9999999 999999999 0 999 @9999 some we 999 '9 999 no 999 999999999 9999999 99999 999999 999 999 999 999 99 999 9 999 '999999999999 999999999999 999 999 999 999 99999 090 on nee see '999999999999 999999999999 999 999 999 DocId 32696147 Department Of Stdte TELEGRAM AN PAGE OI STATE 285359 96 ORIGIN 55-25 INFO 150-00 550-00 026 DRAFTED BY APPROVED BY EAzoaRouN 022061 DEC 75 FH SECSTATE UASHDC To AMEHBASSY TOKYO USMISSION IAEA VIENNA INFO AHEHBASSY SEOUL STATE 285359 Exam 5 0 1 6523 TAGS FARM ENTCH JA susJEcr BILATERM To 60 cu REGIONAL REPROCESSING REFS A TOKYO 161613 8 STATE ZHSBOBI C STATE 161085 0 STATE 280819 I DEPARTMENT APPRECIATES REPORT or DISCUSSIONS REF A FONOFF AND ERG OFFICIALS ON JAPANESE VIEHS REGARDING REGIONAL HULTINATIONAL REPROCESSINS BASED ON THIS REPORT IT APPEARS THAT EHPHASIS IN PRE- To FONOFF AND OTHERS HAs 0N JAPANESE PARTICIPATIO IN IAEA STUDY HOHEVER INTENT or REF 3 HAS TO STAGE DECLASSIFIED E0 1 3 -2222- 94 9 9 25 - 9 9 99 9 999 999 999 '99 999 '99 999 '99 999 '99 999 999 999 999 999 999999999 9999999 999 999 999999999 99999 999 999 999 999 999 999 999 999 99999999999999 99999999999999 999 999 99 999 9999999999999 99999999999 DocId 32696147 PAGE 02 STATE FOR GOVERNMENT-TO-GOVERNNENT BILATERAL TALKS ON JAPANESE INTEREST IN PARTICIPATING IN HULTINATIONAL FUEL CYCLE CENTER FOR FAR EAST AS OBSERVED IN PARA Q REF 8 IAEA STUDY WILL BE OF GENERALIZED REFERENCE TO SPECIFIC REGIONAL GROUPINGS AND PROBLEMS THUS HHILE JAPANESE PARTICIPATION IN IAEA STUDY IS OF COURSE DESIRABLE THERE IS A NEED TO ORAH GOJ INTO DIRECT DIALOGUE HITH USG ON THIS ISSUE DISCUSSIONS ENVISAGED HERE HOULD BE PARALLEL TO BUT SEPARATE FROM IAEA STUDY 2 NEGATIVE REACTION OF ERG OFFICIALS TO IAEA REGIONAL FUE CYCLE STUDY IS NOT SURPRISING GIVEN THE GENERALLY CRITICAL VIEH OF THAT GROUP TOHARD THE NULTINATIONAL REPROCESSING CONCEPT HOHEVER EXPRESSED HILLINGNESS OF TANIYA AND IMAI REF A PARA 5 TO PARTICIPATE IN SERIOUS STUDY OF MULTINATIONAL REPROCESSING WITH US REPRESENTS THE MOST POSITIVE OFFICIAL FAR FROM ERG ON THIS ISSUE FYI IN THIS CONNECTION WE ARE UNCLEAR AS TO BASIS FOR REFERENCE TO USG REJECTION OF HIS APPROACHES TO US ON JOINT US-JAPANESE ARRANGEMENT REF A PARA 3 DEPART- MENT HAS NO RECOLLECTION OF RECEIVING-ANY CONCRETE PRO- POSAL FROM IHAI AND IN INFORMAL CONTACTS HITH IHAI US OFFICIALS TOOK POSITIVE ATTITUDE TOHARD HULTINATIONAL CON- CEJT HE ARE ALSO UNCLEAR AS TO REPORTED HILLINGNESS OF LRG OFFICIALS TO PARTICIPATE IN DISCUSSIONS OF HULTI- NATIONAL REPROCESSING IN LIGHT OTHER VIEHS REPORTED IN REF A AND EXPLICIT ADVICE TO ACTING ASSISTANT SECRETARY KRATZER THAT ERG IPPONNATSU IS OPPOSED TO HULTINATIONAL APPROACH EMBASSY VIEWS ON WOULD BE APPRECIATED END FYI 3 NEVERTHELESS DESPITE APPARENT OFFER ME 00 NOT WISH FURTHER CONTACTS HITH ERG ON THIS ISSUE FOR TIHE BEING RATHER HE BELIEVE THAT BEST HAY OF DEVELOPING BYLATERAL DIALOGUE IS TO APPROACH FONOFF OTSUKA TO CUT- LINE US INTEREST IN ESTABLISHING A BILATERAL DIALOGUE ON THIS MATTER AND TO ASCERTAIN GOJ VIEHS ON HOH THIS CAN BEST BE ACCOMPLISHED HE RECOGNIZE THAT FOREIGN HINISTRY IS NOT LIKELY TO RANT TO REACH JUDGMENT IN THIS CONPLEX ISSUE INDEPENDENT OF ERG IN TAKING UP ISSUE HITH FONOFF NE 00 NOT HANT TO APPEAR TO BE ATTENPTING DRIVE HEDGE DECLAssmu-zb' Authority 50333 50997 PAGE 03 STATE 285359 BETHEEN FONOFF AND ERG OR TO HAVE ERG OVERRULED AT GOVERN- MENT LEVEL EMBASSY SHOULD TAKE THIS POINT INTO ACCOUNT IN NAKING ITS PRESENTATIONS T0 FONOFF INDEED IF FON- ERG TO PARTICIPATE IN GOJ SIDE OF DIALOGUE AT APPROPRIATE STAGE NE HOULD NOT OBJECT 0 OUR DESIRE To DEAL AT THIS STAGE UITH FONOFF ON MULTI- NATIONAL REPROCESSING IS BASED ON THO KEY CONSIDERATIONS FIRST HE BELIEVE THAT PROLIFERATION AND REGIONAL STABILITY ASPECTS OF REPROCESSING ISSUE HILL BE GIVEN GREATER HEIGHT BV FOREIGN OFFICE THAN BY ERG HHICH Is BASICALLY AN INDUSTRIAL GROUP HAVING DIFFERENT PRIORITIES SECOND NE 00 NOT HISH To DIVERT ERG ATTENTION FROH PRIORITY NEED To CONSIDER AND HOPEFULLY ADOPT HORE FORTHCOMING ATTITUDE ON URANIUM ENRICHMENT PARTICIPATION BY SUSTAINEO AND DIRECT USG EFFORTS To ATTRACT THEIR SUPPORT FOR REGIONAL REPROCESSING FYI As EMBASSY Is AHARE HE ARE APPROACHING CRITICAL POINT IN DECISION- HAKING PROCESS ON URANIUM ENRICHMENT HITH JCAE SCHEDULED To OPEN HEARINGS ON NUCLEAR FUEL ASSURANCES ACT ON DECEMBER 2 DEPARTMENT HITNESS HILL TESTIFY ON DECEMBER 9 PREPARATION ALSO BEING NADE TO CALL IN JAPANESE AMBASSADOR FOR DISCUSSIONS ON HON MORE DEFINITIVE AND FORTHCOMING JAPANESE ATTITUDE TOHARD PARTICIPATION IN URANIUM ENRICHMENT PROJECTS CAN BE ENCOURAGED ERG Is OF COURSE DEEPLY INVOLVED AND HIGHLY INFLUENTIAL IN ULTIHATE JAPANESE DECISIONS ON BOTH URANIUN ENRICHMENT AND REGIONAL REPROCESSING NE 00 NOT HISN To ENGAGE ERG IN REPROCESSING ISSUE PENDING ASSESSMENT THAT SUCH INVOLVE- NENT HOULO NOT DETRACT FROM OUR EFFORTS ON ENRICHMENT END FYI 5 ACCORDINGLY EMBASSY SHOULD REFRAIH AT THIS POINT FROM T0 ERG ON QUESTION OF BILATERAL TALKS AND APPROACH FONOFF HITH THE PROPOSAL FOR GOVERNMENT BI- LATERALS EMBASSY SHOULD ALSO HOLD IN RESERVE SUBJECT 0F PNC REPROCESSING PLANT REF A PARA 6 UNTIL NATURE OF GOJ ENGAGEMENT IN BILATERAL TALKS HAS BEEN CLARIFIED IN ADDITION TO POSSIBLE LEGAL PROBLEMS NE WISH TO HUSBAND POSSIBLE US ASSISTANCE IN REPROCESSING FIELD TO SEE IF THIS CAN BE USEFUL SOURCE OF LEVERAGE IN CHANNELING Authority 5 0 153 DocId 32696147 PAGE 0 STATE 205359 JAPANESE INTEREST TOHARD MULTINATIONAL CONCEPT AT LATER STAGE SIMILARLY TO AVOID POSSIBLE MISPERCEPTION AND MAINTAIN COHESION HE ROULO NOT PLAN TO RESOLVE PENDING NUS REQUEST FOR INDUSTRY LEVEL FEASIBILITY STUDY OF MULTI- NATIONAL EAST ASIAN REPROCESSING CONCEPT REF C PARA 2 UNTIL FIRST ROUND OF GOVERNMENT-LEVEL TALKS HAVE BEEN COMPLETED 6 IN NEXT DISCUSSION HITH FONOFF EMBASSY SHOULD MAKE FOLLDHING POINTS AS APPROPRIATE EMBASSY CAN ALSO DRAU ON POINTS MADE BY PM DEP DIR GOODBY IN RECENT HASHINGTON DISCUSSION HITH JAPANESE POLITICAL COUNSELOR DONOHAKI UHICH RELATED MULTINATIONAL PLANT CONCEPT T0 USG CONCERN OVER PLANNED ROK ACQUISITION OF NATIONAL PILOT REPROCEBSIN PLANT REF D i A HE ARE GRATIFIED THAT GOJ SEES POLITICAL BENEFITS TO PARTICIPATION IN THE IAEA REGIONAL FUEL CYCLE CENTER PROJECT THE US IS PLANNING TO MAKE COST-FREE EXPERTS AVAILABLE FOR THIS PURPOSE MANY OTHER COUNTRIES ARE DEMONSTRATING THEIR SUPPORT FOR THE STUDY AND THE WORLD BANK HAS AGREED TO CONTRIBUTE 3H0 000 TO THE IAEA FOR THE STUDY HE HELCOME DECISION BY GOJ TO SEND AN EXPERT TO VIENNA TO PARTICIPATE IN THE STUDY AND HOPE THAT JAPAN CAN FIND OTHER HAYS TO SUPPORT IAEA EFFORT B HOWEVER AS HE UNDERSTAND IT THE IAEA STUDY HILL NOT ATTEMPT TO SPECIFY PARTICIPANTS POSSIBLE SITES OR COMMERCIAL ARRANGEMENTS FOR PARTICULAR CENTERS THAT MIGHT BE ESTABLISHED THESE QUESTIONS ARE OBVIOUSLY BEING LEFT TO INFORMAL AND CONFIDENTIAL DISCUSSIONS AMONG GROUPS OF INTERESTED STATES SUCH DISCUSSIONS COULD IN OUR VIEH PROFITABLY BE CONDUCTED CONCURRENTLY HITH THE IAEA PRO- JECT AS AN ESSENTIALLY SEPARATE UNDERTAKING HHICH COULD TAKE ACCOUNT OF THE RESULTS OF THE IAEA STUDY AS THEY EMERGE- C IF SMALL NATIONAL PLANTS IN SENSITIVE AREAS NEAR JAPAN ARE TO BE DISCOURAGEO PARTICULARLY IN THE ROK FE BELIEVE IT IS IMPORTANT TO BEGIN NOR FOR COUNTRIES INTERESTED IN AVOIDING THE POTENTIAL PROLIFERATION DANGERS #250997 DocId 32696147 AudwrityNW50353 50997 DocId 32696147 PAGE 05 STATE 285359 OF SUCH NATIONAL PLANTS To CONSIDER PRACTICAL PROBLEMS AND POSSIBILITIES FOR ALTERNATIVES INCLUDING AN CAST ASIAN COMMERCIAL SCALE MULTINATIONAL FACILITY HE SEE THIS ISSUE As A MATTER or MUTUAL INTEREST To 80TH oun GOVERNMENTS NMILE RECOGNIZING TMAT THE PRINCIPAL ACTORS IN MAKING THIS A VIABLE CONCEPT as THE NATIONS IN THE FAR EAST THEMSELVES D GIVEN2THESE IMPORTANT CONSIDERATIONS HHICH MOTIVATE OUR INTEREST IN THE REPROCESSING ISSUE HE BELIEVE IT IS ESSENTIAL FOR THE US AND JAPAN TO CONSULT FULLY AND EFFECTIVELY ON THE FEASIBILITY AND MERITS OF THE CONCEPT OF ESTABLISHING AT AN APPROPRIATE TIME A MULTI NATIONAL REGIONAL FUEL CYCLE CENTER SERVING THE NEEDS OF EAST ASIA HE HOULD THEREFORE PROPOSE THAT INFORMAL AND CONFIDENTIAL DISCUSSIONS ON THIS SUBJECT BE HELD USG AND GOJ REPRESENTATIVES E IN THESE EXPLORATORY TALKS HE HOULD HOPE TO EX- CHANGE VIEHS ON THE NEEDS OF THE REGION AS PERCEIVED BY THE GOJ AND THE TIME HHEN FUTURE COMMERCIAL- SCALE REPROCESSING PLANTS HILL ACTUALLY BE NEEDED RECOGNIZING THE VERY SIZEABLE THROUGHPUTS THAT WOULD MAKE SUCH PLANTS ECONOMICALLY VIABLE HE ESTIMATE HE ALSO WOULD LIKE TO EXCHANGE VIEHS HITH THE GOJ ON THE POSSIBLE MODALITIES FOR ESTABLISHING A FUEL CYCLE CENTER INCLUDING SUCH TOPICS AS TECHNICAL ECONOMIC AND ENVIRON- MENTAL FACTORS RELEVANT TO EAST ASIA REPROCESSING INCLUDING THE RELATED ISSUE OF SPENT FUEL STORAGE AND WASTE DISPOSAL POSSIBLE SITE ALTERNATIVES VARYING ROLES OF GOVERNMENT AND INDUSTRY AND POSSIBLE PARTI- CIPANTS IN VARIOUS TYPES OF REGIONAL MULTINATIONAL VENTURES THE ROLES AND FURTHER STEPS THAT THE US AND JAPAN COULD PLAY IN BRINGING SUCH A VENTURE INTO BEING HOULD RECEIVE PARTICULAR ATTENTION F HE HAVE No PRECONCEIVED IDEAS ON THESE ISSUES AND HOULD APPROACH SUCH TALKS HITH AN OPEN MIND PREPARED TO OFFER PRELIMINARY VIEHS AND HELCOHE GOJ VIEWS HE ANTICIPATE THAT HE HOULD BENEFIT CONSIDERABLY FROM THE TALKS SINCE HE SENSE THAT JAPAN HAS BEEN LOOKING AT DEC LASSIFIED Authority '30 35 3 man PAGE 06 STATE 206359 VARIOUS ALTERNATIVES AT LEAST AS FAR AS THEIR OHN NEEDS ARE CONCERNED IN THE CONTEXT OF PLANNING FOR A FUTURE COMMERCIAL-SCALE REPROCESSING PLANT HE ARE PREPARED TO SEND A SUITABLE TEAH TO TOKYO OR IF GOJ PREFERS NE COULD HOLD SUCH DISCUSSIONS IN NASHINGTON G IT IS OUR IMPRESSION THAT OFFICIALS 0F ERG HAVE EXPRESSED INTEREST IN A SERIOUS STUDY HITH THE US OF THE MULTINATIONAL REGIONAL REPROCESSING QUESTION HE NOULD NATURALLY BE PLEASED TO HAVE ERG PARTICIPATION AT AN APPROPRIATE STAGE HONEVER THERE ARE IMPORTANT POLITICAL AND SECURITY ASPECTS OF THIS ISSUE OF CONCERN TO BOTH THE USG AND THE GOJ HHICH HE BELIEVE SHOULD BE DEALT NITH PRINCIPALLY BY THE THO GOVERNMENTS THE APPROPRIATE ROLE FOR ERG IN THESE DISCUSSIONS IS OF COURSE A MATTER FOR DECISION BY THE GOJ AND HE HOULD APPRECIATE KNOHING YOUR VIEHS ON THIS SUBJECT H IN OUR VIEH SUCH TALKS BECAUSE OF THEIR NON- BINDING EXPLORATORY CHARACTER CAN BE HELD IN THE NEAR FUTURE THOUGH OBVIOUSLY ANY FOLLON-ON NORK HOULD REQUIRE MORE CAREFUL PREPARATION 7 EMBASSY SPOULD SEEK EARLY RESPONSE FROM GOJ ON BILATERAL TALKS HE HOULD PREFER AN EARLY DATE FOR THO REASONS IN FIRST PLACE HE HISH TO GIVE JAPANESE CLEAR SIGNAL THAT OVER THE LONG-TERM THERE HAY BE A REGIONAL ALTERNATIVE TO THEIR BUILDING A NATIONAL PRO- REPROCESSING PLANT THAT COULD PROMOTE OUR MUTUAL NON-PROLIFERATION INTERESTS IF THE JAPANESE PROCEED WITH A FACILITY THAT ONLY SERVES THEIR NATIONAL NEEDS THE OPPORTUNITY FOR A FAR EAST MULTINATIONAL VENTURE HILL BE JEOPARDIZED IN THE SECOND PLACE FURTHER USG CONSIDERATION OF THE HULTINATIONAL CONCEPT BIL 8E GREATLY FACILITATED BY HAVING EVEN PRELIMINARY IN- DICATIONS OF JAPANESE THINKING 8 UPON RECEIVING EMBASSY REPORT AND ASSESSHENT OF FOREIG OFFICE REACTION TO BILATERAL APPROACH DECISIONS HILL BE MADE REGARDING THE NEXT STEPS INCLUDING FURTHER UPS TO GOJ OFFICIALS THE ROLE OF ERG AND THE HANDLING DocIdz32696147 PAGE 07 STATE 285359 OF THE NUS PROPOSAL EVEN NHILE PURSUING BILATERAL APPROACH IT NONETHELESS REMAINS IMPORTANT TO NURTURE FONOFF POSITION IN SUPPORT OF IAEA REGIONAL FUEL CYCLE STUDY NE ASSUME THAT OTSUKA HAS RECEIVED INFORMATION ON THE PURPOSE AND POSSIBLE AREAS OF JAPANESE PARTI- CIPATION THROUGH THE JAPANESE MISSION IN VIENNA AS NOTED ABOVE GOJ HA5 AGREED TO SEND A TECHNICAL EXPERT TO ASSIST IAEA IN THE STUDY FOR US MISSION IAEA DEPART- MENT WOULD APPRECIATE ANY SUGGESTION MISSION MAY HAVE ABOUT POSSIBLE ADDITIONAL HAYS SUCH AS VOLUNTARY FINANCIAL CONTRIBUTION IN WHICH JAPAN MIGHT FURTHER ASSIST THE STUDY ROBINSON DECLASSIFIED Authority NW 50 -5 DocIdz32696147 This document is from the holdings of The National Security 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