To the Congress of the United States:
I have reviewed the activities of U.S. Government departments and agencies during CY 1979 with respect to the prevention of nuclear proliferation, and am pleased to submit the second annual report called for by Section 601(a) of the Nuclear Non-Proliferation Act of 1978 (Public Law 95-242).
The enclosed report contains a general summary and chapters detailing the progress made in the following areas:
—completion of the studies of the International Fuel Cycle Evaluation (INFCE);
—creation of an international nuclear fuel regime;
—development of common export and domestic policies;
—increased adherence to the Treaty on the Non-Proliferation of Nuclear Weapons;
—strengthening of International Atomic Energy Agency safeguards;
—negotiation of international agreements for peaceful nuclear cooperation;
—cooperation in energy with developing countries;
—international cooperation in protection of the environment;
—establishment of procedures on other export-related matters; and
—determinations as specified in 601 (a) 3 of the Nuclear Non-Proliferation Act.
The report concludes that U.S. nonproliferation initiatives, including the Non-Proliferation Act of 1978, have continued to make .a positive contribution to non-proliferation by increasing international awareness of the proliferation risk inherent in certain peaceful nuclear activities. This increased awareness is reflected most notably in the International Nuclear Fuel Cycle Evaluation, which will conclude in late February.
The Evaluation meetings have also provided a forum for an organized, wide-ranging and detailed technical reexamination of assumptions and alternatives, in which a large number of countries with varying interests have participated. Our own contributions to these discussions have helped to overcome some of the doubts and concerns of other countries about the motives and intentions behind our policies. After the conclusion of INFCE, Congress will be informed of its specific findings.
Further progress was made during 1977 on most of the other challenges identified in last year's report as well. Negotiations were completed for an international convention on the physical protection of nuclear material. Bilateral cooperation agreements were reached on the peaceful uses of nuclear energy. Six additional countries signed the NPT. The IAEA safeguards system was technically improved and strengthened.
On the less positive side, additional effort will be needed to demonstrate the feasibility of arranging for the international storage of spent fuel as well as for the permanent disposal of nuclear waste. And some countries continue to have concerns about U.S. non-proliferation policy and our reliability as a nuclear supplier. We will need to work closely with our trading partners to resolve fuel cycle and related issues in the months ahead. In addition, special proliferation issues must be confronted in certain areas such as South Asia and the Middle East.
We will continue to address these and other concerns noted in the report during the coming year, as we pursue our efforts to achieve international support for additional measures to reduce the risk of proliferation while meeting legitimate energy needs.
The White House,
February 27, 1980.