248 



electricity generated in the United States will come from nuclear 

 power plants, and in the 1990s about half. As for foreign nuclear 

 power, the AEC estimates that nuclear power plants in foreign mar- 

 kets accessible to the United States will represent a total electrical 

 generating capacity of from 70,000 to 100,000 megawatts by 1980. 

 Taking into account that some enriching services will be furnished from 

 foreign sources, the AEC projects that foreign and domestic nuclear 

 powerplants requiring U.S. enrichment services will total about 225,- 

 000 megawatts in 1980. 279 



The value of the enrichment market is estimated to be about $1 bil- 

 lion annually by 1980, and $1.5 billion by 1985. The AEC already has 

 signed long-term contracts for enriching services of 30 years dura- 

 tion. These contracts have an aggregate potential demand of about 

 $3 billion, including some $800 million from abroad. 280 



United States Supply Policy 



To foster foreign interest in its nuclear power technology, the 

 United States has assured foreign users of a reliable supply of enriched 

 uranium. This assurance is necessary because other nations would not 

 be willing to make large capital investments in nuclear power plants 

 fueled from an external monopoly without strong assurance of the 

 long-term availability of enriched uranium. Thus, the cornerstone of 

 U.S. supply policies has been a long-term assurance of supply, com- 

 mensurate with the reasonable economic life of foreign nuclear power 

 plants, on non-discriminatory terms and conditions, and including 

 charges comparable to those for the domestic nuclear industry. U.S. 

 supply policy has been characterized by repeated assurances of the 

 dependability of nuclear fuel supply through export allocations of 

 enriched uranium to signatories of bilateral agreements, and through 

 enrichment services contracts. 



The sucesss of this policy is illustrated by the fact that most nuclear 

 power reactors sold in international trade to date have been of U.S. 

 design, using enriched uranium. For the period of July 1962 through 

 December 30, 1970, the revenues from the sale of enriching services and 

 nuclear materials to foreign users came to $207 million. 281 



ADVANTAGES TO THE UNITED STATES 



Supplying fuel to nuclear power plants in Europe offers advantages 

 to the United States. The AEC identifies them as follows: 282 



National security : U.S. supply of enriched uranium for civil pur- 

 poses abroad under safeguards assures that the plutonium produced 

 in these reactors will not be available for military use. The avail- 

 ability of enriched uranium from the United States on attractive 

 terms also serves U.S. non-proliferation objectives by reducing the 

 incentive for other countries to develop their own enriching capacity. 



Strong international ties: By supplying enriched uranium, the 

 United Slates encourages the formation of strong and mutually bene- 

 ficial economic ties. 



^"Johnson, op. clt., p. 2.5 2. 



280 U.S. Congress. Joint Committee on Atomic Energy, Hearings, AEC Authorizing 

 Legislation, Firsal Year 1072, op. clt., p. 22'M. 



281 U.S. Concress. Joint Committee on Atomic Energy, Hearings, Uranium Enrichment 

 Pricing Criteria, 92d Cong., 1st SeSS., 1971. part 2. p. 29. 



* 8= U.S. Congress, Joint Committee on Atomic Energy, Hearings. Future Ownership 

 the AEC's Gaseous Diffusion Plant", 91st Cong., 1st Sess., 1969, p. 48. 



