SALE OF CANADIAN NUCLEAR REACTOR TO SOUTH KOREAN

• Document Type: CREST
• Collection: Library of Congress
• Document Number (FOIA) /ESDN (CREST): LOC-HAK-550-3-30-4
• Release Decision: RIPLIM
• Original Classification: T
• Document Page Count: 3
• Document Creation Date: January 11, 2017
• Document Release Date: March 9, 2010
• Sequence Number: 30
• Publication Date: November 19, 1974
• Content Type: CABLE

No Objection to Declassification in Part 2010/03/09: LOC-HAK-550-3-30-4
TOP SECT
ZCZCWHE143
00 WTE1`)
DE WTE 7344 3231637
0 19160OZ NOV ?74
FM COL KENNEDY /'/TU1{AK23//
TO GENERAL SCOWCROFT
ZEri
T 0 P 5 E C R E T CONTAINS CODEWORD DELIVER AT OPENING OF BUSINESS
W H4 33 32
TOMAK23
NOVEMBER 15, 1974
MEMORANDUM FOR GENERAL SCOWCROF'T
FROM: DAVID ELLIOTT
SUPJECTi SALE OF CANADIAN NUCLEAR REACTOR TO SOUTH
KOREAN
THE U.S. (WESTINGHOUSE) HAS ONE REACTOR UNDER CONSTRUCTION IN KOREA
AND ANOTHER ONE BEING NEGOTIATED. ALTHOUGH NOT AN NPT PARTY,
KOREA HAS ACCEPTED IAEA SAFEGUARDS ON U.S. SUPPLIED NUCLEAR
FACILITIES, AND HAS INDICATED WILLINGNESS TO DO THE SAME FOR THE
CANDU.
OUR AGREEMENT WITH KOREA ON COOPERATION IN THE PEACEFUL USES
OF ATOMIC ENERGY (AN AGREEMENT WHICH WE REQUIRE AS A PRECONDITION
FOR NUCLEAR TRADE) UNFORTUNATELY HAS THE "P-NE LOOPHOLE" WHEREBY
DIVERSION ON PLUTONIUM IS FORESWORN FOR NUCLEAR f4EAPONS
BUT NOT SPECIFICALLY FOR PNE USE. WHILE WE ARE CONSIDERING
HOW TO CLOSE THIS LOOPHOLE IN ALL OUR AGREEMENTS, THIS MATTE? IS
NOT A PRESSING CONCERN VIS-A-VIS KOREA BECAUSE THEY HAVE NO
CHEMICAL REPROCESSING PLANT FOR EXTRACTING PLUTONIUM FRCM SPENT
FUEL, AND THEY ARE VERY UNLIKELY TO HAVE SUCH TECHNOLO(=Y FOR
SOME TIME.
No Objection to Declassification in Part 2010/03/09: LOC-HAK-550-3-30-4
 No Objection to Declassification in Part 2010/03/09: LOC-HAK-550-3-30-4
TOPSECRET.
WILL KOREANS RA ISE THE QUESTION OF NUCLEAR REACTORS?
IT SEEMS UNLIKELY THAT THE KOREANS WILL.?ROACH THE REACTOR
SUBJECT(U) SINCE CANADA HAS MADE NO FINAL DECISION AND v`OREA
MAY YET GET THE CANDU THEY ARE SEEYING, AND (2) SINCE w L
ARE BUILDING ONE REACTOR AND NEGOTIATING A SECOND IN
KOREA, THERE WOULD BE NC .REASONS FOR THE KOREANS TO THINK IT
NECESSARY. TO QUESTION IN HIGH LEVEL DISCUSSIONS THE AVAILABILITY OF
MORE*
HOW TO RESPOND IF THEY DO RAISE REACTOR SALES...
WE MAY WANT TO USE FURTHER SALES AS A LEVER TO CLOSE THE PNE
LOOPHOLE. THEREFORE, IT WOULD RE RFASONALEE TO:
-- ACKNOWELDGE THE NUCLEAR COOPERATION THAT HAS BBEEPN CARRIED OUT
BETWEEN US AND RECOGNIZE THAT THE KOREANS HAVE SELECTED
A U.S. REACTOR TO HELP MEET THEIR ELECTRICAL POWER NEEDS,
EXPRESS CONFIDENCE THAT FUTURE REQUESTS FOR REACTORS CAN
PE WORKED OUT, AND
INDICATE, AS WE HAVE OFTEN SAID, THAT THE BENEFITS OF
ATOMIC ENERGY SHOULD BE AVAI.LA,BLE TO ALL WHO ENFORCE
THE CONDITIONS THAT PRECLUDE PROLIFERATION OF NUCLEAR
EXPLOSIVES.
DENIS CLIFT AND JACK FROEBE CONCUR.
TAB A
CANADA - SOUTH KOREA
THE CANADIAN GOVERNMENT IS TRYING 'TO DECIDE WHETHER
TO ALLOW THE SALE OF NUCLEAR POWER AND RESEARCH REACTORS
TO SOUTH KOREA AND A-NUMSFR CF OTHER POTENTIAL PURCHAS
ERS
A DECISION TO SELL TO SOUTH KOREA IS NOW VERY MUCH IN
DOUBT BECAUSE OF GROWING CONCERN IN CANADA THAT PLt!TO-
NIUM PRODUCED BY THE RESEARCH REACTORS MIGHT BE. DIVERTED
TO MILITARY USE.
COVERN
MENT IS GENERALLY CONVINCED OF SEOUL'S HOPE CF DEVELOP-
ING A NUCLEAR WEAPONS CAPABILITY. THIS CONFIRMS AN
EARLIER CANADIAN PRESS REPORT WHICH STATED THAT GOVERN-
MENT SOURCES HAD SUGGESTED CANADA MIGHT DECIDE NOT TO
SELL A REACTOR TO SOUTH } OREA EVEN! IF ADEQUATE NUCLEAR
SAFEGUARDS WERE OBTAINED. SEOUL :HAS AGREED TO SIGN A
SAFEGUARDS PROTOCOL TO THE REACTOR SALES AGREEMENT
END OF PAGE 02
TOP SECRET
25X1
 No Objection to Declassification in Part 2010/03/09: LOC-HAK-550-3-30-4
TOP SECRET
COVERING NOT ONLY THE CANDU.! REACTOR ITSELF, SLIT PLSO
THE PRODUCTS EMANATING FROM IT.
ACCORDING TO THE PRESS REPORT, OTTAWA RECENTLY COM-
PLETED AN ASSESSMENT OF THE SEOUL REGI'ME'S POLITICAL
STABILITY AND MILITARY ASPIRATIONS AND WHETHER THESE
MIGHT LEAD TO A NUCLEAR ARMS PROGRAM IN-SOUTH KOREA.
THE ARTICLE DID NOT CONTAIN THE CONCLUSIONS OF THE
STUDY, BUT INDICATED THAT THEY HAD, 13EE N GIVEN. TO THE
CABINET.
THERE HAS SEEN HEAVY COMMERICAL PRESSURE OF OTTAWA
TO AGREE TO FOREIGN SALES OF ? THE CANDLI REACTOR BECAUSE
CANADA WCULD GAIN ENORMOUSLY.
OTTAWA HAS PEEN
BESET BY .DOUBTS ABOUT ITS REACTOR SALES PROGRAM. RE,
,CENTLY, THERE HAS BEEN INCREASING DOMESTIC AND FOREIGN
PRESSURE CN OTTAWA TO TAK MORE CAUTIOUS APPROACH IN
APPROVING REACTOR. SALES.
Z
7344
NNNN
No Objection to Declassification in Part 2010/03/09: LOC-HAK-550-3-30-4
25X1
25X1
25X1