- CDS CDSN LGX355 MCN 94108 03296 TOR 941080639 PTTSZVUW RUEKJCS46751080637- 8SS•RUEALGX ZNYSSSSG DTG 152136ZAPR 94 FROM FM DIA WASHINGTON 09 b 3 10 use 424 CONTROLS I C ft 'f N6feFIH r J JO USC 424 b 3 50 USC 403-1 i U THIS MESSAGE IS PART OF THE PRODUCTION EFFORT OF THE U amp S COMMANDS THE MILITARY SERVICES NSA ANO DIA THE CONTENTS REPRESENT THE VIEWS OF THE ORIGINATING ORGANIZATION ANO MAY NOT REFLECT A COORDINATED DEFENSE INTELLIGENCE POSITION SERIAL MILITARY INTELLIGENCE DIGEST MID 105-1A BODY SUBJ SOUTH AFRICA NUCLEAR PROGRAM IN TURMOIL U DOI 15 APR 94 AS OF 1445 eon b 1 1 4 c 2' U THE DISGRUNTLED SCIENTISTS APPARENTLY WERE LAID OFF IN APRIL 1993 AS THE ATOMIC ENERGY CORPORATION OF SOUTH AFRICA AEC CONTINUED ITS TRANSITION FROM A GOVERNMENT-SUBSIDIZED TO A MARKET-DRIVEN OPERATION THESE LAYOFFS PROBABLY RESULTED FROM DECREASING SUBSIDIES TO THE AEC WHOSE BUDGET HAS BEEN CUT 480 MILLION RAND $137 MILLION SINCE 1990 IN 1990 THE CORPORATION'S BUDGET WAS APPROXIMATELY 1 BILLION RAND 70 PERCENT OF WHICH WAS GOVERNMENT SUBSIDIES BY 1998 GOVERNMENT FUNDING IS EXPECTED TO DECREASE ANOTHER 200 MILLION RAND SINCE THE DOWNSIZING BEGAN PERSONNEL EMPLOYED BY AEC HAVE DROPPED FROM 8 200 TO 2 900 ANO SEVERAL PROJECTS ANO OPERATIONS HAVE BEEN SHUTDOWN 3 U ACCORDING TO SOUTH AFRICAN PRESS REPORTS 16 MISSILE AND RN SEC page 23 - -• RET NOF NUCLEAR SCIENTISTS LAID OFF FROM AN AEC WEAPONS FACILITY HAVE 1 THREATENED TO REVEAL CLOSELY GUARDED SECRETS ABOUT SOUTH AFRICA S ARMS PROGRAM UNLESS THEY RECEIVE SEVERANCE PAY THIS THREAT INCLUDES THE EXPOSURE OF FOREIGN SOURCES OF SPECIALIZED EQUIPMENT USED IN THE COUNTRY1S NUCLEAR WEAPONS PROGRAM MOREOVER THESE SCIENTISTS REPOATEDLY CLAIMED THEY WOULD CONSTRUCT BOMBS FOR ANYONE WHO WOULD GUARANTEE THEIR SALARIES b 1 1 4 c l'g 25 is c lcniL-d in full per h J 10 USC 424 page 24