UNCLASSIFIED a 376 52 J SECRET RELEASED IN FULL 05 31 35 EXT 73313 -- IMMEDIATE AIT TAIPEI Exnls FROM AIT NASHDC- DECL OADR KNNP TRGY1 ENRG Tm CONVERSATIONS IN THE MARGINS ON MEETING OF AIT-CCNAA JOINT STANDING COMMITTEE ON CIVIL NUCLEAR COOPERATION L SECRET TEXT 2 THIS IS AN ACTION CABLE- 3 SUMMARY FOLLONING REPORTS HIGHLIGHTS OF CONVERSATIONS NITH DELEGATION CHAIRMAN TSENG DER-LING AND NITH AEC SECGEN K- C- LIU AND TAIPONER REP CHIN DURING MAY 25-27 MEETING OF AIT-CCNAA JOINT STANDING COMMITTEE ON CIVIL NUCLEAR COOPERATION- DURING MEETING NITH AMBASSADOR KENNEDY EXPRESSED PLEASURE THAT TAIWAN HAD SEEN FIT TO BROADEN JSC BY APPOINTING A CIVILIAN ACADEMIC LEADER TSENG BROACHED A PROPOSAL FOR TSING-HUA UNIVERSITY TO ACQUIRE A LARGER RESEARCH REACTOR K C LIU LATER TOLD DELEGATION MEMBERS THAT INER RELATIONSHIPS NITH AEC AND CSIST MERE UNLIKELY TO CHANGE IN NEXT FISCAL BUT IDENTIFIED FOUR ORGANIZATIONAL OPTIONS FOR RESTRUCTURING INER PRIOR TO IRES-RD FISCAL UNITED STATES DEPARTMENT OF STATE REVIEW AUTHORITY CLARKE ELLIS SECRET 19 MAY 2010 200702455 953% UNCLASSIFIED UNCLASSIFIED I SECRET 2 YEAR TAIPOUER REP P- C CHEN SPOKE OF A FOUR-MAY RESEARCH PLAN AGREED IN NITH TASKS IDENTIFIED FOR INER1 TSING HUAQ AND THE NATERIALS RESEARCH LABORATORY ACTION REQUESTED FOLLON UP AS PER PARA ID END SUMMARY H DELEGATION LEADER TSENG CALL ON AMBASSADOR KENNEDY AT CCNAA LEADER TSENG PAID OFFICE CALL ON NAY 8E1 ACCORPANIED BY NILKINSON AND SHIPLEY KENNEDY NELCONED TSENG AND EXPRESSED HIS PLEASURE THAT TAIUAN HAD CHOSEN AN ENINENT ACADENIC LEADER TO HEAD THE CCNAA DELEGATION THIS YEAR HE STRESSED THE VALUE NE SEE IN BROADENING OUR BILATERAL NUCLEAR RELATIONSHIP AND ENHANCING THE PARTICIPATION OF IMPORTANT CIVILIAN NUCLAR A INSTITUTIONSR SUCH AS TSING HUA UNIVERSITY AND TAIPONER - '1 punt-I 5 TSENG EXPRESSED APPRECIATION FOR THE OPPORTUNITY To TALK NITH KENNEDY1 AND REPORTED THAT THE TSING HUA UNIVERSITY PRESIDENT HAD ASKED HIN TO DEVELOP A PLAN TO ACOUIRE A NEUO LARGER RESEARCH REACTOR LARGEST OF TSING CURRENT THREE REACTORS IS A I-NN GE SUINNING NHICH UENT CRITICAL IN I bli AND HAS A FLUX OF ONLY TEN TO THE TNELFTH PONER TSENG DOULD LIKE TO ACOUIRE A NEN REACTOR NITH A FLUX OF TEN TO THE FOURTEENTH POWER USING LEU CIR PERCENT FUEL THE TSING HUA PRESIDENT HAD ASKED IF DESIGN AND mew CONSTRUCTION COULD BE DONE BY TAIUAN TSENG SAID NO - 5 HOST LIKELY SOURCES NERE U-S 1 JAPAN OR CANADA HE PLANS TO DRAU UP SPECIFICATIONS FOR REACTOR TAKING INTO ACCOUNT RESEARCH NEEDS AND ISOTOPE PRODUCTION N3 NEEDS CNHICH TRR HAS PREVIOUSLY SOON AFTER Rm i RETURN FUNDING NOULD PROBABLY CONE FROM NATIONAL INS I SCIENCE COUNCILO SINCE NINISTRY OF UHICH FUNDS SALARIES AND EXPENSES FOR TSING HUA HAD LITTLE EXTRA IN BUDGET FOR NEU CAPITAL COSTS b TSENG ASKED IF UOULD LICENSE EXPORT OF A NEU RESEARCH REACTOR TO TAIWAN- NE SAID THIS IS AN NRC FUNCTION BUT NE COULD NOT SEE ANY REASON NHY NOT1 IF USE NAS FOR CIVILIAN RESEARCH AND IAEA SAFEGUARDS MERE APPLIED- NE ALSO SUGGESTED THAT TSENG STAY IN CLOSE CONTACT NITH AIT1 SINCE NE NOULD BE PLEASED TO PROVIDE U-S CONSULTANTS FOR DRANING UP SPECIFICATIONS FOR A NEH REACTOR AT TSING HUA 7 CONVERSATION NITH AEC SECRETARY GENERAL DURING BREAK IN JSC MEETING WILKINSON AND BURKART ASKED LIU ABOUT CURRENT STATUS OF BUDGET1 NOTING PRESS SECRET UNCLASSIFIED UNCLASSIFIED SECRET 3 REPORTS ABOUT DEBATE IN LEGISLATIVE YUAN LIU SAID BUDGET IS NEARLY FINAL NEU FISCAL YEAR BEGINS JULY I LAN SHOULD BE COMPLETED IN NEXT UEEK OR TWO AND AEC EXPECTS TO EXPAND BY SOME BB GIVEN NEN RESPONSIBILITIES IT HAS BEEN ASSIGNED FOR ATMOSPHERIC MONITORING LIU DESCRIBED INER AS A OF AEC THAT HAS BEEN TO CHUNG SHAN INSTITUTE OF 1 SCIENCE AND TECHNOLOGY BUT NON MAY BE INER-CSIST RELATIONSHIP HAS ALLONED NHICH IN TURN PERMITTED PAYMENT OF SALARY SUPPLEMENTS TO NUCLEAR TECHNICIANS AT INER UITHOUT PUBLIC SECRUTINY BECAUSE THIS IS DIFFICULT TO CHANGE RELATIONSHIP NILL CONTINUE TEMPORARILY IN COMING FISCAL-TEAR1 IF AN ONLY IF LEGILATIVE AND CONTROL YUAN APPROVE UNLESS AND UNTIL THEY SPENDING 1 AUTHORITY UILL BE SUSPENDED AS OF JULY 1- i 3% - Mg 3 PRIOR TO SUBMISSION OF BUDGET1 LIU A NEN STATUS FOR INER NILL HAVE TO BE DECIDED LIU GAVE FOUR OPTIONS MAINTENANCE OF SUBORDINATION TO NITH FROM ESTABLISHMENT AS AN AUTONOMOUS - PARASTATAL1 UITH FUNDING FROM THE CENTRAL AUTHORITY AND AN INDEPENDENT BOARD OF LIKE ITRIA A COMPLETELY PRIVATE INSTITUTION NITHOUT CENTRAL AUTHORITY OR DISBANDMENT LIU GAVE HIS OUN PREFERENCE AS THE FIRST OPTION IF INER MERE TO BECOME HE DID NOT THINK IT NOULD BE LIKELY TO SURVIVE UNLESS SOME FOREIGN FUNDING MERE AVAILABLE AS FROM THE U S NE SAID IT NOULD BE HARD TO FIND U-S DONORS FOR SUCH AN ENTERPRISE CONSIDERING OUN MEALTH- IF INER HERE DISBANDED1 LIU SAID SOME PERSONNEL UOULD BE GIVEN SEVERANCE PAY- SOME MIGHT GO TO THE AEC OR TSING HUA UNIVERSITY SOME ELECTRICAL OR CHEMICAL ENGINEERS COULD GO TO AND EVEN SOME NUCLEAR SCIENTISTS COULD GO THERE1 SINCE DOES SOME COMPUTATIONAL NORK IN THE NUCLEAR PRECLUDED PURSUING THIS INTRIGUING STATEMENT BY LIU-I R CONVERSATION NITH TAIPOMER REPRESENTATIVE MILKINSON1 AND MARUT ALSO HAD SHORT CONVERSATION ON MAY 3 WITH P C- CHEN THE APPARENT NEU DIRECTOR OF NUCLEAR ENGINEERING DEPARTMENT DEPUTY DIRECTOR AS LISTED IN THE DELEGATION A JOB IN NHICH HE SUCCEEDED E LIN NHO NON IS IN CHARGE OF PONER REACTOR MANAGEMENT- IN RESPONSE TO A QUESTION ABOUT RELATIONSHIPS NITH INER1 CHEN-SAI ER DOE ITS OUN ROUTINE ANA YS AS REACTOR I OF A881 BUT RELIES ON NER SP AL JOBS LIKE POST-IRRADIATION EXAMINATION OF SECRET UNCLASSIFIED UNCLASSIFIED SECRET SPENT FUEL- HE ALSO SAID THAT A JOINT RESEARCH PLAN NITH DIVISION OF RESPONSIBILITY FOR GENERAL TASKS HAD BEEN MORKED OUT AND AGREED IN BY TAIPONER INER TSING HUA THE MATERIAL RESEARCH INSTITUTE PRESUNE OF NE ASKED IF NE COULD SEE THIS PLAN CHEN SAID IT ONLY IN CHINESEs BN1 HE PRONISED T0 NEET NARUT AND FURTHER 0N 15 - RETURN TO TAIPEI ID ACTION REQUESTED AIT SHOULD FIND AN EARLY OPPORTUNITY TO PURSUE DIALOGUE NITH DEAN AND TO REITERATE OFFER 0F AIT TO HELP DRAN UP SPECIFICATIONS FOR A NEW REACTOR AT TSING HUA ME VEHEPR THE 2 uE wonky qu v 3 LISESTATUS uILu a w Vh AND TO THE EXTENT POSSIBLE 0N How AND 3 FINAL DECISION MILL BE REACHED on A REVISED STATUTE ii FOR THE INSTITUTE SIGNED LAUX #9 qr - 9 t a I mam-1 git-x L K 3 3r a' k IMh'aSECRET UNCLASSIFIED 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