ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(73)408
Vol.1973/0068

Disclaimer
Conformément aurèglement(CEE,Euratom)n°354/83duConseildu1erfévrier1983
concernantl'ouvertureaupublicdesarchiveshistoriquesdelaCommunauté économique
européenneetdelaCommunautéeuropéennedel'énergieatomique(JOL43du15.2.1983,
p.1),telquemodifiéparlerèglement(CE,Euratom)n°1700/2003du22septembre2003
(JOL243du27.9.2003,p.1),cedossierestouvertaupublic.Lecaséchéant,lesdocuments
classifiésprésentsdanscedossierontétédéclassifiésconformément àl'article5dudit
règlement.
InaccordancewithCouncilRegulation(EEC,Euratom)No354/83of1February1983
concerningtheopeningtothepublicofthehistoricalarchivesoftheEuropeanEconomic
CommunityandtheEuropeanAtomicEnergyCommunity(OJL43,15.2.1983,p.1),as
amendedbyRegulation(EC,Euratom)No1700/2003of22September2003(OJL243,
27.9.2003,p.1),thisfileisopentothepublic.Wherenecessary,classifieddocumentsinthis
filehavebeendeclassified inconformitywithArticle5oftheaforementioned regulation.
InÜbereinstimmung mitderVerordnung(EWG,Euratom)Nr.354/83desRatesvom1.
Februar1983überdieFreigabederhistorischen ArchivederEuropäischen
Wirtschaftsgemeinschaft undderEuropäischen Atomgemeinschaft (ABI.L43vom15.2.1983,
S.1),geändertdurchdieVerordnung(EG,Euratom)Nr.1700/2003vom22.September2003
(ABI.L243vom27.9.2003,S.1),istdieseDateiderÖffentlichkeitzugänglich.Soweit
erforderlich,wurdendieVerschlusssachen indieserDateiinÜbereinstimmung mitArtikel5
dergenanntenVerordnungfreigegeben.

COMMISSION OFTHEEURQ1EAN GOMM1
COM(73)408final
Brussels,20March1973
CREATION OFI.COMMUNITY URANIUMENRICHMENT CAPACITY
(Commissionproposalto"theCouncil)
COM(73)408final

Creation ofaCommunity uranium enrichment capacity
1.On28June 1972 theCommission submitted totheCouncil proposals
forthe -creation ofauranium enrichment capacity within theCommunity
(COM (72)693final ).
These proposals were discussed intheCouncil attheendof1972 and
examination ofthem istoberesumed very ^shortly .
2.AttheendofJanuary 1973 animportant newevent occurred .TheUSAEC ,
hitherto practically the sole supplier ofenriched uranium tothe
Community ,announced major changes initscommercial andcontractural
policy relating totheprovision ofuranium enrichment services .
Officially ,these newconditions aredictated bytheneed formore
rigorous planning oftheoperation oftheavailable capacities upto
thebeginning ofthenext decade -asthese capacities arelimited in
comparison with thevolume ofmedium -andlong-term demandj they also
spring from adesire tomake users bear part ofthefinancial risk in
respect offuture installations ,andtomove towards thealignment of
.itscommercial policy more closely with that prevailing inprivate
industry byfacilitating initiatives byUSindustry inthis field .The
result isavery considerable stiffening ofthepresent conditions .
On12February 1973 »theSupply Agency held ameeting with Community
electricity producers andrepresentatives oftheorganizations and
industries concerned inthesupply ofnatural andenriched uranium ,with
theaim ofobtaining theparticipants' observations onthenewUSAEG
criteria inorder toforward them totheUSAEC before thefinal decisions
bytheUSCongress ,duetobetaken inMarch 1973 .

?·2_
Theunanimousreactionwasoneofgravedisquietanddoubtconcerning
thepreparationofprogrammesfortheconstruction ofnuclearpower
plantswithintheCommunity.
Theelectricityproducersconsiderthefollowingconditionsparticularly
severe:
a)Theneedtoconcludelong-termcontract'seightyearsbeforethefirst
delivery,i.e-,atatimewhenbasicquestionsconcerningthesize,
type,suppliersanddateofcommissioning ofnuclearpower;plairtsare
stillwideopen.
b)UnilateralfixingofthepresentandfuturepricesbytheUSAECwith­
outspecifyinganupperlimit(ashasbeendonehitherto)andwith
mandatorypaymentof3*3milliondollarsfor1C00Mecapacityinthe
twofirst,yearsaftertheconclusionofthecontract,i.e.,eightor
nineyearsbeforethecommissioning ofthepowerplants.
c)Generalrigidityoftheconditionsofcontract,resultingfromthe
obligation ^toorderfixed,,,quantitiea atpredetermined timeswith
practically nopossibility ofcancellation .
Fortheirpart,thepromotersofprojectsforuraniumenrichment
capacitieswithintheCommunityfearthattheUSAECconditions-partic­
ularlytheverylonglapseoftimebetweentheconclusionoflong-term
contractsandthefirstdelivery-willconsiderably reducethemarket
whichmightbeopentoenrichmentplantsintheCommunitycominginto
serviceatthebeginningofthe1980s.
1
Whatiscertainisthatassoonassuchnewconditions comeintoforce
theelectricityproducerswillbefaced-withseriousproblemscalling
forearlydecisionsonthesupplyingofnuclearpowerplantstocomeinto
\

-3-
operationfrom1981onwards..Thismightwellslowdownthegrowthof
theuseofnuclearenergysufficiently toendangerthe-attainmentof
themainobjectivesofthecommonenergypolicy.
Inaddition,itmustberealizedthatif-inspiteofeverythingand
failingothersolutions-theelectricityproducersshoulddecideto
)
followapolicyoflong-termsupplycontracts,;theeconomicoperation
oftheplannedEuropeancapacitiescouldbeseriouslyjeopardized .
Thiscouldleadtoapostponement ofthedecisionsontheconstruction
.ofthesecapacities ,thuspreventingtheCommunity .fromreducingits
totaldependence onoutsidesourcesforitssuppliesofenricheduranium.
4.IntheseconditionsitappearsessentialfortheCounciltofixassoon
aspossiblequantitative productiontargetstobeattainedbythe
Europeanuraniumenrichmentcapiacitiesbythebeginningofthe1980s.
Onlyaprecisetargetofthiskindcaneffectivelyguidethechoicesand
decisionswhichelectricity producersandindustrialcompaniesinvolved
inthefuelcyclewillhavetomakeinthenearfuture. ;
Inaddition,thestepswhichtheCommunityindustrieswillhavetotake
inordertoattaintheseobjectiveseffectivelywillconstitutethe
essentialfactorindetermining bytheendof1973a-tthelatestthe'
Communitypolicyforthesupplyofenricheduranium,particularly as.
regardscommitmentsconcerningexternalsupplies.
5.Inthelightoftheforegoingconsiderations ,theproposalspresented
bytheCommissiontothe:CouncilinJune1972should,although'they
stillholdgoodasregardstheirgeneralguidelinesandbasicprinciples,
beamendedincertainresx>ects:

-4-
a)Thestatement that asfrom thebeginning ofthenext decade
theuranium enrichment capacities constructed bythe
Community industries must beable tocover asubstantial and
growing part oftheCommunity 'sneeds has tobemade clear in
statistical 'terms . ;
Themost reasonable criterion would bealevel ofproduction
sufficient tomeet theneeds ofthefirst cores andsubsequent
refuellings of'thepower plants due tocome into service in
Western Europe asfrom 1982 .This means aminimum production
of3000-4 000tonnes ofseparative work units perannum in
198l and10000in1985 •Thecumulative production during the
period 1981-85 should beatleast 35000tonnes ofseparative
work .
Itwill beuptotheindustry tofixonthebasis ofeconomic
and commercial considerations ,thelevel ofeffective capaci­
ties tobeachieved inexcess ofthe above minimum objective .
b)Itisimportant tostate clearly that (assuming implementation
ofpoint (a)above )theCommunity 'senriched .uranium .supply
.policy should beadopted 1973 attthen latest ,aa--regards the
following two .aspects :-
'1.Possible measures toencourage initiatives onthepart of
Community industry forthecreation oftheplanned uranium
enrichment capacities .
2.Measures inregard toexternal supplies ^ ,:
J ,
'c)Theinstruments forpreliminary work onthese decisions must
besetupasamatter ofurgency inview oftheend-1973
deadline .
Inline with suggestions made byseveral delegations during
discussions intheCouncil ,theinstrument for this first
stage would beapermanent coordinating committee onuranium
enrichment ,which would have thesame tasks which the
Commission hadproposed fortheJoint Undertaking tobe
responsible forthepreparatory work onadecision regarding

theconstruction ofenrichment capacities intheCommunity .
TheCommission hadalso emphasized that inthis first stage
content took precedence over organizational form .
AJoint Undertaking still appears tobethemost suitable
instrument for theconstruction phase ,butthis question could
bedeferred until the decisions onconstruction have to
betaken .
Thedraft resolution attached tothepresent communication
incorporates the draft proposed bytheCommission inJune 1972
with theamendments resulting from the considerations set out
inpoint 5above .

DRAFTRESOLUTION
I.THECOUNCIL
Havmgtakennotecf:
-thereportdrawnupbythespecialStudyGroupoftheCCNRwhich
theCouncilinstructedatitsmeetingon16and17December1970
toexaminetheproblemofthelong-termsupplyofenriched
uraniumtotheCommunity|
-theMemorandumfromtheCommissionof|
II.1.Whereasthereportreferredtoaboveconcludesthatinthecontext
of.thetrendofuraniumrequirements anduraniumenrichment
qapacitiesintheWesternWorld,thesupplyofenricheduraniumto
theCommunitycannotbeguaranteedbytheexistingplantsbeyond
19805
2.Whereasfurthermoretheconditionslaiddownbytheoperatorsof
theseplantsforsuppliesafterI98Iar$;ofsuchanatureasto
raiseseriousdoubtsconcerningthepreparation ofprogrammesfor
theconstruction ofnuclearpowerplantsintheCommunity;
3.Whereasdecisionstoconstructnuclearpowerpiantsmustbetaken
fiveorsixyearsinadvance,anditisthereforeadvisableto
definea3soonaspossibleandby1<?72atthe1'-apolicy
toensuresuppliesofenricheduraniumessentialtocoverthe
foreseeableneeds,onpenaltyofcausingadelayinthedevelop­
mentoftheuseofnuclear -energysuchastoimperiltheattain­
mentofthemainobjectivesofthecommonpolicy;

M2~
Whereas isotope separation capacities must becreated insuch
■amanner astomake theoptimum contribution tosecurity of
enriched uranium supply and toensure that Community in­
dustries enjoy themany advantages tobederived from the
acquisition ofadvanced techniques andfrom access tothe
world market inthis important source material ;
5.Whereas inview oftheforegoing combination ofenergy and
industrial objectives theminimum ,though notnecessarily the
optimum capacities tobeconstructed should correspond tothe
.■< ,.foreseeable :growth inEuropean requirements asfrom theend
ofthepresent decade ;
6.Whereas theattainment oftheforegoing objectives calls for
close cooperation between theundertakings intheMember
-States which have taken 'orwill take steps with aview to
theproduction of -enriched uranium ,andwhereas such coope­
ration isofprimary importance for thedevelopment of
' •' - .nuclear industry intheCommunity ;
III ,CONSIDERS THAT : :
1.Itisnecessary for theCommunity industries toprovide
.-themselves with auranium enrichment capacity enabling them
tomeet asfrom thebeginning ofthenext decade asubstan -
/
tial andincreasing proportion oftherequirements ofthe
European Community .Thesize oftheplant orplants tobe
constructed should besuch asatleast tomeet theneeds of
'*thepower station tobebrought "into service from 19o2 .
This will mean aminimum production of3000-4000tonnes of
■separative work units perannum in19^1 andatleast 10000
tonnes ,ofseparative work units perannum in1985 *Thecumu­
lative production during theyears 1981-85 should beatleast
35000 tonnes ofseparative work .
Itwill beuptotheindustry tofix ,onthebasis of
economic andcommercial considerations ,thelevel ofeffective
capacities tobeachieved inexcess oftheabove minimum
objective .

.Apolicy to "ensure that theCommunity obtains enriched uranium
supplies should beadapted assoon aspossible andatthe
latest by31December 1973 •This policy will relate particu­
larly to :
a)anymeasures ofencouragement bytheCommunity for
construction projects byindustry for thepurpose of
attaining theobjectives setoutinpoint III (l)above ;
b)measures tobetaken concerning commitments tobeentered
into inrespect ofsupplies from outside theCommunity ,in
order toguarantee both regular supplies toCommunity
users and economic operation oftheuranium enrichment
plant' orplants constructed bytheCommunity industry ;
HAS RESOLVED :
.toset up,inview ofth6primary importance ofsuch projects
for theCommunity ,apermanent coordinating committee on
uranium enrichment inorder toensure consultation between
allparties concerned and thedevelopment ,ofjoint studies .
aimed atfacilitating the coordination of .theinvestment
tobemade .
ThePermanent Coordinating Committee onUranium Enrichment
shall have *the following tasks :

-4-
1.tocollectdataconcerningthebasiccharacteristics ofthevarious
technologies ,toorganizejointlythecheckingoftheirperformance
and,attheappropriate time,tomakeaneconomicassessmentofthe
entirerangeofprocesses;
2.to'establish th<±principlesandmanner_of:organisation -srfi,a.s
exchange'ofinformation andexperiencebetweenthepossessorsof
enrichmenttechnologies withintheCommunity ,andtopreparethe
specimencontractsrequiredforthispurpose;
■3-toreviewmeasuresandinvestmentswithintheCoimmunityinregardto
theconstruction ofuraniumenrichmentcapacities ,togetherwiththe
programmesforbringingthesecapacitiesintoproduction ,andto
evaluate'heextenttowhichthesemeasuresandprogrammesaccordwith
theobjectivessetoutinpointIII(l)above;
4.toforwardtotheCommissionageneralreportwhichtheCommissionwill
submittotheCouncilwithitsproposalsinorderthattheCouncilmay
beinapositiontotakeadecisionby31December1973a"tlatest
onthepolicyfortheSupplyofenricheduraniumtotheCommunity v
V.ThePermanentCoordinating CommitteeonUraniumEnrichmentshallbecompose'
ofrepresentatives ofthepublicbodiesandundertakings concerned,onthe
basisofamaximumofthreemembersappointedbyeachMember-State govern­
ment.Thechairmanship oftheCommitteeshallbeassumedbytheCommissior
andthesecretarialstaffshallbeprovidedbytheSecretariat oftheCounc
TheCommitteemaycallonrepresentatives ofandundertakings innon-Member
Statesinaconsultative capacity.