Short Protocol regarding the Meeting between State Secretary Haunschild and the President of the Atomic Energy Organization of Iran [AEOI], Dr. Etemad, on 24 September 1974 in the Federal Ministry for Research and Technology

[Federal Ministry for Research and Technology]

226 - 9444 - 6 (IRN)

Short Protocol

regarding

the Meeting between State Secretary Haunschild^[1] and the President of the Atomic Energy Organization of Iran [AEOI], Dr. Etemad^[2], on 24 September 1974 in the Federal Ministry for Research and Technology

Participants:

Dr. Etemad

Dr. Arabian, AEOI

Dr. Rajaee, Iranian Embassy Bonn

St Haunschild

Min. Dir Dr. Lehr

Min. Dirig Loosch

Min. Rat Dr. Rembser

Dipl. Ing. Seipel

Reg. Dir Dr. Krewer

ORR Dr. Krebs

ORR Kaye

Reg. Dir Dr. Gutermuth, Federal Ministry for Economic Affairs

After the welcoming of the guests by Mr. Haunschild, Mr. Rembser presented an overview of the main strands of German funding policy in the nuclear energy sector, as well as on the tasks and areas of the various German nuclear research centers.

Mr. Etemad explained that the Iranian nuclear energy program needs long-term and comprehensive support from the governments of technologically advanced countries. When developing its program in detail, in particular also on the question of building power plant capacities, Iran is thus reviewing to what extent other governments are wiling to collaborate with Iran. In this regard Iran is valuing highly especially a cooperation with the Federal Republic of Germany. Regarding the question of long-term cooperation, the following aspects are in the foreground:

- Provision of nuclear fuel

- Training of Iranian personnel

- Build-up of Iranian research and development capacities in the field of nuclear energy

As far as in particular the order of nuclear power plants in oder to build up the capacity of about 25,000 Megawatts planned until 1995, Iran is open towards all sides. There had been no commitment in one or the other direction. Though the German industry had entered negotiations somewhat later than others, it has proven itself over time as “prompt and aggressive” and has pretty good chances.

Iran will buy nuclear power plants only, if it can be certain that later there will also be nuclear fuel available. In this context the Iranian government deems it therefore important to receive “a kind of government guarantee”, which will make [Iranian] negotiations with the industry easier.

Mr. Haunschild explained that the Federal Government is willing in principle to enter into the long-term collaboration in the field of nuclear energy as desired by Iran. This willingness is comprised in detail in particular of the following aspects:

a) Training of Iranian personnel: In addition to the education at German universities, which is already taking place without any special input from both governments, the Federal Government is willing to open the German research centers for Iranian personnel. This does not apply just to scientists but also to technical personnel. He is certain that, in addition to that, the industry as well can and will provide training opportunities in nuclear power plants.

b) Build-up of Iranian research and development capacities in the field of nuclear energy: The Federal Government is willing to advise Iran pertaining to building up these capacities, especially so with the installation of a reactor safety monitoring system. This willingness is by the way independent from the industrial cooperation.

c) Support of the cooperation with the German industry through the Federal Government: The sale of nuclear power plants is primarily an issue for the industry. However, from the side of the government the following support can be provided in this context:

- Pricing control: The German authorities in charge are willing to review, for payment of the usual fees, the offer from KWU^[3] the same way as it is done for German public orders.

- Support for reviewing the safety-technical aspect of the German offer: The Technical Monitoring Services commissioned by the Federal Government that are in charge of safety-technical monitoring of nuclear facilities can also act on behalf of Iran with payment of the usual fees.

With regard to uranium supply, Mr. Haunschild differentiated between the availabilities of natural uranium and those of enrichment services. He provided the following explanations here:

a) Natural Uranium

For the currently discussed nuclear power plants KWU will provide the first deliveries. The Federal Government is convinced that natural uranium will be available on the world market for a foreseeable time in sufficient quantities, albeit to rising prices. In addition, the Federal Government is funding prospection projects in third countries. Mr. Haunschild referred in this context to the planned joined exploration in the North of Persia, for which the Iranian Government has already received a German draft agreements.

b) Enrichment Services

Regarding the question by Mr. Haunschild about the expected Iranian demand for the nuclear power plants delivered by KWU, Mr. Etemad stated that in the long run a standard size of 1,200 MW is envisaged. The initial two units, however, are supposed to be in the area of 600 MW. Currently there are negotiations held with Canada (Candu^[4] heavy-water reactors) regarding the delivery of these first two 600 MW facilities. A decision is not to be expected after some months. If there will be no agreement with Canada, KWU will be under consideration for the initial delivery of two 600 MW nuclear power plants. If Canada will provide the first two units, then a 1,200 MW nuclear power plant could be ordered with KWU. It could then be completed a little later (maybe 6 months) than the two Canadian units.

Regarding the nuclear fuel demand initially limited to procure a 1,200 MW nuclear power plant, Mr. Haunschild referred to the agreement signed between the KWU and the Soviet Union over the delivery of enrichment material in according quantity. Replying to questions by Mr. Etemad, Mr. Haunschild assured that KWU will not be subjected by the Federal Government in any way to restrictions pertaining to these projects and to the export of uranium to Iran. The involvement of the government will be limited to the consideration of safeguard interests, and it will approve the required export permits as these are no problem in the case of Iran. This can also be confirmed in by an official note.

Regarding the fuel supply for further Iranian nuclear power plants, Mr. Haunschild explained the plans for expanding the enrichment capacities of Urenco^[5]. Until 1981 those are firmly planned for a capacity of annually^[6] tons UTA^[7] and until 1985 for the addition of further 10,000 tons of UTA. For later deliveries therefore agreements could be signed with Urenco. Through these agreements would have to be approved by a joint committee of the German, British, and Dutch governments, they are no problem since Iran is signatory to the nuclear Non-Proliferation Treaty.

Regarding the German support for building an own Iranian nuclear industry, Mr. Haunschild referred to the comparable relationship of the Federal Republic with Brazil. In that context a similar comprehensive collaboration is planned to develop a Brazilian nuclear industry.

Mr. Etemad commented on the planned joined exploration of uranium in the North of Persia that the Iranian government is working to embed the collaboration in this project in the current deliberations regarding a general uranium prospection policy. The conditions from the German draft have to be carefully reviewed in light of this general policy. Iran is especially interested in combining a prospection in Iran with joint prospection activities in third countries in such a way, that prospection in Iran is supposed to be undertaken only by a side that is also open for a participation of Iran in other prospection projects. Currently there are attempts underway to reach a similar agreement with Canada.

Mr. Haunschild noted that in Iran currently only the question of a pre-exploration of limited extent is under discussion. He proposed to already undertake this exploration, while the question of joint projects needs to be further reviewed with the German industry. He promised to submit the Iranian proposal to relevant German companies that are in general positively inclined towards this idea.

Mr. Krewer explained that such joint prospection projects are possible in general and had been undertaken already with other countries (France, Japan).

Mr. Etemad mentioned that, according to the German draft agreement, a positive result of the joint pre-exploration would automatically result also in joint prospection and exploitation. Thus a first step of a pre-exploration would be difficult. It was then agreed that the issue of a guarantee for latter participation will have to reviewed again.

Mr. Etemad stated the great interest of Iran in a cooperation with German companies in the further development of nuclear sea water desalination. This would be extraordinarily important for Iran as well as also for other regions.

Mr. Haunschild replied that a collaboration in this area would also be welcomed from the German side. The Federal Government is willing to apply the experience of the GKSS^[8] here. He emphasized that other friendly countries are also interested in this kind of cooperation, such as Pakistan. Thus a German-Iranian cooperation should not just be limited to facilities in Iran but also include those in third countries.

Both sides agreed that the collaboration of both governments in the sector of nuclear energy should proceed based on an according agreement.

For further procedure, it was agreed that within a short period the German side will submit to the Iranian side a memorandum where, according to the outline of this meeting, it will express its willingness to a cooperation with Iran in the field of nuclear energy.

At the joint lunch, the question of the guarantee of Iranian procurement with enriched Uranian was again raised in the conversation between Mr. Haunschild and Mr. Etemad. Both sides

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