BENTEL JOHN A 75 STATE 195214 SECRET PACE C1 STATE 195214 ORIGIN 33 25 INTO ISO-CE DRAETED RI APPROVED BY THE SECRETARY - CIA - NR ECRC NILNOT DRAET SECRET PRATT 291975 0 1616052 AUG 75 TM SECSTATE TASRDC To ANENBASSI SEOUL IMMEDIATE INTO ANENBASSI OTTATA PRIORITY ANENPASST PARIS ANENEASSV TAIPEI ANENBASSI TONIC USNISSION IAEA VIENNA STATE 195214 ENDIS DECAPTIONED E O 11652 TAGS ETIN ETRD NNUC TECE PARC TS EA TH CE SUBJECT RON NUCLEAR FUEL REPROCESSINC PLANS REES A LONDON 922A D LONDON 9295 C STATE 148895 D STATE E STATE 153128 E STATE G SEOUL 5462 1 As ENEASST ATARE RESOLUTION OE PRESSINC NUCLEAR ISSUE WILL SIGNIFICANTLY CONTRIBUTE TO PRESERVING OUR CLOSE SECRET a SECRET PAGE E2 STATE 195214 POLITICAL AND SECURITI RELATIONSHIP RITE RON NARCR POLICI CABLE ON ROE NUCLEAR TEAPONS PLANS REE F STATED BASIC US OBJECTIVE QUOTE T0 INHIBIT TO THE EULLEST POSSIBLE EXTENT ANT RON DEVELOPMENT OT A NUCLEAR EIPLOSIVE CAPABILITY UNQUOTE NRILE NUCLEAR COOPERATION NITRIN US POLICY GUIDELINES ACQUISITION OF NATIONAL RE- -PROCESSINC PLANT WOULD CE NET ELEMENT IN NEAPONS PROGRAM AND IS NOT JUSTIEIED BI RON CIVIL NUCLEAR NEEDS INDEED ROREAN NATIONAL REPROCESSINS PLANT TOULD SERIOUSLI APEECT OUR ABILITY To CONTINUE TO PROVIDE SUPPORT TOR PEACEEUL NUCLEAR ENERGY PR ORAN 2 As REPORTED IN REPS A AND B BILATERAL TALKS TERE HELD AT LONDON MEETING WITH PRENCR AND CANADIAN REPRESENTATIVES I UNITED STATES DEPARTMENT OF STATE ECR ET PAGE 1 REVIEW AUTHORITY LAHIGUERA CLASSIFICATION SECRET Esxa - DECLASSIFY AFTER 19 MAY 2015 ID 20 MAY 2005 200403745 HM 6'3 cow L95 UNCLASSIFIED RELEASED IN PART B1-mww dw Illh- I - - JOHN A 75 STATE 195214 REPORTED REF IS RA RELEVANT COMMITTEES HAVE AGREED TO POSTPONE HEARINGS ON EXIM BANK LOAN REQUEST FOR KORI II REACTOR ON CONDITION THAI EXIN PRESIDENT CASEY NILL NOTIFY THEN TWENTY-FIVE DAYS PRIOR TO SIGNING AGREEMENT WITH THE RON THAT EXECUTIVE BRANCH IS SATISFIED WITH NON-PROLIFERATION ARRANGEMENTS RELATING TO THE REACTOR AND TO THE USE OR SPENT FUEL COMMUNICATIONS PROM SENATE AND HOUSE BANKING COMMITTEES SUPPORT ASSESSMENT THAT PROSPECTS FOR APPROVAL OF THE LOAN WILL BE SMALL UNLESS ROI HAS AGREED NOT TO DEVELOP A NATIONAL REPROCESSING CAPABILITY AN ACTION NE WOULD ROPE THAT THE LOAN COULD BE APPROVED 4 WE BELIEVE THAT IT WOULD NOW BE TIMELY TO EXECUTE SECOND PHASE 0F APPROACH NITR KOREANS 0N REPROCESSING OUT- LINED IN REFS AND E SINCE ROK HAS ACCEPTED OUR PRETATION OF AGREEMENT FOR COOPERATION REF G EMBASSY SHOULD EXPRESS APPRECIATION FOR ROSG AIDE NEMOIRE BEFORE SECRET SECRET PAGE O3 STATE 19521 USING TALKING POINTS IN PARA 5 AND SPECIFICALLY REQUESTING THE ROKG NOT TO PROCEED WITH ITS PLANNED REPROCESSING PLANT 5 ACCORDINGLY YOU SHOULD APPROACH ROKG WITH THE FOLLOW- ING POINTS REVISED FROM THE OUTLINE IN REF D A NE WISH TO EXPRESS APPRECIATION FOR YOUR RECENT CONCURRENCE IN OUR INTERPRETATION OF OUR AGREEMENT FOR NUCLEAR-COOPERATION AS YOU KNOW OUR CONTINUING CUSSIONS ON NUCLEAR ENERGY ISSUES HAVE TAKEN PLACE IN CON- TEXT OF OUR MUTUAL INTEREST IN MAINTAINING CONSTRUCTIVE RELATIONSHIP DESIGNED TO MEET GRONING ENERGY NEEDS B IN THIS CONTEXT WE HAVE BEEN GIVING SERIOUS ASPIRATION TO ACOUIRE ITS OWN REPRO- CESSING CAPABILITY STARTING WITH A PILOT FACILITY THAT EVOLVE INTO A REGIONAL CAPABILITY IN SPIRIT OF OUR CANDID CONSULTATIONS ON NUCLEAR QUESTIONS NE MUST CONVEY OUR SERIOUS CONCERNS ABOUT MOVING IN THIS DIRECTION ON ITS OWN NE RECOGNIZE OF COURSE THAT AT SOME FUTURE TIME THE NATIONS IN THE AREA MIGHT SEE A COMMERCIAL NEED FOR REPROCESSING C IN PARTICULAR STEPS TOWARD EVEN A PILOT REPROCESSING EACILITY IN KOREA COULD BE PERCEIVED AS DESTABILIZING AND THUS IMPAIR OUR ABILITY TO SUSTAIN NOREAN PEACEFUL NUCLEAR COOPERATION AS HELL AS TO MOVE ON PEACEFUL NUCLEAR ASSISTANCE TO KOREA IT IS TO BE NOTED IN THIS REGARD THAT THE PROPOSED EXPORT-IMPORT SECRET Tan UNCLASSIFIED PAGE - 2 BF I auna' 111 0 um 11 75 STATE 195214 SECRET BANK LOAN FOR THE KORI II REACTOR REQUIRES CONGRESSIONAL THE COGNIZNNI COMMITTEES OF CONGRESS HAVE I INDICATED THAT THEY WOULD BE UNLIKELY TO APPROVE THIS LOAN UNLESS THEY CAN BE ASSURED THAT THE BOX HRS TERMINATED ITS PLANS TO ACQUIRE A PILOT REPROCCSSIMG PLANT D CONSTRUCTION OF A REPROCCSSING PLANT IS AN INTENSIVE RISNI AND CONPLICATED VENTURE TBERE RAVE TEEN VENTURES BI VERY CCNPETENT INDUSTRIAL ORGANIZATIONS SUCH As GENERAL ELECTRIC TEN COUNTRIES RAVE ENGAGED IN LARGE-SCALE RBPROCESSING IN THE SECRET SECRET PAGE EA STATE ISSRIA PAST AND THOSE TEN RAVE ALL EXPERIENCED CONSIDERABLE DITPICULTI E SHOULD THE NATIONS OT EAST ASIA INCLUDING THE ROI SEE COMMERCIAL REASONS FOR NISRING TO DEVELOP A REGIONAL REPRCCESSING CAPABILITY TRE USG IS PREPARED To COOPERATE TITS TRE NATIONS OF THE REGION IN EIANINING TRIS POSSIBILITY BELIEVE IT IS SIGNIFICANT THAT THE NPT RRVIEV CONFERENCE RECENTLI RECOGNIZED THE POTENTIAL ADVANTAGES 0F ESTABLISHING FUTURE FACILITIES ON A NULTINATIONAL REGIONAL BASIS TO EASE PROLITERATION CONCERNS P THERE COULD BE SUBSTANTIAL PLACE TOR ROI PATION IN A NULTINATIONAL REGIONAL REPROCESSING FACILITY FOR ASIA NE SUGGEST CLOSE BILATERAL CONSULTATIONS AS TELL AS DISCUSSIONS TITS OTHER CONCERNED COUNTRIES ESPECIALLI JAPAN ON OUESTIONS OP DEMAND TIMING TECHNICAL CAPABILITIES PARTICULARLI POTENTIAL LOCATION NE NOULD BE NILLING To DISCUSS TRIS SUBJECT NITE TEE RON AND ALSO THE JAPANESE As SUGGESTED BY THE RON REP B SUCR DISCUSSIONS SHOULD OF COURSE CONSIDER A NUMBER OF ALTERNATIVE SITES AS HELL AS FERENT ARRANGEMENTS FOR OWNERSHIP AND OPERATION 6 IN BROADER TERMS IT SHOULD BE ENPRASIZED THAT APPROACH TO ROK AT THIS JUNCTURE IS IN CONTEXT OF MUTUAL INTEREST IN ENSURING A CONSTRUCTIVE ECONOMIC AND CONTINUED US INTEREST IN VROLLI PEACEFUL NUCLEAR CO- OPERATION INCLUDING REACTOR EXPORTS AND CREDITS BUT TO CLEARLY TOR VARN IT OP PROBABLE APPROVAL OF THE EXIM LOAN FOR TORI II SHOULD IT PROCEED RITE ITS PLANNED REPROCESSING PLANT 1 T0 ENCOURAGE VOREAN HOPES THAT A NULTINATIONAL PLANT NIGHT BE LOCATED IN THE RON NE RAVE PREFERRED NO RESERVE AN STATEMENT ABOUT LOCATING A NULTINATIONAL PLANT UNTIL A SUDSEOUENT STAGE AS APPROPRIATE TNT I 81800 SECRET -- UNCLASSIFIED WHILE NE DO NOT WANT PAGE 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