WRITTEN QUESTION E-2289/97 by Patricia McKenna (V) to the Commission (2 July 1997)

Subject: EU contributions to the Korean Peninsula Energy Development Organization (KEDO)

The European Union has agreed to pay 15 million ecus per annum for five years to the Korean Peninsula Energy Development Organization (KEDO). Along with US and Japanese contributions, the money will be used to help the construction of two Western-designed light water reactors (LWRs) in North Korea, which is currently experiencing a famine.

A Commission report from May 1997 - 'Activities report related to the use of the intended Community financial contribution to KEDO' - states that 'through KEDO, the EU can support peace and stability in the region' and 'would make a significant contribution towards upholding international non-proliferation objectives and improving nuclear safety on the Korean peninsula'.

On what basis did the Commission reach the conclusion that building nuclear reactors in a famine-stricken country would contribute to regional peace and stability? The reactors financed by the EU will produce plutonium. How will the EU ensure that the resulting plutonium will not be diverted to the manufacture of nuclear weapons?

Have sites for the reactors been identified? If so, can the Commission give details of the site selection process undertaken?

Once the reactors are built, how will the resulting energy generated be distributed, given that North Korea has no high tension network? Does the Commission envisage that any of the energy generated will be used by South Korea?

What plans have been devised for managing the waste arising from the operation of the nuclear reactors?

Why did the EU decide to fund the development of nuclear energy in North Korea, instead of the development of renewable energy there? North Korea also has a large coal supply - did the Commission study any proposals for supporting the development of clean coal combustion plants there?

Answer given by Sir Leon Brittan on behalf of the Commission (5 September 1997)

The Korean peninsula energy development organization (KEDO) light water reactor (LWR) project is an essential contribution to peace and stability on the Korean peninsula, because it is the key element to implement the agreed framework signed by the United States and North Korea on 21 October 1994.

Without the agreed framework, North Korea would have withdrawn from the Treaty on the non-proliferation of nuclear weapons (NPT), without any safeguards agreement with the International atomic energy authority (IAEA) for international control of its nuclear activities. At this time North Korea had developed a fully operational nuclear fuel cycle, which included plutonium separation facilities. The situation presented extremely serious nuclear proliferation and security concerns which have been averted thanks to the agreed framework.

The decision to supply the LWRs was taken in the context of the negotiations on the agreed framework. The reactors to be supplied by KEDO are considerably safer and less conducive to nuclear proliferation than the graphite-moderated reactors they will replace and which North Korea will decommission and dismantle under the agreed framework. Moreover, key nuclear components for the new reactors will not be delivered to North Korea unless and until it is in full compliance with its IAEA safeguards agreement, which includes peaceful and non-explosive use of all nuclear material.

Concerning the LWR site, KEDO has examined North Korea's preferred Kumho area near Simpo City, South Hamgyong Province. KEDO considers that this examination provides sufficient technical basis for North Korea to issue a site take-over certificate, allowing KEDO to begin preliminary activities at the site.

Concerning energy distribution, KEDO and North Korea have agreed that two stable supplies of off-site power, and associated transmission systems, must be in place before commissioning of the reactors. The transmission systems to provide these sources of power would also be used to distribute power generated by the nuclear station. It has also been agreed that responsibility for obtaining the requisite transmission system rests with North Korea. Energy generated by the reactors will be the property of North Korea. The question whether any of that energy will be used by the Republic of Korea would therefore be a matter for North Korea to determine, together with the Republic of Korea.

Storage and disposal of radioactive waste arising from operation of the reactors shall conform to a set of codes and standards equivalent to those of the IAEA. Low-and medium-level radioactive waste storage facilities with a storage capacity for the two LWR plants will be built. KEDO and North Korea have also agreed to co-operate to ensure safe storage and disposition of spent fuel. If requested by KEDO, North Korea shall relinquish any ownership rights over the spent fuel and agree to transfer it out of its territory as soon as technically possible after the fuel is discharged, through appropriate commercial contracts.

As stated above, KEDO implements the agreed framework which forestalled major proliferation and security risks which would have flowed from North Korea's withdrawal from the NPT and IAEA safeguards regime. For this reason, Euratom participation in KEDO clearly contributes to maintaining peace and stability in the region.

Participation in KEDO is without prejudice to Community humanitarian aid to the population of North Korea. On 23 May, the Commission announced a package of MECU 46.3 worth of food aid, to be delivered in close collaboration with the UN's world food programme. This has been complemented with MECU 9.5 worth of public health and nutritional support, and is on top of almost MECU 10 of aid already granted since flooding in 1995 and 1996.