X U.S. Fuel for European Nuclear Power 



Another effect of the scientific discovery of fission was to engage the 

 United States Government in the enrichment of uranium, a large scale 

 industrial process that until now has provided the United States 

 with a strong bargaining position in international nuclear affairs. As 

 the United States enters the 1970's, it enjoys a virtual monopoly in the 

 non-Communist world market for the supply of enriched unranium or 

 enrichment services. Within the next few years, however, interacting 

 decisions of domestic and foreign policy will have to be made that will 

 affect this U.S. predominance, thereby influencing the foreign policy 

 leverage conferred by this position in the nuclear fuel market. 



The 1970's are likely to see new diplomatic, economic, and technologi- 

 cal initiatives by European and other nations to reduce their depend- 

 ence upon U.S. supply of enriched uranium, while the United States, 

 in turn, appears inclined to preserve its competitive position. As the 

 U.S. Atomic Energy Commission sees the situation, supplying uranium 

 enrichment services offers the possibility for a great expansion in 

 international cooperation between the United States and Europe, even 

 though the supply function is attended by many complex problems 

 for U.S. foreign policy. 274 Whatever the outcome of still-changing U.S. 

 policy, the results inevitably will affect the future of commercial nu- 

 clear power in Europe. 



The Enriched Uranium Business 



When Congress revised the Atomic Energy Act in 1954, it. retained 

 the original government monopoly of enriched uranium; there were 

 no private facilities to produce nuclear fuel. Accordingly, the develop- 

 ing nuclear industries at home and abroad leased these materials from 

 the AEC. When the Act was later revised to permit private owner- 

 ship of enriched uranium, the AEC changed its policies to permit 

 customers to supply their own normal uranium which the Commission 

 would then enrich. Enrichment service, rather than sale of enriched 

 uranium, is now the predominant pattern of AEC operation in 

 nuclear fuel supply. 



Today in the United States all but two industrial services required 

 for the construction and operation of commercial nuclear power plants 

 are available from domestic nuclear industry. The two exceptions are 

 the enrichment of uranium and the indefinite storage of radioactive 

 products from the used nuclear fuel. The administration's policy is to 

 t ransfer these two functions to the private nuclear industry, but when 

 and how this will be done is still uncertain. Of the two, the enrichment 

 of uranium is by far the larger industrial activity in terms of capital 



271 This idea was developed by Myron B. Kratzer. then Assistant Ocneral Manager of 

 the AEC for International Activities, In his testimony before the House Committee on 

 Science and Astronautics, May 1971. Of. U.S. Congress, House. Committee on Science and 

 Astronautics. Hearings, A General Revietc of International Conjuration in Science and 

 Space, 92d Cong., 1st Sess., 1971, p. £35. 



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