THE NATIONAL INTELLIGENCE DAILY TUESDAY 7, FEBRUARY 1978

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 03022414
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: March 9, 2023
• Document Release Date: September 18, 2020
• Case Number: F-2017-01987
• Publication Date: February 7, 1978

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The
National Intelligence
Daily co
Published by the Director of Central Intelligence for Named Principals Only
TOP SEGRim
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TUESDAY 7 FEBRUARY 1978
\-=749ETHERLANDS-BRAZIL
Nuclear Fuel Safeguards
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The Dutch Parliament approved the
expansion of the uranium enrichment
plant at Almelo in the Netherlands last
week. The Parliament also demanded,
however, a new safeguards agreement
with Brazil before the British - Dutch -
West German consortium URENCO
fulfills its contract to supply fuel for
Brazil's Angra H and III reactors
beginning in 1981. Britain and West
Germany will probably op
further demands on Brazil.
Throughout URENCO's negotiations
with Brazil, the Dutch Government has
sought to tighten the safeguards agree-
ment on Brazil's use of URENCO-
enriched uranium, and particularly on the
storage of plutonium after the spent fuel is
reprocessed. The Dutch realize that their
leverage on this question is slight,
however, because their URENCO
VOLUME 9 N11MRFR fll
partners are willing to supply fuel o
Brazil regardless of the Dutch, position.
The Dutch Government, partly in-
fluenced by a US recommendation to
supply fuel for Brazil's Angra I reactor as
well as by Brazil's hard line, went along
with its URENCO partners and Brazil in
December, agreeing to safeguards weaker
than the Dutch had hoped for. The
government agreed that it would be ac-
ceptable for Brazil to store plutonium
under International Atomic Energy
Agency rules�if such rules are
established by 1985, when URENCO fuel
in Brazil would be due for reprocessing.
If no IAEA rules exist by then, the
URENCO partners and Brazil would
work out ad hoc safeguards.
The Parliament, however, rejected this
agreement. The government's own
(See Netherlands-Brazil. . .Page 4)
n
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TCS 531/78 THE NATIONAL INTELLIGENCE DAILY
NR Record
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NATIONAL
orized DisclosureSubject to Criminal Sanction
The -. _National _Intelligence Dailyis prepared in the
Central - Intelligence Agency in cooperation , with the
other US foreign intelligence organizations. Late items
prepared - by =CIA. alone ore so: -marked. Analytical fea-
ture articles ate_attrilayted:to _their authors.: - -
ority a d control abbreviations
used to tftis publication:
Top Secret-UMBRA -
ret SPOKE - -
acret
_ Confidential
U�Undlassified -
oFoRN �Not Re' ennoble to
Foreign Nationals
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OC) - traction of Information
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his- Information- h s
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Release to
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Netherlands-Brazil. . .
From Page 1
parliamentary supporters, with backing
rrom the opposition, demanded that
razil's agreement on firmer plutonium
torage safeguards be obtained by 1981,
nd that full-scope safeguards be accepted
y any new URENCO customers. These
conditions, the legislators argued, would
respond to domestic concerns and
preserve the Netherlands' strong anti-
proliferation stance.
At the same time, by agreeing to
enlarge the Almelo plant and supporting
.he continuation of the URENCO consor-
tium, the Parliament hopes to ensure that
the Dutch receive their share of the profits
from URENCO business. The govern-
ment has recently stressed the need to
satisfy British and West German demands
n order to maintain some influence on
.hese countries' nuclear exports policies.
Britain and West Germany are unlikel
to favor new efforts to obtain firme
safeguards from Brazil. Brazilian official
have reiterated their determination t
resist any discriminatory safeguards, an
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the British and West Germans believe
other suppliers of enriched uranium are
eager to win Brazil and other countries as
customers without such safeguards. They
also stress that URENCO's credibility as
a supplier is suffering because of Dutch
obstinacy on the safeguards issue.
British and West German officials put
strong pressure on the Dutch Government
go ahead with the expansion of Almelo.
ey could legally have claimed enor-
ous damages from the Dutch if
Almelo's enlargement had not been ap-
proved.
however, West German businessmen are
disappointed by the Dutch decision
because they want an excuse to push the
Dutch out of URENCO and begin con-
structing a new uranium enrichment plant
at Gronau, West Germany.
Confronted by renewed Dutch
esistance on the safeguards issue, the
ther URENCO partners are likely to
ove to provide Brazil with enriched
ranium on their own, e7n at the cost of
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estroying the consortium
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