C06419939 PPRO'I ED FOR RELEASE - CIA INFO DATE 25-Au -2015 · __ _ _ SECRET ·2 1 p 1 b 3 NatS'ecAct E 13526 3 3 b 6 25Y_rs • 3 February 1978 -· ··--· I -· ---- _ _' __ MEMORANDUM FOR THE RECORD SUBJECT Meeting with the NRC b 3 CIAAct f b 3 NSC 1 On 2 February the ADpO briefed officials of the Nuclear Regulatory Commission at their request on the CIA role and position relating to the NUMECcase The briefing was based upon the attached· outline The purp se of the meeting NRC attendees and fo_llow-up actio _ _ _ _ J J o J _- the 10 l J o c t 1 o_Lh b d -------- J d '---- ------1 2 ·H ndrie The first briefing session was attended by Chairman Commiss ioner Kennedy and three other NRC officials a After the ADD01·s initial remarks the NRC -officer read the attached Talking Paper and were invited to ask question Commissioner Kenned noted the reference·in the wit t e alleged NUMECdiversion'' w h i c h--- h_e_c __a_r_a_c t_e_r 1-z-e- r as far from· saying that a diversion had occurred We agreed· with his assessmc mt confirmed · · I ' ·· - 'ihich prolllpted CIA interes1 · L_ 1_n_t e_n_u_c-a--e-a-r-- - Jl-a ' 't e-r- i a l m i' ' s -s·i ng from NUMI C ·· b ···························· b 3 CIAAct I He ndrie 1 I I I I __c_o_n tc-cr a-c t-a 'n d resulting accounting led tQ its dis overy Mr Hendrie concluded as a result of this disc ssion that the time frame of the MUF - mid ·60' s - - was ·· compatible with·the time phasing expressed·in 't b e Talking · I asked whether the -precise · · timing of the NUMECMUFwas known Mr Kennedy said that MUFhad been going on for some time but that t J e · NUMECbookkeeping-system postponed its discovery aid that the expiration of the WANL Chairman DA1 Paper WAP HING HOTICE SENSITIVE INTEtLIGENCE SOURCES ANDMEitiOOSUNOLVED · · b 3 NatSecAct J 25X1 EO 13526 3 3 b 6 25Yrs SEC_ RE_ 11 I· ___ ---- -------' I···r I b 3 CIM t 9- -0·t s-toc ·'j 'I i _ i D - - C06419939 PPROVED FOR RELEASE - CIA INFO DATE 25-Au -2015 · - · · ii -- • tSecAct 26 3 3 b 6 25Yrs c Mr Patterson ·asked if CIA had asked for the FBI reports on·Shapiro He was told that this wo1 1ld have been inappropriate but tl1at we did have a con- · tinuing dialogue with the FBI during the course of its _investigation · 1· • '· I I s l' _ d We were asked by Dr Schnieder ph whether other IA had examined the MUFproblem st facilities than NUMEC The answer was in the negative which·led_ to our reiteration o the factors that caused CIA to in become interested an '----- our request for • I I an J 11Vest1gat1on • 3 · The second briefing was attended by Commissioners Gilinsky and Bradford Executive Director Gossick and several· other NRC officials · Th same procedure was followed in this briefi g nd below summarizes issues or questions and ·our response· · a Asked if CIA had requested former DCI Helms' views on-the NUMECcase we said that instead 7 we had relied upon a reconsxruction of events based upon our files The ADDOnoted that as a frequent witness before the Congres·s he was adverse to rehearsing testimony with other potential witnesses b • Mr Gossick asked for an explanatio of the term evidence as we view 'it In this context the ADDOcited the deductive nalysis that led to CIA's in NUMEC making clear that the total picture interest did not constitute legal evidence Mr - Gossick retuJ ne to the subject near the end of the briefi g and asked that CIA l ould say if confronted with the question Do you have evidence of diversion Our response was that we would say that there is _no hard evidence but a series of ev nts and £acts led to our intelligence conclusion that a diversion was a likely possibility other c I i I I I r· I rn response to a question ue sai4 that no · MUFhad been brought to CIA's attention ·and that '--- ----- -- J woul ' I appear to we said ave precluded 2 that this export route cont_r__ - - ---········· 25X1 b 1 b 3 NatSecAct EO 1-3526 3 3 b 6 25Y s C06419939 PPROVED FOR RELEASE - CIA INFO DATE 25-Au -2015 ' 1 b' 3 N l ---- -- _-- ----------- x 'i 3 6 5Y s 6 ·-· · SECRET ·· ··- · i • J •• I • A------------ ---- d CIA has n evidence I I I £ l1hat is the objective of the current FBI relati g to NUMEC _·l 'e don't Jmou· investigation The NRC said that while it could now state had been briefed by CIA there apparently is other g it intelWould ligence that should be made available to ·them DIA have the same basic material as CIA Is the intelligence data brought together in one place W'e ·responded by citing the community estimative process and noted the 1974 estimate on·nuclear proliferation adding that DIA may have prpduced a Departmental assessment of Israeli nuclear development h · Asked what major unknQ1m existed with regard we stated that no one·h d told to the alleged diversion us positively that such a diversion occurred i Does CIA hav any specific suggestions regardi g nuclear safeguards No We noted that we are not con cerned with domestic facilities j We were asked to comment on the NUMECmanufactured irradiator' NRC was advised tJiat 4 · Mr Giiinsky's post-meeting 25X1 cited in the Spot Report b 1 b 3 NatSecAct EO 13526 3 3 b 6 25Yrs Attachlnents As Stated approach to the ADDOis · b 3 CIAAct - I ' I I' I I I· II I I l C06419939 -_ · r ••f--- -• - - - IP 1 l f it - -·_ -· ·-·-- --- w J ····· ·· ··'· ·· · ·- - ·· PPROVED FOR RELEASE - CIA INFO DATE 25-Au -2015 b 3 CIMci ·· · ·· ··· · · · · b 3 ·C1Mct · · · at· FEB-1978 - - - · _ _ · ···__ _ · · ·· · OR rector f Ce tral -DAction ··- - - _ · _- - - - · -_ · · · _ ·' · · · ' · ··1 · b 3 t · _ -· · · ·· · _ · Int g ·_ FROM ·_· _· · · Lyle L Miller Ac g gi ti i · · · ·_ SUBJ C ·' --· _ · ' i Article byThomas O'Tool CIARe ea ·· · · _-··· · ' · -_ _ _ _ _ ·'-- Fears on Mis g um' · 28 Feb afy 1978 · · · _ · ·· · · · -- · · ·· Washington Post L__J · · ····· b t1 · · ·· · ·· · · · ' b q1A'1ct ' _ ····-- · · · ··' _ _° ·- -··· _fNa tS A f MEMORAND • 1 · · · Requested one b 3 _CI - - - ·_- EQ J9 2t f - ti 25Yrs for·your information only · · _ · ciA ri g · · · ' ' Ba ground The a ched cle refe io ·a of the Nnc ear Regulator y Commission reportedly held on 6 February · · · 1978 concemhlg the alleged disappearance of uranium from the nuclear · ·· facility in Apollo Pennsylvania According to the article the · · ' · · - briefer reported the Agency's suspicions that the uranium may have · · · been diverted to Israel The author notes the briefing was classified S ret · Mr Thomas McTiernan ··· and does not reveal the source of his mformatlon who serves in an Inspector General capacity at NRC was contacted · · · · · and confirmed that this was not an officW NRC release He presumes · · · this story came from someone in the NRC and is attempting to determine · ··· · · gave - -e rmatio w a s_e the D · - - AA - · · · --- - he DO ' red Shackle the Agency developed no conclusive hard evidence 1 t 'o su b s tan tia te e a e s u s p c o J 'ns Attached is a copy of Mr Shackley's · · · Mexnorand for the Record the talking points paper and a listing or the · bJ 3 -G c att e s _-·· · • ·- 25X1 ·-· · ······--4 · - ' · - ••· -·• r • • • ' l' •t ·• • - 'l •··· ········ - · r · w •••• • • - -_• · r • • _- • •• f -• - • - - - r t' r r r r rJ r r r•• r u• _ r - rr-••••••' · •• _ _ • - - r 1 • _ APPROVED FOR RELEASE - CIA INFO DATE 25-Aug-2015 rum q u ngr mglqumqugsi itIA- atsw - 1331 aqua 3 Wm 13' that land a nu Menu - 12 mm - 1111 89 Mo' eou lud that 33W smu- um questionart-tonnes-am - - Med 1mggnow no 21433240 dear Inland-Irv in mum Wham mgurduck mm away- if - wupmu My M-m cm mil - gwgre not 3 mum M - 1 u ld 9 11111 11de hugging ff-Fl 5 - rain-rm C06419939 · ·- · · - C PPROVED FOR RELEASE - CIA INFO DATE 25-Au -2015 ·-· ···· I NRC --- TALKIN PAP ER-OUTLINE FOR i Z FEBRUARY 1 1978 PROLOGUE A NO SCIENTIST B NOT A Fm ST-HAND PARTICIPANT i C SUPER ING RESEARCH OF DOCUMENTS ON i E' NUMEC • 1 SUPPORT j · TO DDCI - ·rs APRIL 1977 I j Z PREPARE Il FOR CONGRESS ONAL INQUIRIES I I· 3 NOT ALL RECORDS WE STARTED A ARCHIVES B NO MEMOS AVAILABLE IN APRIL 1977 • SEARCHED WRITTEN WHEN C06419939 PPROVED FOR RELEASE - CIA INFODATE 25-Au -2015 • I I i -· J -2- Z i BRIEFJNG BACKGROUND I A B NATIONAL LEVEL INTELLIGENCE ESTIMATE - PROCESS OF DEDUCTIVE REASONING TO FIND OUT HOW URANIUM OBTA J -VED 3 RESULTS OF DEDUCTIVE A NUMEC B SHAPmo C CENTRIJrUGE 4 I· ---·----- KEY ISSUES A NO INVESTIGATION ·a NO DIVERSION BY CIA C · b 1 b 3 NatSecAbt 25X1 · EO 13526 3 3 b 6 25Yrs ANALYSIS D · 1J 1· · I b 1 b 3 f'fatSecAct · · · 25X1 EO 13526 3 3 b 6 5Yrs OF NUMEC BY CIA NO HARD EVIDENGE s1 mve RET C06419939 PPROVED FOR RELEASE - CIA INFO DATE 25-Au -2015 I J •j -· · ·· · -3- - • i · ' · · s• -13RIEFJ ' iGS OF OTHER ·i · A PRESIDENT I• ' B ' CONGRESS C• JUSTICE FBI D • ERpA •' · · ' i · ·· ·· - I· C06419939 · PPROVED FOR RELEASE- CIA INFO DATE 25-Au -20'15 ·C J Jlo SUBJECT NU IEC Meeting with the NRC I J ___ I DATE · 3 February 1978 REFERENCE None b 1 · b 3 NatSecAct ' EO 13526 3 3 b 25Yrs · DESCRIPTION FYI • • the J DIX briefed officials Qf tl1e Nuclear Regulatory Conmission on the NUMEC case • The bdefing was at he request ·of Chainnan Hendry for the stated purpose of ensuring t Int key NRC officers were aware of the CIA role and 1 osition relatfog to NI I'o·IEC as t11a l't'RCresponds to CongresSIJlan Udall's current inquicy into tl1e matter 1 b 3 CIAA t On 2 Februaxy •• 1 I ' 2 In attendance at the briefing in addition to the c Minnan · were Commissioners Kennedy Gal insky and Bradford Executive Pirector of the offices of the NRC General Counsel Gossiclc and representatives The briefing Inspector Gener · and flcuclear Security and Safeguards · was in tt-ro consecutive sessions to obviate the need for a tape recording of the briefing required when a quorum of the Commission ' rs are present · 3 The ADOO's prescntation ·followed the outline used $11 several similar briefings and explained the deductive analysis tl1ati led to the in a possible diversion Stressed were the fa cts that tliere CIA interest of N R fEC by CIA no diversion by CIA iand no hnrd was no inyestigation evidence tlia t the Israeli supply of enriched ui-a11iUJ11 crone from the 1 1 £ IF C facility The NRCattendees we1·e then permitted to read tJ1e attached brief Talking Paper which ras ·retrieved from them 0£ par ticular concern to the Commissioners was the question of ·wl1at constitutes fevidence of ·diversion and t'lliether· the CIA could' talce the position that a diversion in fact oc urred The answer was in the ne tive and it jss e xplained again t11a 4 The Commissioners arid either NRC attendee appeared satisfied with the presentation and the responses to their questions After the briefing Commissioner Galinsky said that he would Ii1ce to prepare a brief sts tC lltent on the issue of evidence of diversion for presentation to CongressmanUdall as one coordinated with the CIA Mule C 1 ressing some reluct3nce to become involved in the ·current Udall-NRC confrontation we agreed to look at the statement and seek I CI guidance on the proper CIA posture in this regard 25x·1 i I DCI•S RECCM ffiNDATIONS FORDOO ACl'I0 '1 WARNING HOTICE SENSITIVE INTELLIGENCE SOURCES • ••ft - I I i -I I ' C06419939 PPROVED FOR RELEASE - CIA INFO DATE 25-Au -2015 • p · ··r - • ·- __ - ' · -·· - · · C b 1 · b NatSecAct ·2sx1 EO 13526 3 3 b 6 25Yrs · · ·· NRC _ __ TALKING PAPER · FOR · 2 FEBRUARY 1978 · J • · · •' · · i - 1 · · - • • '• r · ·· 1 C06419939 PPROVED FOR RELEASE - CIA INFO DATE 25-Au -2015 00 p_sx1 b 1 'p 3 Nat ecAct 8 0 1 5 26 3 3 b 6 25Yrs -·• ' • l ·- · • -z '' • I · • · - CRET 7 I I C06419939 PPROVED FOR RELEASE - CIA INFO DATE 25-Au -2015 Ir ' l Y j- · _ f$ -- ·· · · r-'----------- ------------- - ---- s EsiT E -3- ' b 1 I 3 N tSecAct 2 1· I Eq 13526 3 3 b 6 -2 Yrs · · · l _ • i ·1 · I- J• · _i • • · I ··1 I • •• I • i I ·1 I ' i • I · ·I · I ··i • •• II - · i 'l • I' ·II I C06419939 PPROVED FOR RELEASE - CIA INFO DATE 25-Au -2015 # I _ - -- A • - •• · · · 1' • b 3 N_atS Act - 25X1 · · · · Eo j ' 35 26 3 b 6 5Y s JVE -4- · · 1 l ' •• t · · · • · ·· · ·· · · · ' · · · · ·· · · · • - · · ' • · · · · - ' •• · · ·· -- I - · I · ·I ·· · · ·· • ·- · • • I · · ' · -·· · • · • · ··· - - C06419939 PPROVED FOR RELEASE - CIA INFO DATE 25-Au -2015 l - - UNITED STATES NUCLEARREG LATORY COMMISSION WASHIIIIGTON D C 20$55 February 3 1978 I 1------- ___ - - b 3 · - CIA Headquarters I - NSC b 3 C'lAAct ft 3 b 3 CIAAct Per our telphone conversation of today February 3 1978 fo11owing is a list of attendees at Thursday's meeting BRIEFING #1 ChairmanJoseph Hendrie CommissionerRichard Kennedy Bernard Snyder William Dory Kenneth Pedersen BRIEFING #2 Commissioner Victor Gil insky· CommissionerPeter Bradford _Lee V Gossick Clifford Smith HowardShapar Ernst Volgenau John Davis· Norman Haller Robert Burnett James Power Tom Carter James Shea Jo -a n Kundman · Office of Policy Evaluation U S Nuclear Regulatory Commission · 1717 H Street N W• J wa hington D C 20555 - J