um DECLASSIFIED m I Foreign SerYice of the United States Of AmeIica INCOMING AMERICAN EMBASSY VIENNA ACTION Classification 0'577 13731123 11 13 5 3 3'23 11-5532 AUG 75 POL FM AMEMBASSY TAIPEI ECON TO NASRDC 945B - PR INFO HONG KONG 5565 ACTION COPY DAG PEKING COB ADM IAEA UIENA B82 AP FOR POLAD wT AF NASHDC BI 225 TAIPEI 4872 MED EO 11652 GDS Em TAGS PARM PFOR MCAP TN INS SUBJECT ROC DECLARES NEED FOR NUCLEAR REPROCESSING CAPABILITY CON PROBABLE SECOND TRY AT ACOUIRING NEAPONS GRADE MATERIAL CAPABILITY MIAA UNIDO REF A TAIPEI D823 B TAIPEI D575 C STATE 1213 1 SUMMARY MOFA AND ROC AEC SECRETARY GENERAL VICTOR AC CHENG PRESENTED EMBOFFS NITH NUCLEAR FUEL MANAGEMENT PROPOSAL NHICH IN CONJUNCTION NITN INFORMATION FROM RF OTHER SOURCES APPEARS ANOTHER ATTEMPT TO ACOUIRE A CHEMICAL SEPARATION CAPABILITY THE TYPE NEEDED IN NUCLEAR NEAPONS PROGRAMS CHENG USED TAINAN PONER - ANTICIPATED FUEL REQUIREMENTS TO JUSTIFY NEED FOR A IN-COUNTRY R-EPROCESSING PLANT PROPOSAL IMPLIES AMENDMENT TO US-CHINA COOPERATION AGREEMENT ON CIVIL 0 USES OF ATOMIC ENERGY TO PERMIT SALE OF US NUCLEAR FUEL FDR EIGHT PROJECTEDSEACTORS VICE PRESENT TWO AND TO PERMIT THE ROC TO SHIP SIFNT FUEL TO BRITAIN FOR REPROCESSING IF WASHINGTON CONCURS IN OUR INTERPRETATION RECOMMENDS PROMPT FIRM TURNDONN OF PROPOSALS RE CHEMICAL SEPARATION PLANT END SUMMARY 2 AT MEETING ON AUGUST 8 REQUESTED BY MINISTRY OF FOREIGN AFFAIRS CHENG CHEN-HUA VICTOR CHENG SECRETARY GENERAL OF AEC AND CHU DIRECTOR OF DEPARTMENT OF INTERNATIONAL AFFAIRS PRESENTED SCIENCE ADVISOR AND EMBOFF A DRAFT PROPOSAL COVERING PLANS FOR NUCLEAR - FUEL MANAGEMENT PROPOSAL IS INTENDED TO SERVE AS BASIS FOR DISCUSSIONS TO BE HELD BETNEEN CHENG AND US AEC IN LATE AUGUST CHU RATHER THAN CHENG OPENED SESSION BY READING PROPOSAL SUMMARY STATEMENT TEXT BY SEPTEL THUS EMPHASIZING ITS NATURE AS OFFICIAL ROC REQUEST SECRET Classification mu - I I 2-93-15 m Authorityhm 1 Kg ZQ I Foreign Service of the 1 7 - - United States of America INCOMING AMERICAN EMBASSY VIENNA SECRET CONTROL 57 7 7 Classifier on 5 IN DISCUSSION WHICH FOLLOWEDD CHENG STATED HE HOPED THE US-CHINA COOPERATION AGREEMENT OFBCIVIL USES OF ENOUGH FUEL FOR FIRST TUO REACTORS AN AMENDMENT IS ALSO NEEDED TO PERMIT THE ROC TO SHIP SPENT FUEL TO BRITAIN FOR REPROCESSING BRITISH NUCLEAR FUELS SERVICES ACCORDING TO CHENG WOULD BE MOST SOURCE OF RE- PROCESSING SINCE IT EQUIPPED TO HANDLE ALL STAGES OF THE CYCLE INCLUDING SHIPPING 4 NEED FOR IN-COUNTRY REPROCESSING CAPABILITY WAS JUSTIFIED AS MOST REASONABLE AND MOST ECONOMIC METHOD FOR- TAIPOWER TO ENSURE ITS CONTINUED SUPPLY OF FUEL CHENG STRESSED THAT REPROCESSING SOLE APPLICATION WOULD THERMAL REACTORS CHENG STATED THAT IF THE US APPROVES THE REPROCESSING PROJECT IN PRINCIPLE TAIPONER WILL BEGIN SENDING PERSONNEL TO EUROPE NHERE UNSPECIFIED FOR NEL TO ACOUIRE THE NECESSARY KNOW-HON- AFTER THIS PERIOD THE ROC WOULD BE IN POSITION TO DETERMINE THE ILOULD THEN REQUEST AN AMENDMENT PERMITTING EQUIPMENT PURCHASE AND THE EVENTUAL CONSTRUCTION AND OPERATION OF THE PLANT 5 CHENG EXPRESSED HOPE PRELIMINARY USAEC REACTION TO ABOVE PROPOSAL WOULD BE AVAILABLE BEFORE DEPARTURE FOR US AGUGUST 24 6 SEPTEL CONTAINS FULL TESXT 0F ROC STATEMENT AS GIVEN BY CHU BACK-UP MATERIAL BEING POUCHED SECRET Ciaxslfica an Authority umn Sm Foreign Service of the 1 a United States of Amerita INCO MING AMERICAN EMBASSY VIENNA CONTROL 5 77 Classification - PAGE 1 OF 1 PAGES THE STATEMENTS AND FORECASTS SEEM TO US RATHER QUESTIONABLE NE NOTE FOR EXAMPLE THAT QUALIFIED CHEMICAL ENGINEERS SHOULD BE ABLE TO DESIGN A SUITABLE REPROCESSING PLANT AFTER ABOUT THO YEARS STUDY RATHER THAN FOUR-TO-FIVE YEARS AND IT IS OUR UNDERSTANDING THAT US SOURCES CAN SATISFY ANTICIPATED FUEL NEEDS BOTH NOW AND IN THE EIGHTIES FINALLY ALTHOUGH THE CONCEPT OF AN IN-COUNTRY REPROCESSING CAPABILITY HAS PRESENTED TO US AS ORIGINATING WITH TAIPONER COMPANY OFFICIALS IN THE PAST HAVE TO ACQUIRE CHEMICAL SEPARATION CAPABILITY ROC RISKS JEOPARDINZING PLANS FOR NUCLEAR-ELECTRIC DEVELOPMENT AND WILL EMPHASIZE SPECIAL RESPONSIBILITIES OF USG UNDER AGREEMENT FOR COOPERATION CONCERNING CIVIL USES OF ATOMIC ENERGY AND IAEA NE NOULD RECOMMEND ALSO THAT APPROPRIATE OFFICERS IN STATE AS WELL AS USAEC MAKE PARALLEL STATEMENT TO VICTOR CHENG AFTER HIS ARRIVAL IN WASHINGTON GLEYSTEEN SECRET Classification This document is from the holdings of The 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