NOTE TO MR. THOMAS K. LATIMER FROM (SANITIZED)

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CIA-RDP81M00980R002000030002-5
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Approved For Release 2006/08/01 : CIA-RDP81 M00980R0020000 TO: CENTRAL INTELLIGENCE AGENCY Office of Legislative Counsel Washington, D. C. 20505 Telephone: 351-6121 (Code 143-6121) 31 March 1978 Mr. Thomas K. Latimer, Staff Director Permanent Select Committee on Intelligence House of Representatives appropriate. In response to Mr. Burlison's request on the Freedom of Information Act, I think he and the Committee might be very interested in the possibility of similar initiatives on the Senate side concerning nuclear secrets. I would be very interested in knowing about the possibilities of remedial legislation. At a minimum, I would appreciate your calling this to Mr. Burlison's attention,,,'O that is' 6068 1533 PREVIOUS EDITIONS. (40) 2 1 ORI/CDF, Approved For Release 2006/08/01 : CIA-RDP81-M00980R002000030002-5 X9 ARTICLE ADPI;ARED 24 iN' Re ovAe4For Release 2006/08/01 fP,- DP81 OO98OROO2OOOO3OOO2-5 Senator.. to . Try to Close 'Gaps' By John J. Flalka Washington SLarSta-IWrtre The Senate Governmental Affairs Committee will prepare new legislation to close several "large aos" in the nation's system for safeguarding ornb-grade nuclear materials, according to Sen. John Glenn, head of the panel's subcommittee on nuclear proliferation. Glenn expressed shock yesterday after learning. that some employees of private contractors, em pioyees who work with. highI"y enriched uranium and plutonium, are not requied to have security clearances. - "That's incredible," Glenn said, calling it a "big Victor Gilinsky, a commissioner of-the Nuclear?, Regulator/ Commission, explained the situation to i rorists may_pose?to-certain nuclear. facilities- Gi-. in- facilities licensed by the NRC have security Department c;{isitracts and.tise.1Defense Depart--: anent requires 1.lcar?a.nces~, ~,, .. THOS#'~z1i1.3a on civiliari:*nucl'ear research clear materials he added, are not required to have their backgrounds checked unless their employer changed to prevent the NRC and-the departments of Energy and Defense from sending out detailed- plans of nuclear weapons storage facilities and otherhighly secured areas. Glenn displayed a series of blueprints, including detailed sketches of the wiring ot?tne alarm sys- tem, of the Department -of Energy's Hanford Reservation in Washington. They were obtained by Joseph Albright, a reporter for the Cox newspaper chain, who was 'given them and even- received tours of several highly secured facilities while pos- ing as a private contractor: "It is absolute nonsense to be sending this kind of information out," Glenn told a padel of nuclear energy officials, -including Giiinsky Thomas??O'-- Brien, director for security plans for the Pentagon, and Donald Kerr,: acting assistant secretary- flo added Glenn, who said that a new law might be necessary to bar such information from Freedom( Asked by.Glenn..about the NUMEC case,'Kerr- said, "We cannot prove?to you that there was no" -diversion, nor can we prove to you that there was a diversion." 1 KERR ADDED THAT the Energy Department is concerned about reports that the missing uranium may have been diverted to Israel and has launched two new investigations of the case. One investigation is to recheck available records and processes at the plant, which was involved in making highly enriched uranium fuel for a nuclear. rocket at the time investigators discovered that'. 205 pounds of. the material could not be accounted I ?for_ :,? _ . _ _ , i The second investigation is being carried out by the Office of Inspector General, which is focusing on how Energy Department officials and its two , predecessors, the Atomic Energy Commission and the Energy Research and Development Adminis-1 tration, have dealt with the problem in the past. ..i According to Energy Department records, the president c? NU,'YIEC at the time, Dr: Zalrnan M. Shapiro, a former AEC chemist, had access to too secret U.S. nuclear weapons technology at the saute time that lie had a number of business ar rangemeents with the Israel's Atomic Energy Cora- mission, including a program for recruiting and training Israeli scientists and a contract for "the general development of plutonium oxide as fuel elements in nuclear reactors." While Glenn expressed alarm over some reveli3- tions during the hearing, he discovered that one l' "serious" incident reported Sunday by the Wash-, ington Post amounted to a "fiasco." ' .:, err told Glenn that an offer made last summer; ,by European commodity traders to sell Westin;; house 239 pounds of highly enriched uranium turned out to involve depleted iiranium, a harm- less, lead-like substance from which most of the fissionable uranium isotopes had been removed. -i . Reports of-the matter sent to the NRC did noti mention that the material, offered by an. unnamed ' Swiss businessman as "highly enriched uranium, was tested by a Geneva chemist and turned out to contain only .4 percent of U-235, the bomb-grade material, less than that found in natural uranium. Asked about the matter. Herb Waters, a Wash- ington commodities dealer, acknowledged that he had received a detailed assay report from Geneva and after translating it from the German, rejected; the offer, explaining that Westinghouse had ro need for depleted uranium. j Glenn said his committee had run-,into-56v "L!/ I rii . ZiA X to you that ttiis has oeen a riasco "stone walls' trying to investigate another safe-' from the beginning,' said Harvy E. Lyon, head of gard problem, the unexplained loss of'a. large Energy Department's division of safeguards and ar.:o?int of highly enriched uranium from'a private security, who explained that a later outlining the lant, the Nuclear Materials and Equip matter has been sent to the NRC. He added that: nucl-ear p -mont Corp. (NUYEC) of Apollo, Pa., during the the FBI is still investigating the rasa because of early 1530 s. Ole ro?ibility of raUd in tl:c of,-. According to a spokesman for the Senate-Select Lyon said the Energy Department's files contain Committee on Intelligence, the committee has several other cases where an offer to sell bomb'; turned down a request by Glenn's staff to gain ac- grade materials have been made from parties cess to CIA tiles on the NU?ytECease. overseas. So far, he added, none of the oilers have been found to be credible. under, ~ro" ar~ i ~ Q~ . t IA-R1 fr3 1M0Qi QROO A? O~R?2--ion,. can be gap in our security that we'll have to f ill in."