The International Nuclear Industry Today
Concern and frustration over the rapid spread of nuclear reactors, uranium enrichment facilities and reprocessing plants outside of the nuclear weapons club, to countries such as Brazil, South Korea, and the Union of South Africa, have recently led to suggestions that the United States place a ban on the export of conventional reactor technology, advanced reactor technology such as the breeder reactor, and fuel cycle technology until more acceptable safeguards institutions have been created. For example, in recent congressional testimony, David Lilienthal, the first chairman of the Atomic Energy Commission, suggested that such a unilateral U.S. strategy might be adopted.
Paul L. Joskow is Associate Professor of Economics at the Massachusetts Institute of Technology. This article was based on research funded by the Ford Foundation.
Concern and frustration over the rapid spread of nuclear reactors, uranium enrichment facilities and reprocessing plants outside of the nuclear weapons club, to countries such as Brazil, South Korea, and the Union of South Africa, have recently led to suggestions that the United States place a ban on the export of conventional reactor technology, advanced reactor technology such as the breeder reactor, and fuel cycle technology until more acceptable safeguards institutions have been created. For example, in recent congressional testimony, David Lilienthal, the first chairman of the Atomic Energy Commission, suggested that such a unilateral U.S. strategy might be adopted.
There are several reasons why this approach to the proliferation problem is unlikely to be successful. First, the United States no longer possesses a monopoly over reactor technologies or fuel cycle processes. In fact, in the area of reprocessing and breeder reactor development the United States lags behind other industrialized countries. Countries such as France, Germany, Japan, Canada, and the United Kingdom have the capability to produce and export one or more key elements of the nuclear energy system and could quickly replace the United States as a supplier of nuclear facilities. Second, the nature of the nuclear industries in most of these countries makes it highly unlikely that they would go along with such an embargo; rather, they would be likely to exploit the opportunity for additional nuclear sales to the fullest. Third, such a policy would run the risk of wrecking the existing Nonproliferation Treaty (NPT) which guarantees countries nondiscriminatory access to nuclear technology for peaceful purposes. As a result, even if such a unilateral embargo policy could be effective in the short run, the long-term implications for international agreements in the safeguards area might be extremely undesirable...
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An unanticipated development in the world nuclear marketplace has suddenly transformed the problem of nuclear proliferation from a potential to an immediate danger. The recent decisions by West Germany and France to sell nuclear fuel facilities to Brazil and Pakistan, respectively, mark the first sharp divergence by major industrial nations from long-established U.S. nonproliferation policy. The cornerstone of this policy has been the general practice of exporting power reactors and low-enriched uranium fuel, neither of which can be applied directly to weapons-making, and of not exporting nuclear fuel plants capable of enriching uranium and reprocessing plutonium in a form suitable for direct use in atomic bombs.
In 1954 the United States began, innocently enough, to share its nuclear resources with the world. Since the start of the Atoms for Peace program we have supplied nuclear technology and materials to 29 countries in an effort to extend the benefits of peaceful atomic power to all mankind. In the intervening years, other nations have developed their own nuclear capabilities, or have received assistance from U.S. licensees in other countries, such as France, or through sharing arrangements such as Euratom and the International Atomic Energy Agency (IAEA). All told today, over 500 nuclear reactors are in operation in 45 countries. By 1985, the number of operating power reactors throughout the world is expected to quadruple.
In June 1971, a month before Henry Kissinger's secret trip to Peking, the United States lifted the trade and payments embargo that had been in effect on the Chinese People's Republic ever since 1949. The move followed a number of lesser measures of relaxation taken from 1969 onward, and of course set the stage for the Kissinger visit and President Nixon's trip in February 1972. In the Shanghai Communiqué, the two nations agreed "to facilitate the progressive development of trade between their two countries."

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