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<classification authority="sudocs">GA 1.13:T-RCED-00-20</classification>
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 <subject>Nuclear proliferation</subject>
 <subject>Arms control agreements</subject>
 <subject>Electric power transmission</subject>
 <subject>International relations</subject>
 <subject>Fuels</subject>
 <subject>Powerplants</subject>
 <subject>Energy consumption</subject>
 <subject>Electric power generation</subject>
 <subject>Nuclear reactors</subject>
 <subject>Monitoring</subject>
 <identifier>North Korea</identifier>
 <identifier>Agreed Framework Between the United States and the</identifier>
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<titleInfo>
 <title>Nuclear Nonproliferation: Heavy Fuel Oil Delivered to</title>
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<abstract>Pursuant to a congressional request, GAO discussed the status of heavy
fuel oil delivered to North Korea under the October 1994 U.S./North
Korean Agreement Framework, focusing on the: (1) status of heavy fuel
oil funding and deliveries to North Korea; and (2) controls in place to
detect the diversion of heavy fuel oil from heating and electricity
generation to other purposes not specified in the Agreed Framework and
any limitations in these controls that would allow North Korea to divert
heavy fuel for unintended uses.&lt;p/&gt;GAO noted that: (1) as of July 31, 1999, 1.9 million metric tons of
heavy fuel oil had been delivered to North Korea at an approximate cost
of $222 million; (2) for the first 3 years of the Agreed Framework&apos;s
implementation, shipments to North Korea were not regular and
predictable because the Korean Peninsula Energy Development Organization
(KEDO)--the organization that has arranged and paid for the majority of
the heavy fuel oil shipments--did not always have sufficient funding to
pay for heavy fuel oil deliveries; (3) for the past 2 years, shipments
of heavy fuel oil to North Korea have been made more regularly because
of increased contributions from the organization&apos;s members and
decreasing commodity and freight prices; (4) however, a recent rise in
oil and freight prices caused the organization to seek additional
funding from the United States in order to pay for this year&apos;s remaining
scheduled heavy fuel oil deliveries; (5) the Department of State and
KEDO, with the cooperation of North Korea, have implemented a monitoring
system at the seven North Korean heating and electricity-generating
plants that are authorized to use KEDO-supplied heavy fuel oil; (6) the
purpose of this system is to ensure that North Korea uses the heavy fuel
oil only for heating and electricity generation at the facilities; (7)
KEDO&apos;s portion of the monitoring system consists of meters that measure
the flow of fuel to oil-fired boilers at the plants, recorders that
compile daily and cumulative information on flow rates, and periodic
monitoring visits to each plant; (8) power outages and the poor quality
of the electrical power available to the plants have affected the
operation of the monitoring equipment; (9) KEDO&apos;s monitoring system by
itself is not designed to provide complete assurance that the heavy fuel
oil delivered to North Korea is being used as prescribed by the Agreed
Framework; (10) however, the U.S. government supplements KEDO&apos;s
monitoring system with national technical means to provide additional
confidence that the heavy fuel oil is being used for heating and
electricity generation; (11) State officials have acknowledged that
there is some evidence that North Korea has used perhaps 5 percent (or
75,000 metric tons) of the heavy fuel oil for unauthorized purposes; and
(12) according to State, no clear evidence has emerged of any
significant diversion of the deliveries of heavy fuel oil to North Korea
to unauthorized purposes.</abstract>
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<identifier type="preferred citation">GAO/T-RCED-00-20</identifier>
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<note>Testimony</note>
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 <searchTitle>GAO/T-RCED-00-20; Nuclear Nonproliferation: Heavy Fuel Oil Delivered to;
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<subject>
 <topic>Nuclear proliferation</topic>
 <topic>Arms control agreements</topic>
 <topic>Electric power transmission</topic>
 <topic>International relations</topic>
 <topic>Fuels</topic>
 <topic>Powerplants</topic>
 <topic>Energy consumption</topic>
 <topic>Electric power generation</topic>
 <topic>Nuclear reactors</topic>
 <topic>Monitoring</topic>
 <topic>North Korea</topic>
 <topic>Agreed Framework Between the United States and the</topic>
 <topic>Democratic People&apos;s Republic of Korea</topic>
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