Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 05 JUL 2006 Message Text SECRET PAGE 01 SEOUL 01089 210253Z 61 ACTION OES-04 INFO OCT-01 EUR-12 EA-06 IO-10 ISO-00 ACDA-05 CIAE-00 INR-07 L-02 NSAE-00 NSC-05 FEA-01 SS-15 EB-07 XMB-02 AID-05 TRSE-00 OMB-01 COME-00 083 W --------------------- 121711 P R 200848Z FEB 75 ZDK FM AMEMBASSY SEOUL TO SECSTATE WASHDC PRIORITY 8451 INFO AMEMBASSY PARIS AMEMBASSY TOKYO AMEMBASSY TORONTO USMISSION IAEA VIENNA AEC GERMANTOWN S E C R E T SEOUL 1089 E O 11652 GDS TAGS ETRD ENGR PARM NUC TECH KS SUBJECT ROK NUCLEAR PROGRAM 1 DURING PAST WEEK EMBASSY WAS VISITED BY MEMBERS OF GENERAL ELECTRIC GE NUCLEAR SURVEY TEAM VISITING KOREA TO ASSESS ROK NUCLEAR PROGRAM AND POSSIBILITY OF GE SELLING GE BWRS FOR KOREAN NUCLEAR PLANTS 5 AND 6 GE TEAM WORKED CLOSELY WITH EMBASSY AND WERE DEBRIEFED PRIOR TO DEPARTURE 2 GE PLANS FOR SALE OF 600 MEGAWATT NUCLEAR POWER PLANT TO ROK ARE BASED ON SIMILAR OFFER RECENTLY MADE TO EGYPT PLANT WOULD BE TURNKEY OPERATION WITH TOTAL COST OF DOLS SIX TO SEVEN HUNDRED MILLION WITH FOREIGN EXCHANGE COSTS OF DOLS THREE TO FOUR HUNDRED MILLION GE EMPHASIZED THAT THEY EXPECT COMPETITION FROM FRENCH WHO GE SAYS HAVE BEEN VERY ACTIVE IN NUCLEAR SALES AND HAVE MOUNTED MASSIVE PROGRAM ORIENTED TOWARDS DISPLACING US AND WEST GERMANY IN TERMS OF NUCLEAR EXPORTS 3 GE TEAM WAS AWARE OF FRENCH NUCLEAR SALES ACTIVITY IN SECRET SECRET PAGE 02 SEOUL 01089 210253Z ROK INCLUDING POTENTIAL SALE OF 100-METRIC TON A YEAR NUCLEAR Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 05 JUL 2006 Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 05 JUL 2006 REPROCESSING FACILITY IN TALKS WITH HE TEAM ROKG OFFICIALS INVOLVED IN NUCLEAR MATTERS EXPRESSED KEEN INTEREST IN CONCEPT OF KOREA AS REGIONAL REPROCESSING CENTER SELLING REPROCESSED NUCLEAR MATERIAL FIRST TO JAPAN AND TAIWAN AND EVENTUALLY TO SOUTHEAST ASIAN COUNTRIES KOREA ATOMIC ENERGY RESEARCH INSTITUTE KAERI HAS DONE A STUDY ON ESTABLISHMENT OF A REGIONAL NUCLEAR REPOCESSING FACILITY AND GE TEAM EMPHASIZED THEIR IMPRESSION THAT REPROCESSING WAS OUT OF IDEA STAGE AND NOW A DEFINITE PLAN GE TEAM INDICATED THAT ON A COMMERCIAL BASIS IDEA OF A REGIONAL REPORCESSING FACILITY IN KOREA WAS SOUND AND COST OF PLANT LARGE ENOUGH TO BE COMMERCIALLY SUCCESSFUL MIGHT BE ABOUT DOLS 250 TO 300 MILLION ROK OFFICIALS RAISED IDEA OF COMBINING JAPANESE CAPITAL AND US TECHNOLOGY FOR SUCH A PLANT 4 ROKG OFFICIALS RAISED POSSIBILITY THAT DUE TO POLITICAL AND FINANCIAL PROBLEMS STILL INVOLVED IN CANADIAN SALE OF CANDU UNIT FOR ROK NUCLEAR PLANT 3 GE UNITS FOR ROK NUCLEAR 5 AND 6 COULD BE BUILT FIRST IN RESPONSE TO ABOVE POSSIBILITY GE TEAM RAISED WITH EMBASSY POSSIBILITY OF US FORESTALLING ENTIRE CANDU PROGRAM THROUGH GE OFFER OF STRONG PACKAGE PROGRAM FOR FOUR NUCLEAR PLANTS THE FIRST OF WHICH COULD COME ON LINE IN LATE 1980 GE TEAM EMPHASIZED THAT THEY WOULD MAKE SUCH AN OFFER IF GE HAD USG SUPPORT TO INCLUDE SOME EXIMBANK FINANCING 5 GE TEAM WAS IMPRESSED WITH KNOWLEDGE OF NUCLEAR MATTERS DISPLAYED BY ROKG OFFICIALS WITH WHO THEY MET ROKG OFFICIALS WERE DESCRIBED AS BEING IN DECISION FRAME OF MIND ROKG APPROACH TO NUCLEAR MATTERS CONTAINED REAL SENSE OF URGENCY AND GE WAS TOLD DECISION OF NUCLEAR 5 AND 6 WOULD BE MADE THIS YEAR SNEIDER SECRET NNN Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 05 JUL 2006 Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 05 JUL 2006 Message Attributes Automatic Decaptioning X Capture Date 01 JAN 1994 Channel Indicators n a Current Classification UNCLASSIFIED Concepts NUCLEAR ENERGY PROCUREMENT NUCLEAR REACTORS PROGRAMS PROJECTS Control Number n a Copy SINGLE Draft Date 20 FEB 1975 Decaption Date 01 JAN 1960 Decaption Note 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 1975SEOUL01089 Document Source CORE Document Unique ID 00 Drafter n a Enclosure n a Executive Order GS Errors N A Film Number D750061-0868 From SEOUL Handling Restrictions n a Image Path ISecure 1 Legacy Key link1975 newtext t19750227 aaaaaybm tel Line Count 94 Locator TEXT ON-LINE ON MICROFILM Office ACTION OES Original Classification SECRET Original Handling Restrictions n a Original Previous Classification n a Original Previous Handling Restrictions n a Page Count 2 Previous Channel Indicators n a Previous Classification SECRET Previous Handling Restrictions n a Reference n a Review Action RELEASED APPROVED Review Authority GolinoFR Review Comment n a Review Content Flags Review Date 31 MAR 2003 Review Event Review Exemptions n a Review History RELEASED 31 MAR 2003 by BoyleJA APPROVED 02 APR 2003 by GolinoFR Review Markings Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 05 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 ROK NUCLEAR PROGRAM TAGS ETRD ENRG PARM TECH KS To STATE Type TE Markings Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 05 JUL 2006 Margaret P Grafeld Declassified Released US Department of State EO Systematic Review 05 JUL 2006                     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