CLASSIFICATION-SEW PAGE 01 STATE 225046 ORIGIN NODS-OO - 001 I 119805 0603402 62 0522282 SEP 78 FM SECSTATE NASHDC DECLASSIFIED UNDER AUTHORITY OF - T0 AMEMBASSY TAIPEI INTERAGENCY SECURITY CLASSIFICATION APPEALS PANEL INFO WHITE HOUSE 0000 ED 13526 SECTION ISCAP APPEAL NO 2011-007 document no 2 E STATE 225 O4 5 DECLASSIFICATION DATE December 3 2015 NODIS E O 11652 TW SUBJECT FOLLOW-UP TO NUCLEAR TEAM VISIT DEMARCHE T0 PRESIDENT CHIANG - REFS A TAIPEI 5013 B TAIPEI 5144 TAIPEI 5736' - - PAGE 02 STATE 225046 1 USE AGENCIES HAVE REVIEWED THE U S NUCLEAR TENTATIVE FINDINGS REF DISCUSSIONS THE TEAM HAD WITH MOFA VICE MINISTER CHIEN AND OTHERS AND THE PRELIMINARY DISCUSSION WITH PREMIER SUN REF B AND WITH FONMIN SHEN REF C WE HAVE CONCLUDED THAT A FORMAL DEMARCHE SHOULD BE MADE TO THE ROC TO RESTATE EMPHATICALLY THE IMPORTANCE OF THE ROC AVOIDING ANY ACTION NOT IN COMPLIANCE WITH-OUR NUCLEAR AGREEMENTS WE WISH TO MAKE IT UNMISTAKEABLY CLEAR THAT WORK SUCH AS THAT RELATED TO LASER ISOTOPE SEPARATION HAS RAISED SEVERE DOUBTS WITHIN THE USG ABOUT OUR-ABILITY To CONTINUE NUCLEAR EXPORTS UNDER THE NUCLEAR ACT NNPA AND THAT A REPETITION OF SIMILAR UNCERTAINTIES IN THIS OR ANY OTHER SENSITIVE AREA WOULD SERIOUSLY UNDERMINE CONTINUED EXPORTS 2 TO-ACCOMPLISH THIS THE AMBASSADOR SHOULD ARRANGE TO CALL UPON PRESIDENT CHIANG AT HIS EARLIEST CONVENIENCE AFTER EXPLAINING THAT-THE PURPOSE OF YOUR CALL IS TO RAISE ON THE INSTRUCTIONS OF SECRETARY VANCE A SERIOUS MATTER AFFECTING OUR PEACEFUL NUCLEAR COOPERATION THE AMBASSADOR SHOULD READ AND HAND OVER TO PRESIDENT CHIANG THE FOLLOWING LETTER FROM SECRETARY VANCE 3 BEGIN TEXT DEAR MR PRESIDENT I HAVE APPRECIATED YOUR STATEMENTS SUPPORTING NUCLEAR NONTPROLIFERATION HOWEVER I BELIEVE IT IS IMPORTANT FOR YOU TO KNOW THAT CLASSIFICATION CLASSIFICATION SEC-RBI SENSITIVE RESEARCH SUCH AS THAT RELATED TO LASER ISOTOPE SEPARATION IN THE ROC HAS RAISED THE MOST SERIOUS DOUBTS WITHIN THE U S GOVERNMENT AS TO WHETHER IT COULD CON- TINUE NUCLEAR EXPORTS TO THE ROC SPECIFICALLY WHETHER 03 STATE 225046 IT COULD SUPPORT THE EXPORT LICENSE REQUEST FOR TAIPOWER REACTORS 5 AND NOW PENDING BEFORE THE NUCLEAR REGULATORY VIEW OF THE UNCERTAINTY THAT MAY HAVE ISTED ABOUT THE ACCEPTABILITY OF THIS LASER WORK BEFORE THE USG NUCLEAR TEAM VISIT IN JULY THE EXECUTIVE BRANCH HAS CONCLUDED THAT THERE HAS NOT BEEN ANY DELIBERATE AT- TEMPT TO CIRCUMVENT OUR UNDERSTANDING IN THIS CASE I BELIEVE HOWEVER NO DOUBT SHOULD BE LEFT As TO THE SERIOUSNESS OF THE SITUATION AS WE SEE IT THE SEQUENCES OF YET ANOTHER INSTANCE SUCH AS THAT TED BY THE LASER ISOTOPE SEPARATION WORK WOULD BE DRASTIC FRANKLY SHOULD ANOTHER INSTANCE OF RESEARCH IN SENSITIVE NUCLEAR FIELDS OF ENRICHMENT REPROCESSING OR PRODUCTION TECHNOLOGY AGAIN RAISE DOUBTS AS To WHETHER ROC SCIENTISTS ARE ACTING IN COMPLIANCE WITH OUR NUCLEAR AGREEMENTS THEIR ACTIONS WOULD REQUIRE CONSIDERATION OF TERMINATION OF NUCLEAR EXPORTS I HOPE YOU WILL ACCEPT MY WORDS AS THOSE OF A I HAVE A DEEP INTEREST IN YOUR SECURITY AND PROSPERITY IT IS MY EARNEST HOPE THAT WE WILL BE ABLE TO CONTINUE IN THE YEARS AHEAD OUR VERY CONSTRUCTIVE COOPERATION IN THE PEACEFUL USES OF ATOMIC ENERGY SINCERLY CYRUS VANCE END TEXT THEREAFTER THE AMBASSADOR SHOULD REFER TO THE RECENT VISIT OF THE U S NUCLEAR TEAM NOTING THAT THE PRESIDENT HAS UNDOUBTEDLY RECEIVED A REPORT ON ITS TENTATIVE FINDINGS FROM MOFA THE AMBASSADOR SHOULD THEN MAKE THE FOLLOWING POINTS WHICH CONVEY THE VIEWS RESULTING FROM THE TEAM VISIT AND WHICH ELABORATE ON THE LETTER A COPY OF THESE TALKING POINTS SHOULD BE LEFT WITH THE PRESIDENT - -- I HAVE BEEN INSTRUCTED BY THE SECRETARY TO DRAW PAGE 04 STATE 225046 YOUR ATTENTION PARTICULARLY TO TWO POINTS WITH RESPECT TO THE FINDINGS FIRST WE CONSIDER THE UNCERTAINTIES ABOUT THE NATURE AND EXENT OF RESEARCH WORK RELATED TO LASER ISOTOPE SEPARATION LUEXTREMELY SERIOUS MATTER BECAUSE WORK IN THIS AREA WOULD LEAD ALMOST UNAVOIDABLY TO A VIOLATION OF POINT THREE OF OUR SECRET AGREEMENT CLASSIFICATION SEER-EH POINT THREE OF THIS SECRET AGREEMENT STATES THAT ROC WOULD TERMINATE ALL FUEL CYCLE ACTIVITIES AND REORIENT FACILITIES INVOLVING OR LEADING TO USEABLE MATERIALS SUCH AS THE SEPARATION OR HANDLING OF PLUTONIUM AND URANIUM 233 AND THE DEVEOPMENT OF URANIUM ENRICHMENT AND CAPABILITIES T AMONG OTHER THINGS THIS PROVISION REFERS TO TERMINATING ALL ACTIVITIES LEADING TO THE MENT OF SUCH RATHER THAN JUST TO ACTUAL PRODUCTION ACTIVITIES PER SE IT REFERS SPECIFICALLY BOTH TO ENRICHMENT CAPABILITIES AND TO -- WHILE ACKNOWLEDGING THAT CERTAIN LIS RELATED WORK MAY FALL IN A GREY AREA WE BELIEVE ANY LIS WORK CAN CONTRIBUTE TO A URANIUM ENRICHMENT CAPABILITY -- CONSEQUENTLY WE HAVE NOW CONCLUDED THAT TO AVOID ANY DOUBTS ABOUT COMPLIANCE WITH OUR AGREEMENTS NO FURTHER LIS WORK SHOULD BE UNDERTAKEN WE BELIEVE THAT NUCLEAR RELATED IN THE PAGE 05 STATE 225046 ROC NEEDS TO BE CAREFULLY REVIEWED TO ENSURE THAT THERE ARE NO OTHER SUCH GREY AREA ACTIVITIES BEING CONDUCTED WHICH MIGHT CREATE MUSUNDERSTANDING ABOUT STRICT AVOIDANCE OF ACTIVITIES PROSCRIBED BY OUR AGREEMENTS PARTICULARLY ACTIVITIES INVOLVING OR LEADING TO REPROCESSING ENRICHMENTOR CAPABILITIES I HAVE BEEN INSTRUCTED TO REQUEST THAT FOLLOWING WHATEVER INQUIRY INTO THIS SUBJECT YOUR GOVERNMENT MAY DEEM NECESSARY YOU PROVIDE MY GOVERNMENT WITH ASSURANCES THAT NO LIS OR OTHER WORK ON ENRICHMENT REPROCESSING OR TECHNOLOGY WILL BE UNDERTAKEN AT INER AT CIST OR AT ANY OTHER FACILITY IN THE ROC OR ABROAD gsxs 13 0 135st CLASSIFICATIO CLASSIFICATION TIONS L25X6 PAGE 06 STATE 225046 IT IS FOR YOUR GOVERNMENT TO ENSURE THAT ALL ROC SCIENTISTS AND PERSONNEL ARE AWARE OF OUR NUCLEAR MENTS AND THAT THEY ASIDE BY THEM IN ADDITION WHILE THE RESEARCH ACTIVITIES AT INER APPEAR TO BE IN COMPLIANCE WITH OUR SECRET AGREEMENT WE ARE DISTURBED AT THE LACK OF PROGRESS IN REORIENTING SOME INER FACILITIES FOR INSTANCE ALTHOUGH 15 MONTHS HAVE PASSED THE LABORATORY DESIGNED TO PRODUCE PLUTONIUM METAL HAS NOT YET BEEN REPORIENTED WE BELIEVE THAT THE THRUST OF RESEARCH WORK SHOULD BE TO SUPPORT YOUR NUCLEAR POWER PROGRAM HAS NOT YET BEEN BROUGHT ABOUT SUBSTANTIALLY I HAVE BEEN INSTRUCTED TO RAISE THESE POINTS WITH YOU BECAUSE MY GOVERNMENT WISHES TO SEE OUR PEACEFUL NUCLEAR COOPERATION CONTINUE IN THE YEARS AHEAD -- MY GOVERNMENT RECOGNIZES THE SERIOUS CONSEQUENCES THAT A TERMINATION OF EXPORTS WOULD ENTAIL FRANKLY ANY RECURRENCE OF UNCERTAINTIES SUCH AS THOSE CONCERNING LIS COULD WELL MAKE IT IMPOSSIBLE FOR US TO CONTINUE SUPPORTING NUCLEAR EXPORT LICENSE REQUESTS FOR YOUR POWER PROGRAM IT IS OUR EARNEST HOPE THAT NO FURTHER UNCERTAINTIES WILL ARISE FROM THE ACTIONS OF SCIENTISTS ANYWHERE IN THE REPUBLIC OF CHINA TO THREATEN OUR ABILITY TO CONTINUE OUR PEACEFUL NUCLEAR RELATIONS PAGE 07 STATE 225046 5 SHOULD PRESIDENT MENTION HIS OFFER TO HAVE U S SCIENTISTS WORK IN ROC RESEARCH FACILITIES YOU MAY COMMENT THAT THE USG IS MINDFUL OF HIS GENEROUS OFFER YOU SHOULD NOTE THAT SEVERAL GROUPS OF U S SCIENTISTS HAVE VISITED THE ROC IN THE PAST I8 MONTHS AND THAT ANOTHER GROUP FROM ARGONNE NATIONAL LABORATORY WILL BE COMING IN SEPTEMBER TO DISCUSS THE CONVERSION OF THE RTT THE USG IS ALERT TO OTHER THAT MAYIARISE TO TAKE ADVANTAGE OF THE OFFER CLASSIFICATION CLASSIFICATION 6 SHOULD PRESIDENT CHIANG ASK WHAT OTHER RESEARCH BSXG 0 135267 I MAY BE CONCERN US YOU SHOULD REPLY AS FOLLOWS OUR CONCERN IS THAT ANY RECURRENCE OF UNCERTAINTIES ABOUT ROC COMPLIANCE WITH OUR AGREEMENTS COULD WELL FORCE A TERMINATION OF U S NUCLEAR EXPORTS TO AVOID THIS WE BELIEVE THAT ALL I I NUCL AR RE EAR ACTI ES THE ROC- L25X6 131113525 SHOULD BE CAREFULLY REVIEWED TO ENSURE THAT THEY ARE COMPLIANCE WITH OUR AGREEMENTS PAREICULARLY CONCERNING THE DEVELOPMENT OF CAPABILITIES IN THE SENSITIVE AREAS OF REPROCESSING ENRICHMENT AND HEAVYHWATER-PRODUCTION CHRISTOPHER CLASSIFICATION