134. Telegram 5604 From the Embassy in the Federal Republic of Germany to the Department of State1

5604. Subject: FRG Nuclear Sales to Brazil. Refs: (A) State 073723, (B) State 069772.

1. U.S. Del met with group of FRG officials chaired by Ambassador Hermes, FRG Foreign Office, to discuss safeguards on pending German sale to Brazil, which includes, in addition to reactors, enrichment and reprocessing technology and equipment.

2. During full and frank discussion, U.S. reps reviewed and explained U.S. concerns re export of enrichment and reprocessing and its implications for direct access to weapons-usable material by Brazil. U.S. Del discussed precedent setting nature of full fuel cycle supply to Brazil, a non-NPT party, openly hostile to NPT and desiring PNE [Page 446] capability. Points were made that such a sale at this time would prejudice outcome of common understandings among suppliers, would be detrimental to NPT and NPT Review Conference, and could increase commercial pressure on suppliers to permit export of sensitive technology as “sweetener” for reactor sales. U.S. Del urged that FRG not prejudge what might be agreed to multilaterally and therefore delay agreement with Brazil on sensitive exports (but not reactors) until safeguards and controls on these exports could be discussed multilaterally and common understandings reached.

3. FRG said that they could not delay decision very much longer, that common understandings did not look very likely, and that they believed safeguard conditions negotiated with Brazil exceeded possible common understandings. FRG stressed the major commercial significance of this sale of reactors and said that Brazil would not make the reactor deal if enrichment and reprocessing capabilities not included. FRG expressed concern that U.S. was proposing long delay in decision to accommodate multilateral agreement on export controls and said Cabinet decision on GOBFRG agreement of cooperation may be reached within next two weeks.

4. U.S. Rep explained that USG understood FRG need to reach early decision on Brazil and USG was considering calling an exploratory meeting of suppliers in late April. Although FRG made no commitment, U.S. Del believes Germany may be willing to delay final action on agreement with Brazil pending such an exploratory meeting. In view of U.S. Del, USG must issue invitation to meeting within next few days, if FRG action is to be delayed.

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  1. Summary: The Embassy reported on a U.S.FRG meeting to discuss safeguards on the West German sale of nuclear technology to the Government of Brazil.

    Source: National Archives, RG 59, Central Foreign Policy File, D750120–0399. Secret; Immediate; Exdis. Repeated for information to Brasilia and the Mission to the IAEA at Vienna. Telegram 73723 to Bonn, April 1, is ibid., D750113–0410. Telegram 69772 to Bonn is Document 131.