR's until the results of the Beznau program are known -- a period of at l~ast six years -- nor even to undertake further major mixed-oxide deve~opment work before that time.

MBASSY OF SwrI'ZERL&'lr>

ffiVEIZERISCHE BOTSCHAFr A.J.\\IBASSADE DE SUISSE

651. 513 NOK 651. 512.1,,_ CF/pr Colone]. Vance H *. Hudgins Assistant Director for Politico-Milita.ry Security Affairs Division of Intern. Security Affairs U.S. ERDA Washington, D.C. 20545

Dear Colonel Hudgins:

WASHINGTON D.C. 20008, 2900 Cathedral Avenue N.W Telephone 46:z*18u /7 July 30, 1976

• Reference is made to your letter of July 22, 1976 concerning the application XSHI*ii 954- (S-391) dated June 9, 1976 for a license from Westinghouse Electric Corporation, Pittsburgh, PA 15230, covering a shipment of fuel assemblies to be installed in the Beznau I nuclear plant of the Nord-ostschweizeri.sche Kraftwerke A.G. ( NOK), Baden, Switzerland..

I have been authorized by the Swiss Federal Office of Energy to corµ'irm that the material idendified above-is intended solely for peaceful uses, pursuant to the terms and conditions of the Agreement for Cooperation between the Governments of the United States and Switzerland. I have also been authorized to" coni'irm that the ultimate consignee.1 Nordostschweizerische Kraftwerke A.G. (NOK), is authorized to receive and possess the material.. As far as the intermediate consignee, Franco-Belge de Fabrication de Combustibles, S.A. (FBFC), Europlaan 12, 2480 Dessel, Belgium., is concerned, the Euratom Supply Agency will make the confirmation. Sincerely yours, Christian Favre Scientific Counselor APPENDIX B-7

DELEGATION OF THE COMMISSION OF THE EUROPEAN COMMUNITIES Mr. Vance H. Hudgins Assistant Director for Politico-Military Security Affairs August 9, 1976 JM/kg Division of International Security Affairs Energy Research and Development Administration Washington, D.c*. 20545 Attn.: Mr. Marvin Peterson SubjectGSNM-954, S-30 Westinghouse Electric orporation's application for export of mixed oxides to Swi~zerland with fabrication services provided by Franco-Bel~ de Fab~ication de Combustibles, Belgiwn

Dear Mr. Hudgins:

This is in reference to the authorization letter addressed to you by Dr. Favre on July 30, 1976. As you are aware, in the frame of the export of fuel to the Beznau I nuclear plant in Switzerland, the Franco-Belge de Fabrication de Combustibles (F.B.F.C. ) in Dessel, Belgium, will manufacture the fuel rods ir:*i:o fuel assemblies. We certify that the material mentioned in tha ab~ve application, namely upto 11.1 kg of U-235 contained i~ 1550 kg of* U and 40,181 g of fissile Pu contained in ~pto 51,086 g of total Pu, and the transfer of this material will be subject to all terms and conditions of the Aedition Agreement for Cooperation. Fµrther, we certify that Franco-Belge de Fabrici;.*':ion de Combustibles, S.A. (F.B.F.C.), Dessel, Belgium, as intermediate consignee is authorized by EURATOM to =E: ::eive and possess this material pursuant to the aforernentic~ed Agreement for Cooperation. After manufacturing of the fuel assemblies, above material will be shipped to the B~znau I station in Switzerland. Sincerely yours,.A.PPFrtD IX 8_8

DEPARTMENT OF STATE UNCLASSIFIED MEJ."10 RAND UH TO:

• FROM:

SUBJECT:

NSC AD Joseph Export Wasnlniton, O.C. 20520 . i_. :. \\ :. -i

?77 CECl °4SNOV ; 1977:S ;

HOC GROUP ON NON-PROLIFERATION

s. Nye,

-141 ;1 Chairman ; _ V L I of Kilogram Quan~ities of Plutonium In the NSC Ad Hoc Group's respons.? to PD-8 on policies related to plutonium separation and use, it was reco:n.~er.ded that the U.S. make no =sw..cor.uni~~encs to export significant quantities of pl~tonium during the INFCE evaluation period. However, it was noted that in several pending cases involving exports of kilogram quantities of plutonium, ".. *- we should make one-time exceptions or offer other fuel and

• appropriate financial compensation... ", and we recommend approval in such cases.

This recommendation subsequently was approved by the Presicent. The recently-established Subgroup ~n Nuclear Export coordination has reviewed three export license applications which are pending

• be£ ore t.=ie. Executive Branch and the Nuclear Regulatory _Co:i~ission and which appear to fall into the catetor_y of su~ "one-time exceptions".

(Insofar as it is aware, these are the

• -- --~'""'

only s uch cases involving kilogram ~ua~tities or

• plutonium based on transactions entered into -pric= -~=-- ----*~--- - --

CY 1977.) These panding export license applications are: I. S-47:

c::*-.-::J

• r

' 1, ~ *..., Export to Italy (Date of Application: - - April 4, 1975) UNCLASSIFIED

Quantity:

== Description:== Comment:

2.

S-391: Quantity:

== Description:== UNCLASSIFIED 2 - 2.48 kilograms of plutonium. Shipment to 3elgon~cleaire (Belgium) for clean-up and a~alysis, after which it would be shipped to the Italian State Electricity Board (ENEL) for storage and later :!Se in ENEL's civil nuciear power program. Plutonium involved was produced in the U.K.-supplied Latina reactor from UKAEA-origin fuel ~hich was rep=ocessed in the u. K. In the mid-1960 's E:-:EL sent a rather large ship~ent of such plutonium to the U.S. ~for fabrication of MOX fuel at GE's Vallecitos Nuclear Laboratory. (Italy has long conducted an extensive MOX development progr~'11, including essentially full-core power reactor loadings o~ such fuel fabricate~ in the U.S., Belgi'=l, and Italy for comparison of fuel ?er£orr:1ance.) The MOX fuel, consisti~~ of four fuel bundles was exported in 1967. The plutonium under S-47 is the scrap remaining fro~ this fabrication, and is larcelv in the form of scrap oxide powcer (~ix~d wit.h natural urar.ium and fuel pellets). Export to Switzerland (Beznau-I Reactor) (Date of ;.pplication: June 9,. 197 Approximately 51 kilograms of plutoniwn (40 kg_ fissile). Fuel rods and skel:tons of £uel assenblies have been fabricat~d by Westinghouse at Cheswick, Pa. They then will be shipped to Belgo-Nucleaire (Belgium) fur final fabrication into fcur complete fuel assemblies. These will be loaded into the Beznau reactor {total of 121 asser.tblie UNCLASSIFIED

Comments:

3.

S-566: Quantity:

== Description:== Comments: UNCLASSIFIED 3 in core) to obtain first-hand experience with mixad-oxide fuel and evaluate its characteristics. This load~ng originally was expected to ~ake place about June 1977, but has now been rescheduled for the spring of 1978. The-plutonium was produced in the Dutch Dodeward reactor ('CJ. S. -SU??lied) fro::i O.S. fuel which was reprocessed at a European facility. In 1976, NRC issued an import license for this ?lutonium after obtaining the 9relimina=y*views of the Depart~ent of State that no diffi-culties were foreseen in its subsequent export. The Westinghouse fabrication work has been conpleted. In antici?ation of receipt of the assernblies the Swiss accordingly have rEdUCJ=d their con-tractual requests :or enrict~d urani~~ for this. particula= fuel loading. Export to the Federal Republic -of Germany (KWL Reactor) (Data of A9plication: December 28, 1976). 6.235 Kilograms of Plutoniurn. Eight mixed oxide fuel asser:lblies f~bricated by Exxo= ~uclear in Richland, Washington 'will be loaded into t:ie K~*:L

• reactor (total of 284 asserr~lies *in core) and irradiated for at least four years as part of a research and develo~~ent program in mixed OAide fuels.

The plutonium wa? produced in the K:'1L reactor from U.S. :::iel which was reprocessed at a facility in the United Kingdom. E=con Nuclear ~as cc~- pleted its fabrication work and the f~al is now in storage Li. Richland, ~-;ashinstc:1. The export license for this mate=ial UNCLASSIFIED APPENDIX C-3

UNCLASSIFIED 4 - originally was issued by the AEC in September 197~. This license was extended in 1976 by the NRC. The latter license expired on March l, 1977, and the present request is for an extension to March 1, 1978. It should be noted in support of these pro?osed one-t~~e exceptions to current restrictions on plutoniu~ exports that all t."1ree applications substantially* predate existing U.S. policy on non-proliferation and involve research on mixed oxide fuels at established facilities in friendly countries sharing U.S. long-term non-proliferation goals. Furthermore, the plutoni~~ recycle programs in both the FRG and Switzerland are still on. the scale of early research and development, as evidenced by the s::tall mixed oxide component of their respective power reactor fuel cores. It should also be noted that in the I~alian case t~e plutonium was not ?reduced through the use of U.S.-s..:.;,plied material or facilities; our present control exists only from the fact that it was imported to ~he U.S. for purposes of fabrica tio.:1 (an opera tio:i. ':*.ihich actually decreases the weapons utility from its original fori). Further, in the case of the Swiss and :lutch material, c:1.e plutonium was brought into the United States under an im~ort license issued by an agency of th_e U.S. Goverr~--::en t in the knowledge that subsequent re-export was planned. Failure of the Executive Branch to recommend bese e.x?orts 1,,,ould, under the circumstances described, be considered as grossly iriequitable by the importing nations wid would raise both political and legal issues. The alternative possibility of a financial or materials credit in the form of slightly enriche~ uranium also tas been explored. There is some question as to whecher the DOE currently has the statutory authority to grant such credits. Further, even if the importer were willing ~o accept such a credit, questions would ~e raised in the Swiss and Dutch cases as to appropriatt!: compensation for the substantial fabrication costs whicb have already been incurred over and above the value of tie plutoni~~*itself. In view of the foregoing, the Sub;roup an Nuclear Export'Coardination is of the opinion that a favorable UNCLASSIFIED

.. recommendation for issuance of these three export licenses should be forwarded to the NRC. Your com-ments on or concurrence in the Subgroup's proposal .are requested by Noverober 25, 1977. As is the custom, if comments are not received by the above date--and in the absence of a request for an extension--it will-be_ assumed that your Ager:cy has noted and has no objection to this ~roposal. Comments should be given to Dixon Hoyle (632-4101) or alternatively Dean Cooper (632-1689). UNCLASSIFIED

~* PJ\\Gf. 01 onu:, !;c ncH;95 5593 ACTIOII OES-C7 INFO OCT-Cl EliR-i2 L - 0 3 NS,\\ [ -,' J DOE - I I S S - l S SP - 0 2 , l O 3 r.1~ ~~;0 t; ~~~~;- l ; 11,c~*.1,;:E-~~~ _.;t1-g;Df ~~;~I] 0/ fito1*~

---

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5.

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1stingnouse

ctrfc Corporation

...T. R. S r1t:.-r1 Water Reactor Divisions >vember 29, 1977

r. J. Shea

. s. Nuclear Regulatory Convnission* iSh1ngton, DC

• 20555 Jbject:. Expo.rt license Application' XSNM.;.394

' S-391 Mixed Oxide Fuel

• for NOK 2ar Mr. Shea:

ICS-6287 ware, Re.mo, Divisions Markering lnfem.:nans! 0:;e1:!r.c;.s Box 1918 P11TSbUfih PeMi:yJi;ania i52:J I 0~;G e have been advised by your office that the. subject applicat1on is sti11 n the State Department. e ate concerned that unless the State Department releases the application o the Nuclear Regulatory Cormiission irrmediately, you will not have L1ffi"cient time to complete the process and issue the license in-tir.ie. ecause of shipping and government required security arrangements, we must ave the 1 i cense no. later than December 1, 1977 in order to meet our Ollltlitted ship date of December 5, 1977 from Westinghouse at Cheswick, ennsylva~ia. estinghouse is cormiitted to have the fabricated fuel rods, which used the OK furnished material, to the FBFC factory in Dessel. Belgium for further ssembly by the last week of December, 1977. Failure of 1~estinghouse to eet this corrmitment \\vould *jeopardize both the FBFC open shop capacity nd the delivery to the NOK site of the final fuel assanblies 1n time to eet the next plant refueling (early 1978).

-tr. J. Shea ~ovember 29 1 1977 ~age 2 Due to the critical nature of this situaticn, any efforts you can exert to expedite the issuance of theexpor-.t-ljcense will be greatly appreciated. ~ery truly yours. Wl/3~ ,. L. Boettinger> Manager [nternat1onal Customer Services fcg

c:

M. Guhin - NRC D. Hoyle.. State Department

EMBASSY OF SWITZERLAND CHWEIZERISCHE BOTSCHAFT AMBASSADE DE SUISSE et.: 651. 513 N0K - CF/mh Dr. James Shea. Director WASHINGTON D.C.20008, 2900 Cathedral Avenue N. W. Ti,lephone {62-1811/7 January 20, 1978 Nuclear Regulatory Conrnission Internationai Programs Washington, D.C. 20555 BY H.~ND

Dear Dr. Shea,

Following our telephone conversations of yesterday-and this morning, it is rr.y pleasure to send you herewith a copy of the "N0K Mixed Oxide ri1el Fabrication Schedule" prepared by Westinghouse. If the deadlines indicated on this schedule are missed, it will be impossible to include the four mixed oxide fuel assemblies covered by license XSNM-954 a.s part o-r the annual refueling of the Beznau MWe PWR nuclear ~ower plant (core size or"' Beznau I 1s 121 as-semblies). As a result, this particular N0K testing and research program would be jeopardized for this year. Encl. Sincerely yours, Dr. c. Favre

• Scienti.fic Counselor APPENnTX F-1

Receive U.S. NRC Export license February 3, 1978 / , 1110 Rod Shipment c(_,"'~ t OX f [3 F C March 3, 1978 /2 fuel Assembly fabrication at FBFC Apply for MB-10 Form Apply for Swiss Import License Arrange for Guard Service for Transport Within the U. S. and at Port of Export Arrange for Shipment with Domestic Carrier Arrange for and Book Ocean Carrier Obtain Lettered Ocean Sea Container Rental of Equipment Needed to Load M0-1 Container into Sect Container Final Accountability Ca1culation Notification to NRC of Fuel Rod Movement Arran9e* Shipment with European Carrier Arrange for Guard Service in Europe Load I*:0-1 Container into Sea Container Arrange for Guards at FBFC Fixture Atrangement to Make NOK Type Fuel Preparation of Personnel to Make NOK Type Fuel Arrange for W Q.C. Personnel at-FBFC fo r Fabrication Process Arrange for NOK Personnel to be Present for Assembly Fabrication Unpacking M0-1 Shipping Container Which FBFC has Never Done Preparation of M0-1 Container and Packing Materials to Ship Completed Fuel Assys. Fabrication of MOX Fuel Assemblies Refuel

Shutdo, April 7, 1978 May 5, 1978 May. 15 fuel Assem.bly..,__~-kll,....Fuel Receiptl * ~

Shipment to ~ez~~u at Site Arrange for Guard Service Arrange for Services

• of Fuel Carrier Accountability and Shipping Documentation Prepared Fuel Assemblies Loaded into M0-1 Container All Transport Permtts Obtained Transport of Fuel Assemblies From FBFC to Beznau Unload Fuel Assemblies at Beznau Conduct Fuel Receivin Inspection at Beznau Receipt of Uranium Dioxide Fuel and Receiving,Inspection I
• I f

I I ~ APPENDIX F-2

7., /,,:,/..,., /,, ~,,/ Washington, o.c. January 20, 1978

Dear Mr. Chairman:

May I be allowed to submit to you personally a subject that is of prime importance to my Government and also of considerable inte~est to me. It pertains to the export of advanced nuclear fuel for research purposes. Together with my Scientific Counselor, Dr. Christian Favre, whom you know, I have devoted much attention to this question~ As you may recall, I had the honor and privilege to head the Swiss delegation to the International Nuclear Fuel Cycle Evaluation Organizing Conference, held in Washington, D.C., October 19-21, 1977. On that occasion I had an oppor-tunity to have a valuable exchange of views with you on nuclear and non-proliferation policy. Our present concern is the following: On June 9, 1976, Westinghouse Electric Corporation applied for a license (NRC Reference XSNM-954) for mixed plutonium *and natural uranium dioxide to be used in the fabrication of four fuel assemblies. These four elements ! Honorable

eph M. Hendrie tirman of the

i. Nuclear Regulatory Commission

.7 H Street, N.W. ihington, D.C. 20555

are intended for installation, during the next re-fueling in May 1978, in region 9 of the Beznau I nuclear power plant in Switzerland. Indeed, the.owners and operators of the power station, Nordostschweizerische Kraftwerke AG {NOK) which is essentially controlled by public authorities, have developed an in-depth research program on mixed oxide-bearing fuel assemblies aimed at gaining ~irst-hand experience and evaluating various characteristics of this type of fuel. By letter of January 17, Westinghouse transmitted to my Scientific Counselor a revised fabrication schedule for the NOK mixed oxide, from which all the contingencies contained in the ~arlier schedule are* removed. Westing-house at the same time stressed that, in view of the rapidly passing time, it will be extremely difficult for the company to have the fuel on site by May 15 even if the license is received prior to February 3. If this deadline is not met, it will be impossible to include the four mixed oxide elements in the regular, annual refueling of this 350 MWe PWR reactor, in which case the research program of NOK will be jeopardized for this year. The present and future information acquired from the NOK research program has and will provide valuable addi-tional data for the Swiss utilities and the Swiss nuclear regulatory authorities. The integration of these data in

3 - the Swiss contributions to INFCE is anticipated. The findings are primarily relevant to point 4c of the INFCE terms of reference. "4) Reprocessing, Plutonium Handling, Recycle 4c. Recycle in thermal reactors study of the technological, economic, environmental and energy aspects of the concept on an industrial scale; - safeguards aspects specific to recycling; possible uranium-only recycle; " However, meaningful scientific and technical results can only be obtained if we have at our disposal the fuel to perform the programmed tests. Among other considerations, I emphasized in my opening statement to the INFCE Organizing Conference the importance for my country of a continuous research effort on nuclear fuels in these words: "In order to insure a substantial and effective contribution by Switzerland to the INFCE evalu-ation, it is essential that its research teams, working on advanced nuclear projects, be able to continue their work. It is ultimately these groups that will be responsible for the Swiss technical contributions. Research teams of high scientific caliber can only be kept together if the prospect.of an interesting and challenging program can be sustained. In the field of advan-ced nuclear fuel, this means availability of highly enriched uranium and plutonium in research quantities. Uncertainties in this respect may lead to the disbanding of research teams which will jeopardize the prospects of a Swiss contri-bution to INFCE.

These remarks were, I believe, well received and reflected in the unanimously accepted final communique: The evaluation will be carried out in a spirit of objectivity, with mutual respect for each country's choices and decisions in this field, without jeopardizing their respective fuel cycle policies or international cooperation, agreements, and contracts for the peaceful use of nuclear energy, provided that agreed safeguards measures are applied. Taking into account that the license application was filed on June 9, 1976 as well as the reasons mentioned above, I herewith appeal to you to review the present status of export license application XSNM-954, hoping and trusting that the license can be iss~ed before February 3 to allow Westinghouse to deliver the four fuel assemblies on time so that the physical testing of the mixed oxide can begin in June 1978. I am at your disposal, as is my Scientific Counselor Or. Favre, to provide any further information you may need concerning this particular license or on nuclear energy in Switzerland in general. Wit best personal regards, Sincerely yours, Raymond Probst

Copy for information to: The Honorable Gerald c. Smith Ambassador at Large U.S. Special Representative for Non-Proliferation Matters U.S. Department of State Washington, D.C. 20520 Dr. Josephs. Nye Deputy to the Undersecretary for Security Assistance, Science and Technology U.S. Department of State

• Washington, D.C.

20520 ~, APPENDIX G-5}}