- UNCLASSIFIED US Department of State Case No M-2012-38475 Doc No 005531528 Date 05 21 2014 I 7_ 3 7709325 0 - DEPARTMENT OF STATE - '2 ACTION MEMORANDUM DELIVERJD smears 1' 5 5 I HOT as Sir SECRET I I sa_c - - sh DECAPTIONEDM a 2 T0 Tee Deputy Secretar mac-nee b3 Alisa stair-r 493$ THROUGH LUCY Wilson Ben un - Dr Joseph Nye I In -I 0 - Patsy T State Department Views on the Partial Response to PD-B lJ 3h 11 Attached are proposed comments on the four policy papers in response to the Presidential Directive on Non Proliferation in the form of a memorandum from you to Dr Brzezinski The four policy papers which we are commenting on are US Policy on Highly-Enriched Uraniun US Policies Related to Plutonium Separation and Use Conditions for New US Agreements for Nuclear Cooperation and for Export Licensing Under Existing Agreements and The Japanese Reprocessing Plant at Tokai These comments have been cleared in the Department and basically reflect the earlier views which we expressed in connection with the transmittal of In' the case of comprehensive safeguards the Department position was modified to reflect a bilateral approach to full-scope safeguards with flexibility for Presi dential exception Recommendation That you approve the attached memorandum from you to Dr Brzezinski transmitting the Department's views on the Interagency response to PD-B Attachment AUTHORITY Martin I As stated Mgtean Senigr eviewer SECRET GDS UNCLASSIFIED US Department of State CaseNo M-2012-38475 Doc No 005531528 Date 05 21 2014 US Department of State Case No M-2012-38475 Doc No 0055571525 Date 05 21 2014 4 f a z Drafted Ext 14360z S 7 Concurrencos Sf - Hr Kalicki draft Pay 1 50 51 Oplingef draft - Mr Bettauer draft ii Hr Sens iraft Mr Sherman draft - Ms Eltz ciraft Mr Locke draft 5 UNCLASSIFIED US Department of State Case No M-2012-38475 Doc No 005531528 Date 05 21 2014 UNCLASSIFIED U S Department of State Case No 111-2012433475 Doc No 005531531 Date 05 21 2014 II ms st -- or ems IN on 1 31 31 5 35 11- 3 11 11% SECRET mic -- a NODIS DECAPTIONED - 5553 ak-WE I m-v 1822 MEMORANDUM FOR Dr Zbigniew Brzezinski FROM Warren Christopher SUBJECT State Department Views on the Partial Response to PD-8 The Department of State believes that the policy recommendations in the four papers listed below provide an appropriate basis for US decisions'in this area We have in addition the following Specific comments 1 US Policy on Highly-Enriched Uranium We believe this policy paper fully supports the Presi dential directive to work toward minimizing the global accumulation of weapons-usable material while meeting existing commitments where technically and economically sound and where these and new commitments would contribute to our proposed international fuel cycle evaluation program In addition to the report recommendations the Depart- ment believes that to support this overall strategy and to supplement the US export license review process in this area a technical working group should be established reporting to the Ad Hoc Group on Non Proliferation which would assess all relevant highly-enriched uranium exports OVer 15 kilograms A report would be prepared on the basis of this assessment to include recommendations on these exports and which would be submitted for Presidential approval as recommended in the policy paper Such reports would be submitted on a semi annual basis or as required in the case of urgent exPort cases hevnsw AUTHORITY Martin McLean Senior' LReviewer seem GDS UNCLASSIFIED US Department of State Case No Doc No 005531531 Date 05 21 2014 - UNCLASSIFIED US Department of State Case No M-2012-38475 Doc No C05531531 Date 05212014 2 US Policies Related to Plutonium Separation and Use While our overall policy direction must seek to dis courage worldwide reprocessing and movement toward a plu tonium economy we firmly believe that we must do this in the context of serious consultations with interested govern- ments We mus recognize that reprocessing capabilities already exist and that a number of the countries have pilot experimental or in the case of'hK and France commercial plants in operation or nearing operation In addition as indicated in the summary of responses at Tab 1 to the pro posed Presidenzial statement on civil nuclear policy many countries do not share our views on reprocessing in the near-term and are very reluctant to forego these reprocessing plans -- and the attendant possible commercial advantage or delay experimental work on the plutonium breeder as the US is prOposing to do domestically In particular a number are implicitly or explicitly conditioning their agreement to participate in an international fuel cycle evaluation pro gram the French on inclusion of these two elements in the evaluation In view of the above the Department believes our policies on plutonium separation and use and our evaluation program must take account of these concerns while moving toward our objectives of finding alternatives to a plutonium economy and minimizing the global accumulation of weapons usable material and the facilities that produce them With- out the active and willing participation of other suppliers and consumers in the evaluation these long-term objectives are not achievable The Department believes that the pro- posed policy on plutonium separation and use fully supports these objectives while taking into account the realities of the current situation 3 Condition for New Us Agreements for Nuclear Coopera- tion and for Export Licensing Under Existing Agree- ments The Department fully concurs in the need for the US to seek to improve the safeguards and controls associated with US nuclear cooperation both through the proposed new condi- tions which we would generally require in new agreements and through upgrading existing agreements through renegotiation We would point out however that this major effort carries SECRET UNCLASSIFIED U S Department of State Case No Doc Moi-005531531 Date 0501 2014 I Fl UNCLASSIFIED US Department of State Case No Doc_No C05531531 Date 05 21 2014 q UNCLASSIFIED US Department of State Case No M-2012-38475 Doc No 005531531 Date - - '1 I -3- with it the significant risk of drivinq US recipients to other suppliers with less rigorous a consequence which will not be in Our long-term nonwproliferation and overall national interest The US as in the past must clearly take the lead in this area if such policies are to be widely adopted It is also clear that we must seek formulations that fully achieve our non-proliferation ob jectives while ensuring to the degree practical that these policies meet the political needs of and thus permit the possibility of acceptance by key countries of concern to us In particular we must avoid formulations that are overly severe in their demands and do little to enhance the non- proliferation regime we are seeking to establish We also believe it is essential that whatever export policies we adopt we vigorously seek adoption of these same policies by the other key suppliers Within the above context and with regard to the al- ternative recommendations on comprehensive safeguards in this policy paper we strongly support the adeption of Option of full sc0pe safeguards page 6 the bilateral formulation between supplier and recipient This formulation is likely to be much more acceptable to recipients of par ticular concern to us would offer a much better chance of influencing their behavior and would allow the US to take the lead in establishing a more comprehensive safeguards regime with less risk of driving key countries toward nuclear independence orrto reliance on suppliers with less rigorous policies The best way to illustrate the difference between the two definitions is as follows If we are successful in our current efforts to get Brazil to forage reprocessing and enrichment or more likely just reprocessing in exchange for US fuel assurances we may need to amend the US Brazil agreement for cooperation Under either approach we would require Brazil to have all its nuclear facilities and materials under safeguards -- which in fact they satisfy Under the UK approach we would require that in addition Brazil would have to make a treaty commitment to place future as well as existing facilities under safeguards a political step they have strongly resisted in the context of the NPT Option achieves this through energy dependence and the knowledge that US supply would be terminated if unsafeguarded facilities or materials are acquired But it would not force Brazil to accept a highly visible inter national commitment that would be politically difficult to make eagles - UNCLASSIFIED use apartment of State Case No M-2012-38475 Doc No 005531531 Date 0512112014 -4- The benefit of the bilateral approach is that it gives us political flexibility without sacrificing non-proliferation objectives It should be much more workable with key recipients such as Brazil and Spain ard to other countries that have refused NPT adherence such as Egypt and Turkey The second approach also has the benefit that all suppliers may be able to agree on this comprehensive safeguards formu- lation without which US action could be rendered considerably less effective Either safeguards approach would almost certainly be unacceptable to countries which presently have unsafeguarded facilities Israel India and South Africa Failure to negotiate comprehensive safeguards mould prevent any US nuclear assistance to these countries Since such a result could work against our non-proliferation and overall foreign policy interests we therefore urge that provision be made in negotiating new agreements as well as in renegotiating existing agreements for exceptions where the President be- ieves they would serve the national interest Thus with regard to the alternative recommendations on flexibility page 8 of the policy paper we strongly urge adoption of the first option that-would provide for such flexibility in both new and existing agreements 4 The Japanese Reprocessing Plant at Tokai The Department's comments on this issue paper were transmitted to the President earlier in my April 1 memorandum on this subject c0py attached at Tab 2 Attachments 1 Summary of Responses 2 Memorandum to the President dated April 2 1977 SECRET UNCLASSIFIED US Department of State Case No M-2012-38475 Doc No 005531531 Date 05l21l2014_ miiGnu-mac SECRET moors 2-1 ml 1' l1 3 5 Leencnons 'ro NUCLEAR POLICY STATEMENT DECAPTIONED I P 7 1 vel Reaction Wg a l- 19871 Assistant Under Flat U s opposition to reprocessing would present secretary serious problems Reprocessing necessary for waste handling and economic reasons Need guaranteed fuel assurances Support fuel cycle evaluation program Bonn I Chancellor Reprocessing essential U s should make no unilat- eral decision pending full consultations lnternationa aspects of new policy should be proposed as amend- ment to NPT New policy should take into consideration Article Iv of NPT should not be discriminatory and must respect international agreedent obligations Will cooperate in evaluation program Paris Foreign Minister Reprocessing a vital necessity President's state-' And French ment must not appear to be anti-nuclear energy and Embassy should highlight our recognition of need for nuclear energy Agree on need to study alternative fuel cycles but will not participate unless reprocessing is include- Tokyo 2 Science and Tech- Emphasized great concern over 0 5 reprocessing nology Minister decisions 0 5 approach too abrupt Need consulta- inter alios tions before decisions Stressed NPT obligations especially Article IV Need incentives for NPT adheren' Should not discriminate against non nuclear weapon stat Ottawa External Affairs Welcomed policy decisions especially re reprocessing UNCLASSIFIED U S De artment of State Case No M-2012-38475 Doc No 005531535 Date 05 2132014 Minister Re egpr Made pitch for full-scope safeguards and NPT adherence as conditions of supply REVIEW AUTHORITY Marlin McLean Senior - UNCLASSIFIED u' STBepErxr nenWState Sag N5 M-2012-38475 Doc No 005531535 Date 05121x2014 Post Stockholm Rome Moscow The Hague Brussels Prague Warsaw 'Berlin Tehran 1 UNCLASSIFIED U S De artment of State Case No M-2012-38475 Doc No 005531535 Date 0512112014 Level Foreign Minister Prime Minister Deputy Chairman State Committee for Atomic Energy State Secretary- Director General MFA Prime Minister Vice Director MFA Foreign Minister Shah Reactions Highly supportive of policy decisions Stressed need for spent fuel arrangements Emphasized Italy's need for energy autonomy and need for fast breeders v 5 policies must not result in commercial disadvantage to non-nuclear weapons states and should distinguish between NPT and non-RFT parties Need access to enriched uranium Very cautious Need for further consultations in London Suppliers context Made pitch for full-scope safeguards Don t dilute Supplier's Group Welcomed Administration's initiatives but can't negate existence of present reprocessing facilities Should aim for better safeguards on them Need con- sultations between supplierS'and recipients Asserted nuclear weapon_states have technical advantage over Belgian nuclear industry Wants same commercial export opportunities Suspicious Wants to pursue further in London Suppliers meeting Noted that breeder reactors exist Generally favorable albeit some reservations Should be pursued in London Suppliers meeting Non-substantive Emphasized need for guaranteed access to enriched fuel Supported study of alternative fuel cycles but said breeder appeared only viable economic way to go SECRET NODIS UNCLASSIFIED ufs department of State Case No menu-334751566 No 005531535 Date 05 21 2014 Post Belgrade New Delhi Canberra Islamabad Brasilia Cairo Tel Aviv EC Commission IAEA UNCLASSIFIED U S De artment of State Case No Doc No C05531535 Data 05 919014 Assistant Secre tary MFA Foreign Secretary DFA Secretary Foreign Secretary Foreign Minister- Foreign Minister Commissioner Director General- Drafted 4 4 77 Ext 27035 SECRET NODIS Page 3 Reactions Strong general support for non-proliferation Expressed concern over implications of new policy tot Tarapur fuel Indian reprocessing and PNB's Non-substantive More comments may be forthcoming Non-substantive Yet to he received Non-substantive Sadat may raise here Non-substantive More comments may be forthcoming Europe energy needs different than US It needs repro- cessinq and breeder Supports evaluation program anne cially study of alternative fuel cycles and waste management arrangements Stressed US fullfillinc HRH contracts Expressed serious concerns over President's message espe- cially re reorocessino and commercial breeders concerned that US approach if applied internationally would under- cut NPT and accelerate indigenous develOpment of sensitive facilities Urged that U S not unilaterally alter existing agreements Welcomed evaluation program NODIS UNCLASSIFIED U S Deartrnent of State Case No ltd-201268475 Doc No C05531535 Date 05912014 - UNCLASSIFIED US Department of State Case No Doc No C05531537 Date 05 21 2014 I 1 7709004 - DES DEPARTMENT or STATE 5 h135' wmssuncron SECRET MEMORANDUM FOR THE PRESIDENT FROM warren Christopher Acting SUBJECT nuclear Reprocessing Discussions with Japan As you know the Government of Japan is deeply concerned that your anticipated statements on energy and domestic nuclear policy will affect its domestic nuclear reprocessing plans U S -Japanese consultations on this problem were agreed to during Prime Minister Fukuda's visit With Jim Schlesinger's concurrence we agreed to receive a mid-level governmental team the week of April 3 to explore possible resolutions This memorandum summarizes the background and indicates the approach we propose to take The Japanese have constructed using French technology a publicly-funded $200 million small prototype reprocessing plant at Tokai The GOJ wants to start hot tests this summer and operation in a year Under our Agreement for Cooperation material of 0 8 origin can beoreprocessed in Japanese facilities only upon a joint determination that safeguards can be effectively applied Japan has requested 0 8 concurrence in such a determination The Japanese government faces severe and probably unacceptable embarrassment if the prototype facility cannot be used in some form Right wing elements in the Liberal Democratic Party LDP and conservative business groups in Japan are strident on the issue The Japanese people and the mass media view this issue as a national- istic one in which resource-poor Japan is being denied a SECRET GDS Re viewer UNCLASSIFIED u s Dentpartmeofwtte Case No 00551537 Dat 05212014 JNCLASSIFIED U S DeBartment of State Case No M-2012-38475 Doc No C05531537 Date 05 21 2014 1 SECRET - 2 - nip-g OO-u-Ibi-a-no-I- energy self-sufficiency Finally if Prime Minister Fukuda after his talks with you proves unable to achieve some form of solution he will have lost considerable credibility as an effective leader He'therefore believe it important to proceed in a manner which will not seem to present the Japanese with a fait accompli or foreclose possibilities for further discussion We have therefore developed an approach which will explore with the GOJ the feasibility of operating Tokai on an experimental basis with a modified process which does not produce separated plutonium If the Japanese prepare alternative approaches we would of course consider them and seek your further guidance we will keep Jim Schlesinger closely informed of the discussions and ask him to join the consultations when they reach a higher level Of course any solution will be submitted to you for final approval cc Dr Schlesinger SECRET 1 - UNCLASSIFIED US Department of State Case No Doc No 005531537 Date 05 21 2014 National Security Archive Suite 701 Gelman Library The George Washington University 2130 H Street NW Washington D C 20037 Phone 202 994‐7000 Fax 202 994‐7005 nsarchiv@gwu edu
OCR of the Document
View the Document >>