DECLASSLFIED Authority W l I Department of State PAGE Bl OF 93 STATE 273543 3718 STATE 273943 BUIGUING TELEGRAM - ORIGIN SAS-BZ INFO OCT-DO ARA-11 EA-IO REA-36 ADS-DD ACDA-12 CIAE-OD L-OS NSAE-DD EB-DB NRC-DE DES-OS 53-15 CEO-D1 SSO-OO NSCE-OD 1143 DRAFTED BY APPROVED BY GSMITH - ACDA - MR ROCHLIN OES - NR BORIGHT - MR SALMONNEA-MR CONSTABLE DOE - MR BENGELSDORF PM MR HAHAN HSC- MR OPLINGER EUR MR BARMON MR JONES 7- 123131 132133E ISA 1926621 OCT 79 FM SECSTATE HASHDC TO AMEMBASSY BONN IMMEDIATE AMEMBASSY LONDON IMMEDIATE AMENBASSY PARIS IMMEDIATE AMEMBASSY TOKYO PRIORITY AMEMBASSY BRUSSELS PRIORITY AMEMBASSY THE HAGUE PRIORITY AMEMBASSY OTTAWA PRIORITY AMEMBASSY CANBERRA PRIORITY AMEMBASSY STOCKHOLM PRIORITY AMEMBASSY ROME PRIORITY AMEMBASSY MOSCOW PRIORITY INFO AMEMBASSY NEH DELHI I ANEMBASSY SEOUL AMEMBASSY BELGRADE AMEMDASSY BUCHAREST AMEMBASSY MEXICO AMEMBASSY BUENOS AIRES AMEMBASSY BRASILIA AMENBASSY VIENNA STATE 273943 Man M i5 FOR INFO E O 12565 SMITH GERARD I PARM TECH ENRG INTERNATIONAL NUCLEAR FUEL CYCLE EVALUATION INECEI EXPLORATION I SECRET ENTIRE TEXTI 2 SEPTEL SETS OUT MAJOR OBJECTIVES OF EXPLORATIONS AND PROPOSED SCHEDULE FOR INITIAL ROUNDS OF EXPLORATIONS THIS TELEGRAM CONTAINS PAPER TO BE DELIVERED TO APPROPRIATE LEVELS OF ACTION ADDRESSEE HOST GOVERNMENTS 3 IN DELIVERING PAPER REQUEST EMBASSIES MAKE FOLLOWING POINTS -- PAPER IS TO SUGGEST A BASIS FOR POST INFCE ARRANGEMENTS IT DOES NOT IMPLY A NEH SET OF US PROPOSALS BUT SETS OUT POSSIBLE APPROACHES FOR EXPLORATION OF KEY ISSUES -- m Bow LONDON PARIS swan 7mg LIMITS mm coamx o SUBJECT mama us sucezsws coucmmnon on ITEMS 1 2 3 4 6 mm 13 mm sscnon IV 4 BEGIN TEXT THIS PAPER IS PUT FORNARD AS A BASIS FOR EXPLORATIONS OF COMMON APPROACHES TO NONPROLIFERATION AND ENERGY DEVELOP- MENT ISSUES ARISING OUT OF THE NUCLEAR FUEL CYCEE THE ISSUES INVOLVED HAVE BEEN UNDER INTENSIVE INTERNATIONAL DISCUSSION FOR THE PAST SEVERAL YEARS BOTH IN INFCE AND IN OTHER BILATERAL AND MULTILATERAL CONTEXTS THE APPROACHING END OF INFCE AS HELL AS SEVERAL OTHER DECISION POINTS IN THE NEAR FUTURE MAHE THESE EXPLORATIONS TIMELY IF NOT URGENT I 33 THIS PAPER -- AND THE NEXT ROUND OF CONSULTATIONS -- PROPOSE TO OUILD ON OUR EARLIER ILLUSTRATIVE ELEMENTS PAPER AND THE BILATERAL DISCUSSIONS CONCERNING IT AS WELL AS THE LIKELY CONCLUSIONS OF INFCE THE MAIN PURPOSE IS TO DEVELOP APPROACHES THAT HILL HARMONIZE ENERGY DEVELOPMENT AND NONPROLIFERATION OBJECTIVES IT IS RECOGNIZED THAT ABUSE OF THE COMMERCIAL FUEL CYCLE IS NOT THE ONLY ERATION RISK NE BELIEVE THAT THE DISCUSSIONS OF THE PAST FER YEARS HAVE THE BASIS FOR DEVELOPING CONSENSUS ON A NUMBER OF MAJOR ASPECTS OF FUEL CYCLE POLICY SOME OF THE ELEMENTS OF THIS POSSIBLE CONSENSUS COULD BE - I CONSISTENT UITH NONPROLIFERATION CONSIDERATIONS ALL COUNTRIES SHOULD HAVE ACCESS TO NUCLEAR MATERIALS AND FACILITIES NECESSARY TO MEET THEIR LEGITIMATE NUCLEAR ENERGY NEEDS AS THEY EVOLVE 2 THE SPREAD OF ENRICHMENT AND REPROCESSING FACILITIES AS WELL AS PLUTONIUM AND HIGH ENRICHED URANIUM CAN INCREASE THE RISK OF PROLIFERATION AND THEREFORE SHOULD BE ADDITIONAL SUCH SENSITIVE FACILITIES OR USE OF SUCH SENSITIVE MATERIAL SHOULD BE PURSUED ONLY RHERE ECONOMICALLY JUSTIFIEO AND NHERE IN- STITUTIONS CAN BE ESTABLISHED TO CONTAIN OR REDUCE THE RISHS - 3 FIRMLY-PLANNED ENRICHMENT CAPACITY IS SUFFICIENT TO NEET PROJECTED NEEDS THROUGH THE MID ISDDS - A COMMERCIALTIATION OF PLUTONIUM RECYCLE IN LIGHT HATER REACTORS IS ECONOMICALLY NARGINAL AT THE PRESENT TIME - 5 A NUMBER OF COUNTRIES OR GROUPS OF PRINCIPALLY THE ADVANCED INDUSTRIAL COUNTRIES ARE PRO- CEEDING WITH RESEARCH DEVELOPMENT OR DEMONSTRATION TO DEVELOP A DREEDER REACTOR OPTION THE POTENTIAL OF - BREEDERS FOR COUNTRIES OR GROUPS OF COUNTRIES NITH MAJOR PROGRAMS IS RECOGNIIEO ONLY ONE COUNTRY HAS AT PRESENT FOR EARLY COMMERCIALIZATION OF BREEDERS ALL OTHER COUNTRTES HAVE NOT YET SO OPTED AND THUS PLDTONIUM SEPARATION PROGRAMS SHOULD NOT NON BE LAUNCHED ON THE ASSUMPTION THAT BREEDERS ARE THE REACTORS OF CHOICE FOR FUTURE POUER PRODUCTION - 6 A MAJOR RELATED AIM IS TO MINIMIZE THE PROLIFERA- TION RISKS ASSOCIATED HITH THE AVAILABILITY OF PLUTONIUM AN INTERNATIONAL PLUTONIUM REGIME PARTICULARLY IF IT SECRET 6 3 a 3 3 111y 1411cm311711311 - Authority NNIZ 3 3 - PAGE OF DB STATE 273943 INCLUDES MEASURES CONCERNING USE OF PLUTONIUM COULD HAVE IMPORTANT ADVANTAGES IN THIS CONNECTION THERE ARE ALSO CONCERNS THAT SUCH A REGIME COULD BE USED TO JUSTIFY PREMATURE SEPARATION OF PLUTONIUM - 7 THERE ARE CLEAR PROLIFERATION RISKS REGARDING PRODUCTION AND USE OF HIGHLY ENRICHED URANIUM A CHANGE TO LOVER ENRICHMENT LEVELS VOULD SEEM FEASIBLE FOR THE GREAT NAJORITY OF RESEARCH REACTORS AND NO NEED FOR ADDITIONAL HIGH ENRICHMENT CAPACITY IS THEREFORE SEEN - 8 THE PROLIFERATION RISKS MENTIONED ABOVE REQUIRE AN IMPROVED SAFEGUARDS REGIME FOR SENSITIVE FACILITIES AND NATERIAL STRESSING DESIGN FOR SAFEGUARDS IMPROVED ACCOUNTING AND ENHANCED SURVEILLANCE AND CONTAINMENT INTERNATIONAL SAFEGUARDS ON ALL FACILITIES IS AN IMPORTANT - GOAL AND IS ESPECIALLY IMPORTANT IN COUNTRIES NHERE SENSITIVE TECHNOLOGY MAY BE PRESENT 8 IN ORDER TO PROVIDE GREATER SUPPLY AND NONPRO- LIFERAIION ASSURANCE THERE SHOULD BE A MIX OF TIONAL AND INCENTIVE ARRANGEMENTS TO MEET THE NEEDS PROBLEHS AND UNCERTAINTIES OF COUNTRIES CONDUCTING CIVIL NUCLEAR ENERGY PROGRAMS IN ADDITION THERE IS A SDSTANTIAL AMOUNT OF AGREE- MENT AMONG SUPPLIERS THAT INTERNATIONAL TRANSFER OF SENSI- TIVE TECHNOLOGIES SHOULD BE LIMITED AND CAREFULLY CON- TROLLED AND THAT SEPARATION OF PLUTONIUM SHOULD BE RELATED TO SPECIFIC NEEDS FOR ITS USE IT FOLLONS FROM PARAGRAPHS A AND 5 ABOVE THAT PROJECTED SEPARATION CAPACITY APPEARS TO BE ADEQUATE TO MEET PLUTONIUM NEEDS In THE DISCUSSIONS OVER THE LAST SEVERAL YEARS IN INFCE AND ELSEWHERE HAVE ALSO CREATED A SUBSTANTIAL DEGREE OF AGREEMENT ON HEY AREAS IN WHICH FURTHER INTERNATIONAL ACTION SHOULD BE CONSIDERED -- TO PROVIDE BOTH GREATER ASSURANCE OF THE AVAILABILITY OF NUCLEAR ENERGY FOR PEACEFUL PURPOSES AND ADDITIONAL PROTECTION AGAINST MISUSE OF THE FUEL CYCLE THE MAIN AREAS IN OUR VIEN INVOLVE - I SUPPLY ASSURANCE FOR NUCLEAR FUEL AND TIVE TECHNOLOGY - 2 GREATER STABILITY AND PREDICTABILITY IN THE EXERCISE OF NATIONAL CONTROLS OVER SUPPLIED TECHNOLOGY AND MATERIAL PRINCIPALLY SPENT FUEL AND PLUTONIUM USE 3 AN EFFECTIVE INTERNATIONAL REGIME FOR SENSITIVE MATERIALS IN PARTICULAR PLUTONIUM A AUSPICES OR ADDITIVE CONTROLS FOR SENSITIVE FACILITIES BOTH TO PROVIDE ADDED ASSURANCE OF PEACEFUL PURPOSE AND TO OFFER AN ALTER- NATIVE TO SMALL SCALE NATIONAL FACILITIES - 5 FURTHER REFINEMENT OF THE ANALYTIC BASIS FOR FUEL CYCLE DECISIONS IN PARTICULAR TO IMPROVE THE OASIS FOR JUDGMEHTS RELATED TO ACQUISITION OF SENSITIVE FACILITIES AND MATERIALS - 6 COOPERATION IN FOSTERING PART-CIPATION IN AND ENSURING COMPLIANCE UITH GENERALLY ACCEPTED NONPROLIFERA- TION UNDERTAKINGS 7 IMPROVEMENT OF SAFEGUARDS ESPECIALLY FOR SENSITIVE - SECRET Department of State OUTGOIHG TELEGRAM NATERIALS AND FACILITIES AND EXTENSION OF SAFEGUARDS COVERAGE STATE 273843 3 INTERNATIONAL COOPERATION IN ASSESSING ENERGY NEEDS AND DEALING HITH THE PROBLEMS OF NUCLEAR POUER IE G REACTOR SAFETY SPENT FUEL DISPOSITION AND HASTE DISPOSALI - 3 DEVELOPMENT OF INTERNATIONAL SPENT FUEL REPOSITORIES ACTIONS IN THESE AREAS ARE CLEARLY INTERCONNECTED AND MUST BE CAREFULLY CHOSEN TO REDUCE THE POSSIBILITY OF CONFLICT AMONG THEM DEVELOPMENT OF AN ACCEPTABLE FRAMENORH OR REGIME HILL INEVITABLY REFLECT TRADEOFFS AMONG SOME OF THESE OBJECTIVES FOR EXAMPLE THE ABILITY TO REDUCE THE OF NATIONAL CONTROLS AND THE FRICTIONS ARISING IN THEIR ADMINISTRATION NILL DEPEND HEAVILY ON HOV FAR AN CAN SERVE TO ACHIEVE THE DASIC PURPOSES OF SUCH CONTROLS THE COMPONENTS OF SUCH A FRAMEUORH HILL PROBABLY HAVE TO EVOLVE RATHER THAN DE ESTABLISHED SIMULTANEOUSLY THERE GRONING AGREEMENT ON GENERAL PRINCIPLES AND PRIORITIES EXISTING ARRANGEMENTS AND INSTITUTIONS FOR THE DISCUSSION OF OUTSTANDING ISSUES AND FOR MONITORING PROGRESS SHOULD BE THERE MAY ALSO BE A NEED TO EXPAND OR TO ADD TO SUCH ARRANGEMENTS OR INSTITUTIONS HE THINK IT WOULD BE USEFUL FOR HEY COUNTRIES NON TO BEGIN TO UNDERSTAND BETTER HHERE NE MIGHT HEAD AND CON- SIDER STRATEGIES FOR MOVING IN THESE DIRECTIONS NE ARE AWARE THAT A NUMBER OF COUNTRIES HAVE ALREADY BEGUN TO CONSIDER THESE SOME QUESTIONS FOLLOW NHICH MAY HELP IN EXPLORING POSSIBLE FRAMEDORHS THE UNITED STATES HAS GIVEN CON- SIDERABLE THOUGHT TO THESE QUESTIONS AND ON SOME OF THEN HAS VIEUS AND ON MANY HOUEVER NE DO NOT HAVE A FIXED VIEH NE HOPE THAT OVER THE NEXT SEVERAL NONTHS UE CAN EXTEND THE EXISTING CONSENSUS AND FIND COMMON APPROACHES TO OUTSTANDING OUESTIONS 1V - NOHHSENSITIVE SUPPLY ASSURANCE A NHAT MEASURES INSTITUTIONS IE G STREAMLINING OF NATIONAL PROCEDURES ADDITIONAL LEGAL COMMITMENTS NEH MECHANISMS FOR BE MOST HELPFUL IN PROVIDING GREATER ASSURANCE OF SUPPLY OF URANIUM ENRICHMEHT SERVICES HEAVY HATER AND REACTORS ILUR AND NATURAL AND THEIR ARE SUCH MEASURES SHOULD THERE ALSO BE ASSURANCES OF - BI ARE ADDED MEASURES INSTITUTIONS NATIONAL STOCHPILES POOLING OF STOCHPILES OR AN INTER- NATIONAL FUEL BANHI NEEDED TO DEAL VITH EMERGENCY ECONOMIC OR POLITICAL SUPPLY CI SHOULD NON-SENSITIVE SUPPLY ASSURANCES DEFEND ON FOREGOING SENSITIVE FACILITIES AND MATERIALS OR PLACING THEM UNDER - DI ARE SPECIAL MEASURES NEEDED FOR DEVELOPING SECRET Mek iathS-MWa My Authority NNIQ 65 2 a I I I PAGE 53 OF 93 STATE 273543 -I 2 NATIONAL CONTROLS ON SENSITIVE TECHNOLOGIES AND HATERIAL - AI CAN THE EXERCISE OF NATIONAL CONTROLS BE MADE HORE COMPREHENSIVE STAOLE AND - BI ON NHAT IN B REGULARIZING THE EXERCISE OF NATIONAL CONTROLS HILL BE GREATLY FACILITATED BY EFFECTIVE IMPLEMENTATION OF SOME OF THE OTHER ITEMS SUGGESTED IN THIS PAPER - 3 NANAGING SENSITIVE MATERIALS AL NHAT KIND OF INTERNATIONAL REGIME FOR MANAGING NEAPONS GRADE NATERIAL HOULD REDUCE FROLIFERATION SHOULD IT COVER PLUTONIUH UNTIL IN- CLUDING UNIRRADIATED PLUTONIUN USED IN - BI SHOULD ALL CIVIL INCLUDING EXISTING EXCESN PLUTONIUM BE SUBJECT TO THE INTERNATIONAL - CI HHAT KINDS OF RELEASE CRITERIA AND CONDITIONS HILL BEST ASSURE PROTECTION AGAINST PROLIFERATION HON UOULD THEY BE - DI HON CAN THE INTERNATIONAL PLUTONIUN STORAGE IIPSI DISCUSSIONS NON BEING HELD UNDER IAEA AUSPICES BEST CONTRIBUTE TO DEVELOPING SUCH A - EI HON CAN NE ENSURE THAT SUCH A REGIME IS NOT USED TO JUSTIFY PREMATURE AND UNNECESSARY ACQUISITION OF NATIONAL SENSITIVE - 4 AUSPICES FOR SENSITIVE FACILITIES AI HOW CAN SUCH FACILITIES SERVE AS PRACTICAL ALTERNATIVES TO NEH NATIONAL FACILITIES FOR RESEARCH DEVELOPMENT AND DEMONSTRATION OR COMMERCIAL - BI HHAT KIND OF PARTI- CIPATION IS FEASIBLE AND COULD ONE CONSIDER FOR EXAMPLE PARTICIPATION IN SENSITIVE PARTICIPA- TION IN PLANT MANAGEMENT AND COMMITMENTS TO INTERNATIONAL PLUTONIUN NANAGENENT-OR RESTRICTIONS ON ENRICHNENT CROSS INVESTNENT LINKED TO PARTICIPATION IN PLANNING OF HER PERMITTING SONE TECHNOLOGY ACCESS TO GREATER IAEA INVOLVENENT TO ENHANCE - CI HHICH EXISTING OR FUTURE FACILITIES MIGHT BE BROUGHT UNDER MULTINATIONAL SHOULD THESE IN FIRST INSTANCE BE IN OECD RHAT INCENTIVES FOR COUNTRIES TO - 5 TECHNICAL BASIS FOR ACQUISITION OF SENSITIVE FACILITIES - IS THERE A USEFUL ANALYTIC OASIS FOR OETERHINING NHERE SENSITIVE FACILITIES ARE HHAT WOULD BE ITS LIMITATIONS AND POTENTIAL BI HON SHOULD SUCH A BASIS BE CI HON BROAOLY ACCEPTABLE CAN IT - 6 FOSTERING COHPLIANCE AI HON CAN COUNTRIES 8E INDUCED TO PARTICIPATE IN By SECRET Department of State DUTGUING TELEGRAM STATE 273343 THE VARIOUS ARRANGEMENTS HHICH - BI HON CAN COMPLIANCE BE - CI HHAT SANCTIONS -- IF ANY -- ARE FEASIBLE FOR - 7 VIMPROVING AND EXTENDING SAFEGUARDS - AI IN NHAT HAYS CAN NE EXTEND AND IMPROVE SAFE- DESIGN FOR SAFEGUARDS IMPROVED ACCOUNTING ENHANCED SURVEILLANCE AND CONTAINMENT AND IN THE CASE OF ENRICHMENT PLANTS DEDICATION TO LON ENRICHMENTI - BI HON SHOULD NE SUPPORT IAEA ACTIVITIES IN PARTICULAR INCREASED AND D IN THIS - 8 TECHNICAL COOPERATION AND ASSISTANCE AI SHOULD TECHNICAL COOPERATION BE EXPANDED ON REACTOR SAFETY SPENT FUEL DISPOSITION AND NASTE BI HON CAN DEVELOPING COUNTRIES BE ASSISTED NITH OVERALL ENERGY-ASSESSMENTS TO DETERMINE NEEDS FOR NUCLEAR CI UNDER NHAT CONDITIONS AND WITH WHOM SHOULD TECHNICAL COOPERATION BE EXPANDED ON ADVANCED - DI TO WHAT EXTENT SHOULD SUCH COOPERATION RE PURSUED NITHIN THE FRANENORH OF - 9 INTERNTIONAL SPENT FUEL REPOSITORIES - AI HON NIGHT INTERNATIONAL SPENT FUEL REPOSITORIES DE WHAT ARE THE DOMESTIC POLITICAL CONSTRAINTS AND HOW CAN THEY OE DEALT - lD FORA AI ARE EXISTING FDRA IF NOT HHAT ELSE IS OI HHAT SHOULD BE THE RELATIONSHIP OF ANY NEH FORUM TO THE EHLUND INITIATIVE NPT REVIEH CONFERENCE YUGOSLAV PROPOSED UN CONFERENCE ON THE PEACEFUL USES OF NUCLEAR ENERGYAND NSG END TEXT VANCE SECRET                     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