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Nuclear Theft: Risks and Safeguards







accountancy anomalies as they arise—an easy way to balance the books. Furthermore, the managers of a nuclear facility may view manipulation of material balances as a way to increase slightly the profitability of the enterprise. (The possibility of collusion between the managers of civilian nuclear operations and government authorities in the clandestine diversion of nuclear material for use in a broad range of government military programs, which is a concern primarily with respect to non-nuclear-weapon countries, is considered in Appendix D.)

Scope of the Risk

The risk that nuclear enterprise managers might manipulate material balances to their own advantage seems to be inherent in the nuclear power industry because of the high intrinsic value of the materials involved and the fact that no one will know exactly how much is actually flowing through a major facility. In addition to the presumed honesty of nuclear plant managers, however, there are limitations on the scope of this particular diversion risk. If an "arms length" commercial relationship exists between the operators of distinct steps in the fuel cycle, the possibilities for diversion by materials balance manipulations would be lessened. In addition, since one person could probably not get very far in a complicated manipulation process, a conspiracy within the plant would be necessary. This would substantially increase both the difficulty of diversion and the risk of detection.

Government materials accountancy requirements could arguably have the effect of either increasing or reducing incentives within industry to manipulate nuclear materials balances. Vigorous government enforcement of stringent materials accountancy requirements might increase the incentives for plant managers to cheat the system in order to be sure they could balance the books and keep their facilities operating efficiently. However, a lax governmental attitude towards materials accountancy might reduce incentives for discipline within industrial operations, open up opportunities for much larger manipulations of materials balances, and perhaps create conditions in which large scale diversions by criminal or terrorist groups could occur without timely detection.

DIVERSION BY A POLITICAL FACTION WITHIN A NATION

Scope of the Risk

The government of a nation is normally not of one mind. The possession by a faction or interest group within the government of enough nuclear material in a suitable form to make a few weapons might significantly affect the internal balance of political forces within a nation. This particular risk of nuclear diversion would seem negligible in the U.S. However, it could be