INTRODUCTION

The authority of the government to regulate the nuclear power industry in the United States is based on comprehensive licensing requirements contained in the Atomic Energy Act of 1954. Under the Act, no person may engage in significant activities involving nuclear materials or facilities unless authorized by a license granted by the Atomic Energy Commission in accordance with detailed regulations which the AEC issues and amends from time to time. The AEC regulations designed specifically to provide safeguards against nuclear theft form part of a broad regulatory scheme intended to effect a number of important purposes. These include, in addition to safeguards, protection of the public health and safety against the dangers of ionizing radiation, preservation of the natural environment against adverse effects of nuclear activities, and assurance of competitive economic conditions in the industry pursuant to the antitrust laws.

For a system of safeguards against nuclear theft to be effective, it must be at least as dynamic as the nuclear technology to which it applies. The AEC is currently embarked on an important effort to strengthen the U.S. safeguards system. The principal requirements for both physical protection and materials accountancy are set forth in regulations initially proposed in February 1973, which became effective with certain modifications in December, 1973. Even these new regulations should not be viewed as the AEC's final word on the subject, but rather as its latest action on a matter of continuing concern.