- DECLASSIFIED UNDER AUTHORITY OF THE INTERAGENCY SECURITY CLASSIFICATION APPEALS PANEL E 0 13526 SECTION PAGE 01 A STATE 305274 ORIGIN NO 38 0 0 ISCAP APPEAL NO 2011-007 document 110 1 DECLASSIFICATION DATE December 3 2015 INFO OCT-OI 001 2220372 222006Z DEC 77 ZFF6 hi FM SECSTATE WASHDC TO AMEMBASSY TAIPEI PRIORITY yy INPO WHITE HOUSE PRIORITY AHA STATE 305274 NODIS E O l1652 TAGS MNUC PARM TW TAIWAN RESEARCH REACTOR THE FOLLOWING IS THE TEXT OF THE AIDE MEMOIRE TO BE DELIVERED IN CONJUNCTION WITH THE DEMARCHE CONCERNING THE TRR SEPTEL -SEOREP PAGE 02 STATE 305274 BEGIN TEXT IN ACCORDANCE WITH THE TERMS OE AN EXCHANGE OF NOTES BETWEEN THE GOVERNMENT OF THE REPUBLIC OF CHINA AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA DONE IN TAIPEI IN 1977 THE OPERATION OF THE TAIWAN RESEARCH REACTOR TRR HAS BEEN SUSPENDED PENDING MUTUAL AGREEMENT CONCERNING THE DISPOSITION OF SPENT FUEL ADEQUATE SAFE- GUARDS MEASURES AND AN ACCEPTABLE RESEARCH PROGRAM THE GOVERNMENT OP THE UNITED STATES OF AMERICA IS PREPARED TO AGREE TO THE RESUMED OPERATION OF THE REACTOR PROVIDED THE GOVERNMENT OF THE REPUBLIC OF CHINA SHARES THE UNDERSTANDINGS CONCERNING THE OPERATION OF REACTOR UNDER THE TERMS OF THE EXCHANGE OF NOTES A DISPOSITION OF SPENT FUEL THE U S CONSIDERS THAT THE FOLLOWING SPENT FUEL MANAGEMENT SCHEME WOULD MEET THE TERMS OF ITEM 6 OF THE EXCHANGE OF NOTES WITH RESPECT TO THE DISPOSITION OF SPENT FUEL FROM THE TRR 1 THE ROC WOULD PREPARE FOR AND SHIP TO A SITE SELECTED BY THE UNITED STATES ALL SPENT FUEL FROM THE TRR FOLLOWING AN APPROPRIATE PERIOD OF COOLING THE COST CLASSIFICATION CLASSIFICATION OF PREPARATION AND TRANSPORTATION WOULD BE BORNE BY THE ALL SUBSEQUENT ARRANGEMENTS FOR STORAGE OR ULTIMATE DISPOSITION WOULD BE THE RESPONSIBILITY OF THE U28 2 UNTIL THE TWO COUNTRIES HAVE IMPLEMENTED THE ABOVE MEASURES THE FOLLOWING MEASURES CONCERNING THE STORAGE FUEL AT THE INSTITUTE OF NUCLEAR ENERGY RESEARCH WOULD CONSTITUTE AN ACCEPTABLE INTERIM ARRANGEMENT FOR THE DISPOSITION OF SPENT FUEL PAGE 03 STATE 305274 A THE IAEA WILL MEASURE THE SPENT FUEL STORED IN THE COOLING POND WITNESS THE TRANSFER OF THE SPENT FUEL FROM THE COOLING POND TO DRY STORAGE AND SEAL EACH DRY STORAGE LOCATION - B SUCH TRANSFERS WILL BE SCHEDULED AT TIMES VENIENT TO THE IAEA BUT AT INTERVALS FREQUENT ENOUGH TO HOLD THE COOLING POND INVENTORY TO NOT MORE THAN ONE QUARTER 0 THE CORE APPROXIMATELY 50 IRRADIATED FUEL ELEMENTS THE ROC WILL MAKE APPROPRIATE ARRANGEMENTS WITH THE IAEA TO IMPLEMENT THESE MEASURES PRIOR TO RESUMING OPERATION OF THE TRR IN THE EVENT THAT THE TRR IS CONVERTED TO OPERATE ON LOW ENRICHED URANIUM FUEL LEU IN ORDER TO REDUCE THE PROLIEERATION CONCERNS ASSOCIATED WITH THE OPERATION OF THIS KIND OF REACTOR OUR GOVERNMENTS WOULD CONSULT RE- GARDING EQUITABLE ARRANGEMENTS FOR RETURN OF SUCH FUEL AFTER IRRADIATION TO THE U S FOR RECOVERY OF RESIDUAL VALUE IN ACCORDANCE WITH THEN CURRENT U S POLICY REGARDING THE RETURN OF RESEARCH REACTOR SPENT FUEL E SAFEGUARDS AT THE TRR THE U S CONSIDERS THE FOLLOWING SAFEGUARDS ARRANGEMENTS WOULD MEET THE TERMS OF ITEM 6 OF THE EXCHANGE OF NOTES WITH RESPECT TO THE MAINTENANCE OF EFFECTIVE SAFEGUARDS AT THE TRR 25X6 E 0 13526 PAGE 04 STATE 305274 25X6 E 0 13526 THE ROC WILL MAKE APPROPRIATE ARRANGEMENTS WITH THE IAEA TO IMPLEMENT THESE MEASURES PRIOR TO RESUMING OPERATION OF THE TRR THE U S AND THE ROC WILL UNDERTAKE AN ACTIVE PROGRAM OF PAGE 05 STATE 305274 IMPROVED SURVEILLANCE SYSTEMS AND INSTRUMENTATION WITH THE GOAL OF IMPROVING FURTHER THE EFFECTIVENESS OF THESE SAFE- GUARDS MEASURES AS SUCH IMPROVEMENTS IN INSTRUMENTATION AND SURVEILLANCE BECOME AVAILABLE OR SHOULD THE TRR BE CONVERTED TO OPERATE ON A FUEL CYCLE HAVING LOWER PROLIFERA- TION RISKS THE GOVERNMENTS WOULD CONSULT ON MODIFICATIONS IN THE ABOVE UNDERSTANDINGS WHICH WOULD PERMIT MORE FLEXIBLE OPERATION OF THE TRR IN ADDITION AS MENTIONED IN THE EXCHANGE OF NOTES OF 1977 THE U S WILL CONTINUE TO BE AFFORDED UNLIMITED ACCESS TO ALL ROC NUCLEAR FACILITIES ON A CONTINUING BASIS - C RESEARCH PROGRAM IN THE CONTEXT OF ITEMS 3 5 AND 6 OF THE EXCHANGE OF NOTES THE U S HAS REVIEWED THE RESEARCH PROGRAM PRESENTED TO THE U S BY INER DIRECTOR CHIEN IN JUNE 1977 WITH CLASSIFICATION 955mg THE EXCEPTION OF TWO TYPES OFJACTIVITY WHICH WILL REQUIRE FURTHER DISCUSSION BETWEEN OUR THE U S HAS NO OBJECTION TO THIS - PROGRAM THE TWO ACTIVITIES REQUIRING FURTHER DISCUSSION ARE 1 PROJECTS INVOLVING THE CHEMICAL ANALYSIS OF IRRADIATED FUEL SAMPLES NO CHEMICAL ANALYSES SHOULD BE PERFORMED UNLESS THE U S AND ROC HAVE AGREED TO DEFINITIONS WHICH CLEARLY DISTINGUISH SUCH CHEMICAL ANALYSIS FROM ING - 2 HEAVY WATER REACTOR DESIGN THE ROC MAY CONTINUE ANALYTICAL CONCEPTUAL DESIGN WORK ON A HEAVY WATER REACTOR BUT WILL NOT GO BEYOND SUCH STUDIES UNTIL THE U S AND ROC HAVE AGREED ON A CONCEPTUAL FRAMEWORK FOR A HEAVY WATER REACTOR DESIGN WHICH MINIMIZES PROLIFERATION CONCERNS AND MAXIMIZES THE EFFECTIVENESS OF SAFEGUARDS WITH REGARD TO THIS TYPE OF REACTOR -SECRET 4 PAGE 06 STATE 305274 IN ADDITION IT IS OUR UNDERSTANDING THAT IN ACCORDANCE WITH THE LETTER OF JUNE 1977 FROM MR HELFRICH TO DR CHENG CONCERNING THE DRAFT INER RESEARCH PROGRAM THE SEPARATION OF AMERICIUM FROM PLUTONIUM HAS BEEN TERMINATED AS PART OF ITS RESEARCH PROGRAM THE INSTITUTE OF NUCLEAR ENERGY RESEARCH WILL UNDERTAKE RESEARCH CONTRIBUTING TO ONGOING INTERNATIONAL EFFORTS TO DEVELOP A LOW ENRICHED URANIUM LEU FUEL OF APPROXIMATELY 20 PERCENT ENRICHMENT SUITABLE FOR USE IN REACTORS SUCH AS THE TRR IF THESE EFFORTS DEMONSTRATE THAT SUCH A LEU FUEL CYCLE IS REASONABLY PRACTICABLE THE THE WOULD BE CONVERTED TO OPERATE ON LEU FUEL As SOON AS POSSIBLE SUCH CONVERSION MAY REQUIRE SOME MODIFICATION OF THE REACTOR IF HOWEVER THE TO OUR MUTUAL SATISFACTION THAT Is NOT REASONABLY PRACTICABLE IT WOULD NOT BE REQUIRED THE U S GOVERNMENT IS NOW UNDERTAKING A DETAILED STUDY OF THIS CONCEPT WHICH WE ANTICIPATE WILL BE COMPLETED NO LATER THAN MARCH WHEN THE STUDY IS COMPLETED THE U S POSES AN EARLY MEETING BETWEEN OUR EXPERTS TO REVIEW THE CONCEPT AND TO PLAN THE PRACTICAL STEPS REQUIRED TO CONVERT TRR FOR-OPERATION ON LEU FUEL SUBJECT TO THE ISSUANCE OF EXPORT LICENSES THE USG IS PREPARED TO SUPPLY THE REQUIRED QUANTITIES OF LEU PURSUANT TO THE THEN EXISTING URANIUM SUPPLY POLICIES AND TO THE AGREEMENT FOR COOPERATION IN THE INTERIM PENDING SUCH CONVERSION THE USG IS PREPARED TO AGREE TO THE PROMPT RESUMPTION OF TRR OPERATION IN ITS PRESENT CONFIGURATION USING NATURAL CLASSIFICATION PAGE 07 STATE 305274 URANIUM FUEL FOR A PERIOD TO TWO YEARS SUCH OPERATION OF THE REACTOR SHALL BE CONSISTENT WITH NEEDS FOR RADIOISOTOPERPRODUCTION AND THE PURPOSES OF THE AGREED RESEARCH PROGRAM IF CONVERSION IS NOT REASONABLY PRACTICABLE CIRCUMSTANCES BEYOND THE CONTROL OF THE CONVERSION BEYOND TWO YEARS THE REACTOR MAY CONTINUE TO OPERATE FOR A FURTHER INTERIM PERIOD TO BE MUTUALLY AGREED UPON FINALLY THE WILLINGNESS TO AGREE TO THE RESUMED OPERATION OF THE TRR IS BASED ON THE PREMISE THAT THE ROC WILL ADHERE TO ITS POLICIES AND TO THE VARIOUS NUCLEAR AGREEMENTS AND UNDERTAKINGS TO WHICH IT IS A PARTY THE U S GOVERNMENT IS PREPARED TO AGREE TO THE RESUMED OF THE TRR As SOON As IT HAS BEEN INFORMED THAT THE REPUBLIC OF CHINA SHARES THE ABOVE UNDERSTANDINGS CLASSIFICATION