URANIUM ENRICHMENT SCHEME (Hansard, 8 December 1969)

THE EARL OF BESSBOROUGH
My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

§ THE MINISTER OF STATE, MINISTRY OF TECHNOLOGY (LORD DELACOURT-SMITH)
My Lords, the tripartite Prime Contractor and Enrichment Company could not be formed while certain negotiating issues remained unresolved. I do not wish to anticipate the Statement which my right honourable friend expects to make 282 shortly about the collaboration, but I can say that the way will soon be clear to set them up.

THE EARL OF BESSBOROUGH
My Lords, while thanking the noble Lord for answering that Question, may I ask him whether he could not now tell us the names of the firms involved in each country? I understand from The Times Business News that in Germany and the Netherlands the companies have been named. They were named some time ago, and their percentage participation agreed. Am I not right in thinking that Britain is delaying the scheme largely because our own Fuel Corporation has not yet been formed? Would not the noble Lord agree that the House should be fully informed, in view of the detailed and, I might say, semi-official statements which have been made both in Bonn and Amsterdam? Moreover, in view of American progress in their own uranium enrichment scheme, does the noble Lord not agree that we in Europe should proceed with all speed in this matter?

§ LORD DELACOURT-SMITH
My Lords, the noble Earl has asked a number of questions. I can certainly agree with him that it is desirable to proceed with all possible speed; but there are a number of matters which have had to be settled, and there are still some points which remain to be resolved. The position is that the British shareholder in both companies will be the Atomic Energy Authority, which, provided that Parliament approves the necessary legislation, will be succeeded in due course by the proposed Nuclear Fuel Company. The Dutch Government and several Dutch companies have formed a group which will hold the Dutch shares; and German industrial groups have similarly formed two groups, one to hold shares in each of the tripartite companies.
So far as a further statement is concerned, as I have said, my right honourable friend hopes to make a statement soon upon this matter; and it will of course be appropriate for the statements to be co-ordinated in the three countries concerned. But I would draw attention to the fact that before they can sign the agreement our Dutch and German partners must, under the Euratom 283 Treaty, communicate the terms of it to the European Commission.

THE EARL OF BESSBOROUGH
My Lords, I am sorry to press the noble Lord, but is he satisfied that we are proceeding with sufficient despatch in this matter? I should like to ask him this additional question: can he confirm that the capital expenditure will be of the order of some £625 million, but that the annual saving as a result of our not having to buy this enriched fuel from the United States may be as high as £162 million?

§ LORD DELACOURT-SMITH
My Lords, I can confirm that all outstanding issues have now been settled. We hope soon to make, in co-ordination with our partners, a comprehensive statement, which will, I hope, cover, among others, the points which the noble Earl raised about capital cost.

THE EARL OF BESSBOROUGH
My Lords, would not the noble Lord agree that the other two countries concerned are ready and that it is Britain that is delaying the scheme?

§ LORD DELACOURT-SMITH
My Lords, I could not accept that.

§ LORD BROCKWAY
My Lords, could my noble friend give confirmation of the statement that the uranium will be used only for peaceful purposes and not for nuclear weapons?

§ LORD DELACOURT-SMITH
My Lords, I hope that my noble friend will be prepared to await the fuller statement which, as I have said, my right honourable friend will be making soon.