IAEA Meeting on Nuclear Fuel Supply and Non-Proliferation

From September 19-21, 2006, the International Atomic Energy Agency (IAEA) held a Special Event in Vienna on: "Assurances of Nuclear Supply and Non-Proliferation."  More than 300 participants from 61 countries and organizations attended. Charles Curtis, chairman of the meeting, described its purpose as being to: 1) discuss the possible expanded use of nuclear energy as a solution to increasing global demands for energy, and 2) find ways to minimize the risks created by further spread of sensitive nuclear technology such as uranium enrichment and plutonium reprocessing.

According to Curtis, discussion was to focus on one main proposal: the establishment of an independent, non-political, and non-discriminatory back-up mechanism to ensure supply of nuclear reactor fuel to states that voluntarily choose to rely on international fuel rather than developing their own capabilities. This would ensure fuel supply for commercial use in the event of a politically-motivated interruption. It would not interfere with the existing commercial market in nuclear fuels, nor would it deal with supply disruption due to commercial, technical, or other non-political causes.

Those supporting such a mechanism argued that it would eliminate two main obstacles to the use of nuclear energy to solve the energy crisis. First, it would offer security to countries reluctant to embark on commercial nuclear-power programs, using international fuel supplies, for fear of supply interruptions because of political conflicts. Secondly, it would lessen some of the pressures that drive vulnerable states to develop their own national enrichment and reprocessing capabilities.

Under the proposal, a state using such a back-up mechanism would not lose its rights, guaranteed in Article IV of the Non-Proliferation Treaty (NPT), to develop research, production, and use of nuclear energy for peaceful purposes, and to facilitate and participate in the fullest-possible exchange of equipment, materials, and scientific and technological information for the peaceful uses of nuclear energy. However, this is  misleading because, in fact, all the IAEA proposals put forward in preparation for the meeting contained recommendations that impinge on states’ Article IV rights.

The U.S., Britain, France, Canada and some other countries interpret Article IV in a way that limits the terms "inalienable right" and "fullest possible," especially in relation to the right of states to develop an indigenous nuclear fuel cycle. The proposals made by the advanced nuclear states, the nuclear industry, and non-government organizations followed naturally from this interpretation of Article IV. They all recommended that states would have to give up their right to uranium enrichment in order to use the proposed back-up mechanism.

This was reflected in several specific proposals presented at the meeting including:

   "Concept for a Multilateral Mechanism for Reliable Access to Nuclear Fuel", jointly drafted by France, Germany, Netherlands, Russia, Britain, and the U.S. (six-nation proposal), recommending that a state only be eligible to use the back-up mechanism if it has implemented the extra safeguards under the Additional Protocol, has no exceptional safeguards implementation issues outstanding with the IAEA, and has chosen not to pursue sensitive fuel cycle activities;

  World Nuclear Association proposal - "Ensuring Security of Supply in the International Nuclear Fuel Cycle" - drafted by nuclear industry experts and the world's four leading uranium enrichment companies and proposing that to be eligible to use the back-up mechanism "a customer state must have made a commitment to forego the development of, or the building or operation of, enrichment facilities;"

   Global Nuclear Energy Partnership, announced by the U.S. government and based on the premise that the U.S. and its international partners would develop a fuel services program to supply developing nations with access to nuclear fuel in exchange for a commitment to forego the development of uranium enrichment and plutonium reprocessing technologies;

   Nuclear Threat Initiative proposal, which announced that it would donate $50 million to the IAEA to help create a low-enriched uranium stockpile; this stockpile would be available as a last-resort fuel reserve for nations that have made the "choice" to have no indigenous enrichment facilities.

None of these proposals would guarantee a backup supply of nuclear fuel to recipient states. Furthermore, even if a recipient state agreed to forego the development of enrichment processing and agreed to the more intrusive supervision of its nuclear program through the Additional Protocol, the major powers still have sufficient political, economic, financial and military weight in the world to pressure many states in international organizations like the IAEA and on the United Nations Security Council to support measures depriving other countries of access to nuclear fuel. For example, there is no evidence that Iran's nuclear program has any military dimension but the U.S. has still been able to get resolutions through the IAEA and Security Council which declare that Iran is  "non-compliant" with the NPT. According to these proposals,  Iran would not qualify to use the backup supply mechanism.

A further controversy arose at the meeting among countries with advanced nuclear industries over the issue of access to export markets. The six-nation proposal put forward by France, Germany, Netherlands, Russia, Britain and the U. S. divided states into suppliers (i.e., those that currently export nuclear fuel) and recipients. A number of states within the Nuclear Suppliers Group, such as Japan, Australia, Canada and Brazil, are not currently exporters of nuclear fuel but consider it within their right to do so. These countries are concerned that they will be thrown into the recipient category and denied the opportunity to export nuclear fuel. As a result Japan tabled its own paper entitled "IAEA Standby Arrangements System for the Assurance of Nuclear Fuel Supply," which recommended that a back-up supply system should “make it possible for as many states as practicable to participate in and contribute to the system ….”

The nuclear-weapons states and their allies are not opposed in principle to the proliferation of nuclear weapons or nuclear-weapon technology. They actively support proliferation wherever it serves their strategic interests, and oppose it when it does not. Last month, for example, the U.S., along with Britain and France, refused to attend the signing of a treaty that set up a nuclear-weapon-free zone in Central Asia. Under the treaty, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, and Turkmenistan agreed not to produce, buy, or allow the deployment of nuclear weapons on their soil. The Americans oppose the treaty because they want the option of deploying nuclear weapons in this region in the future. In the Middle East, the U.S. opposes the establishment of a nuclear-weapon-free zone because its ally Israel would have to destroy its nuclear-weapon arsenal.

The Special Event did not reach any firm conclusions except to say that further detailed study was required in order to put together a recommendation for the establishment of a back-up nuclear fuel supply mechanism. However it is clear that the meeting was primarily a forum for the nuclear-weapon states, and other states with advanced nuclear technology, to push forward their own military and commercial agendas.


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