Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 06 JUL 2006 Message Text SECRET PAGE 01 LONDON 09224 01 OF 02 171428Z 51 ACTION SS-25 INFO OCT-01 ISO-00 SSO-00 NSCE-00 026 W --------------------- 069351 O P 171414Z JUN 75 FM AMEMBASSY LONDON TO SECSTATE WASHDC IMMEDIATE 2035 INFO AMEMBASSY OTTAWA PRIORITY AMEMBASSY PARIS PRIORITY AMEMBASSY BONN PRIORITY AMEMBASSY MOSCOW PRIORITY AMEMBASSY TOKYO PRIORITY AMEMBASSY SEOUL PRIORITY AMEMBASSY ISLAMABAD PRIORITY AMEMBASSY BRASILIA PRIORITY AMEMBASSY BUENOS AIRES PRIORITY USMISSION IAEA VIENNA S E C R E T SECTION 01 OF 02 LONDON 09224 EXDIS E O 11652 XGDS-1 TAGS PARM TECH MNUC CN SUBJECT NUCLEAR EXPORT POLICY BILATERALS WITH CANADA 1 U S CANADIAN VEST FULFORD BILATERALS ON NUCLEAR EXPORT POLICY TOOK PLACE MONDAY JUNE 16 AND COVERED BOTH MULTILATERAL EXPORT POLICY DISCUSSION PAPER AND SPECIFIC NUCLEAR EXPORT CASES OF BILATERAL CONCERN SIMILAR BILATERALS SCHEDULED WITH FRENCH SOVIETS AND GERMANS FOR JUNE 17TH PRIOR TO OPENING OF SECOND MULTILATERAL MEETING ON JUNE 18 2 WITH REGARD TO MULTILATERAL MEETING CANADIANS DREW ATTENTION TO CONTINUED PRESS MENTION OF SUPPLIERS' DISCUSSIONS BUT NO REFERENCE TO LONDON MEETING IN GUARDIAN AND FINANCIAL TIMES AND RAISED ISSUE OF HANDLING OF FUTURE PUBLICITY AS WELL AS OF EXPANSION BEYOND GROUP OF SEVEN U S DEL NOTED LIKELIHOOD OF SUCH SECRET SECRET PAGE 02 LONDON 09224 01 OF 02 171428Z PUBLICITY GIVEN ACCENTUATED PRESS AND PARLIAMENTARY Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 06 JUL 2006 Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 06 JUL 2006 CONCERN NEED FOR CONTINGENCY GUIDANCE AND PREFERENCE FOR PRIOR AGREEMENT WITHIN RESTRICTED GROUP BEFORE FORMALLY ADDRESSING QUESTION OF EXPANSION AUSTRALIA GDR NETHERLANDS SWEDEN AND SOUTH AFRICA WERE MENTIONED AS LIKELY CANDIDATES FOR EXPANDED GROUP 3 ON GENERAL EXPORT PRINCIPLES CANADIANS COMMENTED ON PREDICTABLE COMPLEXITY OF U S DISCUSSION PAPER IN ABSENCE OF FULL FUEL SAFEGUARDS APPROACH WHICH THEY PREFERRED MENTIONED IMPORTANCE OF MANDATORY PROVISIONS TO MINIMIZE SUPPLIER COMPETITION AND EXPRESSED HOPE THAT FRENCH COULD CONTINUE TO BE MOVED IN DIRECTION OF MORE STRINGENT SAFEGUARDS AND CONDITIONS WHILE INDICATING THAT U S WOULD BE INTERESTED IN FULL FUEL CYCLE SAFEGUARDS IF COMMON AGREEMENT COULD BE REACHED ON THEM U S DEL NOTED FRENCH OPPOSITION TO SUCH REQUIREMENT INDICATED FORMAL COMPATIBILITY OF DISCUSSION PAPER WITH FRENCH CONCEPT OF PURSUIT OF SUPPLIED FACILITIES MATERIALS AND TECHNOLOGY AND EXPLAINED THEME OF SAFEGUARDS CONTAMINATION OF ALL ITEMS TOUCHED BY EXTERNAL SUPPLY DISCUSSION OF RETROACTIVITY NOTED FRENCH OPPOSITION TO ALTERING PRIOR AGREEMENTS BUT POSSIBILITY OF FLEXIBILITY WITHIN THEIR FRAMEWORK AND VIA IMPLEMENTATION INCLUDING SPECIFIC NUCLEAR EXPORT DECISIONS DISCUSSION OF MUTUAL CONSENT PROVISION NOTED USEFULNESS OF REACTOR SUPPLIERS EXERCISING EFFECTIVE LEVERAGE OVER NATURE AND LOCATION OF URANIUM ENRICHMENT CHEMICAL REPROCESSING AND PLUTONIUM STORAGE 4 SPECIFIC SUGGESTIONS BY CANADIANS FOR FUTURE WORK INCLUDE COVERAGE OF REACTOR TECHNOLOGY OF ALL REPEAT ALL TYPES GREATER ATTENTION TO FUEL FABRICATION ELABORATION OF MODEL TRILATERAL SUPPLIER RECIPIENT IAEA AGREEMENT AND CONSIDERATION OF SANCTIONS AGAINST VIOLATORS OF NUCLEAR COOPERATION AGREEMENTS PARTICULARLY IN CASE OF NUCLEAR EXPLOSIONS IN EXTENDED DISCUSSION OF FULL FUEL CYCLE CENTERS CANADIANS STATED PREFERENCE FOR EXERCISING SUPPLIER'S GOVERNMENTAL INFLUENCE THROUGH INTER-GOVERNMENTAL AGREEMENTS AND NOT REPEAT NOT THROUGH SECRET SECRET PAGE 03 LONDON 09224 01 OF 02 171428Z INDUSTRIAL-LEVEL ARRANGEMENTS BUT ACKNOWLEDGED UTILITY OF SUPPLIER INVOLVEMENT AT ALL POSSIBLE LEVELS U S DEL EMPHASIZED CONCERN WITH SPREAD OF NATIONAL REPROCESSING FACILITIES EVEN OF PILOT SCALE AND POTENTIAL TECHNICAL ECONOMIC AND POLITICAL BENEFITS OF MULTINATIONAL REGIONAL PLANTS WITH PARTICULAR INTEREST IN EAST ASIAN POSSIBILITIES Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 06 JUL 2006 Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 06 JUL 2006 5 IN DISCUSSION OF SENSITIVE NUCLEAR EXPORT CASES CANADIANS SHARED U S CONCERN OVER KOREA AND SAID THEY WERE INSISTING ON INCORPORATING MUTUAL CONSENT PROVISION REGARDING REPROCESSING IN ROK CANADIAN NUCLEAR AGREEMENT IN CONNECTION WITH CANDU SUPPLY CANADIANS SECRET NNN SECRET PAGE 01 LONDON 09224 02 OF 02 171425Z 51 ACTION SS-25 INFO OCT-01 ISO-00 SSO-00 NSCE-00 026 W --------------------- 069359 O P 171414Z JUN 75 FM AMEMBASSY LONDON TO SECSTATE WASHDC IMMEDIATE 2036 INFO AMEMBASSY OTTAWA PRIORITY AMEMBASSY PARIS PRIORITY AMEMBASSY BONN PRIORITY AMEMBASSY MOSCOW PRIORITY AMEMBASSY TOKYO PRIORITY AMEMBASSY SEOUL PRIORITY AMEMBASSY ISLAMABAD PRIORITY AMEMBASSY BRASILIA PRIORITY AMEMBASSY BUENOS AIRES PRIORITY USMISSION IAEA VIENNA S E C R E T SECTION 02 OF 02 LONDON 09224 EXDIS WERE TOLD OF U S AIDE MEMOIRE RECENTLY PRESENTED TO ROKG UNDERTOOK TO INFORM USG OF ANY CHANGE IN OTTAWA'S POSITION AND AGREED TO CONSULT CLOSELY ON FUTURE STEPS INVOLVING FRANCE AND KOREA ON PAKISTAN CANADIANS CONFIRMED GOC CONTINUES TO PRESS FOR EXTENDING SAFEGUARDS DURATION FOR KANUPP NOTING HOLD-UP IN SUPPLY OF FUEL FABRICATION PLANT AND WERE ADVISED OF U S WILLINGNESS TO EXAMINE COORDINATION WITH REGARD TO HEAVY WATER SUPPLY 6 ON ARGENTINA CANADIANS NOTED THEY WERE IN MORE Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 06 JUL 2006 Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 06 JUL 2006 DIFFICULT POSITION SINCE THE COMMERCIAL CONTRACT WAS ALREADY IN FORCE AND WORK THEREUNDER PROCEEDING IN CANADA ALTHOUGH NO DELIVERIES HAD BEEN MADE CANADA WAS NOW SEEKING TO SUPERIMPOSE A GOVERNMENT-TOGOVERNMENT AGREEMENT ON WHICH THE TOUGHEST ISSUES WERE RESTRICTIONS ON RETRANSFER AND A VETO WITH RESPECT TO REPROCESSING SECRET SECRET PAGE 02 LONDON 09224 02 OF 02 171425Z 7 AT CANADIAN REQUEST U S OUTLINED BRIEFLY STATUS OF DISCUSSIONS WITH FRG ON BRAZIL AND PROPOSED PARALLEL APPROACHES TO FRANCE CANADIANS EXPRESSED CONCERN ON FULL FUEL CYCLE EXPORT TO BRAZIL NOTED SOVIET SALE TO LIBYA AND AGREED ON IMPORTANT RELATIONSHIP BETWEEN GENERAL DISCUSSION PAPER AND BEHAVIOR REGARDING SPECIFIC EXPORT CASES 5 CANADIANS EXPRESSED CONCERN OVER FACT THAT INFCIRC 153 SAFEGUARDS WOULD IN ABSENCE OF TRILATERAL TERMINATE UPON WITHDRAWAL OF NPT U S DEL SUGGESTED WE EXPLORE POSSIBILITY OF SOLUTION SIMILAR TO THAT USED IN MOST RECENT ARGENTINE AGREEMENT WHERE SAFEGUARDS CONTINUE BEYOND EXPIRATION DATE OF AGREEMENT 9 CANADIANS TOLD US DUPUY WOULD NOT ATTEND LONDON MEETINGS SINCE HE WAS ENGAGED IN TALKS OF UNSPECIFIED NATURE WITH THE JAPANESE RICHARDSON SECRET NNN Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 06 JUL 2006 Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 06 JUL 2006 Message Attributes Automatic Decaptioning Z Capture Date 01 JAN 1994 Channel Indicators n a Current Classification UNCLASSIFIED Concepts EXPORTS POLICIES NUCLEAR ENERGY Control Number n a Copy SINGLE Draft Date 17 JUN 1975 Decaption Date 28 MAY 2004 Decaption Note 25 YEAR REVIEW Disposition Action RELEASED Disposition Approved on Date Disposition Authority GolinoFR Disposition Case Number n a Disposition Comment 25 YEAR REVIEW Disposition Date 28 MAY 2004 Disposition Event Disposition History n a Disposition Reason Disposition Remarks Document Number 1975LONDON09224 Document Source CORE Document Unique ID 00 Drafter n a Enclosure n a Executive Order X1 Errors N A Film Number D750210-1067 From LONDON Handling Restrictions n a Image Path ISecure 1 Legacy Key link1975 newtext t19750643 aaaabncq tel Line Count 203 Locator TEXT ON-LINE ON MICROFILM Office ACTION SS Original Classification SECRET Original Handling Restrictions EXDIS Original Previous Classification n a Original Previous Handling Restrictions n a Page Count 4 Previous Channel Indicators n a Previous Classification SECRET Previous Handling Restrictions EXDIS Reference n a Review Action RELEASED APPROVED Review Authority GolinoFR Review Comment n a Review Content Flags Review Date 07 APR 2003 Review Event Review Exemptions n a Review History RELEASED 07 APR 2003 by BoyleJA APPROVED 09 APR 2003 by GolinoFR Review Markings Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 06 JUL 2006 Review Media Identifier Review Referrals n a Review Release Date n a Review Release Event n a Review Transfer Date Review Withdrawn Fields n a Secure OPEN Status NATIVE Subject NUCLEAR EXPORT POLICY BILATERALS WITH CANADA TAGS PARM TECH MNUC CN To STATE Type TE Markings Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 06 JUL 2006 Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 06 JUL 2006 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