For Emerging Nuclear Supplier States

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The Nonproliferation Review/Spring-Summer 1995 Nuclear Developments 106 NUCLEAR-RELATED TRADE AND COOPERATION DEVELOPMENTS, OCTOBER 1994-FEBRUARY 1995 EMERGING NUCLEAR SUPPLIER STATES The numbers listed in parenthesis following the bibliographic references refer to the identification number of the document in the Emerging Nuclear Suppliers Project Database, from which the news summaries are abstracted. Because of the rapidly changing nature of the subject matter, The Nonproliferation Review is unable to guarantee that the information reported herein is complete or accurate, and disclaims liability to any party for any loss or damage caused by errors or omissions. ALGERIA ALGERIA WITH IAEA 9/26/94 It is reported that Algerian Foreign Minis- ter Mohammed Salah Dembri has said that Algeria will agree to comply with the pro- visions of the NPT. Algeria has allowed international inspections of its nuclear fa- cilities in the past in response to Western allegations that a clandestine nuclear pro- gram was under development in the nation. APS Diplomat, 9/26/94; in Nuclear Proliferation News, 10/28/94 (12552). 1/12/95 Algeria joins the NPT and “confirms its unequivocal commitment to the peaceful use of nuclear energy.” The IAEA has already inspected two Algerian nuclear research re- actors under bilateral agreements. Nucleonics Week, 1/19/95, pp. 6-7 (12486). ALGERIA WITH PRC 10/5/94 It is reported that U.S. officials believe that the PRC is providing Algeria and Iran with “potential nuclear weapons technology.” Bill Gertz, Washington Times, 10/5/94, p. A3 (12122). ARGENTINA INTERNAL DEVELOPMENTS 9/94 A Nuclear Suppliers Group (NSG) repre- sentative says that Argentina hopes to join the group and therefore is adhering to all the guidelines set by the NSG and the IAEA’s Zangger List. Previously, Argentine nuclear transfers could only be blocked by unilat- eral presidential decrees. Mark Hibbs, Nucleonics Week, 10/27/94, pp. 1-2 (12117). 10/20/94 It is reported that Argentina will implement Energy Secretary Carlos Bastos’ plan to di- vide the National Atomic Energy Commis- sion (CNEA) into three organizations and privatize its three nuclear power plants. Under the plan, the state-owned Ente Nacional Regulador Nuclear (National Agency for Nuclear Regulation) will take over CNEA’s control and regulatory activi- ties, while the state-owned Atomic S.A. will assume responsibility for all fuel cycle fa- cilities, including a heavy water production plant currently being built, and research and development. The privately-owned Nucleoelectrica Argentina S.A. (Argentine Nucleoelectric Corporation, NASA) will operate the three nuclear power plants: Embalse, Atucha-1, and Atucha-2. Ann MacLachlan, Nucleonics Week, 10/20/94, pp. 4-5 (12118). 11/1/94 Argentine Foreign Minister Guido di Tella says that Argentina is willing to become a member of the NPT before the Treaty’s Re- view and Extension Conference in 4/95. Argentine President Carlos Menem had ear- lier said that Argentina was considering sign- ing the NPT, but refrained from indicating Argentina’s position on the length of the treaty’s extension. Maria Helena Tachinardi, Gazeta Mercantil (Sao Paulo), 11/2/94, p. 3; in JPRS-TND-94-020, 11/ 17/94, p. 12 (12119). Disarmament Times, 10/24/ 94, p. 12 (12228). Mid-12/94 Argentina’s National Atomic Energy Com- mission (CNEA) delivers the first shipment of indigenously-manufactured heavy water to the Embalse nuclear power plant and in-

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Nuclear Developments

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NUCLEAR-RELATED TRADE ANDCOOPERATION DEVELOPMENTS,

OCTOBER 1994-FEBRUARY 1995EMERGING NUCLEAR SUPPLIER STATES

The numbers listed in parenthesis following thebibliographic references refer to the identificationnumber of the document in the Emerging NuclearSuppliers Project Database, from which the newssummaries are abstracted. Because of the rapidlychanging nature of the subject matter, TheNonproliferation Review is unable to guaranteethat the information reported herein is completeor accurate, and disclaims liability to any partyfor any loss or damage caused by errors oromissions.

ALGERIA

ALGERIA WITH IAEA

9/26/94It is reported that Algerian Foreign Minis-ter Mohammed Salah Dembri has said thatAlgeria will agree to comply with the pro-visions of the NPT. Algeria has allowedinternational inspections of its nuclear fa-cilities in the past in response to Westernallegations that a clandestine nuclear pro-gram was under development in the nation.

APS Diplomat, 9/26/94; in Nuclear ProliferationNews, 10/28/94 (12552).

1/12/95Algeria joins the NPT and “confirms itsunequivocal commitment to the peaceful useof nuclear energy.” The IAEA has already

inspected two Algerian nuclear research re-actors under bilateral agreements.

Nucleonics Week, 1/19/95, pp. 6-7 (12486).

ALGERIA WITH PRC

10/5/94It is reported that U.S. officials believe thatthe PRC is providing Algeria and Iran with“potential nuclear weapons technology.”

Bill Gertz, Washington Times, 10/5/94, p. A3(12122).

ARGENTINA

INTERNAL DEVELOPMENTS

9/94A Nuclear Suppliers Group (NSG) repre-sentative says that Argentina hopes to jointhe group and therefore is adhering to allthe guidelines set by the NSG and the IAEA’sZangger List. Previously, Argentine nucleartransfers could only be blocked by unilat-eral presidential decrees.

Mark Hibbs, Nucleonics Week, 10/27/94, pp. 1-2(12117).

10/20/94It is reported that Argentina will implementEnergy Secretary Carlos Bastos’ plan to di-vide the National Atomic Energy Commis-

sion (CNEA) into three organizations andprivatize its three nuclear power plants.Under the plan, the state-owned EnteNacional Regulador Nuclear (NationalAgency for Nuclear Regulation) will takeover CNEA’s control and regulatory activi-ties, while the state-owned Atomic S.A. willassume responsibility for all fuel cycle fa-cilities, including a heavy water productionplant currently being built, and research anddevelopment. The privately-ownedNucleoelectrica Argentina S.A. (ArgentineNucleoelectric Corporation, NASA) willoperate the three nuclear power plants:Embalse, Atucha-1, and Atucha-2.

Ann MacLachlan, Nucleonics Week, 10/20/94, pp.4-5 (12118).

11/1/94Argentine Foreign Minister Guido di Tellasays that Argentina is willing to become amember of the NPT before the Treaty’s Re-view and Extension Conference in 4/95.Argentine President Carlos Menem had ear-lier said that Argentina was considering sign-ing the NPT, but refrained from indicatingArgentina’s position on the length of thetreaty’s extension.

Maria Helena Tachinardi, Gazeta Mercantil (SaoPaulo), 11/2/94, p. 3; in JPRS-TND-94-020, 11/17/94, p. 12 (12119). Disarmament Times, 10/24/94, p. 12 (12228).

Mid-12/94Argentina’s National Atomic Energy Com-mission (CNEA) delivers the first shipmentof indigenously-manufactured heavy waterto the Embalse nuclear power plant and in-

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dicates that a comparable delivery will bemade to the Atucha-1 nuclear power plantbefore 1995. An industrial plant at Arroyito,Neuquen province, manufacturesArgentina’s heavy water.

Comision Nacional de Energia Atomica (Argentina);in ENS NucNet, 12/16/94 (12116).

1/21/95Argentina signed the NPT on 1/10/95. Ac-cording to an official report, the Argentinenational congress had opened the way on12/23/94 in a decree—“Bill 24448”—that al-lowed Argentina to ratify the NPT in 1/95.

Telam (Buenos Aires), 1/21/95; in JPRS-TAC-92-001, 2/14/95, p. 6 (12728). IAEA Bulletin, 1/95, p.60 (12728).

ARGENTINA WITH EGYPT

10/27/94It is reported that Argentina’s Invap has ne-gotiated an $80 million sale of an isotopeproduction research reactor to Egypt, andhas established a subsidiary in Cairo in con-junction with the sale.

Mark Hibbs, Nucleonics Week, 10/27/94, pp. 1-2(12117).

ARGENTINA WITH GERMANY

10/20/94It is reported that under the restructuring ofthe Argentine nuclear industry, the privately-owned firm Nucleoelectrica Argentina S.A.(NASA) will be responsible for the comple-tion of Argentina’s Atucha-2, which is be-ing constructed with assistance from Si-emens of Germany. NASA will also be re-sponsible for the maintenance of Atucha-1,in conjunction with the joint CNEA-Si-emens firm, Enace.

Ann MacLachlan, Nucleonics Week, 10/20/94, pp.4-5 (12118).

ARGENTINA WITH THAILAND

9/94Officials from Argentina’s Invap SE statethat the firm is negotiating a $120 millionsale of a 10-15 MWt isotope production re-actor to Thailand. Thailand will not reacha decision on the deal until early 1995, butit reportedly wants the agreement to includeradioactive waste treatment.

Mark Hibbs, Nucleonics Week, 10/27/94, pp. 1-2(12117).

BRAZIL

BRAZIL WITH CUBA

2/14/95The Brazilian company Inepar is consider-ing forming a partnership with Cuba to re-sume construction of Cuba’s first Russian-designed nuclear power plant in Juragua.

BBC Monitoring Summary of World Broadcasts, 2/14/95 (12535).

INDIA

INTERNAL DEVELOPMENTS

11/94It is reported that the construction of twoadditional 500 MWe pressurized heavy wa-ter reactors (PHWRs) at India’s Tarapurnuclear power station has been held up since1992 due to lack of funds and the difficultyin obtaining technology and spare parts onthe world market. Nuclear Power Corpora-tion (NPC) Executive Director Y.S.R Prasadsaid that India could manufacture all thenecessary equipment indigenously, but thatcontrols in the global market have never-theless caused delays in the project.

Nuclear Engineering International, 11/94, p. 7(12222).

11/30/94It is reported that India’s program to de-velop indigenously produced fast breederreactors (FBRs) is suffering long delays dueto difficulties in importing necessary fueland other special materials. India had hopedto achieve nuclear self-sufficiency by using

several FBRs to produce reactor fuel in athree-stage plan. The delays and expensesinvolved in FBR development, combinedwith the increased availability of low en-riched uranium on the world market, havecalled the rationale of the entire FBR pro-gram into question.

Vijay Menon, India Today, 11/30/94, pp. 66-67(12225).

12/8/94Former head of India’s Atomic Energy Com-mission (AEC) and Secretary of India’sDepartment of Atomic Energy (DAE) M.R.Srinivasan says that India is building a sub-marine with an indigenously developednuclear reactor. The nuclear reactor is tobe tested at a recently-completed land-basedprototype testing establishment. The IndianNavy, the DAE, and the Defence Researchand Development Organization (DRDO) arecollaborating on the project, which beganin 1991.

Rahul Bedi, Jane’s Defence Weekly, 12/17/94, p. 3(12223). Rahul Bedi, Daily Telegraph, 12/9/94(12223).

2/13/95It is reported that formal refusals by India,Britain, and France to halt their productionof plutonium and weapons-grade high-en-riched uranium (HEU) have stalled nego-tiations toward a global cut-off of weapons-grade fissile material production.

Mark Hibbs, Nucleonics Week, 2/13/95, p. 16(12273).

2/18/95According to a poll conducted by the UnitedNews of India, 57 percent of India profes-sionals approve of the government’s officialnuclear policy, 33 percent favor open pos-session of nuclear weapons, and 8 percentwant to waive the nuclear option.

Washington Times, 2/18/95, p. A8 (12215).

2/21/95An editorial applauds the Indiangovernment’s general statement that Indiawill not unilaterally cap its nuclear programuntil a “satisfactory” multilateral agreementon the cut-off of weapons-usable fissile ma-terial production is in force.

C. Raja Mohan, Hindu, 2/21/95, p. 12 (12393).

INDIA WITH AUSTRIA, FINLAND,

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PAKISTAN, AND UNITED ARAB EMIRATES

10/24/94It is reported that Boehler Edelstahl of Aus-tria sent a shipment of 6 MT of maragingsteel to an unknown destination in 1990.The shipment was sent free on board (FOB)to Hamburg on a Finnish National Ship-ping Line ship bound for Rotterdam,Felixstowe, the United Arab Emirates,Karachi, and Bombay. Because Iraq hadreceived 100 MT of maraging steel fromthe Austrian firm in 1989, there is specula-tion that Iraq may have been the recipientof the 1990 shipment as well; Iraq, how-ever, has not notified the IAEA that it hadacquired an extra 6 MT of maraging steel,and it has been suggested that it may havegone to Pakistan or India. Western govern-ment officials say that the 6 MT shipmentis “missing.”

PPNN Newsbrief, Fourth Quarter 1994, pp. 16-17(12271). Nuclear Engineering International, 11/94, p. 6 (12271).

INDIA WITH GERMANY

12/94Germany removes 24 countries, includingPakistan, the PRC, and India, from its ex-port trigger list, called the “H-List.” Anyexports to a country on that list require in-teragency authorization as well as a permitfrom Germany’s Federal Export Authority.

Mark Hibbs, Nucleonics Week, 12/15/94, pp. 10-11 (12281). Mark Hibbs, NuclearFuel, 12/5/94,pp. 4-5 (12281).

INDIA WITH KAZAKHSTAN

1/3/95It is reported that Indian Ambassador toKazakhstan Kamalesh Sharma headed a del-egation which visited the Kurchatov nuclearcenter. After visiting with scientists andspecialists at the center, Sharma discussedhis intentions to present a proposal to hisgovernment on joint Indian-Kazakhstaninuclear research.

Kazakhstan Television Network (Almaty), 1/3/95;in FBIS-SOV-95-022, 1/3/95 (12452).

INDIA WITH PAKISTAN AND BANGLADESH

10/16/94It is reported that police in Shillong, capitalof the eastern Indian state of Meghalaya,have arrested four persons for smugglinguranium. The police have increased secu-rity around the nearby uranium mining sitein the West Khasi Hills district, and havebegun searching for the 2.5 kg of stolen ura-nium, which the alleged smugglers haveconfessed to hiding. Officials from India’sAtomic Energy Commission (AEC) laterverified that, apart from the 2.5 kg of semi-processed uranium, another 95 kg of un-processed uranium had been recovered fromthe smugglers. Police sources said a formerAEC employee now working in the PersianGulf was linked to the deal, which gave cre-dence to the speculation that the materialwas intended to be smuggled throughBangladesh to Pakistan. AEC officials re-fused to comment on this theory.

All India Radio Network (Delhi), 10/16/94; in JPRS-TND-94-020, 11/17/94, p. 13 (12224). Nucleon-ics Week, 11/3/94, p. 17 (12224).

INDIA WITH PRC

10/24/94It is reported that the PRC has agreed tosupply India with enrichment services anduranium that will keep the country’s Tarapurreactors in operation for at least another year.Prior to the contract with China, India hadfaced a supply embargo on SWUs [separa-tive work units] from U.S., France, Russiaand other Western nations. India has loaded70 kg of indigenously produced mixed-ox-ide (MOX) fuel into the reactors this year.India had requested an open-ended agree-ment, but the PRC, after talks with the U.S.,limited the supply to a period of one year.

Mark Hibbs, NuclearFuel, 10/24/94, p. 6 (12442).

1/5/95India receives the first shipment of enricheduranium fuel purchased from the PRC un-der a commercial contract. The Indian De-partment of Atomic Energy (DAE) says thatthe low-enriched uranium (LEU) was de-livered to Hyderabad, where it will be com-bined with Indian-made mixed-oxide(MOX) fuel and fashioned into fuel assem-blies for India’s Tarapur nuclear power sta-tion. The DAE does not disclose the value

of the commercial contract or the total quan-tity of LEU it intends to import from thePRC.

UPI, 1/5/95; in Executive News Service, 1/6/95(12391). Jawed Naqvi, Reuter, 1/5/95; in Execu-tive News Service, 1/6/95 (12391).

INDIA WITH ROMANIA

10/94Ontario Hydro of Canada renews talks onthe supply of heavy water to Romania, in-dicating that an Indo-Romanian agreementsigned earlier this year may be breakingdown. Under the agreement, Romania wasto lease 350-400 metric tons (MT) of heavywater for use in its Cernavoda-1 power sta-tion from India, and in exchange was to sendRomanian-produced heavy water to India ata later date. Western countries have exerteddiplomatic pressure on Romania not to re-transfer heavy water to India, as heavy wa-ter is considered to be a reactor componentunder the IAEA’s Zangger list. Westerngovernments will officially ask Romania notto allow such a transfer because of India’scontinuing refusal to allow comprehensiveIAEA safeguards at all of its nuclear facili-ties.

Mark Hibbs, NuclearFuel, 10/24/94, p. 6 (12210).

INDIA WITH RUSSIA

11/16/94It is reported that Iraq, Iran, India, Paki-stan, and other nations have set up tradeoffices in Moscow and are soliciting Rus-sian research laboratories to work on theirnuclear programs. Foreign nuclear projectsare submitted to the government for ap-proval, but it is reportedly “easy to bribeanyone in the hierarchy to grant approval,or to change the name of the project.”

Kathleen Hart, NuclearFuel, 11/21/94, pp. 2-3(12152).

12/24/94During a visit to India by Prime MinisterViktor Chernomyrdin, Russia and India signan agreement to build two 1000 MWe reac-tors in Koodangulan, India. Russian Min-ister of Atomic Energy Viktor Mikhailovsaid that the contract for the two VVER-type pressurized water reactors (PWRs) is

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estimated to be worth $2.6 billion. Indiawill pay up to 15 percent of the total cost inhard currency; the remaining costs will befinanced on credit. Another source indi-cates that approximately $1.7 billion of thecontract will be financed in the form ofcounter-trade. According to Mikhailov, thedeal is the Ministry of Atomic Energy’s larg-est contract signed in 1994. Constructionof the power station will begin in 1995 andis expected to take eight years. About 1,000Russian nuclear experts are expected to workon the project. Russia is expected to beginshipping equipment to India in 1996. West-ern officials indicated that, based on the factthat India will only be required to pay about$400 million in hard currency, it is not yetclear whether Russia will be able to supplythe two reactors.

Nuclear News, 2/95 (12414). Rossiiskaya Gazeta,1/6/95, p. 10; in FBIS-SOV-95-005, 1/6/95 (12322).Novecon, 1/6/95; in Uranium Institute News Brief-ing, 1/6/95-1/11/95, p. 2 (12322). MichaelMihalka, OMRI Daily Digest, 2/23/95 (12322).Mark Hibbs, Nucleonics Week, 2/2/95, pp. 10-11(12462).

1/12/95It is reported that member governments ofthe Nuclear Suppliers Group (NSG) askedthe Russian government to clarify uncon-firmed reports that Russia signed a contractat the end of 1994 to supply India with twoVVER-1000 reactors. Unidentified officialsstated that Moscow had pledged in 1991 tosupply reactor equipment only to thosecountries which have accepted full-scopesafeguards. Moscow, however, indicated itsintention to fulfill previous contracts withIndia. According to a former Soviet offi-cial, when the USSR agreed to the terms ofthe NSG components transfer policy in1991, it was generally understood “that onlythe sale of heavy water to India would be‘grandfathered’ since the (heavy-water) com-merce pre-dated” Russia’s commitment to thepolicy. There was, at the time, no reason tobelieve that a future reactor sale to Indiawould be permitted without safeguards.India’s pressurized heavy water reactors(PHWRs) are subject to safeguards, andRussia has supplied heavy water to themsince the 1970s. Russia’s Ministry ofAtomic Energy indicated that NSG concernsabout India were baseless because the

reactor’s design will not allow the “indus-trial production of war plutonium.”

Michael Mihalka, OMRI Daily Digest, 2/23/95(12322). Mark Hibbs, Nucleonics Week, 2/2/95,pp. 10-11 (12462).

2/95Officials from Russia’s Ministry of ForeignAffairs have confirmed that the Ministry ofAtomic Energy’s sale of two VVER-1000reactors to India will take place “only onthe basis of full-scope IAEA safeguards.”

Mark Hibbs, Nucleonics Week, 2/2/95, pp. 10-11(12462).

INDIA WITH UNITED NATIONS

10/24/94Indian Minister of State for External Af-fairs R.L. Bhatia tells the U.N. GeneralAssembly’s Disarmament and InternationalSecurity Committee that a comprehensivetreaty is needed to ban all types of nucleartesting.

Press Trust of India; in Observer, 10/26/94 (12213).

INDIA WITH UNITED STATES

Late 9/94Officials in Vienna report that the U.S., theIAEA and India have held talks on India’suse of mixed-oxide (MOX) fuel at its twoU.S.-made Tarapur reactors. The U.S. be-lieves that loading fuel into U.S.-origin re-actors requires U.S. consent and IAEA safe-guards. The Clinton administration is up-set as its efforts to deter use of plutoniumfuels outside the U.S. are being underminedby India’s use of MOX fuel at Tarapur. TheU.S. is also displeased about Indian attemptsto engage the IAEA in discussions on ex-changing unsafeguarded plutonium pro-duced at Rajasthan reactors with equalamounts of safeguarded plutonium. Indiais interested in swapping the material so thatit can improve the quality of the fuel loadedinto its MOX facility. One safeguards ex-pert questioned the propriety of the trans-action, alleging that it would “allow Indiato legitimize production of weapon-gradematerial for future use as a reactor fuel.”The U.S. and India are continuing discus-sions on nuclear cooperation and the issueof enrichment service supply.

Mark Hibbs, NuclearFuel, 10/24/94, p. 6 (12442).

11/14/94U.S. Energy Secretary Hazel O’Leary saysthat the U.S. Nuclear Regulatory Commis-sion (NRC) and the Indian Atomic EnergyRegulatory Board (AERB) have begun in-formal talks focusing on cooperation in thearea of safety in civilian nuclear powerplants.

C. Raja Mohan, Hindu, 11/26/94, p. 12 (12227).

1/13/95U.S. Secretary of Defense William Perry saysthat his recent trip to India “was not for thepurpose of putting pressure on the Indiangovernment,” and adds that the U.S. gov-ernment “understands very well that Indiahas reservations about the NPT.”

Dana Priest, Washington Post, 1/14/95, p. A22(12209).

IRAN

INTERNAL DEVELOPMENTS

12/18/94Iran urges that the Middle East be declareda nuclear weapons-free zone at the 1995NPT Review and Extension Conference.Iranian Deputy Foreign Minister for Inter-national Affairs Mohammad Javad Zarif saysthat the conference should address the de-struction of nuclear weapons states’ nucleararsenals and their non-deployment of suchweapons in other countries.

Reuter, 12/18/94; in Executive News Service, 12/18/94 (12272).

1/11/95According to the IAEA, its inspections inIran have yielded no evidence that the na-tion is developing nuclear weapons. U.S.Secretary of Defense William Perry says thatalthough the U.S. and Israel believe that Iranis pursuing a nuclear weapons program, Iranis years away from constructing a nuclearbomb unless it is aided by other countries.

Independent, 1/11/95; in International Security

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Digest, 1/95 (12485). Reuter, 1/11/95; in Execu-tive News Service, 1/11/95 (12525).

1/20/95U.S. Secretary of State Warren Christopherstates that Iran is undertaking a “crash ef-fort to develop nuclear weapons” and ex-presses concern that other countries are as-sisting Iran in developing nuclear technol-ogy.

Steven Greenhouse, New York Times, 1/24/95, p.A4 (12298).

1/26/95Thomas Graham, a senior official at the U.S.Arms Control and Disarmament Agency andthe lead U.S. negotiator for the NPT Re-view and Extension Conference, is quotedas saying that Iran has “no current program”for the production of weapons-grade nuclearmaterial.

Mark Hibbs, Nucleonics Week, 2/2/95, pp. 7-8(12297).

2/16/95Tehran radio, quoting Iranian Foreign Min-istry Spokesman Mahmoud Mohammadi,says that Iran was the first nation to pro-pose a nuclear-free zone in the Middle East,and had consequently signed the NPT. Iranplans to stay on as a signatory to the NPTafter the Review and Extension Conferencein 4/95.

Reuter; in Executive News Service, 2/16/95 (12554).

IRAN WITH AZERBAIJAN

1/95It is reported that Iran has acquired nucleartechnology from Azerbaijan.

Chris Hedges, New York Times, 1/5/95, p. A5(12420).

IRAN WITH GERMANY

Late 1994The German Economics Ministry and Ger-man industry recommend the removal of Iranfrom Germany’s export trigger list, calledthe “H-List.” Any exports to a country onthat list require interagency authorization aswell as a permit from Germany’s FederalExport Authority. However, due to objec-tions from the Ministry of Foreign Affairs,Iran is not included on the list of 24 coun-

tries to be cut from the H-list as of 1/1/95.Mark Hibbs, Nucleonics Week, 12/15/94, pp. 10-11 (12281). Mark Hibbs, NuclearFuel, 12/5/94,pp. 4-5 (12281).

IRAN WITH IAEA

10/3/94IAEA Director General Hans Blix says thatunless it is substantiated that Iran has vio-lated the NPT, the Agency will continue toprovide technological aid to Iran. Blix saysthe IAEA is assisting Iran in matters relatedto food irradiation, radioactive isotopes, andradiation protection.

Mark Hibbs, Nucleonics Week, 10/6/94, p. 11(12439).

IRAN WITH IRAQ AND RUSSIA

10/17/94Russian special services in Moscow find 27kg of U238 and U235 in the trunk of a Volvo.The two isotopes were “mixed” together.Unofficial reports indicate that Iranian busi-nessmen intended to buy the Russian ura-nium for $1.5 million and then resell it toIraq. The car belonged to one of the ar-rested businessmen.

NTV (Moscow), 10/17/94; in FBIS-SOV-94-201,10/17/94 (12167).

IRAN WITH ISRAEL

1/11/95In response to speculations in Western me-dia that Israel is considering an attack onIran’s Bushehr nuclear plant, Iran warns Is-rael that such an attack would be a “blun-der.”

Ralph Joseph, UPI, 1/11/95; in Executive NewsService, 1/11/95 (12270).

1/12/95Iran cautions Israel for a second time not toattack its Bushehr nuclear power plant.

Ralph Joseph, UPI, 1/12/95; in Executive NewsService, 1/11/95 (12270).

IRAN WITH KAZAKHSTAN

8/92Western intelligence reports state that Iranhas purchased large quantities of low-en-riched uranium (LEU) and beryllium from

the Ulba plant. Kazakhstani officials denythat the sales occurred.

Bill Gertz, Washington Times, 11/24/94, pp. A1,A18 (12584).

11/25/95It is reported that a high-ranking Russiandiplomat denied rumors that Kazakhstanwould have sold its 600 kg cache of highly-enriched uranium (HEU) to Iran had theU.S. not purchased it first. According tothe official, the Kazakhstani fuel could notbe used in Iran’s nuclear research reactor;Iran has no other operational nuclear powerstations. Also, the official said, “Over therecent years, Iran has not shown any nuclearambitions.” The official contends that themotive behind such rumors is to give mo-mentum to a plan to place nuclear programsin the CIS, particularly those in Russia,under either U.S. or international control.

Aleksandr Korzun, Igor Porshnev, YevgeniyTerekhov, and others, Interfax (Moscow), 11/25/94; in FBIS-SOV-94-228, 11/25/94 (12140).

IRAN WITH NORTH KOREA

12/14/94Israeli Prime Minister Yitzhak Rabin statesduring a visit to Japan that he believes NorthKorea is exporting nuclear weapons tech-nology to Iran.

Peter Kenney, UPI, 12/14/94; in Executive NewsService, 12/14/94 (12522).

IRAN WITH PAKISTAN

1/11/95U.S. Secretary of Defense William Perry saysthat he has no information that Pakistan isproviding nuclear technology to Iran.

Reuter, 1/11/95; in Executive News Service, 1/11/95 (12525).

IRAN WITH PRC

10/5/94It is reported that U.S. officials believe thatthe PRC is providing Iran and Algeria withnuclear weapons technology.

Bill Gertz, Washington Times, 10/5/94, p. A3(12122).

11/17/94The PRC’s Ambassador to Iran says that the

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two 300 MW reactors that the PRC is build-ing for Iran are intended for non-militaryuse only.

UPI, 11/17/94; in Executive News Service, 11/17/94 (12480).

IRAN WITH RUSSIA

9/23/94Mikhail Ryzhov, Director of InternationalRelations at Russia’s Ministry of AtomicEnergy, announces that the Ministry and theAtomic Energy Organization of Iran (AEOI)have drafted a contract for completion ofIran’s Bushehr-1 nuclear power reactor.AEOI director Reza Amrollahi expects theproject to be finished by 1999. A five-yeardevelopment plan for Bushehr will begin in3/95. Construction will entail the installa-tion of VVER-1000 equipment, includinga pressure vessel, into the existing reactorbuilding. Iran has indicated that it wouldprefer U.S., German, or other Western as-sistance in completing Bushehr’s construc-tion. However, the German government hasprevented German enterprises from provid-ing such assistance, due in part to strongU.S. opposition.

Mark Hibbs, Nucleonics Week, 9/29/94, pp. 3-4(12325). Post-Soviet Nuclear Complex Monitor, 10/5/94, p. 11; in Uranium Institute News Briefing,10/5/94-10/11/94, p. 2 (12325). Middle EasternEconomic Digest, 12/2/94 (12325). WashingtonTimes, 1/10/95, p. A13 (12324). Reuter, 1/8/95;in Executive News Service, 1/8/94 (12324). NuclearEngineering International, 11/94, p. 10 (12325).

11/16/94It is reported that Iraq, Iran, India, Paki-stan, and other nations have set up tradeoffices in Moscow and are soliciting Rus-sian research laboratories to work on theirnuclear programs. Foreign nuclear projectsare submitted to the government for ap-proval, but it is reportedly “easy to bribeanyone in the hierarchy to grant approval,or to change the name of the project.”

Kathleen Hart, NuclearFuel, 11/21/94, pp. 2-3(12152).

1/95It is reported that U.S. Secretary of StateWarren Christopher said that Russia’s plansto help Iran complete nuclear power plants“should not go forward because it enhancesIran’s capacity [to produce nuclear weap-

ons].” Despite the fact that the Russian re-actors are to be used for peaceful purposes,the U.S. maintains that any assistance in thenuclear field will enhance Iran’s ability toobtain nuclear weapons. Senator JohnMcCain, cosponsor of a 1992 law that re-quires mandatory economic sanctions andtermination of aid to any country that as-sists Iran or Iraq in acquiring nuclear weap-ons, stated that he is “seriously concerned”about the Clinton administration’s failure tocut off aid or impose sanctions against Rus-sia. Russia maintains that it has the right tosell nuclear reactors to Iran, especially inlight of the fact that the U.S. and its allieshave arranged to give North Korea similartechnology. The U.S. is pressuring Russiato include in the contract a provision forthe return of Iran’s spent fuel to Russia.

Sid Balman, UPI (Washington), 2/13/95; in Execu-tive News Service, 2/13/95 (12420). ElaineSciolino, New York Times, 2/23/95, p. A6 (12420).Thomas Lippman, Washington Post, 2/11/95; inExecutive News Service, 2/11/95 (12420). JamesPhillips, Washington Times, 1/19/95, p. A18(12420). Chris Hedges, New York Times, 1/5/95,p. A5 (12420). Charles W. Holmes, WashingtonTimes, 2/12/95, pp. A1, A9 (12420).

1/8/95Viktor Mikhailov, Russia’s Minister ofAtomic Energy, and Reza Amrollahi, Presi-dent of Iran’s AEOI, sign an $800 millioncontract that commits Russia to completeone of two nuclear reactors in Bushehrwithin four years. The contract formalizesa 1993 Russian-Iranian “agreement in prin-ciple” to complete the facility.

UPI, 1/8/95 (12324). Washington Times, 1/10/95,p. A13 (12324).

1/20/95It is reported that Russia may have been se-cretly assisting Iran in basic nuclear researchsince the 1980s. A Nuclear Research Cen-ter (NRC) was established in Iran with West-ern assistance in 1967. The NRC’s reactoracquired “critical assembly capability” in1990, which suggests that Iran—a state withlittle nuclear technology of its own—receivedassistance from Russia and/or Pakistan.

Marko Milivojevic, Middle East International, 1/20/95, p. 14 (12465).

2/5/95Russian Atomic Energy Minister Viktor

Mikhailov reports that Tehran and Moscowhave agreed that, in addition to completingthe Bushehr nuclear power plant, Russia willtrain Iranian scientists, supply several Ira-nian universities with experimental reactors,and help Iran construct a nuclear-powereddesalinization facility.

Washington Times, 2/7/95, p. 14 (12149). PPNNNewsbrief, Fourth Quarter 1994, p. 10 (12149).

2/20/95The Russian Ministry of Atomic Energyreports that, in addition to one 1,000 MWreactor, Russia may later construct a second1,000 MW reactor and two 440 MW reac-tors at the Bushehr site. Russia and Iranhave agreed that Iranians will be trained atRussian universities on how to operateBushehr’s reactors. There are currently 150Russian workers at the Bushehr site and theirnumbers are soon expected to reach 200.

Financial Times, 2/21/95, p. 4 (12324). MarinaBarinova, Itar-Tass (Moscow), 2/16/95; in FBIS-SOV-95-033, 2/16/95 (12421). Interfax (Moscow),2/15/95; in FBIS-SOV-95-031, 2/15/95 (12421).

2/21/95Aleksei Yablokov, Chairman of the Secu-rity Council Commission for EcologicalSecurity, states that the nuclear power plantRussia is planning to build in Bushehr willhave the capability to produce weapons-grade plutonium. Yablokov says, “Thanksto Russia, Iran will be in a position to getthe nuclear bomb within a few years.”

Penny Morvant, OMRI Daily Report, 2/22/95(12326).

2/22/95Reuter quotes U.S. State Department spokes-person Christine Shelly as saying that, inspite of U.S. opposition to Russia’s agree-ment to sell nuclear reactors to Iran, theClinton administration is committed to con-tinued aid for Russia. Speaker of the U.S.House of Representatives Newt Gingrichstated that the U.S. should end aid to Rus-sia if it follows through with supplying thenuclear reactors to Iran. On 2/23/95, Rus-sian Deputy Foreign Minister GeorgyMamedov will finish talks in Washingtonon the Russian-Iranian deal.

Michael Mihalka, OMRI Daily Report, 2/23/95(12150).

IRAN WITH RUSSIA AND UKRAINE

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3/94According to Germany’s Federal IntelligenceService (BND), 11 of 60 Ukrainian-originnuclear warheads disappear “on Russian ter-ritory” during transport to Russia for dis-mantlement; Iran was reportedly the “inter-ested buyer.” The BND also said that, in apreviously unpublicized case, arrested crimi-nals had attempted to “blackmail the land ofBaden-Wuerttemberg” by saying that therewere six nuclear warheads in the Baden-Wuerttemberg area.

Gunther Schnattman, Focus (Munich), 10/17/94,pp. 87-89; in JPRS-TND-94-020, 11/17/94, pp. 35-36 (12062).

IRAN WITH TURKMENISTAN

1/95It is reported that Iran has acquired nucleartechnology from Turkmenistan.

Chris Hedges, New York Times, 1/5/95, p. A5(12420).

IRAQ

INTERNAL DEVELOPMENTS

1981-1987Iraq is involved in a program aimed at theacquisition and development of laser iso-tope separation technology. Iraq ceases workin this area before it acquires even a low-level laser enrichment capability.

PPNN Newsbrief, Fourth Quarter 1994, pp. 16-17(12271).

9/23/94U.S. CIA Director James Woolsey warns thatdespite the U.N.’s highly-advanced moni-toring system, Iraq is “accelerating construc-tion of deep underground shelters and tun-nels to produce and store weapons of massdestruction.” Military analyst Paul Beaveradds that reports indicate that there are 7,000Iraqi scientists working at hidden sites inthe mountains.

Washington Times, 10/7/94, p. A19 (12289).

10/14/94It is reported that according to U.N. Spe-cial Commission (UNSCOM) Chief FieldOfficer Jaako Ylitako, more than 12,000 em-ployees were once working in Iraq’s nuclearprogram.

Mark Nicholson, Financial Times, 10/14/94, p. 5(12527).

IRAQ WITH AUSTRIA, BELGIUM, DUBAI,AND PAKISTAN

10/24/94It is reported that Boehler Edelstahl of Graz,a state-owned Austrian firm, provided Iraqwith 100 tons of maraging steel in 1989 andmay have supplied it with an additional 6MT in 1990. According to the IAEA, the1989 shipment of Austrian steel was origi-nally meant for the manufacture of machinetools in Pakistan. However, it was divertedto Iraq via Belgium, Dubai and SaudiArabia, with part of the route covered bytwo Pakistani cargo ships. The plan to ob-tain the steel was coordinated by Iraq’s StateEstablishment for Mechanical Industriesthrough a London broker named Malik, whoordered the material through Euro-Com, afirm with addresses in both the U.K. andSaudi Arabia. The 100 MT of maragingsteel which Iraq received might have beensufficient for the production of 5,000 rotorendcaps and baffles, although it is believedthat Iraq could not have manufactured morethan 2,000 working rotors. Only 3 tons ofthe steel had been used prior to its discov-ery, and the rest was destroyed soon after.However, in 1990, Boehler Edelstahl sentanother shipment of 6 MT of maraging steelto an unknown destination. The shipmentwas sent free on board (FOB) to Hamburgon a Finnish National Shipping Line shipbound for Rotterdam, Felixstowe, the UnitedArab Emirates, Karachi, and Bombay; the1989 shipment had been sent FOB toAntwerp. Iraq, however, has not notifiedthe IAEA that it had acquired an extra 6MT of maraging steel, and it has been sug-gested that it may have gone to Pakistan orIndia. Western government officials say thatthe 6 MT shipment is “missing.”

PPNN Newsbrief, Fourth Quarter 1994, pp. 16-17(12271). Nuclear Engineering International, 11/94, p. 6 (12271).

IRAQ WITH IAEA

1989The IAEA approves a program to “assist theIraqi Atomic Energy Commission in a fea-sibility study towards the acquisition andutilization of a low energy cyclotron . . .[and to] help in construction and in puttingthe cyclotron into operation.” Although thecyclotron involved in the IAEA program wasnot militarily significant, an IAEA spokes-man stated that the agency may have un-knowingly aided Iraq’s nuclear weaponsprogram. Indigenous cyclotron developmentwas critical for Iraq’s enrichment program.

Nuclear Engineering International, 2/95, p. 9(12483).

IRAQ WITH IRAN AND RUSSIA

10/17/94Russian special services in Moscow find 27kg of U238 and U235 in the trunk of a Volvo.The two isotopes were “mixed” together.Unofficial reports indicate that Iranian busi-nessmen intended to buy the Russian ura-nium for $1.5 million and then resell it toIraq. The car belonged to one of the ar-rested businessmen.

NTV (Moscow), 10/17/94; in FBIS-SOV-94-201,10/17/94 (12167).

IRAQ WITH RUSSIA

10/4/94It is reported that after a number of Germannuclear smuggling-related arrests in 1994,Iraqi officials are “known” to have met withRussian businessmen and a former high-ranking employee of a Russian nuclear fa-cility “to assess the damage and find alter-native routes for the fissile material.” Al-though intelligence organizations have noinformation suggesting that Iraq or other“nuclear ambitious” countries have acquiredweapons grade nuclear material from Rus-sia, there is concern within the intelligencecommunity that the German arrests may leadthe Iraqis to try to smuggle nuclear materi-als using “established” Far Eastern contacts.

Michael Evans and Michael Theodoulou, Times(London), 10/4/94 (12070).

10/11/94

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It is reported that, during a recent confer-ence in Cambridge, Massachusetts, 17 Rus-sian General Officers stated that it was“highly likely” that Russian nuclear weap-ons designers had been lured to Iraq’s weap-ons program by offers of high-paying jobs.

Arnaud de Borchgrave, Washington Times, 10/11/94, p. A1 (12145).

11/16/94It is reported that Iraq, Iran, India, Paki-stan, and other nations have set up tradeoffices in Moscow and are soliciting Rus-sian research laboratories to work on theirnuclear programs. Foreign nuclear projectsare submitted to the government for ap-proval, but it is reportedly “easy to bribeanyone in the hierarchy to grant approval,or to change the name of the project.”

Kathleen Hart, NuclearFuel, 11/21/94, pp. 2-3(12152).

IRAQ WITH UNITED NATIONS AND IAEA

10/11/94According to the U.N. Special Commission(UNSCOM), the monitoring system tohinder Iraq’s efforts to rebuild its weaponsof mass destruction is “provisionally opera-tional.” UNSCOM Chairman Rolf Ekeusgives a 38-page report to the U.N. SecurityCouncil which portrays the present systemto monitor the elimination of Iraqi weaponsof mass destruction as “the most compre-hensive international monitoring system everestablished in the sphere of arms control.”Since the end of the Gulf War, 98 inspec-tion missions have taken place and 29 in-spection teams have gone to Iraq.UNSCOM’s Baghdad Monitoring and Veri-fication Center will eventually comprise 80staff members.

Jon B. Wolfsthal, Arms Control Today, 11/94, p. 29(12526).

10/14/94A seven-member U.N. nuclear inspectionteam goes to Baghdad to monitor Iraq’s sus-pected nuclear weapons development facili-ties. U.N. spokesman Ronald Osphal saysthat the team, led by IAEA official GarryDillon, will spend some ten days in Iraq.During the mission, Dillon takes watersamples from 16 sites in Iraq. The IAEA is

keeping two inspectors in Baghdad in orderto conduct unannounced inspections, Dillonsays. The U.N. Special Commission hasbeen involved in the dismantling of at least82 sites which were known to be part ofIraq’s efforts to build nuclear weapons.

Abbas Salman, Reuter, 10/15/94; in Executive NewsService, 10/15/94 (12253). Mark Nicholson, Fi-nancial Times, 10/14/94, p. 5 (12527). Reuter, 10/21/94; in Executive News Service, 10/21/94(12253).

Late 10/94Iraq sends a letter to UNSCOM ChairmanRolf Ekeus pledging further cooperationwith Ekeus’ supervision of the destructionof Iraq’s weapons of mass destruction.

Reuter, 10/31/94; in Executive News Service, 10/31/94 (12252).

11/9/94UNSCOM Chairman Rolf Ekeus says thatthe U.N. Special Commission on Iraq maycease functioning by 2/95 because of criti-cal financial difficulties. UNSCOM re-quires $25 million to continue its operationsin 1995, which includes $5 million neededfor 12/94.

UPI, 11/9/94; in Executive News Service, 11/9/94(12290). UN Weekly, 11/15/94 (12290).

1/24/95It is reported that during its inspections inIraq, the IAEA had discovered a list of U.S.-made components and handed it over to U.S.investigators in 3/94. The components onthe list included krytrons (used in trigger-ing nuclear detonations), and were made by27 different U.S. companies. A U.S. Jus-tice Department investigation led by JohnM. Hogan has revealed that U.S. nuclearequipment, including krytrons, was illegallyshipped to Iraq prior to the 1991 Gulf War.

John J. Fialka, Wall Street Journal, 1/24/95, p. A24(12556).

2/22/95UNSCOM Chairman Rolf Ekeus states thatU.N. inspectors, with IAEA assistance, haveconcluded “that Iraq has no capability toproduce a nuclear bomb.” Ekeus adds thatIraq does not possess the fissile materialneeded to manufacture a nuclear bomb.

Leon Barkho, Reuter, 2/22/95 (12484).

ISRAEL

INTERNAL DEVELOPMENTS

11/9/94It is reported that Israeli Foreign MinisterShimon Peres stated that Israel would beprepared to sign the NPT and allow inter-national inspection of its nuclear sites, pro-vided that a Middle East peace accord isaccepted and an agreement to eliminateweapons of mass destruction from the re-gion is concluded.

Washington Times, 11/9/94, p. A22 (12126).

12/14/94Israeli Prime Minister Yitzhak Rabin statesduring a visit to Japan that he is concernedabout nuclear proliferation in the MiddleEast and wants to establish a nuclear weaponfree zone, to be monitored by all MiddleEastern nations. He says that the NPT andthe IAEA have been “ineffective” in theirattempts to monitor the region.

Peter Kenny, UPI, 12/14/94; in Executive NewsService, 12/14/94 (12522).

12/15/94It is reported that an Israeli governmentpolicy committee, headed by Foreign Min-ister Shimon Peres, has decided to changeaspects of Israeli nuclear secrecy policy.Peres believes that after “a partial lifting ofthe secrecy that surrounds Israel’s nuclearcapability,” Israel would be able to legiti-mately introduce a regional nuclear-freezeproposal, which could allow it to maintaina technological advantage while limitingregional proliferation.

Intelligence Newsletter, 12/15/94, p. 6 (12232).

1/11/95Israeli Foreign Minister Shimon Peres in-dicates that Israel will not sign the NPT atthe 4/95 NPT Review and Extension Con-ference, adding that Israel “has no intentionof introducing nuclear weapons into theMiddle East.”

Reuter, 1/11/95; in Executive News Service, 1/11/

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95 (12123).

2/1/95Israeli Foreign Minister Shimon Peres an-nounces that Israel will not sign the NPT,for two reasons. Peres said the first reasonis that Israel is surrounded by countries like“Iran, Iraq, and to some extent Libya” thatwant to destroy it, and can only be deterredby the “fear or suspicion” that Israel hasnuclear weapons. Second, Peres said, cer-tain signatories such as Iran and Iraq havenot taken their treaty commitments seri-ously.

Howard Goller, Reuter, 2/1/95; in Executive NewsService, 2/1/95 (12335).

2/6/95Israeli Foreign Minister Shimon Peres tellsthe U.N. Security Council that Israel willnot sign the NPT.

Yomiuri Shimbun, 2/8/95 (12331).

2/13/95Gan Gerald Steinberg, the Research Direc-tor at Israel’s BESA Center for StrategicStudies at Bar-Ilan University in Ramat, saysthat the Israeli government may open itsnuclear facilities to international inspections,and that “Israel has a major security interestin extending the [NPT] and would not wantto see any Arab country, including Egypt,renounce its treaty obligations.”

Sharone Parnes, Defense News, 2/20/95-2/26/95,p. 6 (12334).

Late 2/95Israeli sources report that Israel has said thattwo years after a peace treaty is signed byall the Middle Eastern countries, it will signa nuclear weapons-free zone agreement forthe Middle East, and will consider signingthe NPT.

Nucleonics Week, 3/9/95, p. 15 (12334).

ISRAEL WITH EGYPT

12/19/94Israeli President Ezer Weizman arrives inEgypt for a three-day official visit, andEgyptian Foreign Minister Amr Moussastates that “the issue of weapons of massdestruction must be dealt with immediately,in conjunction with the peace process andthe general vision for the future of the re-

gion.”UPI, 12/19/94; in Executive News Service, 12/19/94 (12333).

2/1/95Egyptian Foreign Minister Amr Moussa saysthat Egypt wants the Middle East to be freefrom all weapons of mass destruction and“cannot accept the situation of having an(Israeli) nuclear program unknown and un-accounted for.”

UPI, 2/2/95; in Executive News Service, 2/2/95(12330).

2/20/95An Israeli official says that Israel has of-fered Egypt a “guided tour” of its NahalSorek nuclear reactor facility, which is opento [IAEA] inspection. Egypt refuses; it isinterested in seeing the top-secret nuclearreactor at Dimona.

Jeffrey Heller, Reuter, 2/20/95; in Executive NewsService, 2/20/95 (12336).

2/23/95Israeli Foreign Minister Shimon Peres andEgyptian President Hosni Mubarek meet todiscuss their dispute over the NPT, and endthe meeting without any formal conclusions.It is reported that Egyptian officials sug-gest that Israel pledge to sign the NPT aftera mutually agreed-upon period of time andopen its nuclear facilities to IAEA inspec-tions. In late 2/95, Israeli sources reportthat Israel has said that two years after apeace treaty is signed by all the Middle East-ern countries, it will sign a nuclear weap-ons-free zone agreement for the Middle Eastand will consider signing the NPT.

Nucleonics Week, 3/9/95, p. 15 (12334). ChrisHedges, New York Times, 2/24/95, p. A5 (12336).Reuter, 2/23/95; in Executive News Service, 2/23/95 (12336). John Lancaster, Washington Post, 2/24/95, p. A16 (12336).

2/24/95Israeli Foreign Minister Shimon Peres saysthat Israel will not give Egypt access to itsDimona facility. He says that access toDimona would be “very dangerous” becauseif Egypt visits the facility and does not findanything, it would “ruin [Israel’s] deterrent.”

John Lancaster, Washington Post, 2/24/95, p. A16(12336).

ISRAEL WITH MIDDLE EAST

12/13/94The London-based Arabic-language news-paper Al-Hayat reports that the League ofArab States has asked its 22 member na-tions not to “ratify” the NPT unless Israelsigns the treaty and permits IAEA inspec-tions of its nuclear installations. [Presum-ably, the article is referring to the states’votes on NPT extension - ed.]

UPI, 12/13/94; in Executive News Service, 12/13/94 (12230).

1/10/95Arab League Secretary-General EsmatAbdel-Meguid states that Israel’s nucleararsenal is a menace to Middle East stabil-ity, echoing a statement made on 1/9/95 byEgyptian Foreign Minister Amr Moussa.

Reuter, 1/10/95; in Executive News Service, 1/10/95 (12230).

1/13/95Sheikh Mohammed Mahdi Shamseddine,the religious leader of Lebanon’s Shi’iteMuslims, issues a “fatwa,” or religious edict,prohibiting Muslim states from “signing” theNPT unless Israel signs it first and dis-mantles its nuclear weapons stockpile.Shamseddine also says that Arab and Mus-lim countries should be involved in moni-toring Israel’s compliance with the NPT.

Reuter, 1/14/95; in Executive News Service, 1/14/95 (12230).

1/24/95The Syrian government asks the U.S. to pres-sure Israel to permit international inspec-tions of its nuclear facilities and to sign theNPT. The Syrian ruling party’s al-Baathnewspaper expresses Syria’s endorsement ofthe Egyptian stance that Arabs should havethe right to acquire nuclear weapons if Is-rael fails to sign the NPT.

Washington Times, 1/25/95, p. A14 (12125).

1/26/95The Arab delegation at the [Fourth] prepa-ratory committee meeting for the NPT Re-view and Extension Conference announcesthat it will not support the indefinite exten-sion of the NPT because Israel is not yet asignatory to the Treaty.

Rym Brahimi, Reuter, 1/26/95; in Executive NewsService, 1/26/95 (12337).

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1/30/95Iraq’s Permanent Representative to the ArabLeague Nabil Najem summons other Arabstates to resist supporting an indefinite ex-tension of the NPT, stating that “there mustbe a link between the extension of the [NPT]and Israel’s acceptance to sign it and . . .open all its nuclear reactors to internationalinspection.”

Reuter, 1/31/95; in Executive News Service, 1/31/95 (12337).

2/2/95Arab League Assistant Secretary-General forPolitical Affairs Adnan Omran says that theArab League hopes that an upcoming an-nouncement of the Middle East’s intentionsof becoming a weapons of mass destruction-free zone, which would be endorsed by alltwenty-two members of the League, wouldpressure Israel to sign the NPT. Omran says,“If Israel does not sign the treaty, the cen-tral countries [major Muslim powers] willin turn not sign...[and] the region will beopen for a nuclear arms race.”

UPI, 2/2/95; in Executive News Service, 2/2/95(12330).

2/9/95Algerian Foreign Minister Mohamed SalahDembri says at a session of the Conferenceon Disarmament in Geneva that Israel shouldsign the NPT, and should support a nuclearweapon free zone in the Middle East.

Reuter, 2/9/95; in Executive News Service, 2/9/95(12337).

ISRAEL WITH MOLDOVA, ROMANIA, AND

UKRAINE

10/10/94Romanian police from the General PoliceInspectorate’s Weapons, Explosives, andDrugs Department arrest seven men attempt-ing to sell 7 kg of uranium and strontium ina lead pipe. Three Moldovans (Victor Barta,Ion Bulgariu, and Ion Baleca (a former RedArmy officer)), two Israeli citizens (FuadAbdel Hatem and Abdul Hafez Moh’D Sa-lem), and two Romanians (Dumitru Iordanand Florin Lenghel) are arrested in the vil-lage of Urechesti near the Ukrainian bor-der. According to Romanian Interior Min-ister Doru Ioan Taracila, Baleca smuggled

the nuclear material out of Ukraine toMoldova, where it was then given to a groupof people in the Romanian province ofTransylvania. These intermediaries tried tosell the material to Salem and Hatem, of-fering the uranium for $400,000, and thestrontium for $250,000. At a 10/12/94 pressconference, Romanian police and InteriorMinistry officials state that they believeHatem and Salem intended to smuggle thematerial to either Germany or the Nether-lands.

Financial Times, 12/10/94 (12055). Patru Musat,Adevarul (Bucharest), 10/12/94, p. 1; in JPRS-TND-94-020, 11/17/94, p. 11 (12259). Peter Bale, Reuter(Bucharest), 10/12/94; in Executive News Service,10/12/94 (12206).

ISRAEL WITH UNITED NATIONS

11/17/94The U.N. General Assembly’s Disarmamentand International Security Committee adoptsa resolution calling on all non-NPT signa-tory states in the Middle East, includingIsrael, to abstain from the development,production, and testing of nuclear arms andagree not to possess nuclear arms.

Reuter, 11/17/94; in Executive News Service, 11/17/94 (12080).

ISRAEL WITH UNITED STATES

11/94The U.S. government grants approval for theshipment of nine supercomputers to Israeliuniversities that are allegedly involved inIsrael’s nuclear weapons program. The com-puters are used to gather data from simu-lated nuclear weapons tests.

David Hirst, Guardian, 2/24/95 (12547).

1/95The U.S. State Department releases recordsindicating that the U.S. was aware as earlyas 1961 of Israel's secret efforts to developnuclear weapons.

Jim Anderson, Deutsche Presse Agentur; in Wash-ington Times, 1/28/95, p. A7 (12345).

JAPAN

INTERNAL DEVELOPMENTS

9/28/94Japan Atomic Energy Research Institute(JAERI) Director Shohjiro Matsuura saysthat despite Japan’s new “stabilized pluto-nium fuel” (SBF) technology, Japan stillplans to reprocess spent fuel and to usemixed-oxide (MOX) fuel. SBF technologyuses a procedure that burns weapons-gradeplutonium in commercial reactors but doesnot result in “reprocessable” spent reactorfuel. JAERI scientists are preparing to testthe SBF technology and expect it will beready for use in conventional light waterreactors (LWRs) within three years.

Margaret L. Ryan and Naoaki Usui, NuclearFuel,10/10/94, p. 14 (12445).

10/20/94Officials from Japan’s Atomic Energy Com-mission (AEC) says the five of its ten elec-tric power companies (Tokyo Electric PowerCo., Kansai Electric Power Co., KyushuElectric Power Co., Chubu Electric PowerCo., and Japan Atomic Power Co.) plan tobegin using a uranium-plutonium mix[mixed-oxide] fuel in their nuclear powerplants. The AEC says that the fuel will re-duce plutonium waste by 60 percent.

UPI, 10/20/94; in Executive News Service, 10/20/94 (12445).

11/11/94Kishichiro Amae, the deputy press secre-tary for Japan’s Foreign Ministry, indicatesthat Japan’s new export controls are intendedas a substitute for COCOM regulations, andexpresses Japan’s desire to see other “majorexporters” of high-technology goods adhereto such a regime.

Naoaki Usui, Defense News, 11/14/94, p. 28(12292).

11/22/94Although Japan’s plutonium stockpile issufficient for the fabrication of some 500

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nuclear weapons, Japan’s Science and Tech-nology Agency (STA) Director of AtomicEnergy Policy Research Shinichiro Izumistresses that Japan will “adhere strictly tothe NPT.”

Naoaki Usui, Defense News, 11/28/94, p. 4 (12523).

11/25/94Japan’s Atomic Energy Commission (AEC),in an effort to defuse international concernover its plutonium holdings, reveals the sizeof its plutonium reserves in its 1994 NuclearEnergy White Paper. At the end of 1993,Japan’s plutonium stockpile included 4,684kg of separated plutonium in Japan, and anadditional 6,197 kg of separated plutoniumoxide in France and the U.K.

Naoaki Usui, Nucleonics Week, 12/1/94, pp. 13-14(12523).

1/95Japan’s FY 1995 nuclear draft budget totals480 billion yen, an increase of 5.2 percentfrom 1994. The budget includes 194 bil-lion yen in the general account, mostly fornuclear research and development, and 295billion yen for the special power resourcedevelopment account. The budget allocates8 billion yen for engineering design workin the International Thermonuclear Experi-mental Reactor project under the authorityof the Japan Atomic Energy Research Insti-tute. The budget also allocates funds forresearch and development in spent fuel re-processing, safe transportation of nuclearmaterials, the prevention of nuclear disas-ters, and Japan’s contributions to the IAEAand OECD/NEA.

Atoms in Japan, 1/95, pp. 4-13 (12476).

JAPAN WITH AUSTRALIA

2/10/95The Australian company ERA signs a con-tract to sell natural uranium from the RangerUranium Mine to Japan’s Kansai Electric,Shikoku Electric, and Kyushu Electric.Under the contract, the three Japanese utili-ties will buy a total of 9,072tU, from 1997to 2006. An earlier contract between ERAand the Japanese utilities provides for thesupply of approximately 13,600tU of U308,from 1982 to 1996.

Atoms in Japan, 2/95, p. 21 (12378).

JAPAN WITH BELGIUM AND FRANCE

1/17/95The Kobe earthquake damages the dock infront of Mitsubishi Heavy Industries (MHI),possibly delaying shipment of replacementsteam generators destined for Belgium.MHI produced the generators for Electrabeland Electricite de France (EdF) for use atthe Tihange-1 nuclear plant. The genera-tors, ordered in 1992, are the first sold byMHI to a company outside Japan.

Ann MacLachlan and Naoaki Usui, NucleonicsWeek, 2/2/95, p. 5 (12251).

JAPAN WITH BELGIUM, FRANCE, AND

UNITED STATES

Mid-10/94Japan Nuclear Fuel (JNF) and General Elec-tric Nuclear Energy of the U.S. create JointConversion Co. (JCC), to construct and op-erate a nuclear fuel powder fabrication fa-cility in Wilmington, NC. The facility willuse dry process technology licensed byFranco-Belge de Fabrication de Combus-tibles (FBFC). FBFC will also furnish train-ing and components for the new plant. GE,which along with Hitachi and Toshiba is ajoint owner of JNF, will be the majorityowner and principal operator of the JCCfacility. JCC’s beginning capitalization of$50 million was provided 54 percent by GEand 46 percent by JNF. The plant will havean annual capacity of 1,000 tons of dry UO2,of which 20-30 percent is earmarked for fuelfabrication in Japan, with the balance in-tended for the U.S. construction is to beginin 1995, with start-up foreseen in 1997.

Wilson Dizard III, NuclearFuel, 10/24/94, p. 11(12524). Nuclear Engineering International, 11/94, p. 10 (12524). Nuclear News, 11/94, p. 60(12524). Atoms in Japan, 10/94, p. 28 (12524).

JAPAN WITH CANADA

10/20/94It is reported that the Japan Atomic EnergyResearch Institute (JAERI) will purchaseeither 10 or 20 grams of the hydrogen iso-tope tritium from Canada’s Ontario HydroInternational for delivery by the end of FY1994. JAERI’s Tokai Research Establish-ment head Shohjiro Matsuura says that the

accord could be reached as early as the endof 10/94, and notes that tritium is priced atapproximately $100,000 per gram.

Naoaki Usui, Nucleonics Week, 10/20/94, p. 13(12293).

JAPAN WITH CUBA, IRAN, IRAQ, NORTH

KOREA, AND LIBYA

10/12/94Japanese Ministry of International Trade andIndustry (MITI) officials says that Japan willexpand its export controls to include 100high-technology goods which can be usedin the fabrication of weapons of mass de-struction, including nuclear weapons. Thenew controls will cover Japanese exports ofdual-use technology products includingmachine tools, computer components, car-bon textiles and specialty metals to Iran,Iraq, North Korea, Cuba, and Libya, and15 other countries. MITI officials say theyplan to implement the new controls by early1995.

Kyodo (Tokyo), 10/12/94; in JPRS-TND-94-020,11/17/94, pp. 5-6 (12292).

JAPAN WITH FRANCE

11/8/94-11/9/94French and Japanese nuclear specialists dis-cuss activities related to fast reactors andagree to work together in promoting the useof plutonium and increase cooperationamong research and development bodies andpower utilities from the two countries.

NucNet, 11/18/94 (12291). Atoms in Japan, 11/94, pp. 19-20 (12291).

JAPAN WITH FRANCE AND UNITED

KINGDOM

11/25/94Japan’s Atomic Energy Commission (AEC)releases its 1994 Nuclear Energy WhitePaper, which reveals that at the end of 1993,4,911 kg of Japanese plutonium were atCogema’s La Hague reprocessing facility inFrance, and 1,286 kg were at British NuclearFuels’ (BNFL) Sellafield site. Japan’s Sci-ence and Technology Agency (STA) NuclearFuel Division Director Yasutaka Moriguchisays that Japan might require a shipment of“a few tonnes [MT]” of fissile plutonium

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from Europe in order to meet its annual plu-tonium needs of about 0.6 MT.

Naoaki Usui, Nucleonics Week, 12/1/94, pp. 13-14(12523). Enerpresse, 11/29/94 (12523). ShinichiKishima, Reuter, 11/25/94; in Executive News Ser-vice, 11/28/94 (12523).

JAPAN WITH IAEA

10/10/94It is reported that according to Western dip-lomatic officials, the IAEA has requestedthat Japan quantify the amount of plutonium“held up” at the Power Reactor & NuclearFuel Development Corp.’s (PNC) TokaiMura Plutonium Fuels Processing Facility(PFPF) by 1995. The IAEA is worriedabout the extent and pace of the build-up ofplutonium at the facility, and wants verifi-cation that plutonium is not being diverted.Sources have noted the friction between theIAEA and Japan over the PFPF issue, andan IAEA official has stressed that Japan isimpeding the IAEA Department of Safe-guards’ efforts to account for held-up plu-tonium at the plant. The IAEA has askedthe PNC to measure the plutonium containedin the plant’s hot cells using “destructiveanalysis” techniques. However, PNC offi-cials are reluctant to cut up the cells, a pro-cess which is expensive and messy.

Mark Hibbs, NuclearFuel, 10/10/94, pp. 12-14(12500).

JAPAN WITH INDONESIA

9/94A team from Japan’s Council for NuclearFuel Cycle (CNFC) visits Indonesia to dis-cuss cooperation on the peaceful uses ofnuclear energy. Japanese nuclear engineerscurrently instruct staff at Indonesia’sSeprong Research and Development Cen-ter of the National Atomic Energy Agency(BATAN) in the use of radio-isotopes andin research reactor operations.

Plutonium, Autumn 1994, pp. 13-15 (12498).

JAPAN WITH KAZAKHSTAN

9/6/94Kazakhstan and Japan sign an agreement inAlmaty on the establishment of a nuclearmaterials control and accountancy system

in Kazakhstan. The agreement stipulatesthat Japan will provide experts and equip-ment—which Kazakhstan needs to meet IAEAsafeguard obligations—to help establish acontrol system. Funding for the agreement’simplementation will come from the 1.17billion yen Japan disbursed to the Japan-Kazakhstan Committee, an organization setup by the two countries following a 3/94bilateral agreement to eliminate Kazakhstan’snuclear weapons.

Kyodo (Tokyo), 9/6/94; in JPRS-TND-94-020, 10/17/94, p. 34 (12057).

11/7/94-11/11/94The Japanese Ministry of Foreign Affairsand the Science and Technology Agencytrain six Belarusian and Kazakhstani nuclearexperts in Japan on nuclear materials con-trol, in accordance with an earlier agree-ment. The training involves discussionswith experts from Power Reactor andNuclear Fuel Development Corporation andthe Japan Atomic Energy Research Institute.Foreign Ministry Spokesman TerusukeTerada expressed the hope that the trainingwould be helpful in preventing nuclear ma-terials smuggling in Kazakhstan.

Kyodo (Tokyo), 11/4/94; in JPRS-TND-94-020, 11/17/94, p. 7 (12059). Atoms In Japan, 11/94, p. 24(12422).

JAPAN WITH MULTI-COUNTRY GROUP

1993-1994The Japan Atomic Industrial Forum’s(JAIF), 1994 “State of the Nuclear Indus-try” report, reveals that Japanese nuclearexports increased 11-fold during FY 1993over FY 1992, to 38.34 billion yen. Itemsrelated to reactors comprised 2.3 billion yenin exports, while fuel-cycle related exportstotalled 35.02 billion yen. The report isbased on JAIF’s survey of 545 Japanesefirms, 488 of which have been involved innuclear-related activities.

Naoaki Usui, Nucleonics Week, 12/15/94, p. 7(12284).

JAPAN WITH NETHERLANDS, PRC,SWITZERLAND, AND UNITED STATES

11/94It is reported that during FY 1994, Japan’s

Science and Technology Agency (STA) willhost nuclear experts from the PRC, the Neth-erlands, Switzerland, and the U.S. as partof a project, allotted 1.5 billion yen for theyear, intended to promote “crossover researchon nuclear energy.” The experts will studybeam application, computer software,nuclear materials, and the biological effectsof radiation. The cooperative program in-volves 13 Japanese government institutionsand promotes work on nuclear materials,artificial intelligence, laser applications,radiation risks, radiation beam applications,and the use of computers.

Atoms in Japan, 11/94, p. 22 (12294).

JAPAN WITH NORTH KOREA

See North Korea section.

JAPAN WITH PRC

11/14/94Japanese Prime Minister TomiichiMurayama asks Chinese President JiangZemin for “understanding in efforts to banall nuclear testing.” Zemin responds thatthe PRC’s nuclear testing is “limited” andthat Chinese policy is to work toward a com-plete ban on nuclear weapons.

Teruaki Ueno, Reuter, 11/16/94 (12090).

JAPAN WITH SLOVAKIA

12/94It is reported that Japan’s Science and Tech-nology Agency (STA) will aid in decom-missioning Slovakia’s A-1 Bohunice Reac-tor. The project is to last for five years be-ginning in FY 1995. STA sent a team ofnuclear safety specialists to Slovakia in 3/94, at which time Slovakia sought Japaneseaid in decommissioning the reactor. TheSTA sent another team to Slovakia in 11/94to discuss the specifics of the Japanese rolein the project. Japanese experts, mainlyfrom the Japan Atomic Energy ResearchInstitute (JAERI), will provide advice onthe planning, costs, and environmental ef-fects of decommissioning the Slovak reac-tor, and may aid in the disposal of 132 spentfuel rods from the facility. The STA hasasked the Japanese Ministry of Finance for

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118

50 million yen in FY 1995 for the A-1project. Under the terms of the agreement,Slovak experts are to visit Japan, and fur-ther technical cooperation is envisaged fortwo other Slovakian reactors.

Atoms in Japan, 12/94, p. 21 (12283). NucNet,12/6/94 (12283).

JAPAN WITH TAIWAN

9/94A team from Japan’s Council for NuclearFuel Cycle (CNFC) visits Taiwan to discusscooperation on the peaceful uses of nuclearenergy.

Plutonium, Autumn 1994, pp. 13-15 (12498).

JAPAN WITH THAILAND

12/19/94Japan’s Atomic Energy Research Institute(JAERI) and Thailand’s Office of AtomicEnergy for Peace are expected to renew a1991 cooperation agreement covering re-search on safety issues for nuclear researchreactors. Under the accord, Japan has sup-plied a grant of 100 million yen to Thailandfor “equipment and personnel exchange.”

Thai Office of Atomic Energy for Peace; in NucNet,12/15/94 (12129).

JAPAN WITH UNITED KINGDOM

11/24/94It is reported that Forgemasters Steel &Engineering Ltd. (FSEL) of the U.K. hascontracted with Mitsubishi Heavy Industriesto supply three steam generator transitioncones for domestic Japanese use. FSEL wasalso awarded an order for four more steamgenerators, over competing Japanese sup-pliers. FSEL Managing Director PeterBirtles says that FSEL expects to be involvedin substantial additional contracts that theJapanese market will award “in the next fewmonths.”

Pearl Marshall, Nucleonics Week, 11/24/94, pp. 14-16 (12286).

1/95It is reported that the U.K.’s AEA Technol-ogy inaugurates its new Japanese office witha technical seminar on fuel reprocessing andreactor life extension and decommissioning.

Some fifty Japanese nuclear officials attendthe discussions.

Nuclear Engineering International, 1/95, p. 6(12499).

JAPAN WITH UNITED STATES

11/94It is reported that Genden Engineering Ser-vices and Construction Company (GESC),an affiliate of the Japan Atomic Power Com-pany, has licensed NAC Services Inc. of theU.S. to produce and distribute GESC’s high-performance neutron shielding materialsoutside of Japan. The U.S. Nuclear Regu-latory Commission has approved the shield-ing materials for use in nuclear containers.

Nuclear News, 11/94, pp. 63-64 (12287).

LIBYA

LIBYA WITH DENMARK, ITALY, AND

RUSSIA

10/10/94The Danish newspaper Jyllandsposten al-leges that Danish businessman Joergen QuistNielson had worked for PET, Denmark’ssecret service organization, had made con-tacts with “Russian bigwig” Alexander Kuzinand Italy’s “extreme rightist” MarciAffatigato, and had engaged in nuclearsmuggling activities on behalf of a numberof parties including Libya’s Muammar al-Quadhafi. PET head Birgitte Stampe saidthat Nielson had never been employed bythe organization. Out of concern thatnuclear materials could be smuggled fromRussia through Denmark by way of Finlandand other Scandinavian countries, PET re-ports that it has stepped up inspections ongoods and packages coming from EasternEurope. A special PET task force has beenestablished to conduct surveillance on indi-viduals and businesses suspected of tradingmaterials such as cesium, osmium, and redmercury. The organization said that pluto-nium, uranium, and other nuclear materi-als are “brought illegally to Denmark iden-

tified as other substances.”AFP (Paris), 10/10/94; in JPRS-TND-94-020, 11/17/94, p. 35 (12242).

NORTH KOREA

INTERNAL DEVELOPMENTS

9/94U.S. government experts say that theTaechon 200 MWe nuclear reactor in NorthKorea is not being built for plutonium pro-duction. According to U.S. satellite infor-mation, the activity at the Taechon site doesnot indicate that it is being constructed tosupport North Korea’s suspected nuclearweapons program. The U.S. governmentbelieves the site will be connected to NorthKorea’s electrical grid. However, U.S. offi-cials state that intelligence data indicates thatNorth Korea has attempted to procure equip-ment and non-classified information onphysics for indigenous nuclear weapon de-velopment. U.S. officials say some 70 high-explosive tests conducted near the 5 MWeYongbyon nuclear reactor may have beenimplosion package tests for a nuclear de-vice.

Mark Hibbs, Nucleonics Week, 10/13/94, p. 5(12349).

9/30/94South Korea releases a Defense White Pa-per which assesses North Korea’s nuclearcapabilities and concludes that North Ko-rea is capable of constructing a nuclear ar-senal, but has not produced any weapons sofar.

Robert Karniol, Jane’s Defence Weekly, 10/22/94,p. 6 (12370).

10/5/94North Korean Deputy Foreign Minister ChoiSu-han says at a 49th U.N. General Assem-bly meeting that new decisions regardingthe NPT should include a ban on the use ofall nuclear weapons by nuclear weapon statesand that a timetable should be established“for the total abolition of nuclear weapons.”

Anthony Gordon, Reuter, 10/6/94; in Washington

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Times, 10/6/94, p. A13 (12544).

NORTH KOREA WITH IRAN

12/14/94Israeli Prime Minister Yitzhak Rabin statesduring a visit to Japan that he believes NorthKorea is exporting nuclear weapons tech-nology to Iran.

Peter Kenney, UPI, 12/14/94; in Executive NewsService, 12/14/94 (12522).

NOTE: Because multilateral activities re-garding North Korea's nuclear programinvolve different groupings of participantsat various stages, the entries have been di-vided by topic as follows:

I. Negotiations Preceding the U.S.-DPRKFramework Agreement:

NORTH KOREA WITH IAEA, SOUTH KOREA,AND UNITED STATES

II. The Framework Agreement and Ini-tial Reactions:

NORTH KOREA WITH IAEA, JAPAN, SOUTH

KOREA, AND UNITED STATES

III. Response to the Agreement and U.S.Follow-up:

NORTH KOREA WITH CHINA, FRANCE, GER-MANY, IAEA, ITALY, JAPAN, SOUTH KO-REA, UNITED KINGDOM, UNITED NATIONS,AND UNITED STATES

IV. U.S. Congressional Review:NORTH KOREA WITH UNITED STATES

V. Status of DPRK Facilities & IAEAMonitoring and Verification:

NORTH KOREA WITH IAEA, UNITED NA-TIONS, AND UNITED STATES

VI. Storage of Spent Fuel Rods:NORTH KOREA WITH CHINA, FRANCE,IAEA, JAPAN, RUSSIA, SOUTH KOREA, AND

UNITED STATES

VII. Creation of the Korea Energy De-velopment Organization (KEDO) and Fi-nancing Arrangements:

NORTH KOREA WITH AUSTRALIA, CANADA,CHINA, FRANCE, GERMANY, JAPAN, RUS-

SIA, SOUTH KOREA, UNITED KINGDOM, AND

UNITED STATES

VIII. Debate on LWR Supplier:NORTH KOREA WITH GERMANY, JAPAN, RUS-SIA, SOUTH KOREA, AND UNITED STATES

IX. North-South Relations:NORTH KOREA WITH SOUTH KOREA AND

UNITED STATES

• • • • • • •

I. Negotiations Preceding the U.S.-DPRKFramework Agreement:

NORTH KOREA WITH IAEA, SOUTH KOREA,AND UNITED STATES

9/30/94South Korean Foreign Minister Han Sung-joo and U.S. Secretary of State WarrenChristopher meet during the 49th sessionof the U.N. General Assembly and assertthat they will not make any concessions toNorth Korea until North Korea guaranteesthat it will open its nuclear program to scru-tiny and stops threatening to reload fuel intoits 5 MW Yongbyon nuclear reactor. Theannouncement follows a stalemate in thelatest round of U.S.-DPRK negotiations onthe North Korean nuclear issue, which be-gan on 9/23/94. The deadlock centers ondisagreement over who is to supply lightwater reactors (LWRs) to replace NorthKorea’s graphite-moderated reactors, thefuture of the 8,000 spent fuel rods that wereremoved from the 5 MW Yongbyon reactorin mid-1994, and the reinstitution of inter-Korean talks. Han and Christopher reaf-firm that South Korea should be the keysupplier of LWRs to North Korea if NorthKorea will agree to dismantle its currentgraphite-moderated reactors.

Yonhap (Seoul), 10/1/94; in FBIS-EAS-94-191, 10/1/94 (12360).

10/2/94South Korea decides it will “maximize theuse of North Korean labor and constructionmaterials” to build LWRs for North Koreain an effort to convince North Korea not toreject South Korean-type LWRs in the U.S.-DPRK negotiations on the nuclear issue.

Hanguk Ilbo (Seoul), 10/3/94, p. 1; in FBIS-EAS-94-191, 10/3/94 (12360).

10/3/94South Korean Foreign Minister Han Sung-joo cautions North Korea that, if it reloadsfuel rods into the 5 MW Yongbyon nuclearreactor, it will undermine the current effortsto come to a solution on the North Koreannuclear issue, despite the fact that the IAEAwould not consider that illegal. In such acase, Han says, the matter could be sent tothe U.N. Security Council.

Yonhap (Seoul), 10/4/94; in FBIS-EAS-94-192, 10/4/94 (12360).

10/4/94U.S. officials state that the U.S. will con-tinue to insist that North Korea cease itsnuclear program in exchange for the eco-nomic and political benefits that U.S. Am-bassador-at-Large Robert Gallucci had of-fered North Korean First Vice Minister ofForeign Affairs Kang Sok-ju in previousbilateral talks.

R. Jeffrey Smith and Ann Devroy, Washington Post,10/5/94 (12544).

10/5/94North Korean Deputy Foreign Minister ChoiSu-han, in an address to the 49th U.N. Gen-eral Assembly, cautions the IAEA and SouthKorea to refrain from creating problems inthe next round of high-level talks betweenthe U.S. and North Korea. Choi warns theIAEA not to pressure North Korea aboutso-called “special inspections.” South Ko-rean President Kim Young-sam reiterates thestance that South Korea is preparing to takeduring U.S.-DPRK talks, explaining thatSouth Korea will “play a central role in pro-viding [North Korea] with light-water reac-tors [LWR] if the nuclear issue is resolved,if North Korea’s transparency is assured andif [a South Korean]-style LWR is chosen.”U.S. Secretary of Defense William Perryexplains that a North Korean demand thatthe U.S. provide an additional $2 billionfor the replacement of North Korea’s graph-ite-moderated reactors with LWRs is onecause of the current impasse in bilateralnegotiations on the North Korean nuclearissue.

UPI, 10/5/94; in Executive News Service, 10/5/94(12544). Kyonghyang Sinmun (Seoul), 10/6/94, pp.3-4; in FBIS-EAS-94-194, 10/6/94 (12544). Rob-ert Evans, Reuter, 10/7/94; in Executive News Ser-

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120

vice, 10/7/94 (12076).

10/6/94The U.S. and North Korea resume high-levelbilateral talks, led by U.S. Ambassador-at-Large Robert Gallucci and North KoreanFirst Vice Minister of Foreign Affairs KangSok-ju, to discuss the North Korean nuclearissue after a series of working level talks on9/30/94, 10/3/94, and 10/4/94. South Ko-rean Defense Minister Rhee Byoung-tae saysthe U.S. and South Korea will consider re-instating Team Spirit joint military exercisesif the North Korean nuclear impasse con-tinues.

Charles Aldinger, Reuter, 10/6/94; in ExecutiveNews Service, 10/7/94 (12077). Yonhap (Seoul),10/7/94; in FBIS-EAS-94-195, 10/7/94.

10/8/94South Korean President Kim Young-samclaims the U.S. is too willing to relinquishconcessions to North Korea in the bilateralnegotiations on North Korea’s nuclear pro-gram, and warns against a compromisesettlement. He suggests that the issue shouldgo to the U.N. if the U.S. and North Koreaare unable to negotiate an agreement.

James Sterngold, New York Times, 10/8/94, p. A3(12077). Robert Evans, Reuter, 10/9/94; in Execu-tive News Service, 10/9/94 (12077).

10/10/94-10/11/94U.S. Ambassador-at-Large Robert Gallucciand North Korean First Vice Minister ofForeign Affairs Kang Sok-ju meet in Genevato try to end the stalemate over the NorthKorean nuclear issue in bilateral negotia-tions. The U.S. proposes possible alterna-tives to North Korea for its nuclear programduring the talks, but progress is uncertain.

Robert Evans, Reuter, 10/10/94; in Executive NewsService, 10/10/94 (12364). Robert Evans, Reuter,12/12/94; in Executive News Service, 10/12/94(12364). AP; in International Herald Tribune, 10/13/94 (12364).

10/13/94U.S. officials report that, during bilateralU.S.-DPRK nuclear talks, North Korea re-versed its initial demand that the U.S. com-pensate North Korea financially if it con-verts its graphite-moderated nuclear reac-tors to LWRs and withdrew the threat torefuel its 5 MW Yongbyon nuclear reactor.U.S. diplomats report that U.S. and NorthKorean technical experts are approaching

agreement over the North Korean nuclearissue.

UPI, 10/13/94; in Executive News Service, 10/13/94 (12354).

Early to Mid-10/94U.S. Secretary of Defense William Perry andSouth Korean Defense Minister RheeByoung-tae state, during the 26th SouthKorea and U.S. Security Consultative Meet-ing in Washington, D.C., that a decision toconduct 1994 Team Spirit joint militaryexercises will be postponed until the U.S.and South Korea can assess the results ofthe U.S.-DPRK bilateral nuclear talks.

Newsreview, 10/15/94, p. 5 (12354).

II. The Framework Agreement and Ini-tial reactions:NORTH KOREA WITH IAEA, JAPAN, SOUTH KO-REA, AND UNITED STATES

10/17/94Following talks in Geneva led by U.S. Am-bassador-At-Large Robert Gallucci andSouth Korean First Vice Minister of For-eign Affairs Kang Sok-ju, the U.S. andNorth Korea reach a framework agreement,to be signed on 10/21/94, which providesfor the replacement of North Korea’s graph-ite-moderated nuclear reactors with lightwater reactors (LWRs). The accord speci-fies four main tasks that both countries willundertake to resolve the North Koreannuclear issue. First, the U.S. and DPRKagree to work together to substitute NorthKorea’s graphite-moderated nuclear reactorswith LWRs, which will have an approxi-mate total generating capacity of 2,000 MW,by 2005. The U.S. will organize an inter-national consortium (the Korean EnergyDevelopment Organizsation) to provideNorth Korea with the supplies and finan-cial assistance for the LWR project. TheU.S. will endeavor, as the representative ofthe consortium, to guarantee that the con-tract with North Korea for the LWR projectis completed within six months. The U.Sand the international consortium will alsohelp compensate North Korea for the en-ergy loss that will occur, due to a freezeplaced on its current nuclear reactors, withheavy oil and electricity production. NorthKorea will freeze operation of its graphite-

moderated nuclear reactors when it receivesassurances that it will receive LWRs andthat arrangements will be made for com-pensation of the energy loss. The IAEA isto supervise the freeze within one month ofthis accord. North Korea will also dis-mantle its graphite-moderated nuclear reac-tors when the LWR project is completed.North Korea and the U.S. agree to collabo-rate in finding safe storage for fuel extractedfrom the graphite-moderated reactors. Sec-ond, the U.S. and North Korea promise tomake efforts to normalize their economicand political relations by reducing barriersto investment and trade. Third, the U.S.and North Korea will strive toward estab-lishing a nuclear-weapon-free-zone that willensure peace and security on the Korean Pen-insula. This includes a U.S. assurance toNorth Korea that it will not use or threatento use nuclear weapons against North Ko-rea, as well as a North Korean commitmentto make an effort to participate in dialoguewith South Korea and to secure a jointNorth-South declaration that the Koreanpeninsula will become denuclearized.Fourth, the U.S. and North Korea agree tocollaborate to fortify the nuclear nonprolif-eration regime in the following ways: NorthKorea will remain a member of the NPTand allow the IAEA to implement NorthKorea’s safeguards agreement under theNPT; the IAEA will recommence its ad hocand routine inspections of North Korea’sactive nuclear facilities when the contractfor the provision of LWRs to North Koreais completed; and North Korea will fullycomply with its IAEA safeguards agreement(INFCIRC/403) after the LWR project hasneared completion, but before the principlenuclear components for the reactor are de-livered.

U.S.-Korea Review, 9/94-10/94, p. 9 (12546). Rob-ert Evans, Reuter, 10/17/94; in Executive NewsService, 10/17/94 (12371). Alan Riding, New YorkTimes, 10/18/94, pp. A1, A4. (12551). StevePagani, Reuter, 10/18/94; in Executive News Ser-vice, 10/18/94 (12551). Mark Hibbs, NucleonicsWeek, 10/20/94, p. 17 (12551).

10/18/94U.S. Ambassador-at-Large Robert Gallucciannounces that North Korea will shut downits 5 MW Yongbyon nuclear reactor imme-diately after the U.S.-DPRK accord is signed

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on 10/21/94. Gallucci also says that, un-der the terms of the agreement, North Ko-rea will not remove any spent fuel rods fromcooling ponds, will not restart operation ofits graphite-moderated nuclear reactor, willstop construction on its other two graphite-moderated reactors, and will cease work onits reprocessing plant. It is reported that,during negotiations with the U.S., NorthKorea agreed for South Korea to be the keyparticipant in financing and supplying LWRsto North Korea under the U.S.-DPRKnuclear accord.

Alan Riding, New York Times, 10/18/94, pp. A1,A4 (12551). Mark Hibbs, Nucleonics Week, 10/20/94, p. 17 (12551).

10/19/94IAEA Director General Hans Blix states thatthe U.S.-DPRK nuclear accord further en-ables the IAEA and the world communityto resolve the nuclear issue in North Korea,but expresses concern that the agreementdoes not allow the IAEA immediate accessinto two suspected North Korean nuclearwaste sites at the Yongbyon nuclear facili-ties, and that North Korea is allowed to post-pone IAEA inspections for as long as fiveyears. An IAEA official states that the U.S.-DPRK agreement may “reward people whoare playing fast and loose with compliancewith the [IAEA] safeguards agreement andcould allow other Third World countries todemand the same kind of treatment.” A U.S.official expresses concern that the agreementdoes not take into account the possibilitythat North Korea has already developed anuclear bomb, and that the five-year delayon IAEA inspections may prevent the IAEAfrom discovering this. South Korea is ap-prehensive about the fact that the U.S.-DPRK nuclear accord allows North Koreato postpone inspections of two suspectednuclear waste sites until “significant por-tions” of the LWRs are completed. SouthKorea has accepted the U.S.-DPRK agree-ment because it requires IAEA inspectionsof the sites before “key nuclear components”for the LWRs arrive in North Korea. Japa-nese chief government spokesman KozoIgarashi states that Japan accepts the con-tents of the U.S.-DPRK nuclear accord.

R. Jeffrey Smith, Washington Post, 10/19/94; inExecutive News Service, 10/19/94 (12551). PaulEckert, Reuter, 10/19/94; in Executive News Ser-

vice, 10/19/94 (12365). Martin Sieff, WashingtonTimes, 10/19/94, pp. A1, A2 (12545). UPI, 10/19/94; in Executive News Service, 10/20/94(12361). Kyodo News Service, 10/19/94; in NuclearProliferation News, 10/28/94 (12361).

10/21/94North Korean First Vice Minister of For-eign Affairs Kang Sok-ju and U.S. Ambas-sador-at-Large Robert Gallucci sign theU.S.-DPRK nuclear framework agreement.

U.S.-Korea Review, 9/94-10/94, p. 9 (12546).

III. Response to the Agreement and U.S.Follow-up:

NORTH KOREA WITH CHINA, FRANCE, GER-MANY, IAEA, ITALY, JAPAN, SOUTH KO-REA, UNITED KINGDOM, UNITED NATIONS,AND UNITED STATES

10/21/94South Korean Defense Minister RheeByoung-tae and U.S. Secretary of DefenseWilliam Perry announce the cancellation ofthe 1994 Team Spirit joint military exer-cises between the U.S. and South Korea,scheduled to begin in 11/94, because of theU.S.-DPRK nuclear accord.

Robert Evans, Reuter, 10/21/94; in Executive NewsService, 10/21/94 (12370). Newsreview, 10/29/94,pp. 4-5 (12402).

10/26/94The Central Committee of the South Ko-rean National Democratic Front(Hanminjon) announces that it supports theU.S.-DPRK nuclear accord.

KCNA (Pyongyang), 10/29/94; in FBIS-EAS-94-211, 10/29/94 (12211).

11/1/94North Korea denounces the commencementof U.S.-South Korean joint military exer-cises (conducted in place of the Team Spiritexercises), after making the statement ear-lier in the day that such exercises might in-hibit it from carrying out its nuclear accordwith the U.S.

Thomas Wagner, Washington Times, 11/2/94, p. A11(12494).

11/3/94The PRC agrees during a meeting betweenChinese Foreign Minister Qian Qichen andSouth Korean Foreign Minister Han Sung-joo to play a role in helping to ensure that

North Korea carries out its nuclear agree-ment with the U.S.

Washington Times, 11/4/94, p. A16 (12097).

11/4/94The U.N. Security Council issues a presi-dential statement endorsing the nuclear ac-cord signed by the U.S. and North Koreaon 10/21/94. The statement acknowledgesNorth Korea’s move to comply with its safe-guards agreement with the IAEA and noteswith approval North Korea’s decision tofreeze its current nuclear program.

UN Weekly, 11/8/94 (12098).

11/9/94U.S. Secretary of State Warren Christopherholds talks with South Korean President KimYoung-sam and Foreign Minister Han Sung-joo in Seoul about the implementation ofthe U.S.-DPRK nuclear accord.

Carol Giacomo, Reuter; in Washington Times, 11/10/94, p. A19 (12099).

11/14/94U.S. President Bill Clinton holds a seriesof bilateral discussions with Chinese Presi-dent Jiang Zemin, South Korean PresidentKim Young-sam, and Japanese Prime Min-ister Tomiichi Murayama in Jakarta, Indo-nesia, to elicit support from each countryfor the U.S.-DPRK nuclear accord and forrenewed dialogue between North and SouthKorea. Zemin’s expression of support rep-resents the first explicit Chinese approvalof the nuclear agreement. Clinton discussesfinancing for the construction of light wa-ter reactors (LWRs) and the provision ofalternative fuel for North Korea with Kimand Murayama, who agree to accelerate thecreation of an international consortium tohelp construct LWRs in North Korea to re-place its graphite-moderated reactors.Murayama suggests that the G-7 nations andothers should participate in financing theproject.

Sid Balman Jr., UPI, 11/14/94; in Executive NewsService, 11/14/94 (12102). Elaine Sciolino, NewYork Times, 11/15/94, p. A6 (12102).

12/6/94-12/9/94U.S. and North Korean officials hold talksin Washington to discuss diplomatic liaisonoffices under the U.S.-DPRK nuclear ac-cord. The talks are led by U.S. Bureau of

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East Asian and Pacific Affairs Coordinatorfor U.S.-North Korean Affairs Lynn Turkand North Korean Foreign Ministry DeputyDirector of the America Department PakSok-guyn. U.S. Deputy Assistant Secre-tary of State Thomas Hubbard says the talkswere “cooperative and constructive” and thatthe two teams will meet again to discusspossible locations for liaison offices in early1995.

William Scally, Reuter, 12/9/94; in Executive NewsService, 12/9/94 (12520).

1/9/95U.S. officials say the U.S. will be contrib-uting “tens of millions of dollars” to imple-ment the U.S.-DPRK nuclear accord, whichis higher than the original estimated contri-bution of $4.5 million. U.S. Assistant Sec-retary of State for East Asian and PacificAffairs Winston Lord says the U.S. will befinancing the disposal of spent fuel fromNorth Korea’s nuclear reactors and the “start-up costs” of the Korea Energy DevelopmentOrganization (KEDO).

Ben Barber, Washington Times, 1/10/95, p. 1(12369).

1/20/95The U.S. relaxes trade restrictions on NorthKorea for the first time in 44 years as partof the implementation of the U.S.-DPRKnuclear accord.

Martin Sieff, Washington Times, 1/21/95, p. A1(12357).

1/27/95U.S. Deputy Secretary of State StrobeTalbott says that North Korea must begintalks with South Korea in order for the U.S.and North Korea to establish respective li-aison offices and in order for the U.S.-DPRKnuclear accord to be implemented.

Reuter, 1/31/95; in Executive News Service, 1/31/95 (12351).

1/28/95The U.S. and North Korea begin discussionsin Berlin on the details of the U.S.-DPRKnuclear accord.

Reuter, 1/29/95; in Executive News Service, 1/30/95 (12548).

1/31/95U.S. officials arrive in North Korea to hold

discussions on the establishment of liaisonoffices in Pyongyang and Washington, D.C.as part of the U.S.-DPRK nuclear accord.

Reuter, 1/31/95; in Executive News Service, 1/31/95 (12351).

2/7/95U.S. and allied officials reject a North Ko-rean request for an additional $500 millionto $1 billion in economic and technical as-sistance under the U.S.-DPRK nuclear ac-cord. North Korea asked for the funds dur-ing recent talks with the U.S. in Berlin. Itclaimed it will need the funds to install newtransformer lines and electrical power sub-stations and to build a simulator to trainreactor operators. A U.S. official says theU.S. has “no intention” of supplying NorthKorea with a new power grid or other reac-tor items.

R. Jeffrey Smith, Washington Post, 2/8/95, p. A24(12518).

2/8/95While meeting with German Foreign PolicyAdvisor Joachim Bitterlich and other Ger-man officials, U.S. Ambassador-at-LargeRobert Gallucci requests German politicaland financial assistance for the implemen-tation of the U.S.-DPRK nuclear accord.Germany has not made a commitment toparticipate in the construction of nuclearreactors in North Korea. Gallucci has alsovisited France and Britain, and is expectedto travel to Italy, to win support for theproject.

Reuter, 2/8/95; in Executive News Service, 2/8/95(12531).

IV. U.S. Congressional Review:NORTH KOREA WITH UNITED STATES

11/27/94It is reported that U.S. Republican legisla-tors, including Senators Bob Dole, JesseHelms, and Frank Murkowski, want to blockthe use of U.S. funds for the purchase of oilto supply North Korea with alternative en-ergy until light water reactors (LWRs) areconstructed under the U.S.-DPRK nuclearaccord. U.S. Ambassador-at-Large RobertGallucci says a Congressional move to blockfunding for the oil could “undo” the agree-ment, but notes that Congress has not yet

been briefed on the details of the accord.Steven Greenhouse, New York Times, 11/27/94, p.9 (12388). Louise Lief and Tim Zimmerman, U.S.News & World Report, 11/28/94, pp. 53, 54, 56(12388).

12/1/94U.S. Ambassador-at-Large Robert Galluccidefends the U.S.-DPRK nuclear accord be-fore the Senate Foreign Relations Subcom-mittee. Gallucci admits that North Koreacould withdraw from the agreement in about15 years to reprocess plutonium from thetwo new LWRs after their completion, buthe stressed that spent fuel from the LWRswould be highly radioactive, and that theU.S. could in that case discontinue supply-ing the country with new fuel rods neces-sary to operate the reactors. In response toindependent nuclear proliferation expertGary Milhollin’s claims that North Koreacould use LWRs to produce more weapons-grade plutonium than what it can currentlyproduce (about 30 weapons per year),Gallucci notes that in “strategic terms” thereis little difference between such largeamounts of plutonium. Gallucci clarifiesthat a promise made by U.S. PresidentClinton in a letter to North Korean leaderKim Jong-il, stating that the U.S. will pro-vide LWRs if other nations refuse, is not alegally binding commitment.

R. Jeffrey Smith, Washington Post, 12/2/94, p. A10(12496).

12/12/94U.S. Senator Frank Murkowski, who willbe chairing the Senate’s Subcommittee onEast Asia in the next U.S. Congress, sayshe does not expect the Congress to blockimplementation of the U.S.-DPRK nuclearaccord.

Andrew Pollack, New York Times, 12/13/94 (12536).

1/23/95U.S. Senate Foreign Relations ChairmanJesse Helms, Senate Energy and NaturalResources Committee Chairman FrankMurkowski, and Senate Armed ServicesCommittee Chairman Strom Thurmond holda week of Senate Foreign Relations Com-mittee hearings to discuss the U.S.-DPRKnuclear accord. Among other things, theagreement is criticized for failing to requirethat 8,000 spent nuclear fuel rods be re-

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moved from cooling ponds at Yongbyon andtransported to another country for reprocess-ing.

Kathleen Hart, Nuclear Fuel, 1/30/95, pp. 15-17(12347).

1/24/95U.S. Secretary of State Warren Christophertells the U.S. Senate Foreign Relations Com-mittee that the U.S.-DPRK nuclear agree-ment allows the U.S. to obtain its strategicobjectives, maintain the security of Japanand South Korea, help stop the nuclear armsrace in Northeast Asia, strengthen the non-proliferation regime, and provide a reduc-tion of tensions on the Korean peninsula.Christopher notes that the implementationof the agreement is steadily proceeding.

Warren Christopher, U.S. Department of State Dis-patch, 1/30/95, pp. 55-57 (12347).

V. Status of DPRK Facilities & IAEAMonitoring and Verification:

NORTH KOREA WITH IAEA, UNITED NA-TIONS, AND UNITED STATES

10/17/94IAEA Director General Hans Blix reportsto the U.N. General Assembly that NorthKorea’s noncompliance with IAEA safe-guards and transparency measures has pre-vented the IAEA from obtaining sufficientinformation concerning suspicions overNorth Korea’s nuclear program. The IAEAhas ascertained that North Korea may pos-sess more than its declared amount of plu-tonium. The U.N. General Assembly isexpected to pass a resolution on 10/19/94asking North Korea to allow IAEA safe-guards inspections to be implemented incompliance with the IAEA safeguards agree-ment.

Yonhap (Seoul), 10/18/94; in JPRS-TND-94-020,11/17/94, p. 7 (12362).

10/21/94North Korean First Vice Minister of For-eign Affairs Kang Sok-ju says that NorthKorea intends to fulfill its obligations un-der the U.S.-DPRK agreement and demon-strate that it has “no intentions or plans todevelop nuclear weapons,” but adds thatIAEA inspections of two suspected nuclearwaste sites in North Korea will not be al-

lowed until North Korea has the light waterreactors (LWRs) “in [its] hands.”

William Drozdiak, Washington Post, 10/22/94, pp.A1, A25 (12551).

10/25/95The IAEA Department of Safeguards meetsto discuss the Agency’s role in North Koreaunder the U.S.-DPRK nuclear accord. TheIAEA is drafting a schedule which will out-line IAEA implementation of future full-scope safeguards inspections in North Ko-rea and Agency participation in overseeingthe shutdown of the 5 MW Yongbyon and200 MW Taechon nuclear reactors. The planwill be submitted to North Korea for re-view and acceptance or modification, andthen will be sent to the IAEA Board of Gov-ernors for approval. It is expected that be-fore the plan is finalized, the U.N. SecurityCouncil will approve a resolution mandat-ing the IAEA to verify the freeze of NorthKorea’s nuclear facilities under the U.S.-DPRK agreement.

Mark Hibbs, Nucleonics Week, 10/27/94, pp. 17-19 (12353).

11/1/94A North Korean Foreign Ministry spokes-man states that North Korea is taking “prac-tical steps” to implement its frameworkagreement with the U.S. The spokesmansays that the DPRK Administration Coun-cil has ordered the cessation of construc-tion on North Korea’s 50 MW and 200 MWgraphite-moderated nuclear reactors as of11/94, and has decided to halt operation ofthe 5 MW Yongbyon reactor, withdrawingthe fuel rods that were intended to refuel it.In addition, North Korea is continuing tokeep its radiochemical laboratory and othernuclear facilities out of operation. An IAEAspokesman says the Agency is unable toconfirm whether the construction on thereactors has been suspended.

KCNA, 11/1/94 (12494). Asahi Shimbun, 11/2/94 (12494).

11/4/94The U.N. Security Council asks the IAEAto consult with North Korea in order to un-dertake measures to monitor the freeze de-fined in the U.S.-DPRK nuclear accord, andalso to verify North Korea’s initial report of

nuclear material in its possession, in com-pliance with its safeguards agreement,INFCIRC/403.

UN Weekly, 11/8/94 (12098).

11/11/94During a special meeting, the IAEA Boardof Governors decides that the Agency willcontact North Korea to discuss verificationof the U.S.-DPRK nuclear accord. TheIAEA is also expected to send a small in-spection team to North Korea to make prepa-rations for verification.

Steve Pagani, Reuter, 11/11/94; in Executive NewsService, 11/11/94 (12100).

11/16/94IAEA Safeguards chief Bruno Pellaud meetswith North Korean Ambassador in ViennaKim Gwang-sop at IAEA headquarters andrequests that a team of Agency technicalexperts be allowed to go to North Korea assoon as possible to consult on carrying outthe nuclear freeze. The team would also beresponsible for initiating measures to beginmonitoring the freeze.

Steve Pagani, Reuter; in Washington Times, 11/17/94, p. A15 (12101).

11/18/94A North Korean Foreign Ministry spokes-man announces that North Korea hasstopped work on its graphite-moderatednuclear reactors and related facilities as perits accord with the U.S. North Korea asksthe U.S. to fulfil its promises under the bi-lateral accord and promises to comply withits obligation to dismantle the rest of thecomponents at its suspected nuclear weap-ons sites, but makes no mention of inspec-tions for its two suspected nuclear wastedumps.

North Korean Ambassador in Vienna KimGwang-sop announces that travel visas willbe ready during the week of 11/21/94 foran IAEA inspection team to go to NorthKorea, where it will join two inspectors whohave been stationed at the Yongbyon nuclearcomplex since 5/94.

UPI, 11/18/94 (12101). James Sterngold, New YorkTimes Service; in International Herald Tribune, 11/19/94 (12104). Washington Times, 11/19/94, p.A7 (12104).

11/21/94A group of IAEA negotiators and nuclear

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inspectors is en route to Pyongyang to be-gin talks with North Korean officials on theprocess of verification to be used to ensureNorth Korea’s compliance with the U.S.-DPRK nuclear accord. Agency officialswant to establish periodic IAEA inspectionsof North Korean nuclear facilities and pos-sibly permanent IAEA representation inNorth Korea.

Reuter, 11/21/94; in Executive News Service, 11/21/94 (12106).

11/28/94The IAEA announces that its inspectors havevisited North Korean nuclear facilities andconfirmed that operations have been frozenat the 5 MW nuclear reactor, reprocessingplant, and fuel production facility inYongbyon, and that construction has beenstopped on the 50 MW Yongbyon reactorand the 200 MW Taechon reactor. TheAgency carried out verification proceduresfollowing a succession of talks between anIAEA technical team and North Korean of-ficials about the creation of an inspectionplan to verify North Korea’s compliance withthe U.S.-DPRK nuclear accord. The IAEAis to continue dialogue with North Korea toresolve the details of further inspections.

Reuter, 11/29/94; in Executive News Service, 11/28/94 (12107).

12/8/94IAEA Chief Hans Blix tells the IAEA Boardof Governors that North Korea has demon-strated its cooperativeness during two weeksof talks with the Agency. Blix says NorthKorea has promised to permit more inspec-tors, facilitate the acquisition of visas, andimprove communication between IAEA of-ficials in North Korea and the Vienna head-quarters.

Steve Pagani, Reuter, 12/9/94; in Executive NewsService, 12/9/94 (12497).

12/9/94The IAEA Board of Governors asks theAgency directors to continue seeking con-tacts with North Korea in order to imple-ment procedures for verifying North Korea’snuclear freeze.

Steve Pagani, Reuter, 12/9/94; in Executive NewsService, 12/9/94 (12497).

1/23/95

The IAEA and North Korea hold a secondround of working-level talks in Pyongyangto discuss the freeze of North Korea’s nuclearprogram. IAEA spokesman David Kyd in-dicates that substantial progress was made.

Cha Man-sun, KBS-1 Radio Network, 1/31/95; inFBIS-EAS-95-020, 1/31/95 (12548).

VI. Storage of Spent Fuel Rods:NORTH KOREA WITH CHINA, FRANCE,IAEA, JAPAN, RUSSIA, SOUTH KOREA, AND

UNITED STATES

10/94IAEA inspectors indicate that, since NorthKorea has improved its care of 8,000 spentnuclear fuel rods that were removed fromthe 5 MW Yongbyon nuclear reactor andstored in cooling ponds in mid-1994, thefuel rods will continue to be safe for severalmore months if current conditions are main-tained. The IAEA indicates that the rodsmay remain there even longer if North Ko-rea improves the quality of the water in thecooling ponds.

J.F.O. McAllister, Time, 10/10/94, p. 51 (12212).

11/2/94South Korean Foreign Minister Han Sung-joo says that South Korea hopes the PRCwill play a part in the removal of spentnuclear fuel rods from North Korea.

Reuter, 11/2/94; in Executive News Service, 11/2/94 (12097).

11/14/94-11/18/94U.S. and North Korean nuclear experts holdtalks in Pyongyang about the safe storageand final disposition of North Korea’s 8,000spent nuclear fuel rods. The five-memberteam of U.S. experts, headed by U.S. ArmsControl and Disarmament Agency AssistantDirector Norman Wolf, visits the 5 MWYongbyon reactor and the cooling pond con-taining the spent fuel rods.

Washington Times, 11/16/94, p. A17 (12103).Reuter, 11/19/94; in Executive News Service, 11/19/94 (12103).

1/24/95The U.S. and North Korea reach a “tenta-tive agreement,” after six days of expert-leveltalks in Pyongyang, to implement a newmethod to safely store North Korea’s 8,000spent nuclear fuel rods. In 1995, the fuel

rods will be placed in stainless steel canis-ters with non-reactive gas to slow their de-terioration during storage until they aretransported out of North Korea. Althoughthe U.S.-DPRK nuclear accord provides forthe rods to be transferred to a third country,North Korea has said that it wants a guaran-tee that the light water reactors will be con-structed before it permits the fuel rods toleave North Korea.

Reuter, 1/24/95; in Executive News Service, 1/24/95 (12373). Financial Times, 1/25/95, p. 4 (12373).

2/2/95It is reported that U.S. officials say that,due to difficulties finding a third country toaccept North Korea’s spent nuclear fuel rods,they may need to be brought to the U.S. forreprocessing. The spent fuel rods are cur-rently being stored in cooling ponds inNorth Korea until they can be transferred toanother country for reprocessing or disposal.A 1994 CIA estimate said the rods wouldbegin disintegrating between 11/94 and 12/94. A group of U.S. State Department andEnergy Department officials have reportedfrom a recent visit to the North Koreannuclear facility that the cooling pond hasbecome “clouded and infested with algae,”signalling possible contamination of therods. The IAEA has warned that some ofthe fuel rods in the cooling ponds may bedamaged, which could result in “spontane-ous combustion” when they are removedfrom the pond. Russia, Japan, and SouthKorea are not able to receive the rods, whileChina appears unwilling to accept them, andtransport to France would be too costly.

Stewart Stogel, Washington Times, 2/2/95, pp. A1,A12 (12543).

VII. Creation of the Korea Energy De-velopment Organization (KEDO) and Fi-nancing Arrangements:

NORTH KOREA WITH AUSTRALIA, CANADA,CHINA, FRANCE, GERMANY, JAPAN, RUS-SIA, SOUTH KOREA, UNITED KINGDOM, AND

UNITED STATES

10/19/94It is reported that North Korea has agreedto pay for light water reactors (LWRs) pro-vided under the U.S.-DPRK nuclear accord,and considers assistance from the interna-

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tional consortium that will finance and su-pervise the project, temporarily called theKorean Energy Development Organization(KEDO), to be a “long-term loan.” KEDOwill also arrange for alternative fuel com-pensation under the U.S.-DPRK nuclearaccord. The consortium will provide $4billion to North Korea, including $3.5 bil-lion to build two 1,000 MW LWRs and $500million to dismantle North Korea’s currentnuclear facilities. KEDO will also raise$300 million for heavy oil, $100 million totransfer North Korea’s spent nuclear fuelrods, and $100 million to operate the con-sortium itself.

Kyodo News Service, 10/19/94; in Nuclear Prolif-eration News, 10/28/94 (12551). Newsreview, 11/5/94, p. 11 (12389). Korea Herald (Seoul), 11/2/94, pp. 2, 5; in FBIS-EAS-94-212, 11/2/94 (12389).

10/25/94Japanese Finance Minister MasayoshiTakemura says that Europe should pay forpart of the estimated $4 billion cost of re-placing North Korea’s graphite-moderatednuclear reactors, and that Japan may makeits financial support for the project contin-gent on European countries’ contributions.

James Sterngold, New York Times, 10/26/94, p. A7(12355).

10/28/94It is reported that South Korea is expectedto contribute 55 percent of the costs to re-place North Korea’s graphite-moderatednuclear reactors, with the remaining coststo be divided among the five U.N. SecurityCouncil members (Russia, France, PRC,U.K., and U.S.), Germany, Canada, Japan,and Australia.

John Burton, Financial Times, 10/28/94, p. 4(12355).

11/94South Korea has devised a financing plan toraise $3 billion to contribute to the construc-tion of two 1,000 MW LWRs in North Ko-rea by placing a two or three percent levyon the revenues of the Korea Electric PowerCompany (KEPCO) over a 10-year periodwhile the reactors are being built. KEPCOcould recoup its contribution with a por-tion of the output from the reactors oncethey are built. In order for the plan to becarried out, North Korea must accept South

Korean LWR technology as the model forthe new reactors.

Nuclear News, 11/94, p. 41 (12108).

Early 11/94A South Korean interministerial group ledby Vice Foreign Minister Park Kun-woomeets to consider South Korea’s participa-tion in KEDO. South Korean Deputy Pre-mier and Unification Minister Yi Hong-kusays that assistance to North Korea shouldbe viewed as a way to secure an adequatesupply of energy for the Korean Peninsulain the 21st century.

Newsreview, 11/5/94, p. 11 (12389). Korea Herald(Seoul), 11/2/94, pp. 2, 5; in FBIS-EAS-94-212,11/2/94 (12389).

11/1/94State Department spokesman David Johnsonstates that the U.S. would be the “player oflast resort” if other countries such as SouthKorea and Japan refuse to help finance the$4 billion nuclear reactor project in NorthKorea.

Thomas Wagner, Washington Times, 11/2/94, p. A11(12494).

11/18/94U.S. Ambassador-at-Large Robert Gallucci,South Korean Assistant Minister for Politi-cal Affairs Choi Dong-jin, and JapaneseForeign Policy Bureau Director GeneralShunji Yanai agree in Washington to takesteps to set up the international consortiumfor the nuclear reactor project in North Ko-rea. U.S. State Department spokesmanDavid Johnson says the talks are “very pro-ductive” and will continue in 12/94. Thedelegations determine that the consortium,led by the U.S., South Korea, and Japan,should be created in the “near future” with“broad multilateral participation.” SouthKorea will propose a management commit-tee for KEDO that will include Japan, thePRC, Russia, South Korea, and the U.S.

Reuter, 11/18/94; in Executive News Service, 11/21/94 (12105). Asahi Shimbun, 11/18/94 (12105).

11/26/94Japanese government officials report that theU.S., Japan, and South Korea agreed dur-ing a working-level meeting the previousweek to replace KEDO with a structure un-der an existing international body, most

likely the United Nations Development Pro-gram. The three countries hope to set upthe new body by early 1995.

UPI, 11/26/94; in Executive News Service, 11/28/94 (12105).

12/16/94U.S. Ambassador-at-Large Robert Gallucci,Japanese Envoy for relations with NorthKorea Tetsuya Endo, and South Korean As-sistant for Political Affairs Choi Dong-jincomplete two days of talks in San Franciscoon the creation of KEDO. According to ajoint statement, the consortium will be head-quartered in New York, and the first meet-ing is expected to be held in 2/95. Thestatement specifies that South Korea willplay a primary role in financing and con-structing two South Korean-model 1,000MW LWRs in North Korea. Japan is ex-pected to have “an appropriate role” in fi-nancing and overseeing construction.Gallucci has attempted to gain support forthe project from other G-7 countries.

Reuter, 12/16/94; in Executive News Service, 12/16/94 (12493).

12/19/94Japanese Vice Foreign Minister KunihikoSaito says Japan is only prepared to providelimited financial assistance necessary for theconstruction of LWRs in North Korea.

Reuter, 12/19/94; in Executive News Service, 12/19/94 (12493).

1/95Russian Deputy Foreign Minister AlaksandrPanov says that Russia will not accept a sec-ondary role in the operations of KEDO.Russia may refuse to participate in the in-ternational consortium if it is not given anequal role in the provision of LWRs to NorthKorea.

Andrey Bychkov, Itar-Tass (Moscow), 1/25/95; inFBIS-SOV-95-016, 1/25/95 (12435).

1/11/95After four days of deliberations, South Ko-rea, the U.S., and Japan agree that KEDOwill be headed by a U.S. ambassador or U.S.assistant vice minister-level official at theNew York headquarters. Both South Koreaand Japan agree to provide KEDO with adeputy secretary-general. The U.S. agreesto finance a majority of the cost of provid-ing heavy oil to North Korea while its LWRs

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are being constructed under the U.S.-DPRKnuclear accord. South Korea agrees to payfor over half the cost of construction of theLWRs, and Japan agrees to finance about30 percent of the construction costs.

Newsreview, 1/14/95, p. 6 (12368).

2/17/95An unidentified Chinese arms control ex-pert says China can only play a marginalrole in KEDO, since China is not one of themain partners.

Reuter, 2/17/95; in Executive News Service, 2/20/95 (12541).

VIII. Debate on LWR Supplier:NORTH KOREA WITH GERMANY, JAPAN, RUS-SIA, SOUTH KOREA, AND UNITED STATES

10/18/94Russian Foreign Ministry spokesmanMikhail Demurin says that Russia approvesof the U.S.-DPRK nuclear accord, and sug-gests that Russia could provide North Ko-rea with light water reactors (LWRs).

Reuter, 10/18/94; in Executive News Service, 10/18/94 (12411).

11/94Russian Deputy Finance Minister AleksandrPanov says that Russia will enter into nego-tiations with North Korea to resume previ-ously abandoned plans for the constructionof a LWR in Pyongyang as a result of theU.S.-DPRK nuclear accord. Panov saysRussia is ideally suited to participate in theinternational consortium that is to provideLWRs to North Korea because North Koreahas expressed an interest in Russian coop-eration, because Russian technology is safeand competitive, and because Russian ex-perts have already chosen a site for the fa-cility and conducted feasibility studies onthe project.

Interfax (Moscow), 11/4/94; in FBIS-SOV-94-215,11/4/94 (12141).

11/15/94Russian Foreign Ministry spokesmanGrigoriy Karasin indicates that, in view ofthe fact that Russia suspended an earlieragreement to help the DPRK build LWRs,South Korean and U.S. plans to supply thereactors to North Korea violate the principlethat nuclear exporters should not use “non-

proliferation” principles for economic gain.Valeriy Sevryukov and Vladimir Suprun, Itar-Tass(Moscow), 11/15/94; in FBIS-SOV-94-221, 11/15/94 (12141).

Late 11/94South Korean Foreign Minister Han Sung-joo tells the South Korean NationalAssembly’s Foreign Affairs and UnificationCommittee that the U.S., South Korea, andJapan have decided that the Korea EnergyDevelopment Organization (KEDO) willhave the authority to select a contractor forthe construction of two LWRs in North Ko-rea under the U.S.-DPRK nuclear accord.Han says the LWR contract will be awardedto a South Korean firm by the 4/21/95 dead-line, and will use the Korean standard LWRas a “reference model” for the constructionof the new reactors in North Korea.

Newsreview, 12/3/94, p. 4 (12401).

11/30/94-12/2/94Eight U.S. negotiators and 10 North Ko-rean nuclear experts meet in Beijing to dis-cuss the LWR construction outlined in theU.S.-DPRK nuclear accord. U.S. State De-partment Deputy Spokeswoman ChristineShelly says the U.S. and DPRK “reaffirmedtheir intention to cooperate” to reach agree-ment on the provision of LWRs accordingto the terms of the framework agreement.North Korean officials insist during the talksthat the DPRK should be able to choosewho builds the reactors, since it is payingfor their construction, and opposes the pro-vision of South Korean LWRs because theyhave never been exported and the safety ofthe model is not certain. U.S. officials aresaid to have responded by stating that onlythe international consortium that will sup-ply the reactors can choose the model to beprovided. The U.S. and DPRK agree tocontinue talks in 1/95.

Benjamin Kang Lim, Reuter, 12/1/94; in ExecutiveNews Service, 12/1/94 (12495). Reuter, 12/2/94;in Executive News Service, 12/2/94 (12495).

12/3/94A senior Korea Electric Power Corporation(KEPCO) official says the South Koreancompany has reached an agreement with theU.S. company Combustion Engineering(CE), under which KEPCO will not be re-quired to pay royalties to CE if Ulchin Nos.3 and 4 LWR models, the technology for

which was originally provided by CE, arebuilt in North Korea. In return, KEPCOpromises CE a share in manufacturing partsfor the North Korea-bound LWRs if KEPCOis chosen as the primary contractor in theproject.

Yonhap (Seoul), 12/3/94; in FBIS-EAS-94-233, 12/5/94 (12482).

1/95Russian Deputy Foreign Minister AlaksandrPanov says North Korea wants Russian-madeLWRs because North Korean nuclear expertsare familiar with Russian equipment andspeak Russian, and because Russian equip-ment is reliable and inexpensive.

Andrey Bychkov, Itar-Tass (Moscow), 1/25/95; inFBIS-SOV-95-016, 1/25/95 (12435).

1/16/95A North Korean Foreign Ministry spokes-man says that the U.S.-DPRK nuclear ac-cord will be threatened if the U.S., SouthKorea, and Japan plan to supply North Ko-rea with South Korean LWRs.

Reuter, 1/16/95; in Executive News Service, 1/17/95 (12359).

1/23/95South Korea sets up the Offices for Light-Water Reactor Planning to implement de-tails concerning the provision of LWRs toNorth Korea.

Reuter, 1/24/95; in Executive News Service, 1/24/95 (12350).

1/28/95During U.S.-DPRK talks in Berlin, the headof the U.S. delegation, Gary Samore, indi-cates to North Korean Vice-Chairman of theExternal Economy Commission Kim Jong-u that the reactors supplied to North Koreamust be South Korean-style LWRs.

Reuter, 1/29/95; in Executive News Service, 1/30/95 (12548).

1/31/95U.S. Deputy Assistant Secretary of State forEast Asia Thomas Hubbard acknowledgesthat, during recent talks, North Korea re-fused to accept South Korean LWRs underthe U.S.-DPRK nuclear accord. FormerSouth Korean Ambassador to the U.S. HyunHong-joo has stated that if South Korea isnot given a fundamental role in supplying

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the LWRs, it will be difficult to obtain fundsfrom the Korean Congress for the KoreanEnergy Development Organization(KEDO), which is to finance the LWRproject.

Kathleen Hart, Nucleonics Week, 2/2/95, pp. 11-12(12542).

2/6/95U.S. officials say North Korea rejected theterms of a draft contract for the construc-tion of two LWRs during recent talks inBerlin.

R. Jeffrey Smith, Washington Post, 2/7/95; in Ex-ecutive News Service, 2/7/95 (12542).

2/8/95U.S. State Department spokeswoman Chris-tine Shelley says the U.S. requires NorthKorea to accept South Korean reactors be-cause South Korea is the only nation will-ing to finance a large part of their construc-tion.

Steven Greenhouse, New York Times, 2/9/95, p. A6(12542). Reuter, 2/9/95; in Executive News Ser-vice, 2/9/95 (12532).

2/15/95North Korea threatens to withdraw from theU.S.-DPRK nuclear accord if it is forced toaccept South Korean LWRs. The U.S. ar-gues that North Korea’s threat is meant toserve as a bargaining tactic during renewedtalks in 3/95.

John Burton, Financial Times, 2/16/95, p. 6(12530). Paul F. Horvitz, International Herald Tri-bune, 2/16/95, pp. 1, 6 (12530).

2/17/95It is reported that U.S. officials are consid-ering a plan which would allow South Ko-rea to construct LWRs in North Korea whileusing the name of a U.S. company as thecontractor. A North Korean official saysthe DPRK does not want South Korea listedas the official contractor for KEDO. TheU.S. State Department has already contactedWestinghouse Electric Corporation to seeif it would be willing to provide its namefor the project. Westinghouse, BechtelGroup Inc., and other companies have ex-pressed an interest in offering their namesto the project.

Ben Barber and Stewart Stogel, Washington Times,2/17/95, pp. A1, A15 (12540).

2/20/95South Korea refuses to accept a North Ko-rean suggestion that South Korea play a sec-ondary role in furnishing LWRs to NorthKorea and insists that South Korea shouldbe defined as the main supplier of the reac-tors in any contracts arranged between NorthKorea and the international consortium re-sponsible for constructing the reactors.

John Burton, Financial Times, 2/21/95, p. 6(12529).

2/21/95German company Siemens AG officials sayNorth Korean experts and diplomats learnedabout the capabilities of the Teleperm in-strumentation and control (I&C) systemduring a 2/95 visit to Siemens’ KWU PowerEngineering Division in Erlangen, Ger-many. The German company has said itwould be willing to supply the I&C systemfor the North Korean pressurized water re-actors (PWRs), if the German governmentdecides to finance the project. Siemensspokesman Wolfgang Breyer says the com-pany could modify its I&C system to fit thedesign of the Combustion Engineering PWRthat is being considered for North Korea.

Mark Hibbs, Nucleonics Week, 2/23/95, p. 3(12531).

2/23/95U.S. Ambassador-at-Large Robert Galluccitells the Asian Subcommittee of the U.S.House International Relations Committeethat no LWRs will be built unless NorthKorea accepts South Korean reactors.Gallucci also says he told Russian officials,during a visit to Moscow in early 2/95, thatthere would be no financial backing for theconstruction of Russian nuclear reactors inNorth Korea.

Elaine Sciolino, New York Times, 2/24/95, p. A5(12519).

IX. North-South Relations:NORTH KOREA WITH SOUTH KOREA AND

UNITED STATES

11/3/94South Korean Unification Minister LeeHong-koo suggests setting up a nuclear “con-sultative body” with North Korea to con-sider cooperative energy development in

light of the U.S.-DPRK nuclear accord.Reuter, 11/3/94; in Executive News Service, 11/3/94 (12233). Standard (Austria), 4/11/94 (12233).

12/9/94North Korea issues a statement demandingthat South Korea publicly disclose its nuclearprogram.

Victor Zamyatin, Kommersant Daily (Moscow), 12/10/94, p. 4; in FBIS-SOV-94-238, 12/10/94(12407).

2/9/95A statement in North Korea’s official news-paper Rodong Sinmun rejects recent U.S.demands that it recommence dialogue withSouth Korea as a component of the U.S.-DPRK nuclear agreement, contending thatthe two issues are separate.

Reuter, 2/9/95; in Executive News Service, 2/9/95(12532).

2/16/95North Korea refuses U.S. demands to re-sume a political dialogue with South Ko-rea.

John Burton and Peter Montagnon, Financial Times,2/17/95, p. 4 (12530).

PAKISTAN

INTERNAL DEVELOPMENTS

10/6/94It is reported that Pakistan is threatening tocomplete and operate a secret, unsafeguarded50-70 MW plutonium production reactor ifIndia does not agree to end its productionof fissile materials and maintain a stockpileno larger than Pakistan’s. According toRussian intelligence reports, the natural ura-nium-fueled, heavy-water moderated reac-tor at Khusab, near Sargodha, is about 50percent complete. Pakistan has acquired theability to produce the natural uranium fuelfor the Khusab reactor “on a pilot basis.”However, it is unclear whether the countryhas stockpiled heavy water to use in theplant. Nucleonics Week revealed the secret

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reactor project in 1989, and Western offi-cials confirmed its existence in late 9/94.U.S. officials have indicated that the equip-ment for the plant was Western in origin,but “intelligence reports” say that China pro-vided Pakistan with “key reactor equipmentand engineering expertise.” In about 1989-1990, the U.S. privately lobbied Pakistanto stop work on the plant, and it is still in-tends to ensure that the reactor will remainincomplete.

Mark Hibbs, Nucleonics Week, 10/6/94, pp. 10-11(12274). C. Raja Mohan, Hindu, 12/10/94, p. 12(12274).

10/23/94Sharif Mushahid Hussein, Information Sec-retary to Pakistani opposition leaderMohammad Nawaz, issues a written state-ment declaring that Pakistan should be rec-ognized as a nuclear weapons state withinthe NPT in exchange for its continued freezeon fissile material production. Pakistan hasindicated that it will restart work on a se-cret plutonium and tritium production pro-gram if there is no progress on a global fis-sile material cut-off.

Mark Hibbs, Rauf Siddiqi, and Naoaki Usui, Nucle-onics Week, 10/27/94, pp. 1, 16-17 (12279).

1/95It is reported that Pakistan Atomic EnergyCommission (PAEC) Chairman IshfaqAhmed has announced that the PAEC hasestablished an institute in Islamabad for thetraining of nuclear engineers and scientists.The PAEC has also founded a non-destruc-tive testing center which is scheduled tobegin operations in 1996.

Nuclear Engineering International, 1/95, p. 6(12218).

PAKISTAN WITH AUSTRIA, FINLAND,INDIA, AND UNITED ARAB EMIRATES

10/24/94It is reported that Boehler Edelstahl of Aus-tria sent a shipment of 6 MT of maragingsteel to an unknown destination in 1990.The shipment was sent free on board (FOB)to Hamburg on a Finnish National Ship-ping Line ship bound for Rotterdam,Felixstowe, the United Arab Emirates,Karachi, and Bombay. Because Iraq had

received 100 MT of maraging steel fromthe Austrian firm in 1989, there is specula-tion that Iraq may have been the recipientof the 1990 shipment as well; Iraq, how-ever, has not notified the IAEA that it hadacquired an extra 6 MT of maraging steel,and it has been suggested that it may havegone to Pakistan or India. Western govern-ment officials say that the 6 MT shipmentis “missing.”

PPNN Newsbrief, Fourth Quarter 1994, pp. 16-17(12271). Nuclear Engineering International, 11/94, p. 6 (12271).

PAKISTAN WITH FRANCE

11/2/94During a four-day visit to Paris, PakistaniPrime Minister Benazir Bhutto proposes thatFrance act as a mediator between India andPakistan in their disputes over nuclear weap-ons. French uncertainty over Pakistaninuclear intentions and Pakistan’s refusal tosign the NPT have delayed the planned saleof a nuclear reactor to Pakistan. Bhutto at-tempts to allay French fears of Pakistaninuclear proliferation by declaring her readi-ness to sign the NPT and to accept interna-tional inspection if India agrees to the samemeasures.

Reuter, 11/2/94 (12217).

11/3/94Pakistani Prime Minister Benazir Bhutto andFrench officials are expected to discuss re-viving a 1984 contract for France to supplyPakistan with a 900 MW nuclear reactor.The on-again off-again deal for the deliveryof the reactor was first agreed upon in 1976[before France signed the NPT], but at alater date France made it contingent onPakistan’s accession to the NPT. Bhuttostated that France and Pakistan are engagedin “high-level” negotiations concerning thedelivery of the reactor and that she is “opti-mistic” that the talks will be successful.

Denholm Barnetson, UPI, 11/2/94; in ExecutiveNews Service, 11/2/94 (12276). Nucleonics Week,11/3/94, p. 17 (12276).

PAKISTAN WITH FRANCE AND

UNITED KINGDOM

11/24/94

It is reported that U.K. customs halted theshipment of vacuum furnaces, which can beutilized in the development of materialsneeded for nuclear weapons production, toPakistan’s Institute for Industrial Automa-tion. The transaction had been arranged bya small company from France.

Foreign Report, 11/24/94 (12275).

PAKISTAN WITH GERMANY

12/94Germany removes 24 countries, includingPakistan, the PRC, and India, from its ex-port trigger list, called the “H-List.” Anyexports to a country on that list require in-teragency authorization as well as a permitfrom Germany’s Federal Export Authority.

Mark Hibbs, Nucleonics Week, 12/15/94, pp. 10-11 (12281). Mark Hibbs, NuclearFuel, 12/5/94,pp. 4-5 (12281).

PAKISTAN WITH IRAN

1/11/95U.S. Secretary of Defense William Perry saysthat he has no information that Pakistan isproviding nuclear technology to Iran.

Reuter, 1/11/95; in Executive News Service, 1/11/95 (12525).

PAKISTAN WITH PRC

11/5/94It is reported that Pakistani PresidentLeghari has expressed his country’s desireto acquire technology from the PRC to builda nuclear power plant.

Voice of Russia World Service (Moscow), 11/5/94;in FBIS-SOV-94-234, 11/5/94 (12088).

12/10/94It is reported that India believes that the PRCaided Pakistan in constructing the Sargodhanuclear reactor. Certain “intelligence re-ports” say that China has provided Pakistanwith “key reactor equipment and engineer-ing expertise.”

C. Raja Mohan, Hindu, 12/10/94, p. 12 (12274).

PAKISTAN WITH RUSSIA

11/16/94It is reported that Iraq, Iran, India, Paki-

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stan, and other nations have set up tradeoffices in Moscow and are soliciting Rus-sian research laboratories to work on theirnuclear programs. Foreign nuclear projectsare submitted to the government for ap-proval, but it is reportedly “easy to bribeanyone in the hierarchy to grant approval,or to change the name of the project.”

Kathleen Hart, NuclearFuel, 11/21/94, pp. 2-3(12152).

PAKISTAN WITH UNITED STATES

10/26/94A Pakistani newspaper reports that in themid 1980s, a minor diplomatic incident wascaused by the Pakistani discovery of a co-vert U.S. monitoring device which had beenplaced in the vicinity of Pakistan’s KahutaResearch Laboratory. The device, whichhad been disguised as a rock, is cited in thearticle as a primitive example of what U.S.Under Secretary of State Strobe Talbott hadmeant by his offer of “non-intrusive” moni-toring of Pakistan’s nuclear program in histalks with Pakistan in 4/94.

Muslim (Islamabad), 10/26/94, p. 1; in JPRS-TND-94-020, 11/17/94, p. 13 (12216).

11/14/94Pakistani President Farooq Leghari states atthe annual opening of the parliament thatthe U.S. has been explicitly told thatPakistan’s nuclear program is for peacefulpurposes, and “that Pakistan shares the com-mon goal of non-proliferation.”

Alistair Lyon, Reuter, 11/14/94; in Executive NewsService, 11/14/94 (12282).

11/26/94Pakistani Prime Minister Benazir Bhuttosays that the U.S. refusal to deliver F-16jets which Pakistan has paid for is strength-ening the position of hardliners who wantPakistan to develop nuclear weapons. Bhuttoadds that Pakistan would like recognitionfor following U.S. policy by refraining fromdetonating a nuclear device or exportingnuclear technology.

Reuter, 11/26/94; in Executive News Service, 11/26/94 (12280).

1/5/95A top Pentagon official says that the goal ofU.S. Secretary of Defense William Perry’s

upcoming visit to the Indian subcontinentis intended to establish a more “even handed”relationship with Pakistan and India. Perryis not expected to pressure either country tosign the NPT, and a Pakistani Foreign Min-istry spokesman confirms that Pakistan isnot being pressed to sign the NPT unilater-ally.

Washington Times, 1/5/95, p. A13 (12221).

1/5/95U.S. Senator Larry Pressler, author of the1985 legislation which imposed sanctionson Pakistan for its alleged development ofnuclear weapons, accuses the Clinton ad-ministration of having “abandoned its anti-proliferation goals” by allowing Secretaryof Defense William Perry to revive the U.S.-Pakistan Consultative Group, a forum forthe discussion of common security matters.

Paul Basken, UPI, 1/12/95; in Executive News Ser-vice, 1/12/95 (12219).

1/17/95Pakistani Foreign Secretary NajamuddinShaikh states that Pakistani Prime MinisterBenazir Bhutto will lobby key U.S. Con-gressmen to discuss the possible repeal ofall or part of the Pressler Amendment.

Anwar Iqbal, UPI, 1/17/95; in Executive NewsService, 1/17/95 (12277).

2/22/95The Pakistani Foreign Office releases a state-ment in support of nuclear verificationmechanisms to guarantee that its neighborscomply with “non-proliferation norms” andof the construction of a U.S.-sponsored geo-logical observatory at Chakwal, nearIslamabad. The local media and opposi-tion politicians have said the plant could beused by the U.S. to monitor Pakistani nucleardevelopments. A senior Foreign Office of-ficial states that the installation could notbe used to monitor Pakistani nuclear activi-ties, but that it would help deter other na-tions from conducting nuclear tests.

UPI, 2/22/95 (12390).

PEOPLE’S REPUBLIC OFCHINA

INTERNAL DEVELOPMENTS

10/7/94The PRC explodes a nuclear device at theLop Nor underground testing site inXinjiang province. The Australian Seismo-logical Center detected the 40-150 kT ex-plosion at 0325 GMT. The VerificationTechnology Information Center places theexplosion at 41.7 degrees North, 88.8 de-grees East.

Patrick E. Tyler, New York Times, 10/8/94, p. A3(12382). Trust and Verify, 10/94, p. 1 (12382).

10/12/94The International Institute for Strategic Stud-ies (IISS) says that recent nuclear tests inthe PRC reveal that China is developing “anumber of new weapons,” including smallwarheads for use on multiple-warhead land-based missiles.

Nicholas Doughty, Reuter, 10/12/94; in ExecutiveNews Service, 10/12/94 (12086).

10/20/94A Chinese Foreign Ministry official statesthat the PRC will continue to conduct un-derground nuclear tests. The official saysthat the 1996 date projected for the conclu-sion of the Comprehensive Test Ban Treaty(CTBT) is “artificial” and politically moti-vated.

Steven Mufson, Washington Post Service; in Inter-national Herald Tribune, 10/21/94 (12478).

10/26/94It is reported that Chinese missile scientistHua Di, who now resides in California, saysthe PRC has no intention of matching thenuclear forces of the U.S. or Russia, butonly wants to ensure “a survivable secondstrike.” The PRC has indicated it will signa comprehensive test ban treaty by 1996,but a Chinese expert has suggested that thePRC may conduct four more tests of the re-liability and miniaturization of its second-generation warhead designs.

Patrick E. Tyler, New York Times, 10/26/94, pp.A1, A3 (12376).

12/12/94It is reported that the PRC is converting,

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dismantling, or abandoning obsolete andinefficient nuclear weapons plants in inac-cessible areas. Chinese scientist Hua Disays that situating military industries in re-mote areas proved to be a costly mistakethat did not increase the nation’s security.

Patrick E. Tyler, New York Times Service; in Inter-national Herald Tribune, 12/12/94 (12092).

PRC WITH ALGERIA

10/5/94It is reported that U.S. officials believe thatthe PRC is providing Algeria and Iran withnuclear weapons technology.

Bill Gertz, Washington Times, 10/5/94, p. A3(12122).

PRC WITH CANADA

11/7/94The PRC and Canada sign a 30-year nuclearcooperation agreement which makes pos-sible the sale of Candu reactors and gammaprocessing equipment to the PRC. Theequipment sold will be subject to IAEA safe-guards. Under the agreement, which willbe subject to renewal every 10 years, thePRC and Canada pledge not to enrich anyuranium above 20 percent or establish newagreements for any reprocessing.

Ray Silver, Nucleonics Week, 11/10/94, pp. 13-14(12247).

11/8/94The China National Nuclear Corporation(CNNC) and Atomic Energy of Canada,Ltd. (AECL) sign letters of intent that willallow Canada to begin negotiating the saleof two Candu-6 reactors which are to bebuilt near existing plants at Qinshan. Thesale is worth about Cdn$3.5 billion, ofwhich Canada will finance Cdn$2 billion.

Financial Times, 11/9/94, p. 4 (12247).

11/12/94It is reported that Canadian and U.S. com-panies have indicated their desire to be in-volved in the construction of two newnuclear power plants that the PRC is plan-ning to build in Sanmen Bay and Lianyun.

Reuter, 11/12/94; in Executive News Service, 11/12/94 (12087).

PRC WITH FRANCE

11/25/94The Xinhua News Agency announces thatthe French Atomic Energy Commission(CEA) and the China National NuclearCorporation (CNNC) have signed a proto-col promising to strengthen their coopera-tion in developing nuclear technology forpeaceful purposes. The two organizationswill share research findings regarding pres-surized water reactors and will conduct jointresearch on fast neutron reactors and nuclearwaste disposal.

Reuter, 11/25/94; in Executive News Service, 11/25/94 (12084). Enerpresse, 11/28/94 (12084).

1/20/95It is reported that the PRC’s Yibin plant hasproduced French-design fuel assemblies forunit 2 at the Daya Bay-1 plant. The PRCproduced the fuel following a 1991 techni-cal cooperation agreement between Fragemaof France and the China Nuclear EnergyIndustry Corporation. Delivery to Daya Bayis expected by the end of 1/95.

Framatome; in NucNet, 1/20/95, p. 1 (12096).

1/25/95Framatome, GEC-Alsthom, and Electricitede France (EdF) sign contracts to supplytwo 900 MW nuclear reactors for China’sLingao nuclear power plant (Daya Bay-2).The agreement totals $2.07 billion, and in-cludes core nuclear components ($1.13 bil-lion), conventional components ($567 mil-lion), equipment to connect the nuclear andconventional parts ($189 million), and en-gineering work to be performed by EdF($189 million). According to Framatomerepresentative Jacques Fettu, the agreementreached with the China Guangdong NuclearPower Co. (CGNPC) is a firm “award inten-tion agreement” and a full contract will besigned by 7/15/95.

Mark O’Neill, Reuter, 1/15/95; in Executive NewsService, 1/15/95 (12246). Ann MacLachlan, Nucle-onics Week, 1/19/95, pp. 1, 9-10 (12246).

PRC WITH GERMANY

12/94Germany removes 24 countries, includingPakistan, the PRC, and India, from its ex-port trigger list, called the “H-List.” Any

exports to a country on that list require in-teragency authorization as well as a permitfrom Germany’s Federal Export Authority.

Mark Hibbs, Nucleonics Week, 12/15/94, pp. 10-11 (12281). Mark Hibbs, NuclearFuel, 12/5/94,pp. 4-5 (12281).

PRC WITH INDIA

10/24/94It is reported that the PRC has agreed tosupply India with enrichment services anduranium that will keep the country’s Tarapurreactors in operation for at least another year.Prior to the contract with China, India hadfaced a supply embargo on SWUs [separa-tive work units] from U.S., France, Russiaand other Western nations. India has loaded70 kg of indigenously produced mixed-ox-ide (MOX) fuel into the reactors this year.India had requested an open-ended agree-ment, but the PRC, after talks with the U.S.,limited the supply to a period of one year.

Mark Hibbs, NuclearFuel, 10/24/94, p. 6 (12442).

1/5/95India receives the first shipment of enricheduranium fuel purchased from the PRC un-der a commercial contract. The Indian De-partment of Atomic Energy (DAE) says thatthe low-enriched uranium (LEU) was de-livered to Hyderabad, where it will be com-bined with Indian-made MOX fuel and fash-ioned into fuel assemblies for India’s Tarapurnuclear power station. The DAE does notdisclose the value of the commercial con-tract or the total quantity of LEU it intendsto import from the PRC.

UPI, 1/5/95; in Executive News Service, 1/6/95(12391). Jawed Naqvi, Reuter, 1/5/95; in Execu-tive News Service, 1/6/95 (12391).

PRC WITH IRAN

10/5/94It is reported that U.S. officials believe thatthe PRC is providing Iran and Algeria withnuclear weapons technology.

Bill Gertz, Washington Times, 10/5/94, p. A3(12122).

11/17/94The PRC’s Ambassador to Iran says that thetwo 300 MW reactors that the PRC is build-ing for Iran are intended for non-militaryuse only.

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UPI, 11/17/94; in Executive News Service, 11/17/94 (12480).

PRC WITH JAPAN

11/14/94Japanese Prime Minister TomiichiMurayama asks Chinese President JiangZemin for “understanding in efforts to banall nuclear testing.” Zemin responds thatthe PRC’s nuclear testing is “limited” andthat Chinese policy is to work toward a com-plete ban on nuclear weapons.

Teruaki Ueno, Reuter, 11/16/94 (12090).

PRC WITH JAPAN, NETHERLANDS,SWITZERLAND, AND UNITED STATES

11/94It is reported that during FY 1994, Japan’sScience and Technology Agency (STA) willhost nuclear experts from the PRC, the Neth-erlands, Switzerland, and the U.S. as partof a project, allotted 1.5 billion yen for theyear, intended to promote “crossover researchon nuclear energy.” The experts will studybeam application, computer software,nuclear materials, and the biological effectsof radiation. The cooperative program in-volves 13 Japanese government institutionsand promotes work on nuclear materials,artificial intelligence, laser applications,radiation risks, radiation beam applications,and the use of computers.

Atoms in Japan, 11/94, p. 22 (12294).

PRC WITH KAZAKHSTAN

10/7/94Kazakhstan’s Foreign Ministry releases astatement denouncing China’s 10/7/94 un-derground nuclear explosion at the Lop Nornuclear test site. In the statement,Kazakhstan calls on China to stop its nuclearexplosions and participate in the establish-ment of a universal nuclear test ban.

Vladimir Akimov, Itar-Tass (Moscow), 10/7/94; inJPRS-TND-94-020, 11/17/94, p. 32 (12061).Reuter (Almaty), 10/7/94; in Executive News Ser-vice, 10/7/94 (12061). Reuter (Almaty), 12/11/94; in Executive News Service, 12/12/94 (12061).

2/8/95According to the Xinhua news agency, Chinagives Kazakhstan security guarantees that it

will not use or threaten to use nuclear weap-ons against Kazakhstan. In the governmentstatement, China calls upon other nuclearweapon states to give similar security as-surances “so as to enhance the security ofall non-nuclear weapon states, includingKazakhstan.” The action is undertaken inthe framework of the Chinese initiative tocodify a comprehensive ban on nuclearweapons. The initiative was announced inGeneva in 2/95 by Hou Zhitong, the Chi-nese Ambassador for Disarmament Affairs.

Reuter (Beijing), 2/8/95; in Executive News Ser-vice, 2/8/95 (12175).

PRC WITH MULTI-COUNTRY GROUP

11/6/94Chinese Academy of Sciences professor HeZhaxiu is quoted as saying that China re-fused a $2 billion offer to sell nuclear weap-ons to an undisclosed African country, andhas refused requests from Southeast Asiancountries to cooperate in the developmentof nuclear weapons.

Kyodo (Japan), 11/6/94; in JPRS-TND-94-020, 11/17/94, p. 2 (12091).

PRC WITH NORTH KOREA

See North Korea section.

PRC WITH PAKISTAN

11/5/94It is reported that Pakistani PresidentLeghari has expressed his country’s desireto acquire technology from the PRC to builda nuclear power plant.

Voice of Russia World Service (Moscow), 11/5/94;in FBIS-SOV-94-234, 11/5/94 (12088).

12/10/94It is reported that India believes that the PRCaided Pakistan in constructing the Sargodhanuclear reactor. Certain “intelligence re-ports” say that China has provided Pakistanwith “key reactor equipment and engineer-ing expertise.”

C. Raja Mohan, Hindu, 12/10/94, p. 12 (12274).

PRC WITH RUSSIA

10/7/94

It is reported that as many as 1,000 Rus-sian specialists may currently be workingin China to improve Chinese nuclear androcket programs.

Mikhail Urusov, Moscow News, 10/7/94-10/13/94,p. 8 (12038).

11/18/94It is reported that China has awarded a con-tract to the Atomenergoproekt Institute, aRussian export company based in St. Pe-tersburg, to design a nuclear power plantwhich will be built in Liaoning. Chinawants construction to begin in 1996.

Post-Soviet Nuclear & Defense Monitor, 11/18/94,p. 22; in Uranium Institute News Briefing, 11/23/94-11/29/94, p. 2 (12412).

11/26/94It is reported that, after a visit to China,Russian Minister of Atomic Energy ViktorMikhailov said that Russia is interested inparticipating in China’s peaceful nuclearpower program and is currently entering intocooperative agreements with China.Mikhailov denied that any Russian nuclearexperts are currently working illegally inChina.

Baoktiktov, Voice of Russia World Service (Mos-cow), 11/26/94 (12344).

11/30/94Hong Kong’s Eastern Express reports thatRussian and Chinese officials have con-firmed that secret Sino-Russian nuclearprojects are underway in Haikou andShenzhen. A deal was apparently struckduring secret negotiations last weekend,when Russian Minister of Atomic EnergyViktor Mikhailov and First Deputy Minis-ter of Nuclear Power Engineering VitalyKonovalov were in Shenzhen. The dealmakes Shenzhen the center of a $10 millionjoint venture known as “The China-RussiaNuclear Company.” According to the East-ern Express, Kong Fandai, president of thecompany, said that there were already threeRussian scientists working in Shenzhen andthat as the firm enters into production nearthe end of 1995, “we will bring in more andmore of their scientists because this isRussia’s strong point.” According toMikhailov, China also expressed an interestin substantial supplies of cobalt60 for use inanother project in Haikou, but an agreement

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has yet to be reached.Reuter, 11/30/94; in Executive News Service, 11/29/94 (12038). Mikhail Urusov, Moscow News,10/7/94-10/13/94, p. 8 (12038).

PRC WITH SOUTH AFRICA

11/2/94It is reported that the PRC’s China NationalNuclear Corporation (CNNC) has signed acontract with South Africa’s Atomic EnergyCorporation (AEC) under which the AECwill provide the CNNC with nuclear tech-nology, including fission molybdenum-99.The agreement entails the transfer of nucleartechnology for medical purposes, and is oneof several contracts that the PRC is negoti-ating with South Africa.

Atomic Energy Corporation of South Africa; inNucNet, 11/2/94 (12112). Ian MacKenzie, Reuter,10/5/94; in Executive News Service, 10/5/94(12112).

PRC WITH SOUTH KOREA

10/31/94The PRC and South Korea sign the China-South Korea Nuclear Cooperation Agree-ment, in which South Korea agrees to “co-operate” in Chinese nuclear power projects.

Yomiuri Shimbun, 11/1/94 (12443).

12/13/94The PRC and South Korea sign a protocolon requiring cooperation between the twocountries in monitoring radioactivity and inalerting one another of any nuclear acci-dents. The protocol will provide for theexchange of information and nuclear experts.

Reuter, 12/13/94 (12385).

1/95The South Korean consortium set up by theHanjung company and the Gohap Groupwins a $20 million contract to supply reac-tor pressure vessels for the China NuclearEnergy Industry Corporation (CNEIC).The pressure vessels will be used for thesecond phase of the PRC’s Qinshan nuclearpower station. Hanjung will be the solesupplier of one of the two pressure vessels,with the remaining vessel to be manufac-tured jointly by Hanjung and CNEIC. De-livery is expected in 1998. Hanjung wascompeting against suppliers from the U.S.,

France, and Japan for the contract.Korea Atomic Industrial Forum; in Nucnet, 2/16/95 (12534). Korea Economic Daily, 1/23/95(12095).

2/7/95Officials from the China National NuclearCorporation (CNNC), led by CNNC Vice-President Yi Yulan, meet with South Ko-rean nuclear energy officials and industryleaders, including South Korea’s Vice In-ternational Trade and Industry Minister PakUn-so and Korea Electric Power Corpora-tion President Yi Chong-hun, to discusscooperation in the field of nuclear energy.

Yonhap (Seoul), 2/7/95; in FBIS-EAS-95-025, 2/7/95 (12557).

2/11/95The PRC’s China National Nuclear Corpo-ration and the Korea Electric Power Corpo-ration (KEPCO) sign a memorandum ofunderstanding to study the technical andeconomic feasibility of building South Ko-rean light-water reactors in the PRC’s coastalareas. KEPCO also plans to help the PRCfinance the construction of the plants.

Reuter; in Washington Times, 2/12/95, p. A7(12248).

PRC WITH TAIWAN

11/2/94It is reported that the state-owned TaiwanPower Company (Taipower) agrees in prin-ciple to purchase uranium concentrates fromthe PRC in return for authorization to storenuclear waste in the PRC. A Taipowerspokesman disavows any knowledge of adecision made on the uranium purchase, butadds that talks with the PRC on waste stor-age are continuing.

Reuter, 11/2/94; in Executive News Service, 11/2/94 (12081).

PRC WITH UNITED STATES

10/4/94The PRC and the U.S. sign a statementpledging to work together on a universalagreement banning the production of “fis-sile material for nuclear weapons or othernuclear explosive devices.”

Jon B. Wolfsthal, Arms Control Today, 11/94, p. 28(12089).

10/18/94Secretary of Defense William Perry says thatthe U.S. has offered to send computer tech-nology which simulates nuclear explosionsto the PRC. The offer is intended to allowChina to maintain a dependable nuclear ar-senal while refraining from nuclear tests; itis not intended to help the Chinese developnuclear weapons.

Charles Aldinger, Reuter, 10/19/94; in WashingtonTimes, 10/19/94, p. A13 (12082). Arms ControlToday, 12/94, p. 28 (12082).

10/31/94Arms Control and Disarmament AgencyDirector John Holum reiterates U.S. appre-hension over the PRC’s continued nucleartesting program. Recent discussions be-tween the U.S. and the PRC cover a promptagreement on a comprehensive test bantreaty, the indefinite extension of the NPT,and the beginning of negotiations on a fis-sile material cut-off pact.

Reuter, 10/31/94; in Executive News Service, 10/31/94 (12375).

11/12/94It is reported that U.S. and Canadian com-panies have indicated their desire to be in-volved in the construction of two newnuclear power plants that the PRC is plan-ning to build in Sanmen Bay and Lianyun.

Reuter, 11/12/94; in Executive News Service, 11/12/94 (12087).

12/19/94It is reported that officials at the State De-partment and the Pentagon are consideringeasing sanctions against the PRC to permitthe sale of dual-use supercomputers and re-lated technology.

Barbara Opall, Defense News, 12/19/94, pp. 1, 21(12085).

1/31/95At the reopening of disarmament talks inGeneva, U.S. officials charge the PRC andFrance with seeking to postpone the sign-ing of the Comprehensive Test Ban Treaty(CTBT) for one year.

Joseph Fitchett, International Herald Tribune, 2/1/95, p. 2 (12380).

2/16/95

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The Nonproliferation Review/Spring-Summer 1995

U.S. officials say that the PRC and Franceare reluctant to sign a statement promisingto stop production of weapons-grade pluto-nium and uranium.

Lorien Holland, UPI, 2/17/95; in Executive NewsService, 2/20/95 (12446).

2/17/95A Chinese government arms control expertdisagrees with U.S. allegations that the PRCis reluctant to sign a joint statement in favorof a fissile material production ban, and saysthat the PRC and the U.S. agreed to such aban in 10/94.

Benjamin Kang Lim, Reuter; in Washington Times,2/18/95, p. A18 (12446).

2/24/95The U.S. and the PRC sign an agreementthat allows the U.S. firm Westinghouse Elec-tric Corporation to sell generators, turbines,and other non-nuclear equipment to theQinshan nuclear plant. This agreement isthe first since 1989 to allow the U.S. to sup-ply China with high technology equipmentfor a nuclear power plant.

Patrick E. Tyler, New York Times, 2/25/95, p. 19(12381).

SOUTH AFRICA

INTERNAL DEVELOPMENTS

1980sThe Armaments Corporation of South Af-rica (Armscor) builds six 10-18 kT nuclearweapons, all of which have since been de-stroyed.

Martin Navias, Jane’s Intelligence Review, 11/94,pp. 522-524 (12477).

10/5/94It is reported that Atomic Energy Corpora-tion (AEC) of South Africa Chief Execu-tive Officer Waldo Stumpf says that the AECplans to shut down its uranium enrichmentfacility at Pelindaba within the next 18months because it is less expensive to buyenriched uranium on the world market.

Ian MacKenzie, Reuter, 10/5/94; in Executive NewsService, 10/5/94 (12112).

11/94It is reported that a Defense Working Group,comprised of officials from the ArmamentsCorporation of South Africa (Armscor),drafts a document called the National Policyfor the Defense Industry, which states thatthe nation should not produce or tradenuclear weapons or nuclear technology andshould use its influence to make Africa anuclear weapons-free continent.

Martin Navias, Jane’s Intelligence Review, 11/94,pp. 522-524 (12477).

1/25/95South African Minerals and Energy AffairsMinister Pik Botha states that South Africawill close its uranium enrichment facility atPelindaba, called the Z plant, in 3/95. Thedate of the facility’s closure was moved for-ward by a year because South Africa hasgained access to world markets for enricheduranium at a substantially lower cost.

Reuter, 1/25/95; in Executive News Service, 1/25/95 (12113).

SOUTH AFRICA WITH PRC

11/2/94It is reported that South Africa’s AtomicEnergy Corporation (AEC) has signed acontract to provide nuclear technology, in-cluding fission molybdenum-99, to thePRC’s China National Nuclear Corporation(CNNC). The agreement entails the trans-fer of nuclear technology for medical pur-poses, and is one of several contracts thatSouth Africa is negotiating with the PRC.

Atomic Energy Corporation of South Africa; inNucNet, 11/2/94 (12112). Ian MacKenzie, Reuter,10/5/94; in Executive News Service, 10/5/94(12112).

SOUTH KOREA

INTERNAL DEVELOPMENTS

12/22/94The South Korean government announcesthat it has chosen the island of Kurop-do tobe the country’s first radioactive waste dis-posal location. According to the KoreanMinistry of Science and Technology, the is-land was chosen for its solid granite base,which can support a deep waste repository.The nuclear waste site will be managed bythe Nuclear Environment Management Cen-tre, a branch of the Korea Atomic EnergyResearch Institute, with construction to be-gin in 1996 and end in 2001. The Kurop-do waste site will contain an undergroundlow-level waste repository, with room tohouse 250,000 canisters of 200 liter capac-ity, and will also contain a temporary spentfuel storage facility capable of storing 3,000tHM. The project is estimated to cost $885million, and will be financed by nuclearcompanies through the Fund for Radioac-tive Waste Management.

Nuclear Engineering International, 2/95, p. 8(12386).

2/8/95South Korea’s first indigenous multi-purposereactor, Hanaro (High-flux Advanced Neu-tron Application Reactor), goes critical.The 30 MWt reactor is located at the KoreaAtomic Energy Research Institute’s(KAERI) Taegon site and was first fueledon 2/2/95. KAERI will use Hanaro for ex-periments with nuclear fuel and materialsand for the production of radioisotopes formedical and industrial purposes.

NucNet, 2/95 (12533). Nuclear News, 3/95, p. 51(12533).

SOUTH KOREA WITH CANADA

2/95It is reported that the initial core fuel forSouth Korea’s Hanaro reactor was suppliedby Atomic Energy of Canada, Ltd. (AECL).

NucNet, 2/95 (12533).

SOUTH KOREA WITH NORTH KOREA

See North Korea section.

SOUTH KOREA WITH PRC

The Nonproliferation Review/Spring-Summer 1995

Nuclear Developments

134

10/31/94The PRC and South Korea sign the China-South Korea Nuclear Cooperation Agree-ment, in which South Korea agrees to “co-operate” in Chinese nuclear power projects.

Yomiuri Shimbun, 11/1/94 (12443). Reuter, 12/13/94 (12385).

Early 11/94Chinese Prime Minister Li Peng and SouthKorean President Kim Young-sam sign abilateral nuclear energy agreement that willallow South Korean companies to take partin the construction of nuclear power plantsin the PRC, which plans to build 30 newplants by 2010.

Newsreview (South Korea), 11/5/94, pp. 4-5(12097).

12/13/94The PRC and South Korea sign a protocolon cooperation between the two countriesin monitoring radioactivity and in alertingone another of any nuclear accidents. Theprotocol will provide for the exchange ofinformation and nuclear experts.

Reuter, 12/13/94 (12385).

1/95The South Korean consortium set up by theHanjung company and the Gohap Groupwins a $20 million contract to supply reac-tor pressure vessels for the China NuclearEnergy Industry Corporation (CNEIC).The pressure vessels will be used for thesecond phase of the PRC’s Qinshan nuclearpower station. Hanjung will be the solesupplier of one of the two pressure vessels,with the remaining vessel to be manufac-tured jointly by Hanjung and CNEIC. De-livery is expected in 1998. Hanjung wascompeting against suppliers from the U.S.,France, and Japan for the contract.

Korea Atomic Industrial Forum; in NucNet, 2/16/95 (12534). Korea Economic Daily, 1/23/95(12095).

2/7/95Officials from the China National NuclearCorporation (CNNC), led by CNNC Vice-President Yi Yulan, meet with South Ko-rean nuclear energy officials and industryleaders, including South Korea’s Vice In-ternational Trade and Industry Minister PakUn-so and Korea Electric Power Corpora-

tion President Yi Chong-hun, to discusscooperation in the field of nuclear energy.

Yonhap (Seoul), 2/7/95; in FBIS-EAS-95-025, 2/7/95 (12557).

2/11/95The PRC’s China National Nuclear Corpo-ration and the Korea Electric Power Corpo-ration (KEPCO) sign a memorandum ofunderstanding to study the technical andeconomic feasibility of building South Ko-rean light water reactors in the PRC’s coastalareas. KEPCO also plans to help the PRCfinance the construction of the plants.

Reuter; in Washington Times, 2/12/95, p. A7(12248).

SOUTH KOREA WITH RUSSIA AND

UNITED KINGDOM

12/5/94It is reported that, in 1996 and 1997, Brit-ish Nuclear Fuels, Ltd. (BNFL) will sup-ply Russia’s Techsnabexport with UF6. Thematerial will be enriched in Russia and thensupplied to the Korea Electric Power Cor-poration.

Pearl Marshall, NuclearFuel, 12/5/94, p. 13(12538). Nuclear Engineering International, 1/95,p. 7 (12538).

SOUTH KOREA WITH TURKEY

12/29/94The Korea Atomic Energy Research Insti-tute (KAERI) signs an agreement with theTurkish Electricity Generation-TransmissionCompany (TAES) under which KAERI willadvise Turkey on its proposed 600 MWnuclear power plant at Akkuyu. KAERIwill evaluate and report upon all acceptedinternational commercial reactor types,study and update previous bids, create newspecifications for commercial reactors, andassist TAES with bid and contract negotia-tions.

Jack Ashton, NucNet, 12/30/94 (12537).

SOUTH KOREA WITH UNITED KINGDOM

12/5/94It is reported that the Korea Electric PowerCorporation (KEPCO) and British NuclearFuels, Ltd. (BNFL) have signed a contractunder which BNFL will begin producing

uranium hexafluoride (UF6) for KEPCO.The BNFL-KEPCO contract is estimated tobe worth “several million pounds” and stipu-lates that BNFL will begin supplyingKEPCO’s Urenco and Techsnabexport pro-cessing plants in St. Petersburg, Russia, withUF6 between 1996 and 1997, where it willbe enriched before being made into fuel forKEPCO.

Pearl Marshall, NuclearFuel, 12/5/94, p. 13(12538). Nuclear Engineering International, 1/95,p. 7 (12538).

SOUTH KOREA WITH UNITED KINGDOM

AND UNITED STATES

11/24/94It is reported that U.K.-based ForgemastersSteel & Engineering Ltd. (FSEL) has sup-plied U.S.-based ABB-Combustion Engi-neering with core barrel forgings for use inSouth Korea’s Ulchin-3 and -4 reactors, forwhich FSEL has also provided lugs.

Pearl Marshall, Nucleonics Week, 11/24/94, pp. 14-16 (12286).

SPAIN

INTERNAL DEVELOPMENTS

9/26/94Spain’s nuclear utilities form a partnershipcalled the Asociacion Electrica para elDesarrollo Technologica Nuclear (Electri-cal Association for Nuclear TechnologyDevelopment, DTN). Headed by chairmanEnrique Garcia Alvarez from Endesa, theDTN will focus on three issue areas: thedevelopment of new utility projects, includ-ing advanced fission and fusion reactors;the management of Spanish nuclear pro-grams in Eastern Europe; and the promo-tion of collaborative R&D projects.

Ann MacLachlan, Nucleonics Week, 10/20/94, p.8 (12231).

2/24/95It is reported that Spanish Nuclear IndustryAssociation (UNESA) Vice President Pedro

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Nuclear Developments

The Nonproliferation Review/Spring-Summer 1995

Rivera says that Spain spent more than $150million in nuclear research and developmentin 1994. Projects include studying the ef-fects of nuclear accidents and setting up adata bank for Spain’s nuclear plants.

Spanish Atomic Forum; in NucNet, 2/24/95 (12444).

SPAIN WITH EUROPEAN COUNTRIES

10/20/94It is reported that Spain’s new nuclear util-ity consortium DTN will play an importantrole in the creation of European-widenuclear standards, the European Utility Re-quirements, for advanced light water reac-tors. Spain seeks to have the new guide-lines allow for boiling water reactors, as wellas the evolutionary European pressurizedreactor under development by Franco-Ger-man interests.

Ann MacLachlan, Nucleonics Week, 10/20/94, p.8 (12231).

SPAIN WITH FRANCE

11/24/94A shipment of eight tons of spent fuel ele-ments from Spain is due to arrive at theMarcoule reprocessing plant in France. Thetwo carloads of uranium mark the last ship-ment from the decommissioned Vandellos-1 reactor and bring to an end the first phaseof that plant’s decommissioning. Since thereactor began operating on 1/12/74, morethan 149 train-loads carrying a total of186,700 fuel elements have been transportedbetween Vandellos and Marcoule.

El Pais, 11/25/94 (12128).

SPAIN WITH UNITED KINGDOM AND

UNITED STATES

11/24/94It is reported that U.K.-based ForgemastersSteel & Engineering Ltd. (FSEL) has sup-plied replacement forgings to Spain’sEquipos Nucleares S.A. for its Asco andAlmaraz stations.

Pearl Marshall, Nucleonics Week, 11/24/94, pp. 14-16 (12286).

SPAIN WITH UNITED STATES

10/20/94

It is reported that Westinghouse of the U.S.has constructed six pressurized water reac-tors (PWRs) in Spain, and that control ofWestinghouse’s Spanish operations has beenswitched to a Brussels subsidiary,Westinghouse Energy Systems Europe.

Ann MacLachlan, Nucleonics Week, 10/20/94, p.8 (12231).

SYRIA

SYRIA WITH GERMANY

Late 1994The German Economics Ministry and Ger-man industry recommend the removal ofSyria from Germany’s export trigger list,called the “H-List.” Any exports to a coun-try on that list require interagency authori-zation as well as a permit from Germany’sFederal Export Authority. However, due toobjections from the Ministry of ForeignAffairs, Syria is not included on the list of24 countries to be cut from the H-list as of1/1/95.

Mark Hibbs, Nucleonics Week, 12/15/94, pp. 10-11 (12281). Mark Hibbs, NuclearFuel, 12/5/94,pp. 4-5 (12281).

TAIWAN

TAIWAN WITH MULTI-COUNTRY GROUP

1/19/95It is reported that Taiwan received bids fromWestinghouse of the U.S., Framatome ofFrance, and ABB-Combustion Engineering,a consortium of companies from Switzer-land and the U.S., for its Lungmen nuclearproject. Six vendors, including GeneralElectric and Westinghouse of the U.S.,Hitachi and Mitsubishi of Japan, ABB PowerGeneration of Switzerland and the U.S., andGEC Alsthom of the U.K. are expected to

submit bids by 2/28/95 to supply the tur-bine generators for the plant. The Ebascodivision of Raytheon of the US, supportedby its Ebasco-CTCI joint venture and in as-sociation with Belgatom, was awarded thephase one A/E, and executed certain dutiesduring the preliminary stages of the project.Ebasco/Belgatom, Stone & Webster of theU.S., and Sargent & Lundy of the U.S. arebidding for the phase two A/E contract.Taipower is planning to secure part of itsfunding domestically and part from foreignbank loans.

Donald Shapiro and Dave Airozo, Nucleonics Week,1/19/95, pp. 11-12 (12475).

TAIWAN WITH PRC

11/2/94It is reported that the state-owned TaiwanPower Company (Taipower) agrees in prin-ciple to purchase uranium concentrates fromthe PRC in return for authorization to storenuclear waste in the PRC. A Taipowerspokesman disavows any knowledge of adecision made on the uranium purchase, butadds that talks with the PRC on waste stor-age are continuing.

Reuter, 11/2/94; in Executive News Service, 11/2/94 (12081).