ML25260A555

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SECY-78-65A: Approval of Urgent License to Export Mixed Oxide Fuel to Switzerland (Application XSNM-954)
ML25260A555
Person / Time
Issue date: 02/02/1978
From: James Shea
NRC/OIP
To: Commissioners
NRC/OCM
References
SECY-78-65A
Download: ML25260A555 (1)


Text

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SECY-78-65A February 2, 1978 COMMISSIONER ACTION For:

From:

Thru:

Subject:

Purpose:

Discussion:

The Commissioners James R. Shea, Director Office of International Programs Executive Director for Operations ~--'*

APPROVAL OF URGENT LICENSE TO EXPORT MIXED OXIDE FUEL TO SWITZERLAND (APPLICATION XSNM-954)

Commission review of proposed issuance of subject license to Westinghouse Electric Corporation.

SECY-78-65, dated January 31, forwarded information pertaining to the proposed subject export and noted that:

l. The staff was seeking assurances, in coordination with State and DOE, that physical security at the Dessel facility in Belgium will be equivalent to the measures being taken at the MOL facility (outgoing cable at Appendix A);
2. The staff would forward its recommendation on the application upon receipt of such assurances;
3. If a license is not issued by February 3, the R&D program associated with this fuel and the related THISDOCUMENTHASBEENDECLASSIFIEDUNDEftontribution to the INFCE would be set back about THE PROVISIONS Of~ ~~8, DA?°!7/95 a year; and By Authority of~------

{DeclassificationAutbor~umbe'4. The Swiss have on several. occasions, including a Date ofDeclassincation S tt VI ~,

o -6 recent 1 etter from the Sw, ss Ambassador to the

Contact:

Chairman, expressed the importance and urgency Switzerland attaches to this license.

Assurances regarding the physical security at Dessel were received late Friday, January 27 (incoming cable at Appendix B).

On the basis of these assurances,

M.A. Guhin (492-7866)

M.R. Peterson (492-7984)

SUBJE.CT TO GENERAL DECLASSiFiCl\'fi*.:,:**, SCn EXECUTIVE ORDER 11652 AUTOMATICALLY Al 'I.WO YEAR INTERVALS AND DE.CLAS 60Nfl80fl1Ab

-*coNADENflrA~ u Discussion:

(continued) the staff believes that the license should be issued.

Copies of the staff conclusions and the proposed.

license are at Appendices C and D respectively.

Recommendation:

That the proposed license be issued immediately.

Coordination:

ELD has no legal objection.

NMSS concurs.

However, NMSS wishes to inform the Commission that it has not received country-specific information which permits it to make an independent conclusion as to the ef-fectiveness of IAEA and EURATOM material control and accounting safeguards to deter and to detect national diversion in Belgium and Switzerland.

Enclosures:

1.

Appendix A - Cable dtd 1/24/78 (CONFIDENTIAL)

2.

Appendix B - Cable dtd 1/27/78 (CONFIDENTIAL)

3.

Appendix C - Staff con-=-

clusions dtd 2/2/78

4.

Appendix D - Copy of proposed license NOTE:

Commissioner comments should be provided directly to the Office of the Secretary by c.o.b. Friday, February 3, 1978 Commission staff office comments, if any, should be submitted to the Commissioners NLT February 2, 1978

, with an information copy to the Office of the Secretary.

DISTRIBUTION Co1T111issioners Commission Staff Offices Exec Dir for Operations Secretariat

-.CONADEHTlAl

'AGE 01 STATE 'levartnzerit of ~tate J

/ 1si94 IR I GIN NRC-07 NFO OCT-01 SOE-02 EB-08 EUR-12 CIAE-00 DODE-00 IS0-00 OES-07 INR-07 I0-13 SS-15 SP-02 1RAFTED BY NRC:

M PETERSON

,PPROVED BY OES / NET / EIC:

D B HOYLE

.CDA:

H WILLIAMS UR/RPE:

W SALISBURY M/NPP :

J NIX OE/ISA:

W HAGIS ACDA-12 PM-05 L-03 NSAE-00 SS0-00 INRE-00 DOE-11 NSC-05

/ 1 1 0 R


125551 2423142 / 64 1 2 4 2 2 1 7 Z JAN 7 8 M SECSTATE WASHDC 0

AMEMBASSY BRUSSELS IMMEDIATE MBASSY ALSO FOR USEC

. O.

1 1 6 5 2 : GD S AGS:

ENRG, TECH, BE, IT, SZ UBJE_C.T:

PHYSICAL SECURITY MEASURES AT DESSEL NUCLEAR ACILITIES EF:

BRUSSELS 0695 THE USG IS CURRENTLY REVIEWING TWO EXPORT APPLICATIONS NVOLVING THE PROPOSED INITIAL SHIPMENT OF PLUTONIUM TO ELGIAN FACILITIES AND EVENTUAL REEXPORT TO SWITZERLAND ND ITALY.

THE FIRST APPLICATION INCLUDES 51. 086 KGS OF PLUTONIUM IXED WITH NATURAL URANIUM TO BE FABRICATED INTO MIXED XIDE FUEL ASSEMBLIES BY FRANCO-BELGE DE FABRICATION DE

)MBUSTIBLES S. A.

!FBFCl IN DESSEL,

BELGIUM.

THE COMPLETED JEL ASSEMBLIES WILL BE REEXPORTED TO SWITZERLAND FOR VENTUAL LOADING INTO THE BEZNAU I POWER REACTOR.

THE SECOND APPLICATION IS FOR 2. 48 KGS OF PLUTONIUM AND l

KGS OF NATURAL URANIUM FOR CLEANUP AND ANALYSIS BY

~LGONNUCLEAIRE, S. A., IN DESSEL ANO EVENTUAL REEXPORT TO rAL Y.

PRIOR TO TAKING FINAL ACTION ON THE PROPOSED EXPORTS, iE USG REQUESTS EMBASSY ASSISTANCE IN OBTAINING

=FICIAL GOB ASSURANCES THAT MEASURES FOR THE PHYSICAL

~OTECTION OF NUCLEAR MATERIAL AT FBFC AND BELGONNUCLEAIRE

LL PROVIDE A DEGREE OF PROTECTION EQUIVALENT TO THAT JRRENTLY IN PLACE AND BEING INSTALLED AT THE BR-2 REACTOR
TE AT MOL

!SEE REFTELl.

WE ARE PARTICULARLY INTERESTED 4 CONFIRMATION THAT THE DESSEL MEASURES ARE EQUIVALENT TO iOSE AT MOL WITH RESPECT TO Ill ONSITE SECURITY FORCES,

!)

TIMELY OFFSITE RESPONSE FORCES, (3)

REDUNDANT

)MMUNICATIONS TO OFFSITE RESPONSE FORCES, (4)

INTERIOR ITRUSION ALARM SYSTEMS, (5)

ACCESS CONTROL MEASURES TO ITERIAL PROCESSING AND STORAGE AREAS, AND (6)

PHYSICAL 1RRIERS PROTECTING MATERIAL PROCESSING AND STORAGE AREAS.

IN VIEW OF THE URGENCY OF THESE APPLICATIONS, AN

,RLY RESPONSE WOULD BE APPRECIATED.

WE UNDERSTAND THAT IE MATERIAL FOR SWITZERLAND MUST BE READY FOR SHIPMENT

!OM US BY FEBRUARY 3 IN ORDER TO ARRIVE IN TIME FOR THE XT SCHEDULED LOADING ON THE BEZNAU I POWER REACTOR, HERWISE PROPOSED IRRADIATION WILL BE DELAYED BY MINIMUM ONE YEAR.

VANCE TELEGRAM 2059 APPENDIX A

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COPY--:? 1)¥!/Jrtment oj :itat TELEGRAM a o 1 l__~ t o 1 6 ~ 2 7 1 s 2 4 z rlON NRC-07 OCT-01 INR-07 DODE-00 EUR-12 IS0-00 NSCE~OO ACDA-12 CIAE-00 10-13 L-U3 NSAE-00 EB-08 OES-07 SOE-02 DOE-11 SS-15 SP-02 SS0-00 INRE-00

/ 100 W


057900 271526Z /4 3 y15 2 6 Z J AN 7J AMEMBASSY BRUSSELS SECSTATE WASHDC IMMEDIATE 4518 1 W F I D E N T I A b -8 RU SSE L S O 1 6 6 9

. 11652: GOS

/

S:

ENRG, TECH BF, IT, SZ

/!._

JECT:

PHYSICAL SECURITY MEASURES AT DESSEL LEAR FACILITIES (Al STATE 19094 :

(Bl BRUSSELS 695 HFRPFLS, DIRECTOR OF NUCLEAR AFFAIRS,

MFA, INFORMED BY LETTER DATED JANUARY 26 THAT THE PHYSICAL SECURITY SURES TAKEN BY FRANCO-BELG£ DE FABRICATION DE COMBUS-LES S. A.

AND BY BELGONUCLEAIRE S. A.. BOTH LOCATED AT SEL, BELGIUM, MEET THE REQUIREMENTS NORMALLY ENVISAGED H RESPECT TO THE SIX POINTS MENTIONED IN PARAGRAPH 4 REFTEL.

DETAILS CONCERNING THE NATURE OF THESE MEASURES L 8 E F LI RN I SHE D SU 8 SE QUE NTL Y I F WE SO W l SH.

HERPELS ASSURED US IN FOLLOWON CONVERSATION THAT fECTIVE MEASURES TAKEN AT THE TWO FACILITIES WERE

~N EVEN HIGHER LEVEL THAN THOSE PROVIDED AT THE SITE.

OLSEN APPENDIX B 2677

u UNITED STATES NUCLEAR R~GULATORY COMMISSI WASHINGTON, D. C. 20555 February 2, 1978 Memorandum to the File STAFF CONCLUSIONS REGARDING PROPOSED LICENSE TO EXPORT MIXED OXrDE FUEL TO SWITZERLAND (APPLICATION XSNM-954)

In June 1976 Westinghouse Electric Corporation filed an ap~ication for a license to export 51.086 kilograms of plutonium as plutonium oxide and 1,550 kilo~rams of natural uranium, to Switzerlanci.

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 for Cooperation between the United States and Switzerland, and to the US-EURATOM Agreement during the time it is fabricated and transiting Belgium.

The Executive Branch response 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 further notes that, although it is not the current policy of the Executive Branch normally to support the export of kilogram quantities of plutonium, the Executive Branch recommendation on issuance of this export license is based upon considera-tions that:

1.

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

APPENDIX C-1

u V

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.

4.

The development program is relatively small scale.

5.

Switzerland plans to make no- ~eclsion for at least six years on commercial use of mixed-oxide fuel in light water reactors until the results of the Beznau program are known.

Furthermore, no major mixed-oxide development work will be undertaken before that time.

This _application represents one of three pending cases involving exports of kilogram quantities of plutonium discussed in the NSC Ad Hoc Group memorandum of November 11, 1977.

The memorandum notes the Group's recommen-dations that, while the US should make no new commitments to export signi-ficant 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 currerit 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 (1) the IAEA-EURATOM safeguards agreement has come into force 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 rPt.r.nnc; f 13r of separated special nuclear material produced within the Community. ~ Howev~r, the Commission will note that the material under this proposed license is not to be irradiated within the Community.

APPENDIX C-2

J u The US-Switzerland Agreement for Cooperation, as amended, (1) provides that US-supplied material or material produced 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 deter-mination that safeguards may be effectively applied.

Based on a 1976 visit of a US physical security review team, subsequent exchanges, and reviews, the physicaT security programs in Belgium and Switzerland are considered adequate to protect trigger quantities of special nuclear material.

As noted in the State Department memorandum, the US has assurance that Belgium and Switzerland are committed to providing a level of protection for their programs consistent with the recommendations in IAEA INFCIRC/225.

As required by Section 57 of the Atomic Energy Act and 10 CFR 70.31, we have concluded that the proposed license:

1.

Would be subject to the Agreement for Cooperation between the United States and Switzerland, and the US-EURATOM Additional Agreement, as amended, during the time it is fabricating and transiting Belgium; and

2.

Would not be inimical to the common defense and security of the United States.

f{ :-;i 1.r'll/ Ml R. N~al "Moore'---

Senior Licensing Reviewer Export/Import and International Safeguards Office of International Programs APPENDIX C-3

NIU. rn.. tN~E NO.

  • I LICENSE EXPIRES _______ _

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XSNM-954 I

~ !I Nuclear Regulatory Commission ant to the Atomic Energy Act of 1954,as amended, and the the licensee, a license is hereby issued to the licensee author*

ii y Reorganization Act of 197 4 and the regulations of the izing the export of the materials and/ or production or utilization

  • or Regulatory Commission issued pursuant thereto, and in facilities listed below, subject to the terms and conditions herein.

1 ce on statements and representations heretofore made by

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L-IC-EN_S_EE _____________

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>> P. 0. Box 1918 Pi ttsbu_rgh, Pennsylvania 15230 DIATE CONSIGNEE IN FOREIGN COUNTRY ranco-Belge de Fabrication de ombustibles S.A. (FBFC)

Europlaan 12 2480 Dessel, Belgium 1rs REF. NO.

ITY DESCRIPTION OF MATERIALS OR FACILITIES 6 kilograms of

mi urri ci 1 :,grams of 1 l L1rani um NAME Nordostschwei zeri sche Kraftwerke A.G. (NOK)

AooRess Baden, Switzerland**

OTHER PARTIES TO EXPORT NONE couNTRv oF urnMATE DesT1NAT10N switzerl and Contained in reactor fuel rods i **-

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ions l, 4, 5, 8, and 9 on page two of this license apply to this export.

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'I I I I I I I II/ II/ II I II I I I I I I I I II I I I END // // //////// //// // // //////////////// // I :'.~

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is license nor any right under this license shall be assign*

~rwise transferred in violation of the provisions of the ergy Act of 1954, as amended and the Energy Reorgan -

of 1974.

t is subject to the right of recapture or control by Section Atomic Energy Act of 1954, as amended and to all of the isions of said Acts, now or hereafter in effect and to all and regulations of the Nuclear Regulatory Commission.

THIS LICENSE IS INVALID UNLESS SIGNED BELOW BY AUTHORIZED NRC REPRESENTATIVE Michael A. Guhin, Assistant Director Export/Import and International Safeguards Office of International Programs DATE OF ISSUANCE ______________

4!¥IM:!W'Ml1/4W:4~5'M?M!Mf¥%:l,1i!~~~-

EXPO RT LICENSE APPENDIX 0-1 I

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S. NUCLEAR REGULATORY COMMISSION EXPORT LICENSE Conditions License Number XSNM-954

,ndition 1 -

Licensee shall file with the Customs Officer or the Postmaster two copies, in addi-tion to those otherwise required, of the Shipper's Export Declaration covering each export and mark one of such copies for transmittal to the U.S. Nuclear Regu-latory Commission, Washington, D.C. 20555. The following declaration should ac-company or be placed on the Shif?Eer's Export Declarations for such exports:

"This shipment is being made pursuant to specific license number (specific license number) filed at {location of Customs office where license is filed),

on (date license was filed}. This license expires on (expiration date of license}, and the unshipped balance remaining on this license is sufficient to cover the shipment described on this declaration.**

11dition 2 -

Exports authorized in any country or destination, except Country Groups Q, S, W, X, Y, and Z in Part 370, Supplement No. 1, of the Comprehensive Export Schedule of the U.S. Department of Commerce.

1dition 3 -

This license covers only the nuclear content of the material.

1dition 4 -

The material to be exported under this license shall be shipped in accordance with the physical protection requirements for special nuclear material in 10 CFR 73.

1dition 5 -

Special nuclear material authorized for export under this license shall not be transported outside the United States in passenger-carrying aircraft in shipments exceeding (1) 20 grams or 20 curies, whichever is less, of plutonium or uranium 233, or (2) 350 grams of uranium 235.

dition 6-This license authorizes export only and does not authorize the receipt, physical possession, or use of the nuclear material.

dition 7 -

The lic.ensee shall complete and submit on NRC Form 7 41 for each shipment of source material exported under this license.

dition 8 -

The licensee shall advise the NRC in the event there is any change in the designa-tion of the company who will package the nuclear material to be exported under this license, or any change in the location of the packaging operation, at least three weeks prior to the scheduled date of export.

iition 9 - The plutonium authorized for export by this license shall not be transported by air.

APPENDJIX 0-2


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