Foreign Policy Blogs

Oh REALLY? Taiwan Prepared to Forgo ENR Technologies in 123 Agreement

Former Deputy-Secretary James Steinberg – Photo by Elizabeth Dalziel-Pool/Getty Images

The roster of countries agreeing to forgo enrichment and reprocessing technologies has risen to two.  As the time ticks down to expiration of its bilateral nuclear cooperation agreement with the U.S., the government of Taiwan has announced that it is prepared to renounce any right to enrich or reprocess nuclear fuel.  Despite the fact that the pledge did not come in response to an Administration demand to do so, the Taiwanese pledge does notch up the precedent of countries voluntarily agreeing to carry the nonproliferation banner is a responsible manner.

In Elaine Grossman’s most recent GSN piece, internal administration squabbling about whether or not to foist the Gold Standard — so named after the 2009 U.S.-UAE agreement which included the same provision — on other countries continues without resolution.  Most interesting is that the public statement made by the Department of State last year regarding H.R. 1280 seemed to indicate that it was against wholesale adoption of the Gold Standard for all 123 agreements.  Since that time, however, the policy has been kicked back for interagency review, partly, I’d imagine, because it does not comport with the nonproliferation credentials the White House has been seeking to burnish.  Interestingly, Grossman reports that back in 2010, then-Deputy Secretary of State James Steinberg  was  reportedly arguing for adoption of the Gold Standard, which, in his view, “would help Obama honor his 2009 pledge in Prague to pursue ‘an end to the dedicated production of weapons-grade materials.”  Unfortunately, he came up against Deputy Energy Secretary Dan Poneman, whose view is echoed by U.S. industry advocates, “that demanding a gold-standard promise could alienate partner nations. Rather than agree to Washington’s terms, such interlocutors could easily send their business to international competitors that impose fewer restrictions on nuclear sales, including Russia and France.”

As readers of this blog know, I have gone to great lengths to disprove the latter argument.  There is simply not enough categorical evidence that other countries would boycott U.S. industry completely.  And frankly, those that are willing to do so should, in my humble opinion, be suspect.  Either you sign on to carry the nonproliferation baton, or you do not.  Forgoing ENR technologies very clearly puts a country into the former camp.

Moreover, the term of a typical 123 agreement — let’s say 20 years — is a lifetime in global political affairs.  Sure, the U.S. government is on friendly terms with the South Korean government now.  But what if, as the government in Seoul has recently said, it refuses to forgo ENR technology in its new 123 agreement with the U.S.?  The U.S. and Seoul sign a new agreement without the “no ENR provision” and U.S. industry jumps into the fray, supplying centrifuge technology to Seoul.  Then, in five years, ten years, or even 20 years, we are no longer on friendly terms with South Korea.  Then what?  We would have supplied the means to manufacture weapons-grade uranium and plutonium to a now unfriendly nation (n.b., I am certainly not suggesting that this will actually happen, but remember when the U.S. was on friendly terms with Iran?)  One does not know what the future holds, particularly in global affairs.  In this case, the U.S. has the opportunity to foreclose on what could be a dangerous future, even if it never comes to pass.

It is unfortunate that the Department of Energy is choosing near-term nuclear commerce over longer-term proliferation principles, particularly since they are statutorily required to guard the latter.

 
  • Fred McGoldrick

    Actually the roster of coutries agreeing to forgo enrichment and reprocessing rose to two when the UAE agreed to do so in 2009. Taiwan was compelled to do so by the US in 1979 when we discovered they were engaged in certain proliferation-sensitive related activitivies. One should should read Mark Hibbs Arms Control blog on this. He gets it essentially correct but there is even more to it.

    Thus the “victory ” in Taiwan was achieved in 1979 not in 2012. Taiwan is a unique case and is not a model for the ROK or anyone else.

    Finally it pisses me off that those who are opposed to applying the gold standard to all future cooperating partners are accused of crass commercial motives. I have spent almost forty years trying to prevent the spread of nuclear weapons, and my opposition to requiring the so-called gold standard in all agreements is based not on commercial considerations but because it is a blunt, arrogant and ultimately ineffective approach to a complex and politically sensitive problem. Countries signed on to “carry the nonproliferation baton” when they joined the NPT and they did not baton that as forswearing enrichment and reprocessing. Nor did we. Read our testimony before the SFRC.

    Perhaps we should try to seek the gold standard in a few, limited cases and perhaps we may succeed in persuading some to accept it, but requiring it of all states will be damaging to our nonproliferation interests.

  • david fite

    Hey Fred!

    Your point about the “victory” re: Taiwan’s rejection of ENR achieved in 1979 is good, but for the fact that the existing, soon-to-expire 123 agreement with Taiwan does not contain a no-ENR obligation. If the reports are correct, and Taiwan does want to include a no-ENR obligation in a renewal agreement, well, that is a second victory (or perhaps, consolidating the gains of the first). It also would be in fact a second country undertaking a legally-binding no-ENR obligation in a bilateral nuclear cooperation agreement with the United States. Voila, another step in establishing a useful precedent.

    I understand your heartfelt concern about being misrepresented by proponents of the no-ENR “Gold Standard” as being all about crass commercial motives, and that would be unfair. However, I’m also concerned that you put up a bit of a straw man here, as you imply that proponents are arguing for the Gold Standard in all future agreements. I don’t believe this to be the case. What proponents are arguing for is that a strong effort should be made to include it in as many new/renewing agreements as possible, recognizing that it may not be possible for all (such as China, which has ENR facilities). Not even the legislation passed out of the House Foreign Affairs Committee required all agreement to have no-ENR clauses – if they did not, then Congress would have to approve them, but they could still be concluded. I know, it has been contended that requiring Congress to approve a nuclear cooperation agreement would never happen, so that requirement is in practical effect equivalent to a requirement for all agreements to have a no-ENR provision — except that contention is demonstrably false. The House passed a joint resolution of approval for the renewal Australia 123 agreement in December 2010 when it looked like Congress would adjourn before the statutorily-required 90 days of continuous session, and the Senate was poised to follow suit (but Congress was in long enough to toll the 90 days, so it wasn’t necessary). And let us not forget the India agreement, which was given legal effect through a separate act of Congress in 2008. So Congress has indeed acted positively on nuclear cooperation agreements, and recently.

    Yes, the NPT and its bargain are sacrosanct. But the NSG is not in the NPT, nor contemplated by it, yet it is generally thought of as a useful addition to the global NP regime. So would be the spread of the Gold Standard.

    But back to Taiwan and precedents. I see from your post that we essentially agree that the Gold Standard should be pursued in future agreements; we agree that requiring it of all states would be unwise or impractical. We seem to differ on the extent of the effort. I believe that the USG should press as its basic policy to seek inclusion of a legally-bindng no-ENR commitment in each new agreement, with limited exceptions. The Gold Standard is a useful and desirable addition to the global nonproliferation regime and the discouragement of the spread of national ENR facilities. It is clearly not the only tool in the nonproliferation toolbox, but it is a useful one, and one that could become increasingly valuable in the years to come.

  • Fred McGoldrick

    Hi David. Hope all is well with you.

    On Taiwan, let’s be clear. Taiwan is not volunteering anything here. It is not a question about their be willing to forgo enrichment and reprocessing. Let me leave it at that because there is a history here that is not public. The fact that the present peaceful nuclear cooperation agreement says nothing about this subject is irrelevant and an inclusion of a pledge not to acquire an enrichment or reprocessing capability in a replacement agreement is no “second” victory.” It is merely a continuation of the present situation. Nor is it a model for anybody else.

    On the gold standard, we simply have to agree to disagree. Yes the NSG as as well as other elements of the nonproliferation regime such as the physical protection convention go beyond, and help make up for the deficiencies of the NPT ,but they do not demand that non-nuclear weapon states parties to the Treaty forswear their rights under the Treaty and break the bargain we made in negotiating the NPT. There are better and more effective ways to prevent the spread of enrichment and reprocessing facilities.

    Hope you are surviving the Washington summer,

    Fred

  • CR

    “The U.S. and Seoul sign a new agreement without the “no ENR provision” and U.S. industry jumps into the fray, supplying centrifuge technology to Seoul.” I guess you are assuming that the U.S. has enrichment technology to export…

Author

Jodi Lieberman
Jodi Lieberman

Jodi Lieberman is a veteran of the arms control, nonproliferation, nuclear terrorism and nuclear safety trenches, having worked at the Departments of State, Energy and Nuclear Regulatory Commission. She has also served in an advisory capacity and as professional staff for several members of Congress in both the House and Senate as well as the Senate Homeland Security Committee. Jodi currently spends her time advocating for science issues and funding as the Senior Government Affairs Specialist at the American Physical Society. The views expressed in her posts are her views based on her professional experience but in way should be construed to represent those of her employer.

China_blog_ad