43. Memorandum From the President’s Assistant for National Security Affairs (Kissinger) to President Nixon1

SUBJECT

  • Nuclear Sales to the PRC

The Under Secretaries Committee (USC) has reported to you that several U.S. companies are seeking authorization to negotiate the sale of nuclear power reactors and uranium fuel to the PRC (Tab B). No Communist country has purchased Western power reactors, and as far as the PRC is concerned, the necessary intergovernmental agreements regulating the sales and transfer of nuclear equipment and fuel are not in place.

The USC’s study has concluded that the export of light water reactors and slightly enriched uranium fuel would be consistent with our policy of facilitating the development of trade with the PRC, would have no adverse strategic implications, and would not be contrary to our obligations under the NPT.

In order that these exports might proceed, the USC recommends that we should indicate to the Chinese our willingness to conclude a standard bilateral intergovernmental agreement for nuclear transfers. This agreement would provide for the application of safeguards, as we require for all nuclear exports to any country.

Future requests for nuclear exports to Communist countries would continue to be considered on a case-by-case basis.

I recommend that you approve the USC’s recommendations, including the imposition of U.S. safeguards, until such time that the PRC takes its seat in the International Atomic Energy Agency (IAEA) and becomes subject to its safeguards. (If the PRC, subsequently, were to withdraw from the IAEA, the U.S. safeguards would again become [Page 102] operative.) The Joint Congressional Committee on Atomic Energy would be informed if the PRC indicates interest in negotiating the bilateral intergovernmental agreement.

Recommendation

That you approve our offering to conclude with the PRC an intergovernmental atomic energy agreement with standard safeguard provisions, thereby establishing the necessary conditions for possible sale of U.S. nuclear power reactors and fuel. Subject to your approval, I will sign the necessary implementing directive at Tab A.

  1. Summary: Kissinger recommended that Nixon approve the National Security Council Under Secretaries Committee’s recommendations concerning a bilateral nuclear export agreement with the People’s Republic of China. Kissinger indicated that upon approval, he would sign the implementing directive.

    Source: Ford Library, National Security Adviser, NSC Program Analysis Staff Files, Convenience Files, Box 32, Nuclear Export Controls (1). Secret. Sent for action. Also printed in Foreign Relations, 1969–1976, volume XVIII, China, 1973–1976, Document 79. A stamped notation indicates that Nixon saw the memorandum. Notations in the upper right-hand corner of the memorandum in an unknown hand read: “Lodal FYI” and “BH [Ben Huberman] for your files?” Nixon initialed his approval of the recommendation. Tab B, not attached, is in the Ford Library, National Security Council, Institutional Files—NSDMs, Box 53, NSDM 261, Nuclear Sales to the PRC. Tab A, NSDM 261, July 22, is printed in Foreign Relations, 1969–1976, volume XVIII, China, 1973–1976, Document 83.