APPENDIX 24 AEC LETTER TRANSMITTING PROPOSED LEGISLATION TO AUTHORIZE TRANSFER OF ADDITIONAL PLUTONIUM TO EURATOM (SEPTEMBER 1, 1966); H.R. 17557 [S. 3808 AN IDENTICAL BILL]1 Hon. HUBERT H. HUMPHREY, U.S. ATOMIC ENERGY COMMISSION, DEAR MR. PRESIDENT: There is transmitted herewith a Commission proposal in the form of a draft bill to amend the Euration Cooperation Act of 1958, as amended. The proposed legislation is attached as Appendix A; an analysis of the legislation is attached as Appendix B; and a comparative bill is attached as Appendix C. Specifically, the proposed legislation would amend the Euratom Cooperation Act of 1958, as amended, to increase the quantity of plutonium which may be transferred by the United States Government to the European Atomic Energy Community from five hundred kilograms to one thousand five hundred kilograms. The proposed legislation could result in substantial increases in revenues. This would depend, however, on the extent to which the plutonium requirements of Euratom are obtained from the United States Government. As a result of the amendments to the Atomic Energy Act of 1954 permitting private ownership of special nuclear material, it is possible for Euratom to obtain its plutonium requirements from private sources in this country. To the extent that this should occur, there would not be increased revenues to the Government. Enactment of the proposed legislation is not anticipated to result in additional man-years of employment during the first five years following its passage. We are advised by the Bureau of the Budget that the proposed bill is consistent with the Administration's objectives. Cordially, GLENN T. SEABORG, Chairman. APPENDIX A DRAFT BILL A BILL To amend the Euratom Cooperation Act of 1958, as amended Be it enacted by the Senate and the House of Representatives of the United States of America in Congress assembled, That section 5 of the Euratom Cooperation Act of 1958, as amended, is amended by deleting the words "Five hundred" and substituting therefor the words "One thousand five hundred". APPENDIX B ANALYSIS OF DRAFT BILL TO AMEND THE EURATOM COOPERATION ACT OF 1958, AS AMENDED Section 5 of the Euratom Cooperation Act of 1958, as amended, presently authorizes the Commission to transfer to Euratom 500 kilograms of plutonium. The proposed amendment to Section 5 authorizes the Commission to transfer 1,000 additional kilograms of plutonium. 1 See also app. 12, p. 206. In order for the Commission to distribute special nuclear material to a group of nations, the Atomic Energy Act requires not only that an agreement for cooperation, as provided in Section 123, and an international arrangement as provided in Section 124, be in force, but also that Congress authorize the distribution (Section 54). The initial amount of plutonium authorized by the Euratom Cooperation Act of 1958 was 1 kilogram; by subsequent amendments in 1961 and 1964 this amount was increased first to 9 kilograms and later to 500 kilograms. The increase in 1961 was generally for the purpose of providing material for plutonium recycle work in thermal reactors of the type undertaken under the U.S.-Euratom Joint Research and Development Program. The 491 kilograms increase in 1964 was principally for the purpose of permitting Euratom to undertake an extensive research and development program on fast breeder reactors, the results of which are available to the U.S. fast reactor program under a formal information exchange arrangement with Euratom. As a result of a survey by Euratom in 1965 of the availability of, and requirements for, plutonium in the European Community through 1970, Euratom has requested that the U.S. take the necessary steps this year to increase the plutonium ceiling in the Cooperation Act from 500 to 1,500 kilograms in order to permit the transfer of plutonium, pursuant to appropriate contractual arrangements, as projected needs develop through 1970. The proposed legislation is recommended in view of the following considerations: 1. An analysis of the requirements for, and the availability of, plutonium in the U.S. for the next several years led to the conclusion that the U.S. can supply the requested plutonium to Euratom on a timely basis without adversely affecting any U.S. domestic needs. 2. The requested plutonium will be used principally in the Community fast breeder reactor research and development program, the same program for which the 491 kilograms increase was approved in 1964. The additional 1,000 kilograms will permit an expanded Community effort in this program which has as a goal the development of fast breeder power plants. About 750 kilograms will be used for larger loadings of plutonium in the two Community fast critical assemblies, thereby permitting the studies with these machines to include projected prototype reactor cores which would contain at least 1,000 kilograms of plutonium. Approximately 70 kilograms will be needed for the second core of the 20 MWt French Rapsodie reactor which will be used principally in the Community fast reactor program to test fuels and materials. The remainder of the 1,000 kilograms would be used generally in fast reactor fuel development. All of this work in the Community is now covered by the U.S.-Euratom fast reactor information exchange arrangement of May 27, 1964. Accordingly, the results of the Euratom work using the initial 500 kilograms of plutonium, plus that projected for the expanded program using the additional 1,000 kilograms, are expected to be of significant benefit to our program. The close association between the scientific communities on both sides of the Atlantic has resulted in many areas of the two programs being complementary. 3. Euratom has stated that the 70 kilograms of plutonium required for the second core of Rapsodie will be needed in late 1966 for the purpose of fabricating the fuel elements in Europe on a timely basis for insertion in the reactor in early 1968 when a portion of the first core is discharged. Euratom would like the 750 kilograms for the fast critical assemblies in 1967; however, it has recognized that, due to its budgetary considerations, delivery of the 750 kilograms could be delayed until 1968, the beginning of Euratom's third 5-year budget period. Of the currently authorized 500 kilograms, about 400 kilograms have already been transferred to Euratom and approximately 60 additional kilograms have been allocated for specific uses. To supply any of the aforementioned newly requested material would, therefore, exceed the current authorization. 4. The plutonium supplied by the AEC will be sold to Euratom at the AEC price in effect at the time the material is supplied (currently $43 per gram of fissile plutonium nitrate). Subject to AEC licensing, a portion of Euratom's plutonium requirements might be met by direct purchase from private reactor operators in the U.S. rather than by purchase from the Commission. Any plutonium transferred to Euratom by private parties would be subject to applicable AEC licensing requirements and to the safeguards provisions of the Agreements for Cooperation with Euratom, and the total quantity transferred by private parties and the United States Government would not exceed the new 1500 kilo grams limit to be established in the Euratom Cooperation Act. To the extent such transactions involving private U.S. groups develop, they would be on the basis of negotiated prices ranging between the AEC's current charge of $43 per gram and the guaranteed buy-back price of $10 per gram. Regardless of from which U.S. sources Euratom purchases this plutonium, the sales would result in significant balance of payments gains for the United States, ranging between $10 million and $43 million. 5. If any of the Euratom plutonium requirements are to be obtained from private parties in the United States, such transfers may be accomplished under the language of Article V of the Joint Program Agreement for Cooperation, which language has been incorporated by reference under Article V of the Additional Agreement for Cooperation. Although this article, as originally drafted, did not contemplate private transfers of special nuclear material inasmuch as such transfers were not then permitted (they are now as a result of the Private Ownership Act), the language is sufficiently broad to permit such transactions. APPENDIX C A BILL To amend the Euratom Cooperation Act of 1958, as amended Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 5 of the Euratom Cooperation Act of 1958, as amended, is amended to read as follows: "SEC. 5. Pursuant to the provisions of section 54 of the Atomic Energy Act of 1954, as amended, there is hereby authorized for sale or lease to the Community: Seventy thousand kilograms of contained uranium 235 in accordance with the provisions of an agreement or agreements for cooperation between the Government of the United States and the Community entered into pursuant to the provisions of section 123 of the Atomic Energy Act of 1954, as amended: Provided, That the Government of the United States obtains the equivalent of a first lien on any such material sold to the Community for which payment is not made in full at the time of transfer." [H.R. 17557, 89th Cong., second sess.] A BILL To amend the EURATOM Cooperation Act of 1958, as amended Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 5 of the EURATOM Cooperation Act of 1958, as amended, is amended by deleting the words "Five hundred" and substituting therefor the words "One thousand five hundred". AEC employees: INDEX Page Orientation and language training of dependents------74-75, 83-84, 199–200 Cost of programs for 5-year period_-_- 84-85 Need for legislation of Government-wide applicability------ 87, 199-200 83-84, 199-200 Practice of other Government agencies- AEC omnibus bill for 1966, hearing on....... 85-86 Atomic Energy Community Act of 1955: AEC and HUD progress reports on operations under : Los Alamos, N. Mex--- 321-325 Oak Ridge, Tenn__ Richland, Wash_. Division of Military Application: AEC letter transmitting proposed legislation relating to----- Status of Director: Appointment of active military officer of general or flag rank Appointment of civilian as Deputy Director__ 87-88, 92, 201-203 Opinion of AEC General Counsel concerning reimbursement to 204-205 Reimbursement of Defense Department for incumbent's pay and EURATOM Cooperation Act of 1958: AEC letter concerning safeguards applicable to plutonium transferred 321-325 321-325 201-203 75-76, 87-88, 92, 201-203 76, 90-93 75-76, 332 AEC letter transmitting proposed omnibus bill for 1966. Safeguards 333 184 96, 99-101 97 AEC letters transmitting proposed legislation to authorize transfer of 206-208, 338 AEC letter transmitting proposed legislation authorizing transfer of 326 Amendment to provide for toll enrichment services__. 74 99 336 JCAE-AEC correspondence on proposed legislation authorizing trans- 99, 215 JCAE press release announcing hearings on AEC omnibus bill_. Los Alamos, N. Mex., AEC and HUD progress reports. (See also sales of Los Alamos apartment houses). 321-325 Letter from Oak Ridge Community Relations Council on race rela- Municipal bond issue.. Impact on bond market of assistance termination date‒‒‒‒‒ 228 109-114, 145 110-112, 145 Percentage of AEC assistance declining annually_ 108-109 Possibility of sale or lease of Government uranium enrichment fa- Report on Federal financial assistance by the Study Committee on 287-319 Self-sufficiency to be considered in making assistance payments--- 102-105, 145-146 Taxes payable by residents-- 141 116 Omnibus bill (see various subject headings, this index). Omnibus bill for 1966___. 191-195 Orientation and language training (see AEC employees). Plutonium (see also EURATOM Cooperation Act of 1958): AEC letters transmitting proposed legislation authorizing transfer of 206, 338 Authorizing transfer of additional supply to Euratom. 96, 99-100, 338 Future availability-.. 209 Possibility of obtaining part of supply from private U.S. sources--- 96–97 Assistance to Richland schools under Public Law 874_-_- Construction of conference hall and a community youth and adult Population in vicinity of facility---- 107 229-254 Report on request for a Federal grant to School District No. 400, Self-sufficiency to be considered in making assistance payments___ 102–105, Tax rate__. 119-127 128 Tri-City Nuclear Industrial Council endorsement of civic center----- AEC-HUD ad hoc committee on sale of multifamily housing-. Ability of strangers to the community to participate in priority pur- |