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Weapons of Mass Destruction (WMD)

WORLDWIDE DEMAND FOR NUCLEAR WEAPONS MATERIALS, 03/22/1996, Testimony

Basis Date:
19960419
Chairperson:
W. Roth
Committee:
Senate Governmental Affairs
Docfile Number:
T96AI085
Hearing Date:
19960322
DOE Lead Office:
NN SUB
Committee:
Permanent Investigations
Hearing Subject:
WORLDWIDE DEMAND FOR NUCLEAR WEAPONS MATERIALS
Witness Name:
C. Curtis
Hearing Text:

 STATEMENT
 OF
 CHARLES B. CURTIS
 DEPUTY SECRETARY OF ENERGY
 BEFORE THE
 PERMANENT SUBCOMMITTEE ON INVESTIGATIONS
 OF THE
 SENATE COMMITTEE ON GOVERNMENTAL AFFAIRS
 MARCH 22, 1996
 INTRODUCTION
 Mr. Chairman and members of the Committee, I welcome this opportunity
 to testify before you today.  The recent hearings of the Committee have
 underscored the threat posed by the illicit spread of materials,
 technology and expertise needed to produce weapons of mass destruction
 to rogue states or terrorist groups.  Reducing the danger posed by
 proliferation is a vital national security mission for the United
 States.  Today, I will focus on the Department of Energy s programs to
 assist Russia and the other states of the former Soviet Union to secure
 their nuclear materials and expertise.  I will also address our
 programs to detect and respond to the threat generated by nuclear
 smuggling.
 THE PROBLEM AND THE THREAT
 The breakup of the Soviet Union has posed difficult, new proliferation
 challenges.  To date, no new weapons states have resulted.  The Newly
 Independent States (NIS) of Ukraine, Kazakhstan and Belarus have
 abjured nuclear weapons, embraced the Nuclear Nonproliferation-Treaty,
 and agreed to Russia becoming the sole weapons successor state.  That
 triumph for international security in limiting proliferation among
 states of the former Soviet Union, however, is stalked by a fear of
 proliferation stemming from within them.
 As Senator Nunn stated last week, "today, there is no greater threat to
 our nation's, or our world's, national security, than the illicit
 spread of weapons of mass destruction," and "the challenge facing the
 Russians, and the rest of the world, is to ensure that the former
 Soviet Union does not become a vast supermarket for the most deadly
 instruments and technology known to man."  That circumstance could
 greatly complicate U.S. strategic nuclear planning.  It could aid rogue
 states and undercut nonproliferation prospects.  And it could
 dramatically embolden subnational groups using violence and terrorism
 to pursue their aims.
 The Committee's Staff investigation, and previous witnesses before the
 Committee, including CIA Director John Deutch, have established the
 urgency of the threat.
 I will focus on two key aspects of the immediate problem:
 o   First, nuclear materials safeguards in Russia and the NIS are
 being exposed to vulnerabilities they were not designed to withstand.
 The transformation of the Soviet Union has lessened the surety of
 controls over nuclear weapons useable materials in the successor
 states.  The breakup of the Soviet Union resulted in a weakening of
 controls over enormous quantities of nuclear materials built up over
 decades of the Cold War.  The problems that the NIS now face in
 accounting for and securing these materials are rooted in the Soviet
 past.  With the disintegration of many Soviet-era structures and
 institutions, this material was becoming vulnerable to theft or
 diversion.  Working cooperatively with all relevant NIS states, we are
 now reversing that dangerous trend through our programs to enhance
 materials, protection, control and accounting (MPC&A).
 o   Second, difficult economic conditions and declining living
 standards are threatening the nonproliferation incentives of those with
 expertise or access to nuclear materials or technology.  Many
 scientists and engineers at NIS institutes that possess nuclear
 material and weapons know-how are facing hardships that can only be
 compared to the deprivation of the Great Depression.  Through programs
 such as the New Independent States Industrial Partnering Program (IPP)
 and the International Science and Technology Centers, we are working to
 provide productive, peaceful employment for these individuals.
 On both fronts, the vulnerability of the NIS states is our
 vulnerability as well.  The appearance of genuine attempts to illicitly
 market special nuclear materials since 1992 provide indirect
 confirmation of these vulnerabilities.  In addition, in 1995 we saw the
 first example of a subnational group, the Chechens, planting an
 industrial radiological source in a public Moscow Park.
 To put the threat in perspective, I would say in an absolute sense the
 threat remains very real and concerning; that said, in important
 respects, we are relatively better off today than we were a year or two
 to these concerns.  But that is no basis for complacency, only greater
 effort.
 UNITED STATES POLICY
 The Clinton Administration has made nonproliferation and the fight
 against terrorism two of its highest national security priorities.  The
 Department of Energy has critical roles in carrying out these policy
 missions.
 Since the beginning of this Administration, a number of Presidential
 directives have been issued dealing with the nonproliferation programs
 of the United States.  In September 1993, the United States Policy on
 Nonproliferation and Export Controls laid out the broad policies of the
 administration to prevent the spread of nuclear weapons, materials and
 expertise.  Subsequently, the President issued specific direction on a
 variety of the government s efforts including the protection of nuclear
 materials.  It is the stated policy of the United States to use all
 appropriate and to deter, defeat and respond to all terrorist attacks
 on our territory and resources, both people and facilities, wherever
 they occur.  President Clinton has assigned DOE and other agencies
 specific emergency responsibilities and readiness requirements to
 ensure a coordinated interagency response in responding to any acts of
 nuclear terrorism.
 DEPARTMENT OF ENERGY CAPABILITIES AND APPROACH
 The Department of Energy (DOE) is addressing the problem of securing
 nuclear materials in the NIS in as comprehensive and effective way as
 possible.   DOE has unique scientific, technical expertise and
 innovative capability in its National Laboratories.  It also has long
 experience in dealing with nuclear security and technology, based on
 its assets from the development and maintenance of our nuclear
 stockpile.  We have also adapted Departmental programs, where
 appropriate, to address post-Cold War threats and missions.
 My remarks here may provide some, if only modest, reassurance and
 encouragement.   The Department is making progress in securing
 materials in the NIS where it is most needed and feasible.  But the
 scope of the problem remains large.  It involves the efforts of other
 federal agencies.  And it should also be noted that in important
 respects, progress remains dependent upon the capacity of states of the
 former Soviet Union, and parties internal to them, to cooperate and
 make this a priority concern of their own.  It is a problem involving a
 long-term solution but having near-term consequences.
 DEPARTMENT OF ENERGY PROGRAMS
 Last week, in association with the Committee s hearing, Senator Nunn,
 Chairman Roth, and Senator Lugar each provided comprehensive overviews
 of the problem of nuclear security.  In addition, each also identified
 particular aspects of concern, which, respectively,  I will summarize
 here as:  (1) Prevention; (2) Detection and Demand; and (3) Response
 capability for countering the threat.  The Department's programs span
 this continuum.  All these dimensions are critical.  My remarks here
 will touch on each aspect, although in deference to the Committee's
 request, it will dwell more upon programs of prevention: securing
 materials and the threat at its source.
 (1) PREVENTION: SECURING MATERIALS, EXPERTISE, TECHNOLOGY
 Since the breakup of the Soviet Union in 1991, the United States has
 efforts to prevent nuclear proliferation and reduce the danger posed by
 other NIS.  An important step in the evolution of U.S. policy was taken
 providing special funds to support cooperative security programs in the
 Act of 1991, Congress established the Cooperative Threat Reduction, or
 A key focus of the initial Nunn-Lugar program was to assist the NIS
 governments to secure and dismantle ways of destruction.  Since early
 1994, we have expanded this initial mandate to include the provision of
 security assistance not just for weapons and their components, but for
 all nuclear materials that could be used in a nuclear weapon.  To gain
 the flexibility we need to speed the pace of progress, we have
 developed a multi-pronged approach to cooperation that includes
 complimentary programs of government-to-government agreements and
 direct Laboratory-to-Laboratory cooperation.  This approach has enabled
 us to work around bottle-necks and tailor programs to a variety of
 specific recipients, such as the nuclear weapons laboratories, civilian
 nuclear research facilities, and industrial enterprises producing
 nuclear materials.  These efforts remain flexible, take advantage of
 opportunities for progress as they present themselves, nurture
 approaches that work and, most importantly, work to build the necessary
 trust with counterparts in the NIS.
 Specifically, I will discuss three of the Department of Energy s
 prevention  programs: (A) Materials, Protection, Control and
 Accounting; (B) our New Independent States Industrial Partnering
 Program; and (C) our collaborative work on export controls in the NIS.
 These complex, multifaceted programs address aspects of the threat I
 emphasized earlier.  While here I will only touch on the highlights of
 most interest to the Committee, I request the Chairman's permission to
 submit for the record reports on each of these activities. These
 programs have matured quickly and sustain critical review.  The success
 of some of our efforts to date, I am pleased to note, was reflected in
 statements by several of your witnesses concerning our programs.  Our
 Materials, Protection, Control and Accounting and Industrial Partnering
 Program received praise.  These programs cooperatively work with the
 states of the former Soviet Union in securing materials and help to
 prevent migration or possible cooperation with rogue states or
 terrorist groups of their weapons scientists by engaging them in
 peaceful commercial pursuits.  The GAO study commissioned by this
 Committee and released last week, Nuclear Nonproliferation: Status of
 U.S. Efforts to Improve Nuclear Material Controls in Newly Independent
 States, reviewed the status of some of our key programs.  In addition
 to capturing accurately the magnitude of the challenge, I am pleased to
 say the report is supportive of the Department s efforts and approach.
 Funding needs for these innovative efforts have increased, and in
 general been achieved, even in the face of real cuts in the
 Department's budget.  These programs also face the challenge of
 sustaining domestic support for funding programs dealing with Russia.
 (A) Materials, Protection Control and Accounting (MPC&A)
 "[T]he wisest policy," Senator Nunn observed last week, "is to secure
 the material at its sources."  The availability of nuclear material is
 the single most critical link in preventing a determined proliferator
 from making a weapon.  Short of stealing an intact weapon, the shortest
 route to developing a nuclear weapon is to illicitly acquire weapon-
 usable fissile materials.  The United States and the states of the
 former Soviet Union have produced the vast majority of the world s
 plutonium and highly enriched uranium.  While the majority of this
 material is contained within nuclear weapons, several hundred metric
 tons are in non-weapon form.  It can take just pounds of this material
 to create a nuclear weapon.  The Department's cooperative nuclear MPC&A
 program has three basic elements that seek progress at both the
 facility and national level:
 One, seek nuclear MPC&A upgrades at facilities in the NIS that contain
 weapons-useable material.  Two, deploy modern technologies and
 specialists needed to improve MPC&A, including nuclear material
 detectors, sensors, and other security systems to detect nuclear
 leakage as well as providing computers, measurement instruments, and
 training to allow the accurate inventorying of these materials.  In
 this effort, specialists from both the United States and the newly
 independent states collaborate on designing and installing improved
 systems, thereby strengthening the indigenous capabilities of our
 partners to produce, operate, and maintain their own modern nuclear
 MPC&A systems.  And three, work with the nuclear regulatory agencies in
 the NIS to strengthen the national standards and systems for nuclear
 materials accounting and control and help ensure an independent,
 technically strong regulatory authority.
 The Department's role in Russia for MPC&A started in 1993 with
 Nunn-Lugar funds to support nuclear MPC&A cooperation with Russia and
 the three other NIS states that had nuclear weapons on their territory
 after the breakup of the Soviet Union.  Specifically, the initial work
 followed from an agreement signed by the Department of Defense with
 MINATOM, the Russian counterpart to DOE, to improve security of certain
 civil facilities with weapons-usable material. The efforts pursuant to
 the government-to-government track of Nunn-Lugar at this time, however,
 were too often slowed or frustrated by a combination of factors,
 including: lack of trust, an inability to obtain the necessary
 governmental permissions, and difficulty in the sharing of information.
 Consequently, in addition to such governmental cooperation with Russia,
 DOE initiated in early 1994 a complementary approach now known as our
 "Lab-to-Lab" MPC&A program.  This alternative approach built upon the
 scientific cooperation that had been started between  our National
 Laboratories and Russian institutes.  The program encouraged our
 National Laboratories to cooperate directly with the Russian Federation
 nuclear institutes to broaden a dialogue based upon the trust
 established among scientists who shared an appreciation for the
 problems of nuclear security.
 The Lab-to-Lab Program expanded those scientific collaborations to
 include additional U.S. and Russian participants and to focus on
 high-priority joint work to achieve rapid progress in nuclear materials
 protection and control.  We reprogrammed $2M for this purpose in fiscal
 year 1994 and chartered six of our labs -- Los Alamos, Sandia,
 Livermore, Oak Ridge, Pacific Northwest and Brookhaven -- to initiate
 work.  These labs engaged, on a cooperative basis, with three key
 Russian institutes -- Kurchatov, Arzamas-16 and Obninsk.  Not long ago
 this watershed dialogue would have been unthinkable.  Kurchatov was the
 father of the Soviet bomb and Arzamas-16, a former secret city, is
 analogous to our Los Alamos.
 Through our interactions with the Kurchatov Institute in 1994, it was
 clear that the circumstances that had formerly secured weapons grade
 material had altered and were insufficient.  After reaching agreement
 in October 1994, within six weeks, at a cost of less than $1M, we
 secured 75 kilograms of HEU with reliable technical and physical means.
 institutes in Russia were treated to a demonstration of the upgrades
 and wanted to participate in similar projects at their own facilities.
 Former adversaries, in the deadliest sense of the term, came together
 with the common purpose of ensuring that their materials are secure
 from theft or diversion.  Similarly, we moved forward at the same time
 with cooperation at Arzamas-16, which while very secure against an
 attack from the outside, lacked the internal systems and controls
 needed to ensure that a motivated insider cannot covertly remove
 material from the facility.
 To put the matter in perspective, the U.S. always relied upon both
 personnel and technological measures to secure nuclear materials at
 sites.  The Soviet system exercised rigorous control of personnel and
 movement, as well as gates, guards and guns.  They relied less on
 inventory controls and technological tools to supplement their other
 measures.  The demise of the Soviet state, and the associated economic
 difficulties, has eroded the former underpinnings of their materials
 security system.  The number of guards has declined, the infrastructure
 decayed, salary payments are episodic, and formerly very strict
 controls over the movement of workers in-and-out of  closed cities such
 as Arzamas-16 have relaxed considerably.  At the same time, incentives
 to circumvent what remains of the security system have increased.
 Thousands of nuclear weapons and tons of weapons useable materials,
 pending completion of our cooperative MPC&A program, are more
 vulnerable to theft or diversion than they used to be.  Additionally,
 research materials and reactor fuels, both civilian and military, are
 potential targets for criminals, insider profiteers, or terrorists.
 These circumstances spur our efforts to work cooperatively with Russia
 and other NIS states to rapidly introduce cost-effective, technological
 systems that quickly reduce the vulnerability of these materials.
 Direct interactions between Russian and American experts, the rapid
 appearance of resources directed to a problem, and the prospect of
 further collaborations in other areas combined to help foster success.
 implementation of the Lab-to-Lab program has had a beneficial effect on
 the government-to-government agreements, as well as our programs with
 other NIS states.  The U.S. has not been denied access at any facility
 where there has been agreement to make improvements in nuclear material
 security.
 Our cooperative, multiple track MPC&A approach has made rapid
 improvements to the security of nuclear materials.  Maintaining
 multiple paths of cooperation on nuclear materials control is useful
 because it maximizes flexibility in order to achieve the greatest
 possible progress in the shortest time. There are roughly 40-50 known
 sites where there are nuclear facilities in the NIS, at which there are
 roughly 80 to 100 facilities.
 In 1994, with a budget of $2 million we helped secure 1 facility with
 weapons useable material measured in kilograms. In 1995, using a budget
 of $26 million (including $15 million of Nunn-Lugar), we introduced
 security upgrades at 26 facilities with over 8 tons of weapons grade
 material.
 This year, we have a budget of $70 million and we are already or will
 soon be engaged at 35 or more sites, and will begin implementing
 improvements to the security of many tons of weapons material.
 Over the past two years, the U.S., Russia, and the other NIS states
 have made impressive, concrete progress in collaborative MPC&A efforts.
 agreed with Russia to improve security at 18 new locations, including
 some large defense-related locations.  Installation of improved
 systems, including measurement equipment, portal monitors, computerized
 accounting systems, and personnel access controls are well underway at
 multiple sites in the NIS.  Real progress has also been made in
 building relationships among scientists, facility operators, key
 government officials and managers in each of the cooperating countries.
 In short, our strategy is showing success.  We are securing weapons
 grade material where it sits, providing technology to police it, and
 moving forward with agreements that shape the security "culture"of the
 NIS states.  To date we have helped secure material that is the
 potential equivalent of hundreds of nuclear weapons.  Continued Russian
 weapons dismantlement will make more material available at sites.
 Presidents Clinton and Yeltsin on several occasions have jointly
 underscored the importance of this collaborative effort.  In addition,
 he U.S.-Russian Committee on Economic and Technological Cooperation,
 known as the  Gore-Chernomyrdin Commission,  has made this
 collaboration a major agenda item and many key agreements have been
 reached in this forum.  Russia has also demonstrated its unilateral
 attention to this matter by issuing a series of decrees and executive
 orders aimed at improving nuclear material security.  In addition, in
 November 1995, the  Federal Law on Atomic Energy  was passed by the
 Russian legislature and signed by President Yeltsin.  This legislation
 provides the legal foundation for national requirements on nuclear
 MPC&A at civilian facilities.
 Ultimately, only Russia and the other NIS states can ensure the
 security of their nuclear materials.  We can, however, act as a
 catalyst to spur the development of indigenous systems for nuclear
 materials security by providing experience, technology, procedures and
 training where it is needed most.  Our cooperation with these nations
 is also a two-way street.  Russian scientists have taken the initiative
 to identify new opportunities for cooperation, suggesting MPC&A
 approaches most likely to work well in Russia and the NIS.  We have
 also learned from the Russians about relevant technologies that we can
 put to good use, such as methods for  nuclear fingerprinting.   In
 addition, together we have devised methods for joint remote monitoring
 of nuclear storage facilities that may have applications to lessening
 costs and increasing reliability of other nuclear safeguards.
 Relatedly, I would note here that we have had similar favorable
 experience with our Departmental and its associated National Laboratory
 programs in working to: (1) increase NIS nuclear safety; (2) help
 shut-down plutonium production reactors in Russia with former military
 missions at Tomsk and Krasnoyarsk; and (3) develop plans for long-term
 fissile materials management and disposition.  In addition, we are
 active in ensuring the continued success of the HEU sale agreement with
 Russia -- an agreement under which Russia is currently blending down
 500 tons of highly enriched uranium from dismantled nuclear weapons
 into much safer low enriched uranium, which they are shipping to the
 U.S. under a commercial sales contract.  Legislation now awaiting
 action in the Congress will ensure this agreement is placed on a long-
 term, secure footing.  Finally, we remain ready, when and if
 appropriate, to assist in the removal of weapons material that is at
 imminent risk of theft or diversion, as was done in Project Sapphire in
 Kazakhstan.
 (B)  Industrial Partnering Program (IPP)
 The New Independent States Industrial Partnering Program, or IPP, was
 begun in fiscal year 1994 by the Department.  Its purpose was to
 stabilize personnel and resources in the NIS that represented a
 proliferation risk.  Other programs sought to secure the nuclear
 weapons and material; IPP sought to address the incentives facing
 weapons scientists, engineers and technicians operating in and around
 facilities with  materials and equipment of concern.   Dramatic drops
 in budgets at weapons institutes where these individuals work and live,
 and the lack of meaningful alternate employment in peaceful pursuits,
 is a proliferation threat.  A desperate technician, for example, is
 only a fax machine away from aiding proliferators.
 The objective of IPP is to engage scientists and engineers from weapons
 institutes of the NIS in peaceful applications of technology, leading
 to commercial benefits in both the United States and the NIS states.
 The approach of IPP is three-fold.  First, our labs work with the NIS
 institutes to identify and evaluate the commercial potential of
 research and development at NIS institutes.  Second, approved
 partnerships are cost-shared by U.S. industry.  Finally, the objective
 is commercialization.  The program leverages NIS intellectual capital,
 provides seed money to speed activity and lessen delay caused by
 uncertainty, and generates private sector funded, self-sustaining
 projects that promote alternative peaceful employment and long-term
 stability for these individuals of concern.
 To date, over 200 projects have been initiated, including 175
 Lab-to-Lab projects and 32 industry cost-shared projects.  Of the
 latter projects, DOE's $12M has been matched by $24M from the private
 sector.  Existing projects are employing over 2,000 weapons scientists
 and engineers on projects ranging from MPC&A, to nuclear safety, to
 materials science, biotechnology, instrumentation, and so on.  Fiscal
 year 1996 will include $10M from DOE and an anticipated $10M Nunn-Lugar
 funds.  A portfolio of unfunded projects remains; future work depends
 upon the availability of funds.  The fiscal year 1997 DOE budget for
 this program is $15M.  Submitted for the record is a March 1996 report,
 New Independent States Industrial Partnering Program: Reducing the
 Nuclear Danger, on the program s accomplishments, implementation and
 current status.
 I should note the broad support for this program initially sponsored by
 Senator Domenici.  Dr. Graham Allison, in his new book that he
 discussed in his testimony before the Committee last week, urges the
 U.S. to "expand the Industrial Partnering Program, the most successful
 of the U.S. programs aimed at reorienting Russian nuclear weapons
 enterprises toward non-military commercial activities."  Dr. Frank von
 Hippel, who worked on these issues for the first two years of this
 Administration, recently wrote the President's Science Adviser
 specifically to highly praise the IPP program, urging that "Given its
 current scale, it could easily spend $50 million effectively in FY96."
 The ultimate objective of the program is to spur success that, after
 initial and sufficient investment, ultimately puts itself out of
 business as a government program by becoming a commercially viable
 project.
 The Department's complimentary IPP and MPC&A activities are both
 designed to foster the indigenous capability and responsibility in the
 states of the NIS.  Both programs are also structured to assure that
 NIS military capability is not enhanced.  We cannot provide the
 long-term solution, but have, at an expanding number of facilities,
 reduced the near-term threat.
 (C) Export Controls for the Former Soviet Union
 Complementary to the MPC&A and IPP programs is the Department s program
 on export controls.  Effective export controls make it more difficult
 for groups or countries of concern to obtain the nuclear material and
 nuclear-related dual-use commodities used in the production or use of
 special nuclear material in either unsafeguarded fuel cycle activities
 or explosive programs.
 A variety of U.S. Government assistance programs are in place to
 enhance or establish effective export controls in Russia and the Newly
 Independent States under the policy lead of the State Department.  The
 Department of Energy is seeking to help Russia and other states of the
 NIS enhance or create a robust export control systems one that
 utilizes, to the fullest extent, the respective countries  scientific
 and industrial base through technical exchanges.
 Effective export controls are essential for countries that have
 production capability for nuclear dual-use commodities or that are
 likely transfer points for controlled materials to proliferant states.
 DOE developed a comprehensive export control plan designed to take
 advantage of the availability within Russia and the Newly Independent
 States of the nuclear weapons scientific base and integrate this into
 the export control infrastructure and supplier policy. The Department
 has begun implementation of the Department of Energy Plan for
 Cooperation on Export Controls in the Former Soviet Union.  This effort
 seeks to supplement U.S. initiatives directed toward stabilizing the
 Newly Independent States of this region, without limiting attention or
 resources to the four inheritors of nuclear weapons.  Broadening our
 involvement in other former Soviet republics serves our collective
 security interests and furthers U.S. nonproliferation and export
 control policy. The primary avenue of cooperation for U.S. export
 control initiatives has been the Nunn-Lugar program.  These funds have
 been allocated to support export control cooperation in Russia,
 Kazakhstan, Ukraine, and Belarus.  In addition, DOE has identified the
 need to engage scientific experts in the export control process.
 Equally important is the cultivation of independent institutes,
 academic institutions, and other grass roots organizations to serve as
 voices which contribute to an overall nonproliferation and export
 control policy.
 These highlighted programs of prevention -- MPC&A, IPP and Export
 Controls --  seek to prevent nuclear materials, expertise and
 technology from ever getting into the hands of rogue states or
 terrorists that would use weapons of mass destruction.
 (2) DETECTION AND DEMAND
 Despite the progress I have noted, a prudent fear of what we don't know
 remains.  Chairman Roth last week observed, "While the protection,
 control and accountability of nuclear materials, weapons and technology
 in the former Soviet Union is critically important....it must not be
 our sole concern.
 We must also train a watchful eye upon those nations, groups and
 individuals who might create a demand for such items." I would
 particularly like to emphasize here the Department's Nonproliferation
 Research and Development (R&D) program which has developed critical
 technologies for detecting and characterizing nuclear production, as
 well as for monitoring and verifying nuclear agreements and activities.
 technologies have direct application to the detection, identification
 and prevention of nuclear smuggling and potential terrorist activities.
 The testimony of our representatives from Los Alamos last week before
 the Committee is illustrative of the wide range of advances and
 applications resulting from such R&D.  The innovations at our labs
 range from detectors, monitors, sensors, assessment and forensic
 capabilities and others too numerous to detail here.  Many of these
 capabilities were developed to apply to nuclear matters but could also
 be applied to biological or chemical weapons threats.  Applications
 range from potentially detecting nuclear materials from overhead
 platforms, to tags and seals on  materials of concern, to enhanced
 detection capabilities at the border.
 The Department has long monitored demand for nuclear technology and
 material.  With an increased emphasis since early 1994, we formed a
 nuclear smuggling group that draws together the Department's expertise
 and resources on intelligence, nuclear matters, export controls and
 safeguards and security within DOE and its National Laboratories to
 address the threat, and provides support to other federal agencies.
 The Department's analytical and intelligence arms in recent years have
 played a leading role in the analysis of worldwide nuclear materials
 security concerns, and seek to monitor the demand side of the equation
 of what countries or groups of proliferation concern need or are up to.
 close and effective cooperation with other governments.
 (3) RESPONSE AND COUNTERPROLIFERATION
 Senator Lugar last week urged the Committee to "devote some thought to
 strategies for countering these threats to our national security."
 In that regard, I note that the Committee will conduct a hearing on our
 Nuclear Emergency Search Team, or NEST, response capability next week.
 Suffice it here to say that DOE's NEST capabilities include: search and
 identification of nuclear materials, diagnostics and assessment of
 suspected nuclear devices, and disablement and containment programs.
 Our personnel -- who are volunteers from our laboratory scientists and
 engineers -- can be transported quickly to anywhere in the world to
 deal with finding and disarming a nuclear device.
 Through our Emergency Management system and capabilities, we work
 closely with other federal agencies to assess nuclear threats, and if
 necessary alert NEST, or other nuclear emergency response capabilities
 of the Department.
 The Department of Energy is also working with the Department of Defense
 in support of its counterproliferation strategy.  We are using the
 assets of our Department s National Laboratories to support that
 program on a work for others basis through a Memorandum of
 Understanding I signed with then-Deputy Secretary of Defense John
 Deutch.  The capabilities of the Department s National Laboratories
 that support the needed work on nuclear matters are also of benefit in
 dealing with chemical and biological threats.
 CONCLUDING REMARKS
 In closing, Mr. Chairman, I would like to make several observations:
 We are increasing the security of material in the Newly Independent
 States.   We are reducing the incentive for persons with knowledge of
 weapons of mass destruction to act contrary to their nonproliferation
 responsibilities by helping to provide employment for them in carefully
 reviewed, peaceful commercial projects.
 Our strategies for preventing proliferation seek to place the ultimate
 responsibility upon the Newly Independent States.  In particular, our
 MPC&A and IPP programs are developing the necessary indigenous
 incentives, expertise, capability and constituencies to that end.
 These programs are cooperative, reciprocal,  and characterized by rapid
 success. At the same time, we believe immediate efforts by these
 programs are an investment in our national security, not foreign aid.
 We can pay now, or pay later.  We cannot solve the problem alone, but
 we can help solve it; if we choose inaction, we may suffer the
 consequences.
 The progress on these fronts is now paced by multiple factors:
 availability of funds, the political climate in Russia and the other
 Newly Independent States, and U.S. domestic support.  While we cannot
 but help focusing on the near term-threats, it is also important to
 orient our concerns today between the past and the future.  We are
 overcoming some of our old threats, as we look forward to forestall
 future ones:
 Where once public debate turned on the anticipated Soviet threat, we
 now seek to cope with threats derived from the Soviet Union s past.
 For the next several years, the security of nuclear materials in the
 NIS will almost certainly lag behind what is needed, despite our best
 efforts, and those of the other nations involved.
 Consequently, we have joined, with Russia and the Newly Independent
 States, to manage the checkered Soviet legacy on nuclear materials.
 Looking to the future, the Department's projections to the year 2010
 show U.S. and world oil dependency upon Middle East as growing
 significantly.  Other projections, such as those of the International
 Energy Agency, are consistent with this.  The result could well be a
 massive influx  -- perhaps over a trillion dollars -- of additional
 revenues over this period into a highly sensitive geopolitical region.
 Such projections underscore our need to make our efforts with the Newly
 Independent States to secure nuclear materials in place succeed, before
 any new pressures of demand have an opportunity to manifest themselves.
 As Senator Nunn recently observed, the bulk of the ultimate work and
 resources for securing nuclear materials must necessarily come from
 within the states of the former Soviet Union, but "we can and must
 serve as an equal partner and a  catalyst" and "that no other nation"
 than the United States "is equipped to lead this endeavor."   The
 Administration's programs seek to act, on a bipartisan basis, as a
 catalyst to the Newly Independent States to address the immediate
 threat and to establish the foundation for the long-term reduction of
 the nuclear danger.  In that sense, the window of vulnerability is also
 one of opportunity.
 I commend this Committee for contributing to informed public discussion
 of this matter and hope that it will add to the sustained support
 needed to meet this essential challenge in the decade ahead.
 Thank you, Mr. Chairman.   I look forward to your questions.
      



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