Nuclear Non-Proliferation Act of 1978 Message to the Congress Transmitting a Report.

To the Congress of the United States:

I am pleased to submit the first report, as called for by Sections 601 and 602 of the Nuclear Non-Proliferation Act of 1978 (Public Law 95-242), on the activities of the Government Departments and Agencies to prevent proliferation.

The report, consisting of four volumes, is enclosed. The first volume contains a summary and chapters detailing the progress made in the following areas:

—The International Nuclear Fuel Cycle Evaluation (INFCE)

—An international nuclear fuel regime

—Development of common export and domestic policies

—Encouraging adherences to the Treaty on the Non-Proliferation of Nuclear Weapons (NPT) —Strengthening IAEA safeguards

—Negotiating agreements for cooperation

—Cooperation in energy with developing countries

—Cooperation in protection of the environment

—Procedures for processing export-

related matters

In discussing the Government's activities in these areas, the report notes that considerable progress has been made in increasing international appreciation of the importance of minimizing risks of proliferation inherent in future fuel cycle developments. It points out that, through INFCE, the United States has stimulated a general reexamination of long-held technical assumptions concerning fuel cycle activities and awareness of the need to consider proliferation concerns. Progress is also reported in obtaining wider adherence to the NPT, in strengthening IAEA safeguards, and in continued consultations among nuclear suppliers.

The report notes that a number of problems have been encountered, particularly the perception by other countries that the United States is attempting to impose its own standards unilaterally on peaceful nuclear cooperation and that those standards are unnecessarily strict or impracticable. Doubts about the reliability of the United States as a nuclear supplier persist, as well as differences of views between ourselves and others concerning the proliferation risks and economic benefits of reprocessing and the recycling of plutonium in light water reactors. These problems and others noted in the report will continue to be addressed in our efforts to achieve international support for and consensus on our nonproliferation objectives.

Chapter XI of the report contains the analyses of the agreements for cooperation. It consists of two unclassified volumes, which are enclosed, and a classified volume which is being submitted to the Senate Foreign Relations 'Committee and the House International Affairs Committee, in accordance with Section 602(d) of Public Law 95-242.

JIMMY CARTER

The White House,

March 22, 1979.