Nuclear Safety: International Atomic Energy Agency's Nuclear Technical
Assistance for Cuba (Letter Report, 03/24/97, GAO/RCED-97-72).

Pursuant to congressional requests, GAO provided information on the
International Atomic Energy Agency's (IAEA) nuclear technical assistance
to Cuba, focusing on: (1) the dollar value and type of all nuclear
technical assistance projects IAEA provided for Cuba; (2) the sources of
funding for all nuclear technical assistance projects IAEA provided for
Cuba; and (3) IAEA's nuclear technical assistance projects for the Cuban
nuclear power reactors and U.S. officials' views on this assistance.

GAO noted that: (1) IAEA spent about $12 million on nuclear technical
assistance projects for Cuba from 1963 through 1996; (2) about
three-fourths of the assistance Cuba received through these projects
consisted of equipment; (3) IAEA's assistance for Cuba was given
primarily in the areas of general atomic energy development and in the
application of isotopes and radiation in agriculture; (4) IAEA recently
approved an additional $1.7 million for nuclear technical assistance
projects for Cuba for 1997 through 1999; (5) IAEA spent about $2.8
million on training for Cuban nationals and research contracts for Cuba
that were not part of specific assistance projects; (6) most of IAEA's
nuclear technical assistance projects for Cuba were funded through the
agency's technical cooperation fund; (7) in 1996, the United States
contributed over $16 million, about 30 percent, of the $53 million in
the fund; (8) from 1981 through 1993, the United States was required,
under the Foreign Assistance Act of 1961, to withhold a share of its
voluntary contribution to the fund because the fund provided assistance
for Cuba, Libya, Iran, and the Palestine Liberation Organization; (9) in
1994, the act was amended to exempt IAEA from the withholding
requirement; (10) although the United States was no longer required to
withhold the portion of its voluntary contribution that would have gone
to proscribed entities, State Department officials continued to withhold
funds in 1994 and 1995 but did not withhold any of the United States'
voluntary contribution to IAEA's technical cooperation fund for 1996;
(11) from 1981 through 1995, the United States withheld a total of about
$2 million that otherwise would have gone for assistance for Cuba; (12)
of the total value of all nuclear technical assistance projects that
IAEA has provided for Cuba, about $680,000 was approved for nuclear
safety assistance for Cuba's nuclear power reactors from 1991 through
1998, of which about $313,000 has been spent; (13) IAEA is assisting
Cuba in developing the ability to conduct a safety assessment of the
nuclear power reactors and in preserving the reactors while construction
is suspended; (14) IAEA is also implementing a training program for
personnel involved in the operational safety and maintenance of all
nuclear installations in Cuba; and (15) State Department and U.S.
Mission officials in Vienna, Austria, told GAO that they did not object*

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  RCED-97-72
     TITLE:  Nuclear Safety: International Atomic Energy Agency's 
             Nuclear Technical Assistance for Cuba
      DATE:  03/24/97
   SUBJECT:  Atomic energy defense activities
             International organizations
             Technical assistance
             Federal aid to foreign countries
             Nuclear powerplant safety
             Nuclear powerplant construction
             Nuclear reactors
             Nuclear proliferation
             International cooperation
             Foreign governments
IDENTIFIER:  IAEA Nuclear Technical Cooperation Program
             Cuba
             Juragua (Cuba)
             Russia
             Libya
             Iran
             Burma
             Iraq
             North Korea
             Syria
             
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Cover
================================================================ COVER


Report to Congressional Requesters

March 1997

NUCLEAR SAFETY - INTERNATIONAL
ATOMIC ENERGY AGENCY'S NUCLEAR
TECHNICAL ASSISTANCE FOR CUBA

GAO/RCED-97-72

IAEA's Nuclear Technical Assistance for Cuba

(141026)


Abbreviations
=============================================================== ABBREV

  GAO - General Accounting Office
  IAEA - International Atomic Energy Agency
  UNDP - United Nations Development Program
  UNICEF - United Nations Children's Fund

Letter
=============================================================== LETTER


B-276158

March 24, 1997

The Honorable Jesse A.  Helms
Chairman, Committee on Foreign Relations
United States Senate

The Honorable Dan Burton
Chairman, Committee on Government Reform
 and Oversight
House of Representatives

The Honorable Bob Graham
United States Senate

The Honorable Peter Deutsch
The Honorable Robert Menendez
House of Representatives

Since 1958, the International Atomic Energy Agency (IAEA),\1 in
promoting the peaceful uses of nuclear energy, has been providing
nuclear technical assistance to its member states through projects
that supply equipment, expert services, and training.\2 Currently,
more than 90 countries receive nuclear technical assistance, mostly
through over 1,000 projects in IAEA's technical cooperation program. 
The United States is a member of IAEA and financially contributes to
the agency's technical cooperation program.  Through its technical
cooperation program, IAEA is providing nuclear technical assistance
to Cuba in 10 program areas, including general atomic energy
development, the application of isotopes and radiation in
agriculture, and nuclear safety.  Some of this assistance is for
Cuba's partially constructed nuclear power reactors.\3

In 1983, Cuba started to construct two Soviet-designed 440-megawatt
pressurized water reactors (known as the VVER 440 model) at Juragua
near Cienfuegos on the south central coast of Cuba, about 180 miles
south of Key West, Florida.  The construction of these reactors was
suspended in 1992 until financing should become available to complete
them.  The President of Cuba, in a January 1997 public statement,
announced the indefinite postponement of the reactor program due to a
lack of financial resources.  In February 1997, we met with the Vice
Minister, Ministry of the Russian Federation for Atomic Energy, who
told us that Russia intends to resume the construction of Cuba's
reactors in 1998 with financing provided by an international
consortium of countries, including Russia.  The United States opposes
the completion of these reactors and discourages other countries from
providing assistance, except for safety purposes, to Cuba's nuclear
program. 

As requested, this report provides information on (1) the dollar
value and type of all nuclear technical assistance projects IAEA
provided for Cuba, (2) the sources of funding for all nuclear
technical assistance projects IAEA provided for Cuba, and (3) IAEA's
nuclear technical assistance projects for the Cuban nuclear power
reactors and U.S.  officials' views on this assistance. 


--------------------
\1 IAEA is affiliated with the United Nations and has 124 member
states, including the United States.  IAEA's policy-making
organizations are the General Conference and its decision-making
body, the 35-member Board of Governors, of which the United States is
a member.  In September 1996, the General Conference elected 11 new
member states to the Board of Governors, including Cuba, to serve for
a 2-year term. 

\2 Under IAEA's 1957 statute and article IV of the 1970 Treaty on
Non-Proliferation of Nuclear Weapons, the agency facilitates the
peaceful development and practical application of nuclear energy, in
addition to carrying out its responsibilities for nuclear safeguards
and safety.  Member states are eligible to receive nuclear technical
assistance from the agency even if they are not a party to
nonproliferation treaties.  However, member states that receive
IAEA's nuclear technical assistance are asked to sign a revised
supplementary agreement with the agency to ensure that the nuclear
technical assistance they receive will be used only for the peaceful
applications of atomic energy and that the nuclear technical
assistance projects in their country will be subject to IAEA's
safeguards. 

\3 See Nuclear Safety:  Concerns About the Nuclear Power Reactors in
Cuba (GAO/RCED-92-262, Sept.  24, 1992) and Nuclear Safety:  Concerns
With the Nuclear Power Reactors in Cuba (GAO/T-RCED-95-236, Aug.  1,
1995), which discuss concerns about the safety of the Cuban reactors. 


   RESULTS IN BRIEF
------------------------------------------------------------ Letter :1

IAEA spent about $12 million on nuclear technical assistance projects
for Cuba from 1963---when Cuba started to receive nuclear technical
assistance from IAEA---through 1996.  About three-fourths of the
assistance Cuba received through these projects consisted of
equipment, such as computer systems, and radiation-monitoring and
laboratory equipment.  IAEA's nuclear technical assistance for Cuba
was given primarily in the areas of general atomic energy development
and in the application of isotopes and radiation in agriculture. 
IAEA recently approved an additional $1.7 million for nuclear
technical assistance projects for Cuba for 1997 through 1999.  In
addition, IAEA spent about $2.8 million on training for Cuban
nationals and research contracts for Cuba that were not part of
specific nuclear technical assistance projects. 

Most of IAEA's nuclear technical assistance projects for Cuba were
funded through the agency's technical cooperation fund, which is
supported by member states' voluntary contributions.  In 1996, the
United States contributed over $16 million--about 30 percent--of the
total $53 million in the fund.\4 From 1981 through 1993, the United
States was required, under section 307(a) of the Foreign Assistance
Act of 1961, as amended, to withhold a share of its voluntary
contribution to the fund because the fund provided assistance for
Cuba, Libya, Iran, and the Palestine Liberation Organization.  In
1994, the Foreign Assistance Act was amended to, among other things,
exempt IAEA from the withholding requirement.  Although the United
States was no longer required to withhold the portion of its
voluntary contribution that would have gone to Cuba and the other
proscribed entities, State Department officials continued to withhold
funds in 1994 and 1995 but did not withhold any of the United States'
voluntary contribution to IAEA's technical cooperation fund for 1996. 
Because IAEA's technical cooperation fund provides nuclear technical
assistance for Cuba, from 1981 through 1995, the United States
withheld a total of about $2 million that otherwise would have gone
for nuclear technical assistance for Cuba. 

Of the total dollar value of all nuclear technical assistance
projects that IAEA has provided for Cuba, about $680,000 was approved
for nuclear safety assistance for Cuba's nuclear power reactors from
1991 through 1998, of which about $313,000 has been spent.  IAEA is
assisting Cuba in developing the ability to conduct a safety
assessment of the nuclear power reactors and in preserving, or
"mothballing," the reactors while construction is suspended.  IAEA is
also implementing a training program for personnel involved in the
operational safety and maintenance of all nuclear installations in
Cuba, including the reactors.  State Department and U.S.  Mission
officials in Vienna, Austria, told us that they did not object to
IAEA's providing nuclear safety assistance to Cuba's reactors because
the United States generally supports nuclear safety assistance for
IAEA member states that will promote the establishment of a safety
culture and quality assurance programs. 


--------------------
\4 In 1996, the United States contributed about $99 million to IAEA. 
According to the U.S.  Ambassador to the United Nations System
Organizations in Vienna, Austria, this contribution included about
$63 million to IAEA's total regular budget of $219 million in 1996
and a voluntary contribution of $36 million, of which over $16
million was for the technical cooperation fund.  As of February 1997,
the United States had not yet made its 1997 payments to IAEA. 


   BACKGROUND
------------------------------------------------------------ Letter :2

IAEA's technical cooperation program provides nuclear technical
assistance through projects that have three main
components--equipment, expert services, and training activities
(project- and non-project-related), including fellowships, scientific
visits, and training courses--that support the upgrading or
establishment, for peaceful purposes, of nuclear techniques and
facilities in IAEA member states.  IAEA's technical cooperation
program funds projects in 10 major program areas, including the
development of member states' commercial nuclear power and nuclear
safety programs.\5 Nuclear technical assistance projects are approved
by IAEA's Board of Governors for a 2-year programming cycle, and
member states are required to submit written project proposals to
IAEA 1 year before the start of the programming cycle.  These
proposals are then appraised for funding by IAEA staff and by the
agency's member states in terms of technical and practical
feasibility, national development priorities, and long-term
advantages to the recipient countries. 

Within IAEA, the Department of Technical Cooperation and three other
technical departments--the departments of Research and Isotopes,
Nuclear Safety, and Nuclear Energy--are the main channels for
technology transfer activities within the technical cooperation
program.  While the funding for IAEA's technical cooperation program
comes primarily from member states' voluntary contributions, the
funding for activities in the other three technical departments is
through IAEA's regular budget.  The United States contributes about
25 percent of IAEA's regular budget.  In 1996, the United States'
contribution to IAEA's regular budget of $219 million was $63
million. 


--------------------
\5 The program areas classified by sector include general atomic
energy development; nuclear physics; nuclear chemistry; the
prospecting, mining, and processing of nuclear materials; nuclear
engineering and technology; the application of isotopes and radiation
in agriculture; the application of isotopes and radiation in
medicine; the application of isotopes and radiation in biology; the
application of isotopes and radiation in industry and hydrology; and
safety in nuclear energy. 


   DOLLAR VALUE AND TYPE OF ALL
   NUCLEAR TECHNICAL ASSISTANCE
   PROJECTS IAEA PROVIDED FOR CUBA
------------------------------------------------------------ Letter :3

IAEA spent about $12 million on nuclear technical assistance projects
for Cuba from 1963--when Cuba started to receive nuclear technical
assistance from IAEA--through 1996, for equipment, expert services,
fellowships, scientific visits, and subcontracts (agreements between
IAEA and a third party to provide services to its member states). 
IAEA has approved an additional $1.7 million in nuclear technical
assistance projects for Cuba for 1997 through 1999.  Over half of
this additional assistance will be provided for the application of
isotopes and radiation in medicine, industry, and hydrology. 

In addition to the approximately $12 million for nuclear technical
assistance projects for Cuba, IAEA spent $2.39 million on regional
and interregional training courses for Cuban nationals.  These
courses were not related to IAEA's nuclear technical assistance
projects.  (This information was available from IAEA only for 1980
through 1996.) Cuban nationals attended IAEA training courses in
radiation protection and nuclear safety, probabilistic safety
assessment, safety analysis and assessment techniques for the
operational safety of nuclear power plants, and quality assurance for
nuclear power plants.  In addition, IAEA spent about $433,000 on
research contracts for Cuba.  (This information was available from
IAEA only for 1989 through 1996.) Under IAEA's research contract
program, the agency places contracts and cost-free agreements with
research centers, laboratories, universities, and other institutions
in member states to conduct research projects supporting its
scientific programs. 

As shown in figure 1, of the approximately $12 million for nuclear
technical assistance projects that Cuba received from 1963 through
1996---about $8.7 million--or almost three-fourths--consisted of
equipment, such as computer systems, and radiation-monitoring and
laboratory equipment.\6 (App.  I provides information on all nuclear
technical assistance projects that IAEA provided for Cuba, by program
area, from 1980 through 1996.  Most of this assistance was provided
in the areas of general atomic energy development and in the
application of isotopes and radiation in agriculture). 

   Figure 1:  Dollar Value and
   Type of All Nuclear Technical
   Assistance Projects IAEA
   Provided for Cuba, 1963 Through
   1996, Dollars in millions

   (See figure in printed
   edition.)

Note:  Figures in parenthesis have been rounded. 

Source:  IAEA. 


--------------------
\6 Cuba ranked 20th, in terms of the amount of assistance received,
out of the 114 IAEA member states receiving nuclear technical
assistance during this period.  Cuba is ranked against the other
member states that received equipment, expert services, fellowships
and scientific visits, and subcontracts during this period. 


   SOURCES OF FUNDING FOR ALL
   NUCLEAR TECHNICAL ASSISTANCE
   PROJECTS IAEA PROVIDED FOR CUBA
------------------------------------------------------------ Letter :4

While the costs of administration and related support for IAEA's
technical cooperation program are funded through IAEA's regular
budget, most of the funding for IAEA's nuclear technical assistance
projects comes from voluntary contributions made by the member states
to IAEA's technical cooperation fund.  Some funding is also provided
to IAEA from the United Nations Development Program (UNDP).\7 Other
sources of financial support include extrabudgetary income, which is
in addition to the funds donated to the technical cooperation fund
and is contributed by member states for specific projects, and
assistance-in-kind, which is provided by member states that donate
equipment, provide expert services, or arrange fellowships on a
cost-free basis. 

As shown in figure 2, IAEA's technical cooperation fund was the
primary source of funding for the nuclear technical assistance
projects provided for Cuba, for equipment, expert services,
fellowships, scientific visits, and subcontracts. 

   Figure 2:  Sources of Funding
   for All Nuclear Technical
   Assistance Projects IAEA
   Provided for Cuba, 1963 Through
   1996, Dollars in millions

   (See figure in printed
   edition.)

Note:  Figures in parenthesis have been rounded. 

Source:  IAEA. 

In 1996, the United States voluntarily contributed $36 million to
IAEA.  Of this amount, the United States contributed over $16
million--about 30 percent--of the total $53 million in the technical
cooperation fund.  (Cuba contributed its share of $45,150--or 0.07
percent--to the fund in 1996.)\8 From 1981 through 1993, the United
States was required, under section 307(a) of the Foreign Assistance
Act of 1961, as amended, to withhold a proportionate share of its
voluntary contribution to the technical cooperation fund for Cuba,
Libya, Iran, and the Palestine Liberation Organization because the
fund provided assistance to these entities.  The United States
withheld about 25 percent of its voluntary contribution to the fund,
which otherwise would have helped to fund projects for Cuba and the
other proscribed entities.  On April 30, 1994, the Foreign Assistance
Act was amended, and Burma, Iraq, North Korea, and Syria were added
to the list of entities from which U.S.  funds for certain programs
sponsored by international organizations were withheld.  At the same
time, IAEA and the United Nations Children's Fund (UNICEF) were
exempted from the withholding requirement.  Consequently, as of 1994,
the United States was no longer required to withhold a portion of its
voluntary contribution to IAEA's technical cooperation fund for any
of these entities, including Cuba.  However, State Department
officials continued to withhold funds in 1994 and 1995.  But
beginning in 1996, the United States no longer withheld any of its
voluntary contribution to the fund for these entities, including
Cuba.  Because IAEA's technical cooperation fund provides nuclear
technical assistance for Cuba, from 1981 through 1995, the United
States withheld a total of about $2 million that otherwise would have
gone for nuclear technical assistance for Cuba. 


--------------------
\7 IAEA is the executing agency for UNDP's development projects in
areas involving nuclear science and technology and receives UNDP
funds for implementing such projects. 

\8 IAEA determines the amount a member state should contribute to the
fund on the basis of a United Nations formula.  According to IAEA,
from 1971 to 1996, Cuba contributed $653,525 to IAEA's regular
budget.  From 1962 to 1996, Cuba also made voluntary contributions of
$635,541 to the agency. 


   IAEA'S NUCLEAR TECHNICAL
   ASSISTANCE PROJECTS FOR CUBA'S
   NUCLEAR POWER REACTORS AND U.S. 
   OFFICIALS' VIEWS ON THIS
   ASSISTANCE
------------------------------------------------------------ Letter :5

Of the total dollar value of all nuclear nuclear technical assistance
projects that IAEA has provided for Cuba, about $680,000 has been
approved for four nuclear technical assistance projects for Cuba's
nuclear power reactors from 1991 through 1998.  As of January 1997,
$313,364 of this amount had been spent for two of these projects. 
State Department officials told us that they did not object to these
projects because the United States generally supports nuclear safety
assistance for IAEA member states.  Following is a summary of each of
these projects.  (See app.  II for more details.)

  -- Since 1991, IAEA has assisted Cuba in undertaking a safety
     assessment of the reactors' ability to respond to accidents and
     in conserving, or "mothballing," the nuclear power reactors
     while construction is suspended.  The agency had spent almost
     three-fourths of the approximately $396,000 approved for the
     project, as of January 1997.  Of this amount, Spain has agreed
     to provide about $159,000 in extrabudgetary funds.  According to
     IAEA's information on the technical cooperation program for 1995
     to 1996, this project is designed to develop proper safety and
     emergency systems and to preserve the plant's emergency work and
     infrastructure in order to facilitate the resumption of the
     nuclear power plant's activities.  Seven reports were prepared
     by IAEA experts under this project that discuss the power
     plant's ability to cope with a nuclear accident.\9 Our requests
     to review or to be provided with copies of these reports were
     denied by IAEA because information obtained by the agency under
     a technical cooperation project is regarded as belonging to the
     country receiving the project and cannot be divulged by IAEA
     without the formal consent of the country's government.  At the
     time of our review, the government of Cuba had not given IAEA
     permission to release these reports. 

  -- Since 1995, IAEA has assisted Cuba in designing and implementing
     a training program for personnel involved in the operational
     safety and maintenance of all nuclear installations, including
     the reactors, in Cuba.  IAEA has spent about $31,000 of the
     about $74,000 approved for the project.  Furthermore, according
     to IAEA's information on the technical cooperation program for
     1995 to 1996, this project will develop and implement an
     adequate training program that will improve operational safety
     at all nuclear installations in Cuba and will promote a safety
     culture. 

  -- For the 1997 to 1998 technical cooperation program, IAEA has
     approved two new projects to assist in licensing the reactors
     and establishing a quality assurance program for them.  Funding
     of about $210,000 has been approved for these two projects. 
     According to IAEA's information on the technical cooperation
     program for 1997 to 1998, the objective of the licensing project
     is to strengthen the ability of Cuba's nuclear regulatory body
     to carry out the process of licensing the reactors.  According
     to IAEA's information, the quality assurance project will assist
     the nuclear power plant in developing an effective program that
     will improve safety and lower construction costs. 


--------------------
\9 The seven expert reports prepared under this project include the
following:  Thermo-Hydraulic Analysis of Design Basis Accident
(1991), Safety Analysis Program Review (1991), Level 1 Probabilistic
Safety Assessment (1992), Preservation of the Juragua NPP (1993),
Upgrading Regulatory Infrastructure (1995), Upgrading Regulatory
Infrastructure (1995), and Developing National Emergency Plant and
Response Capability (1996). 


      U.S.  OFFICIALS' VIEWS ON
      IAEA'S NUCLEAR TECHNICAL
      ASSISTANCE PROJECTS FOR
      CUBA'S NUCLEAR POWER
      REACTORS
---------------------------------------------------------- Letter :5.1

In our September 1992 report and in our August 1995 testimony on the
nuclear power reactors in Cuba, we reported that the United States
preferred that the reactors not be completed and discouraged other
countries from providing assistance, except for safety purposes, to
Cuba's nuclear power program.  In a statement made at the August 1995
hearing, the State Department's Director of the Office of Nuclear
Energy Affairs agreed that the United States supported efforts by
IAEA to improve safety and the quality of construction at the
facility but that the administration strongly believed that sales or
assistance to the Cuban nuclear program should not be provided until
Cuba had undertaken a legally binding nonproliferation commitment. 
Cuba is not a party to the 1970 Treaty on Non-Proliferation of
Nuclear Weapons, but as a member of IAEA, it is entitled to receive
nuclear technical assistance from the agency.\10

State Department officials responsible for IAEA's technical
cooperation program and U.S.  Mission officials at the United Nations
System Organizations in Vienna, Austria, told us that they did not
object to IAEA's providing nuclear safety assistance to Cuba's
reactors because the United States generally supports nuclear safety
assistance for IAEA member states that will promote the establishment
of a safety culture and quality assurance programs.  These U.S. 
officials also said that the United States has little control over
other IAEA member states that choose to provide extrabudgetary funds
for any of the agency's nuclear technical assistance projects,
including those in Cuba.  State Department and Arms Control and
Disarmament Agency officials told us that the United States will not
provide extrabudgetary funds for IAEA's nuclear technical assistance
projects with Cuba or generally to other IAEA member states that are
not parties to the Non-Proliferation Treaty, will not host Cuban
nationals at training courses held by IAEA in the United States, or
select Cuban nationals for training as IAEA fellows in the United
States.  However, according to the State Department, U.S.  experts
are allowed to work on IAEA's nuclear technical assistance projects
in the areas of nuclear safety and physical protection for Cuba.  We
found that one U.S.  expert had visited Cuba three times to help with
an IAEA nuclear technical assistance project designed to eradicate
agricultural pests. 


--------------------
\10 Cuba signed the Treaty of Tlatelolco in March 1995 but has not
ratified it.  Both the Non-Proliferation Treaty and the Treaty of
Tlatelolco bind signatories to blanket nonproliferation agreements
for their entire nuclear program and would require inspections of all
of Cuba's nuclear facilities by IAEA, known as full-scope safeguards. 
According to the State Department, despite Cuba's failure to accept
IAEA's full-scope safeguards, all of Cuba's nuclear facilities are
subject to safeguards under separate, legally binding agreements
between IAEA and Cuba.  Cuba also signed a revised supplementary
agreement with IAEA on July 13, 1993, which obligates Cuba to use
IAEA's nuclear technical assistance only for the peaceful
applications of atomic energy. 


   AGENCY COMMENTS
------------------------------------------------------------ Letter :6

We provided copies of a draft of this report to the Department of
State for its review and comment.  The Department obtained and
consolidated additional comments from the Arms Control and
Disarmament Agency; the Department of Energy; the Nuclear Regulatory
Commission; the U.S.  Mission to the United Nations System
Organizations and IAEA in Vienna, Austria.  On March 5, 1997, we met
with an official in the State Department's Bureau of International
Organization Affairs to discuss the consolidated comments.  In
general, reviewing officials agreed with the facts and analysis
presented.  Additional clarifying information was provided, and we
revised the text as appropriate.  An IAEA official in the Department
of Technical Cooperation noted that, in assessing the safety and
planning for the conservation of Cuba's nuclear power reactors while
their construction is suspended, IAEA's role in the area of nuclear
power is to assist governments in taking actions that are consistent
with the highest standards and best practices involving the design,
performance, and safety of nuclear facilities. 


   SCOPE AND METHODOLOGY
------------------------------------------------------------ Letter :7

We discussed the United States' participation in IAEA's technical
cooperation program with officials of and gathered data from the
Departments of State and Energy; the Arms Control and Disarmament
Agency; the Nuclear Regulatory Commission; Argonne National
Laboratory; the National Academy of Sciences; and the National
Research Council in Washington, D.C., and the U.S.  Mission to the
United Nations System Organizations and IAEA in Vienna, Austria.  We
gathered data from IAEA on its nuclear technical assistance for Cuba,
during the period from 1958, when the technical cooperation program
began, until 1996.  In some cases, funding data for the entire period
from 1958 through 1996 was not available from IAEA.  Cuba started to
receive nuclear technical assistance from IAEA in 1963. 

We also met with officials in IAEA's departments of Technical
Cooperation and Nuclear Safety who are responsible for managing
IAEA's nuclear nuclear technical assistance projects for Cuba's
nuclear power reactors and with the Vice Minister, Ministry of the
Russian Federation for Atomic Energy, to discuss Russia's plans to
complete the Cuban reactors. 

As agreed with your offices, in a forthcoming report we plan to
discuss, among other things, the United States' participation in
IAEA's technical cooperation program and information on the dollar
value and type of nuclear nuclear technical assistance provided to
the agency's member states. 

We performed our work from November 1996 through March 1997 in
accordance with generally accepted government auditing standards. 

We are sending copies of this report to the Secretaries of State and
Energy, the Chairman of the Nuclear Regulatory Commission, the
Director of the Arms Control and Disarmament Agency, and other
interested parties.  We will also make copies available to others on
request.  Please call me at (202) 512-3600 if you or your staff have
any questions.  Major contributors to this report are listed in
appendix III. 

Allen Li
Associate Director, Energy,
 Resources, and Science Issues


INTERNATIONAL ATOMIC ENERGY
AGENCY'S NUCLEAR TECHNICAL
ASSISTANCE PROJECTS PROVIDED FOR
CUBA, BY PROGRAM AREA
=========================================================== Appendix I

As shown in figure I.1, almost half--about $5 million--of the $10.4
million that the International Atomic Energy Agency (IAEA) spent for
nuclear nuclear technical assistance projects for Cuba from 1980
through 1996 was provided in the areas of general atomic energy
development and in the application of isotopes and radiation in
agriculture.\1

Nuclear safety was the next largest program area; over 12 percent of
the funds, or over $1.2 million, went for nuclear technical
assistance projects in this area. 

   Figure I.1:  All Nuclear
   Technical Assistance Projects
   IAEA Provided for Cuba, by
   Program Area, 1980 Through 1996

   (See figure in printed
   edition.)

Source:  IAEA. 


--------------------
\1 IAEA was not able to provide us with data for years prior to 1980. 


INTERNATIONAL ATOMIC ENERGY
AGENCY'S NUCLEAR TECHNICAL
ASSISTANCE PROJECTS FOR CUBA'S
NUCLEAR POWER REACTORS
========================================================== Appendix II

Of the total dollar value of all nuclear nuclear technical assistance
projects that IAEA has provided for Cuba, about $680,000 has been
approved for four nuclear technical assistance projects for Cuba's
nuclear power reactors from 1991 through 1998.  As of January 1997,
$313,364 of this amount had been spent for two of these projects. 
IAEA's four nuclear technical assistance projects for Cuba's nuclear
power reactors include (1) a safety assessment and a plan for
conserving the nuclear power plant during the suspension of its
construction; (2) training in the safe operation of nuclear
installations, including the power plant; (3) helping Cuba's
regulatory body develop a process for licensing the power plant; and
(4) developing a quality assurance program for the power plant. 


   NUCLEAR POWER PLANT SAFETY
   ASSESSMENT AND PROGRAM
   SUSPENSION PLAN PROJECT
-------------------------------------------------------- Appendix II:1

This ongoing project was originally approved in 1991 to develop the
ability to undertake a safety assessment of Cuba's nuclear power
plant program.  In 1995, this project was expanded to, among other
things, develop the ability to conduct a safety assessment of the
nuclear power plant and to provide supervision and advice in the
conservation, or "mothballing", of the nuclear power plant during the
suspension of construction.  According to IAEA's project summaries
for the technical cooperation program for 1995 to 1996, this project
is designed to develop proper safety and emergency systems and to
preserve the plant's emergency work and infrastructure in order to
facilitate the resumption of the nuclear power plant's activities.  A
Spanish firm that provides architectural and engineering services is
assisting IAEA in providing supervision and advice for the
implementation of a plan to suspend the program and is training the
Cuban technical staff in conducting a probabilistic safety assessment
of the plant.  Activities undertaken by the Spanish firm at the plant
include the conservation and protection of existing structures,
equipment, and components, in order to keep them in the best possible
state for future use when the project and the construction of the
plant are restarted. 

Under this project, IAEA has provided experts on regulation,
licensing, and emergency planning; equipment, such as personal
computers, software, printers; and training in inspections and
emergency planning.  As of January 1997, IAEA had spent over $282,000
of the approved $395,837 budget, as shown in table II.1 below.  Spain
also provided extrabudgetary funds for this project.  IAEA has spent
about $113,000 of the approximately $159,000 that Spain has offered
to provide for this project. 



                               Table II.1
                
                Expenditures for the Nuclear Power Plant
                Safety Assessment and Program Suspension
                 Plan Project, 1991 Through 1996, as of
                              January 1997

                         (Dollars in thousands)

                    Expert  Equipmen  Fellowship  Subcontrac
Year              services         t           s        ts\a     Total
----------------  --------  --------  ----------  ----------  --------
1991               $10,361    $7,527           0           0   $17,889
1992                12,385     7,330     $16,587           0    36,303
1993                 4,137    18,965      15,074           0    38,177
1994                 1,517         0       4,963     $73,922    80,403
1995                20,111    10,035       7,547           0    37,694
1996                     0         0      33,202      38,960    72,162
======================================================================
Total              $48,514   $43,859     $77,375    $112,883  $282,632
----------------------------------------------------------------------
Note:  Totals may not add because of rounding. 

\a Includes expenditures made under a subcontract between IAEA and
Spain. 

Source:  IAEA. 


   TRAINING IN THE OPERATIONAL
   SAFETY OF NUCLEAR INSTALLATIONS
   PROJECT
-------------------------------------------------------- Appendix II:2

According to IAEA's project summaries for the technical cooperation
program for 1995 to 1996, this ongoing project is intended to design
and implement a training program for personnel involved in the
operational safety and maintenance of nuclear installations,
including the nuclear power plant.  Even though the construction of
Cuba's nuclear power plant was suspended, according to IAEA's project
summaries, Cuba requested assistance to train personnel involved in
the operational safety of nuclear installations.  IAEA is assisting
in designing a training program that will include the development of
computerized systems for instruction, simulation, evaluation, and
certification of staff.  As of January 1997, IAEA had spent about
$31,000 of the approved $73,926 for the project, as shown in table
II.2. 



                               Table II.2
                
                    Expenditures for Training in the
                     Operational Safety of Nuclear
                  Installations Project, 1995 Through
                        1996, as of January 1997

                         (Dollars in thousands)

                            Expert              Fellowship
Year                      services   Equipment           s       Total
----------------------  ----------  ----------  ----------  ----------
1995                        $6,980     $11,690           0     $18,670
1996                             0           0     $12,062      12,062
======================================================================
Total                       $6,980     $11,690     $12,062     $30,732
----------------------------------------------------------------------
Note:  Totals may not add because of rounding. 

Source:  IAEA. 


   LICENSING OF CUBA'S NUCLEAR
   POWER PLANT PROJECT
-------------------------------------------------------- Appendix II:3

According to IAEA's project summaries for the technical cooperation
program for 1997 to 1998, the objective of this new project is to
strengthen the ability of Cuba's nuclear regulatory body to carry out
the process of licensing the nuclear power plant.  IAEA's Board of
Governors approved this project in December 1996 for a budget of
$107,000 for 1997 through 1998.  According to IAEA's project
summaries, Cuba's nuclear regulatory body asked the agency to help it
acquire the ability to review the safety of the nuclear power plant
as a preliminary step in the licensing process.  In addition, Cuba
has asked IAEA to assist its nuclear regulatory body in adopting the
best international practices on licensing for the latest design of
the VVER 440 megawatt reactors.  According to IAEA's project
summaries, the project is designed to provide Cuba's nuclear
regulatory body with the technology needed to be effective and
self-sufficient and to promote the safe development of nuclear energy
as a contribution to meeting Cuba's energy needs. 


   QUALITY ASSURANCE PROGRAM FOR
   CUBA'S NUCLEAR POWER PLANT
   PROJECT
-------------------------------------------------------- Appendix II:4

According to IAEA's project summaries for the technical cooperation
program for 1997 to 1998, the objective of this new project is to
improve and revise the structure, integration, and efficiency of the
quality assurance program for Cuba's nuclear power plant and to
evaluate its effectiveness and propose corrective measures.  Cuba
requested IAEA's assistance to establish a quality assurance program
to conform with IAEA's nuclear safety standards.  IAEA's Board of
Governors approved this project in December 1996 for a budget of
$103,150 for 1997 through 1998.  The aim of this project, as
discussed in IAEA's project summaries, is to achieve adequate levels
of reliability and efficiency in documentation, including the
elaboration and preservation of quality assurance records; to provide
practical experience for quality assurance and management personnel;
and to improve the training of quality control and inspection staff,
including training in nondestructive testing and other modern
technologies.  According to IAEA's project summaries, this project
will provide the nuclear power plant with an effective quality
assurance program that will improve the plant's safety and lower
construction costs. 


MAJOR CONTRIBUTORS TO THIS REPORT
========================================================= Appendix III

RESOURCES, COMMUNITY, AND ECONOMIC
DEVELOPMENT DIVISION, WASHINGTON,
D.C. 

Gene Aloise, Assistant Director
Sarah E.  Veale, Evaluator-in-Charge
Mario Zavala, Senior Evaluator
Daniel Semick, Senior Evaluator
Duane G.  Fitzgerald, Ph.D., Nuclear Engineer

OFFICE OF GENERAL COUNSEL

Jackie A.  Goff, Senior Attorney

RELATED GAO PRODUCTS

Nuclear Safety:  Uncertainties About the Implementation and Costs of
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Nuclear Safety:  Status of U.S.  Assistance to Improve the Safety of
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Nuclear Safety:  Concerns With the Nuclear Power Reactors in Cuba
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Nuclear Safety:  U.S.  Assistance to Upgrade Soviet-Designed Nuclear
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Nuclear Safety:  International Assistance Efforts to Make
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Nuclear Safety:  Progress Toward Internatinal Agreement to Improve
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Nuclear Nonproliferation and Safety:  Challenges Facing the
International Atomic Energy Agency (GAO/NSIAD/RCED-93-284, Sept.  22,
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Nuclear Safety:  Concerns About the Nuclear Power Reactors in Cuba
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Nuclear Power Safety:  Chernobyl Accident Prompted Worldwide Actions
but Further Efforts Needed (GAO/NSIAD-92-28, Nov.  4, 1991). 

Nuclear Power Safety:  International Measures in Response to
Chernobyl Accident (GAO/NSIAD-88-131BR, Apr.  8, 1988). 

Nuclear Safety:  Comparison of DOE's Hanford N-Reactor With the
Chernobyl Reactor (GAO/RCED-86-213BR, Aug.  5, 1986). 


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