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washingtonpost.com
Brazil Shielding Uranium Facility
Nation Seeks to Keep Its Proprietary Data From U.N. Inspectors

By Peter Slevin
Washington Post Staff Writer
Sunday, April 4, 2004; Page A01

The Brazilian government has refused to allow U.N. nuclear inspectors to examine
a facility for enriching uranium under construction near Rio de Janeiro,
according to Brazilian officials and diplomats in Vienna, home of the
International Atomic Energy Agency.

The IAEA and Brazil are at an impasse over the inspections, the diplomats said.
Brazil maintains that the facility will produce low-enriched uranium for use in
power plants, not the highly enriched material used in nuclear weapons.
Nonetheless, Brazil refuses to let IAEA inspectors see equipment in the plant,
citing a need to protect proprietary information.

The diplomatic standoff plays into fears that a new type of nuclear race is
underway, marked not by the bold pursuit of atomic weapons but by the quiet and
lawful development of sophisticated technology for nuclear energy production,
which can be quickly converted into a weapons program.

Brazil's project also poses a conundrum for President Bush, who has called for
tighter restrictions on the enrichment of uranium, even for nuclear power, as
part of a new strategy to prevent the spread of nuclear weapons.

Nonproliferation specialists say that if the United States and the United
Nations do not act to curtail Brazil's program, or at least insist on
inspections, the lack of action could undermine White House calls for Iran and
North Korea to halt their efforts to enrich uranium.

"If we don't want these kinds of facilities in Iran or North Korea, we shouldn't
want them in Brazil," said former U.S. nuclear negotiator James E. Goodby. "You
have to apply the same rules to adversaries as you do to friends. I do not see
that happening in Brazil."

Brazil's shrouded technology at the plant in Resende belongs to a program
considered legal under international treaties, but it remains subject to U.N.
inspections, aimed at making sure it is not used for producing weapons-grade
material for itself or customers.

The IAEA has dispatched inspectors to Resende in recent months, only to find
significant portions of the facility and its contents shielded from view,
diplomats said. Walls have been built and coverings are draped over the
equipment, according to reports from specialists who have visited the plant,
which is in the early stages of construction.

Brazilian officials maintain that the facility falls within rules allowing
countries to develop the nuclear fuel cycle for peaceful uses. They say
intrusive IAEA inspections are unnecessary because Brazil, which formally
forswore nuclear weapons in the 1990s, is seeking a secure and inexpensive
source of nuclear power, and has no lingering atomic weapons ambitions.

"We feel deeply bothered, almost offended, when suspicions are raised about
Brazil," a senior Brazilian diplomat said.

The Brazilian official acknowledged that inspectors are not permitted to see all
the equipment at the Resende plant, but he said the IAEA is free to conduct
sensitive tests on the surroundings, as well as on uranium fed into the
centrifuges and exiting the other end.

The coverings are "necessary to protect our technological breakthroughs," said
the diplomat, who spoke on the condition of anonymity. He said the IAEA is
"politically motivated to insist on visual access. We say that visual access is
not indispensable.

"This is a natural process of negotiation," the official added, "which ought not
to be the object of any fuss."

There has been no suggestion that the White House plans to prevent Brazil from
perfecting its enrichment facility, although U.S. emissaries expect to push this
month in Brasilia for better cooperation with the IAEA. "We hope that Brazil
will be part of the solution. We're not trying to describe them as part of the
problem," said a senior State Department official who spoke on the condition of
anonymity. "We understand they're going to establish an enrichment capability
[for nuclear energy]. It will be safeguarded."

A series of Brazilian statements about nuclear matters raised worries in
Washington and Vienna about Brazil's intentions, however. During his winning
campaign, leftist Workers' Party presidential candidate Luiz Inacio Lula da
Silva criticized the 1970 Non-Proliferation Treaty as unfair. "If someone asks
me to disarm and keep a slingshot while he comes at me with a cannon, what good
does that do?" da Silva asked in a speech. He later said Brazil has no intention
to develop nuclear arms.

Suspicions rose anew after da Silva's science and technology minister, Roberto
Amaral, said Brazil would not renounce its knowledge of nuclear fission, the
principle behind the atomic bomb. Brazilian officials quickly said Amaral was
out of line, and he later resigned.

The da Silva government announced it will expand its uranium enrichment
capability not only for its own power plants but also to sell low-enriched
uranium for use in energy production in other countries. The program is to begin
this year. Only a half-dozen countries now have such a capability.

Enrichment technology is not new to Brazil. The government, working with West
Germany, developed a rudimentary ability to enrich uranium in the 1970s as part
of an ambitious strategy to supplement hydroelectric power and natural gas. Two
nuclear reactors, Angra-1 and Angra-2, now operate in the country's industrial
belt.

Brazilian officials, who oversee one of the largest uranium deposits in the
world, currently pay to ship the raw metal to Canada and on to Britain, where it
is enriched for use in the power plants. If Brazil mastered the complete fuel
cycle, it would save $10 million to $12 million per year, the government
estimates, while laying the groundwork to sell to others.

"It is a very rich market that runs into the billions each year," the Brazilian
diplomat said.

IAEA inspectors want to inspect for two reasons: to make sure Brazil is not
making weapons-grade material; and as part of their investigation of global
nuclear supply networks, including the one established by Pakistani scientist
Adbul Qadeer Khan. Diplomats and nuclear experts said the IAEA wants to learn
more about the origin of the program in Brazil and its sources of supply.

"If you have an enrichment facility, you want to make sure that the material
isn't being enriched to a level that would cause concern," a Vienna-based
diplomat said. "There are just a lot of questions at this moment which are
unresolved. There's an impasse."

The IAEA is expected to report in June on Brazil's performance. Agency officials
working on the Brazil project declined to comment for this story.

A separate issue facing Bush is where to draw the line on Brazil and other
countries seeking a uranium enrichment capability. Such projects are permitted
under the Non-Proliferation Treaty when the purposes are peaceful, but Bush has
proposed a change.

Under his plan, announced in a Feb. 11 speech, countries that do not already
produce uranium would not be allowed to do so. Rather, they would be provided
nuclear fuel at a reasonable cost -- and only if they also agreed to rigorous
IAEA inspections.

For governments that already considered the treaty unfair, Bush's proposal
seemed only to reaffirm the bias in favor of countries that already possessed
atomic technology when the treaty was crafted in the 1960s. Three countries that
later built nuclear weapons -- India, Pakistan and Israel -- did not sign.

"We don't like treaties that are discriminatory in their intent," said the
Brazilian official, who described Bush's nuclear fuel proposal as "unacceptable
to Brazil, precisely because we see ourselves as so strictly committed to
nonproliferation, to disarmament, to the peaceful uses of nuclear energy."

Iran has made similar statements, as has North Korea, which U.S. intelligence
experts believe has built one or two nuclear weapons. Iran and North Korea had
secret enrichment programs, with Iran's hidden for 18 years. North Korea evicted
U.N. inspectors and withdrew from the Non-Proliferation Treaty.

In Brazil, by contrast, one U.S. official said, "we don't have any reason to
think there are problems." A diplomat in Vienna said: "It's not Iran, it's just
not."

Yet permitting Brazil to proceed with the kind of enrichment program that Bush
wants to limit, several analysts said, would threaten to weaken efforts to make
common rules. Lawrence Scheinman of the Center for Nonproliferation Studies
said: "Brazil going forward could give cause to countries like Iran to do the
same."

"It makes mincemeat of the president's speech," said Henry Sokolski, director of
the Nonproliferation Policy Education Center, a Washington think tank. He noted
that Bush said countries must agree to rigorous IAEA inspection to get
international help. "It sets a hell of a precedent if they go through with an
enrichment facility."



� 2004 The Washington Post Company

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