Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 22 May 2009 Message Text CONFIDENTIAL PAGE 01 TOKYO 13359 310950Z ACTION NODS-00 INFO OCT-01 ISO-00 001 W ------------------126629 310958Z 12 O 310850Z AUG 77 FM AMEMBASSY TOKYO TO SECSTATE WASHDC IMMEDIATE 674 C O N F I D E N T I A L TOKYO 13359 NODIS FOR SECRETARY FROM GERARD SMITH DEPT PASS WHITE HOUSE FOR BRZEZINSKI E O 11652 GDS TAGS PARM TECH ENRG JA SUBJECT SIGNIFICANCE OF THE JAPANESE OFFER TO DELAY CONSTRUCTION OF THE PLUTONIUM CONVERSION PLANT 1 BY SEPTEL REPORT OF SECOND DAY'S NEGOTIATIONS NOTES THAT UNO HAS OFFERED TO DEFER CONSTRUCTION OF PLUTONIUM CONVERSION PLANT THIS VERY IMPORTANT CONCESSION HAS SIGNIFICANCE ANALYZED BELOW 2 THE PLUTONIUM CONVERSION PLANT IS A CRITICAL ITEM IN THE ENTIRE JAPANESE PROGRAM FOR THE UTILIZATION OF PLUTONIUM IN ADVANCED REACTORS WITHOUT THE CONVERSION PLANT THE PLUTONIUM PRODUCED AT TOKAI CANNOT BE USED AS REACTOR FUEL THE JAPANESE DECISION TO DELAY CONSTRUCTION IS AN EARNEST OF THEIR CONTENTION THAT TOKAI IS AN EXPERIMENTAL FACILITY BACKGROUND THROUGH A CONTRACT WITH A GERMAN FIRM THE JAPANESE HAVE SPENT DOLS FIVE MILLION ON THE DESIGN OF A PLANT TO CONVERT PURE PLUTONIUM NITRATE SOLUTION TO SOLID OXIDE CONCONFIDENTIAL CONFIDENTIAL PAGE 02 TOKYO 13359 310950Z STRUCTION OF SUCH A PLANT FOR WHICH BUDGET APPROBSL ALREADY HAS BEEN OBTAINED WAS SCHEDULED TO START LATE IN 1977 AND TO BE COMPLETED BY 1980 AT A COST OF ABOUT DOLS 15 MILLION AS REPORTED IN TOKYO 12191 THE JAPANESE HAD INTENDED TO PROCEED WITH THE CONSTRUCTION OF THIS PLANT WITHOUT Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 22 May 2009 Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 22 May 2009 WAITING FOR THE RESULTS OF R D ON CO-PROCESSING THE PLANT WOULD NOT HAVE BEEN ABLE TO CONVERT A MIXED URANIUM-PLUTONIUM CO-PRODUCT TO SOLID FORM AND HENCE A DECISION TO PROCEED WITH IT COULD HAVE BEEN CONSTRUED AS MEANING THAT THE JAPANESE HAD NO INTENTION OF GOING TO THE CO- PROCESSING MODE AT THE END OF TWO YEARS OF OPERATION OF THE REPROCESSING PLANT IMPLICATIONS A REVERSAL OF THE DECISION TO PROCEED IS IMPORTANT TO THE U S AND JAPAN FOR SEVERAL REASONS FOR THE U S --IT DEMONSTRATES TO THE WORLD THAT THE JAPANESE ARE WILLING TO SACRIFICE THEIR PRIOR INVESTMENT IN THE DESIGN OF THE CONVERSION PLANT IN ORDER TO WAIT FOR R D AND INFCE RESULTS ON CO-PROCESSING AND CO-PRECIPITATION --IT DEMONSTRATES THAT THE JAPANESE ARE WILLING TO DELAY THE ACHIEVEMENT OF THEIR OWN INTERNAL CAPABILITY TO PRODUCE PLUTONIUM FUELS OF ANY KIND FOR ABOUT TWO YEARS --THE JAPANESE HAVE ASKED US FOR ASSISTANCE IN OBTAINING AN ALTERNATE SOURCE OF PLUTONIUM FOR FUELING ADVANCED REACTORS REQUIRING SUCH FUEL IN THE 1980-1983 CONFIDENTIAL CONFIDENTIAL PAGE 03 TOKYO 13359 310950Z TIME PERIOD SINCE THE PLUTONIUM SEPARATED IN THE REPROCESSING PLANT IS USELESS WITHOUT A CONVERSION PLANT IN OPERATION --WE CAN USE THE JAPANESE DECISION TO FORESTALL OTHERS WHO MIGHT WISH TO PROCEED WITH PURE PLUTONIUM RECOVERY AND CONVERSION AT LEAST UNTIL FURTHER R D AND STUDIES ARE PERFORMED --FOR THE PERIOD IN WHICH NO CONVERSION OF PLUTONIUM IS PERFORMED THE PLUTONIUM REMAINS IN A FORM NITRATE SOLUTION WHICH IS ONE STEP FURTHER REMOVED FROM BEING USEFUL AS A WEAPONS MATERIAL --WE WILL OBTAIN THE BENEFITS OF JAPANESE R D ON CO-PRECIPITATION AND THE POSSIBLE APPLICATION OF THIS TECHNOLOGY TO A FULL SCALE PLANT FOR THE JAPANESE --THE PROGRAM STRETCH-OUT OF PERHAPS TWO YEARS WILL ADVERSELY AFFECT JAPAN'S ELABORATELY MADE SCHEDULES Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 22 May 2009 Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 22 May 2009 IT WILL ALSO LIKELY INCREASE CONSTRUCTION COSTS SINCE A CONVERSION PLANT FOR A COPROCESSED PRODUCT IF BUILT IN THE FUTURE WILL BE LARGER THAN THE ONE ORIGINALLY CONTEMPLATED --DESPITE THE EXISTENCE OF A LARGE SUPPLY OF PLUTONIUM SITTING IN ITS BACK YARD THE JAPANESE WILL BE FORCED TO PURCHASE OR BORROW PLUTONIUM FROM EXTERNAL SOURCES ALTHOUGH SOME OF ITS NEEDS MAY BE MET FROM MB-10 AUTHORIZATIONS --ON THE POSITIVE SIDE THE JAPANESE WILL GAIN ACCESS TO THE RESULTS OF U S R D ON CO-PRECIPITATION REPRESENTING A MUCH LARGER R D INVESTMENT THAN THE CONFIDENTIAL CONFIDENTIAL PAGE 04 TOKYO 13359 310950Z JAPANESE HAVE MADE --MINISTER UNO AND HIS AGENCY MAY WELL TAKE A BEATING FROM HIS SUBORDINATES AT PNC SINCE THE DECISION WILL BE HIGHLY UNPOPULAR WITHIN THE COMPANY WHICH HAS RESPONSIBILITY FOR BOTH THE REPROCESSING PLANT AND THE CONVERSION PLANT TOGETHER THEY WILL HAVE TO GO ONCE MORE TO THE DIET AND THE FINANCE MINISTRY TO GET FUNDS FOR ANOTHER CONVERSION PLANT ABOUT TWO YEARS FROM NOW PNC OFFICIALS ARE VERY ACTIVE POLITICALLY IN THE TOKAI MURA AREA AND THE DECISION COULD HURT THE LDP THERE JAPANESE TODAY ADDED FOLLOWING LANGUAGE TO THE OFFER TO HOLD UP CONVERSION PLANT WITH THE UNDERSTANDING THAT THE SUPPLY OF PLUTONIUM NECESSARY FOR JAPAN'S R D WORK ON FBRS AND OTHER ADVANCED REACTORS WILL BE SECURED WHILE NOT UNEXPECTED ITS LATE IN THE DAY TABLING AND DIRECT TIE TO CONVERSION PLANT OFFER DIMINISH SOMWEHAT THAT OFFER'S ATTRACTION BUT IT STILL IS SIGNIFICANT AND WE HAVE AUTHORIZED LANGUAGE TO MOVE PARTIALLY TO MEET JAPAN'S PLUTONIUM SUPPLY CONCERN MANSFIELD CONFIDENTIAL NNN Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 22 May 2009                     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