WEEKLY SUMMARY

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 0005284699
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 3
• Document Creation Date: June 22, 2015
• Document Release Date: December 15, 2008
• Case Number: F-2008-00942
• Publication Date: April 21, 1967

0
DIRECTORATE OF
INTELLIGENCE
WEEKLY SUMMARY
APPROVED FOR RELEASE DATE:
09-24-2008
 S
?DECRET
EURATOM DEBATES NPT SAFEGUARDS
The position of EURATOM, in
connection with the proposed nu-
clear nonproliferation treaty
(NPT), has become crucial to the
success of the current effort to
prevent the spread of nuclear
weapons.
In order to prevent the
diversion of fissionable materials
to weapons uses, the proposed NPT
would put the peaceful nuclear
activities of nonnuclear signa-
tories under the safeguard system
administered by the International
Atomic Energy Agency (IAEA). The
NPT thus impinges upon the purview
of EURATOM, since safeguarding
within the Community is a function
of the EURATOM Commission and is
in fact a prime example of EURA-
TOM's supranational status. Its
inspections apply to the civilian
nuclear installations of all the
members, including those of France.
By contrast, France--as a nuclear
power--would be exempt from the
safeguards projected by the NPT.
For most of the EURATOM
members, the preservation of the
Community safeguards system is
important not only to EURATOM,
but to the. whole European inte-
gration movement, which is based
on the principle of equal treat-
ment of the members.. The dilemma
is to reconcile this with the
need, which they also recognize,
for an effective international
inspection system as part of the
NPT. While five of the EURATOM
countries are willing to try to
work out something with IAEA,
even the Dutch, who are the most
favorably inclined toward this,
have asserted that their first
obligation is to EURATOM.
The French, however, are a
complicating factor. Although
they do not intend to sign the
NPT, they have nevertheless seemed
to welcome it--because it would
further restrict West Germany and
because to oppose it might hurt
Paris' relations with Moscow. On
the other hand, Paris has con-
sistently rejected the idea of
IAEA "intrusion" into EURATOM
affairs. Thus, the French--if
they do not want the safeguards
issue to block the NPT--would
face the prospect of having to
let EURATOM work out an arrange-
ment with IAEA. This would give
the EURATOM Commission a "polit-
ical" role which De Gaulle has
always wanted to avoid giving to
Community institutions. Moreover,
any eventual compromise would
involve some modification of the
present EURATOM safeguards in-
evitably having at least an in-
direct application to the French.
Whether the EURATOM Commis-
sion will be able to pick its
21 Apr 67
 way through these conflicting
currents is difficult to say.
Earlier this week, it offered to
negotiate with the IAEA an agree-
ment whereby IAEA would "verify"
the effectiveness of EURATOM's
safeguard system, but it cate-
gorically rejected the US pro-
posal that IAEA controls would
apply in the Community in the
event no such agreement is reached
within three years. As a counter-
proposal, the commission suggested
that if the safeguard question re-
mained unresolved it should be
part of the projected general re-
view of the NPT after five years.
This position has the support of
the five other EURATOM members,
but only the tacit consent of
the French,. and the US mission
cautions that there are signs of
growing French opposition to the
role the commission is playing
in trying to find such" a compro-
mise.
SOVIET INDUSTRIAL GROWTH REGISTERS UPTURN IN FIRST QUARTER
Current estimates indicate
that Soviet industrial output
rose more sharply during the
first quarter of 1967 than in
any similar period in almost two
years. There was an estimated
rise of 8 1/2 percent in indus-
trial output excluding military
machinery and military items, and
probably a somewhat larger in-
crease in total industrial out-
put. The increase was accounted
for mostly by marked rises in
the production of machinery and
commercially processed foods.
The upturn in foods production
largely reflects last year's
good harvest and does not neces-
sarily reflect a permanent
trend. Nevertheless, this up-
turn, taken together with the
increasing output of soft goods
and consumer durables, suggests
that the USSR's 50th anniver-
sary year may well be a good one
for the consumer.
ciT;Gn rim
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