Foreign Relations of the United States, 1969–1976, Volume XVIII, China, 1973–1976

83. National Security Decision Memorandum 261¹

Washington, July 22, 1974.

TO

• The Secretary of Treasury
• The Secretary of Defense
• The Secretary of Commerce
• The Chairman, Atomic Energy Commission
• The Director of Central Intelligence
• The Deputy Secretary of State
• The Director, Arms Control and Disarmament Agency
• The Assistant to the President for International Economic Policy

SUBJECT

• Nuclear Sales to the PRC

The President has reviewed the report of the Under Secretaries Committee of February 14, 1974 on Nuclear Sales to the People’s Republic of China (PRC).² He has approved the recommendations that:

• —the PRC should be informed that we are prepared to negotiate an Agreement for Cooperation Concerning Civil Uses of Atomic Energy which would authorize the export of U.S. light-water reactors and slightly enriched uranium. The Agreement would call for the application of bilateral safeguard rights which would be suspended in favor of those administered by the International Atomic Energy Agency (IAEA) if the PRC joins that organization. (The U.S. safeguards would again take effect should the PRC withdraw or IAEA safeguards cease to be effective.)³
• —The Joint Committee on Atomic Energy and other interested Congressional committees should be informed of our offer to the PRC at such time as the Chinese express interest in negotiating an Agreement for Cooperation.
• —Following Congressional notifications, interested U.S. companies should be authorized to proceed with discussions with the PRC on the possible sale of light-water reactors and slightly enriched uranium fuel.
• —Nuclear exports to Communist countries by the U.S. or other COCOM countries should continue to be treated on a case-by-case basis, and U.S. or IAEA safeguard standards and procedures for equipment or materials transferred or produced therefrom shall be applied to all recipient countries.

Henry A. Kissinger

1. Source: Ford Library, NSC Institutional Files (H-Files), Box H–53, NSDM 261, Nuclear Sales to the PRC. Secret. Copies were sent to the Chairman of the Joint Chiefs of Staff and to the Counsellor to the President for Economic Policy. Nixon approved this NSDM on May 1; see footnote 3, Document 79.
2. See Document 79 and footnote 2 thereto.
3. In a memorandum of March 22, Solomon and David Elliot advised Kissinger, “we have strong doubts that Peking will, in fact, be interested in signing a bilateral agreement with us which includes safeguard measures—at least at present.” Kissinger wrote on the last page of their memorandum, “After Pres. approval [of the NSDM] let me consider how to inform Chinese.” (Ford Library, NSC Institutional Files (H-Files), Box H–53, NSDM 261, Nuclear Sales to the PRC)