V INTERNATIONAL INDUSTRIAL PROGRESS Government and private industrial organizations were strengthened during 1958 to broaden free world use of atomic energy. Among major developments of interest to industry this year were: The 6-nation European Atomic Energy Community (Euratom) was officially established; a joint United States-Euratom program for installing 1 million kilowatts of nuclear power capacity using United States types of reactors was approved by the Congress and by Euratom and an implementing Agreement of Cooperation was signed November 8. It will be placed before the Joint Committee on Atomic Energy to lie for the statutory 30 days while Congress is in session before United States ratification becomes effective. The United Nations Second International Conference on the Peaceful Uses of Atomic Energy was held in Geneva, Switzerland (September 1-13), with attendance, technical contributions, and number of contributing nations approximately double those of the first conference. Fifty-two United States firms engaged in the atomic energy industry joined with the Atomic Energy Commission and organizations of 12 other nations in a commercial exhibit which ran concurrently with the Conference. (See Part Two of this report for a description of the Conference.) The Organization for European Economic Cooperation established a European Nuclear Energy Agency and are preparing a public liability convention. A United States firm was chosen to build a large nuclear powerplant in Italy as a result of international competitive bidding held by the International Bank for Reconstruction and Development (World Bank). In addition, a United States company and its German affiliate were chosen to build a power demonstration reactor for a German utility company. Eleven additional research, training, and testing reactors are being contracted for with United States firms. The Atomic Industrial Forum established an International Affairs Committee to facilitate international industrial atomic energy cooperation. Private groups similar to the Forum were active in several countries. Six new civil uses bilateral agreements for cooperation, including three covering power reactors, went into force during 1958. The United States then had in effect 42 civil uses agreements for cooperation with 40 nations and the City of West Berlin. Seventeen agreements in force, or signed and awaiting ratification, cover power reactors (see Appendix 10). INDUSTRIAL ASSISTANCE TO PROGRAM United States industry continued during 1958 to contribute its skills and capacity to the national program for broadening world benefits from atomic energy. Industrial leaders, for example, worked closely with the Commission in plans for the United States-Euratom joint power reactor program. They made major contributions to the United Nations atomic conference in Geneva and to exhibits there. At the Atomic Industrial Forum sessions, held in Geneva concurrently with the United Nations conference, it was reported that more than 30 private commercial arrangements have been made between United States firms and industrial interests in other nations in the atomic field. United States international atomic trade was estimated for 1958 at approximately $35 million, including power reactors, research reactors, nuclear energy equipment, fuel element fabrication, and design and engineering services. During this report period, an export license was issued for the 11,500 kilowatt experimental power reactor at Mol, Belgium, the first power reactor exported. The United States firm awarded the contract on the Italian reactor was one of four United States bidders on the 150,000 kilowatt powerplant for the Societa Elettronucleare Nazionale (SENN). The plant is known as project ENSI (Energia Nucleare Sud Italia) and will be located near Naples. Five other companies-four British, and one French-had submitted bids, covering natural uranium as well as enriched uranium reactors. The new Italian atomic power station, scheduled for completion in 1962-63, will use a dual-cycle boiling water reactor, somewhat similar to that of the Commonwealth Edison Dresden plant in Illinois. SENN is negotiating with the International Bank for Reconstruction and Development for a loan to cover part of the estimated $48 million capital costs. After international bidding, a United States firm and its German affiliate were selected to construct a power reactor for the Rheinisch Westfaelisches Elektrizitatswerk, AG, Essen, (RWE) the largest utility company in Germany. It will be a 15,000 kilowatt boiling water reactor to be built at Kahl-am-Main in Bavaria. RWE is financing the reactor entirely from its own funds. Euratom Chairman McCone and Ambassador Walton Butterworth, on behalf of the United States, signed a comprehensive Agreement for Cooperation in Brussels, Belgium, on November 8 with the Commission of the European Atomic Energy Community. The agreement will be placed before the Joint Committee on Atomic Energy to lie for the statutory period. The joint undertaking, including a program for installation of 1 million kilowatts in nuclear powerplants in the six nations, using United States-design reactors, was prepared, negotiated, and approved by Euratom and acted on by the United States Congress during 1958.33 Subject to the coming into effect of an appropriate agreement for cooperation, significant aspects of the United States planned participation in the Euratom program are: a) Total capital cost of the program is estimated not to exceed $350 million, of which up to $135 million is expected to be provided by the Export-Import Bank of Washington as a long-term credit to Euratom for reloan to the participating utilities. b) The United States would, for a 10-year operating period, guarantee ceiling costs and minimum life for the fuel elements furnished European utilities under this agreement. The initial fuel inventory required (9,000 kilograms of uranium 235) will be sold on a deferred payment basis. Burnup and losses and quantities for research purposes (estimated to total 21,000 kilograms) will be paid for on a current basis. c) The United States will be prepared to process source and special nuclear material for Euratom utilities at prevailing domestic United States rates for so long as such services are made available by the Commission to its licensees in this country. d) The United States will participate with Euratom in a joint 10year research and development program designed to improve reactor performance and lower fuel cycle costs. The United States and Euratom each plan to contribute about $50 million on the first 5 years under this program objective. Initiation of the research and development program was announced by the Commission and Euratom on December 23. 3 See pp. 18-25, Twenty-fourth Semiannual Report to Congress (January-June 1958). This program will be aimed primarily at improving the performance of the reactors to be constructed under the joint program and at lowering fuel cycle costs. It will also deal with plutonium recycling and other problems relevant to reactors. The Commission and Euratom will jointly review and select the research and development proposals received in response to the announcement. A joint Research and Development Board has been established in Brussels to perform this function. Although review of proposals will begin promptly on receipt, contracts will not be signed until the Agreement for Cooperation goes into effect. e) A mutually acceptable system of safeguarding nuclear material from diversion to military uses is to be established. Information developed in the program will be disseminated to industry in the countries concerned. Organization for European Economic Cooperation (OEEC) The Commission undertook this year a program of cooperation with the European Co. for the Chemical Processing of Irradiated Fuels (Eurochemic) on a small-scale chemical processing plant at Mol, Belgium. At the request of the Organization for European Economic Cooperation and the Eurochemic Study Group, the Commission is providing design assistance. The United States continued to assist OEEC in drafting an international convention on public liability in the nuclear field. The final draft will be submitted to member governments during 1959. The Commission assigned a design engineer to work at Mol for 1 year and other personnel will assist on chemical processing technology. New Power Agreements BILATERAL AGREEMENTS The three new agreements for cooperation in power applications of atomic energy that went into effect during 1958 were with Italy, Japan, and Spain, superseding earlier research agreements. Including the three new research agreements, the total number of agreements was 42 with 40 nations and the City of West Berlin (two with Switzerland). Two new power agreements were signed this year, and were awaiting ratification. They were with Cuba and Venezuela. Materials Transactions Major shipments of nuclear and other special materials during the year included fuel for research reactors in Denmark, France, Germany, Italy, and Spain.34 Arrangements were made to lease heavy water to India for use in a research reactor. Uranium, containing more than 94 kilograms of uranium 235 was shipped to foreign countries, bringing the total shipped to date to nearly 159 kilograms. A total of 35 tons of heavy water was shipped during 1958 to Australia, Canada, Federal Republic of Germany, Italy, and Switzerland. Research Reactor and Equipment Sales As of December 31, a total of 29 research, training, and testing reactors had been built or were being built for foreign operation, by United States manufacturers. Of these, 15 already had operated abroad; the remainder still were awaiting shipment or under construction. During 1958, 16 such reactors were sold to foreign organizations. Sixteen nations received financial grants or commitments of $350,000 each under the Mutual Security Program toward the cost of nuclear reactor projects. Three nations received grants for equipment used in nuclear training and research. Reactor project grants are made under agreements for cooperation between the United States and other countries. Equipment grants may be made even though no agreement for cooperation exists. 34 See Appendix 4, "Shipments of Radioactive Isotopes," and Appendix 11 "Materials Shipments to Foreign Countries, July-October 1958." |