Nuclear Nonproliferation

In October 1994, the United States and North Korea reached an agreement to address the threat posed by North Korea's nuclear program and to defuse tensions on the Korean peninsula. Under the "Agreed Framework," the United States is helping North Korea acquire two light-water nuclear power reactors and interim supplies of heavy fuel oil in exchange for a freeze on North Korea's existing nuclear plants and North Korea's promise to eventually dismantle the facilities and comply with its obligations under the Nuclear Nonproliferation Treaty. This report discusses (1) U.S. costs to implement the Agreed Framework, (2) options for disposing of North Korea's existing spent fuel, (3) the contracting for light-water reactors and other goods and services, (4) the status of actions to normalize economic and political relations between the United States and North Korea, and (5) the status of actions to promote peace and security on the Korean peninsula.

GAO noted that: (1) as of April 1, 1997, the United States had approved about $82 million in funding to implement the Agreed Framework; (2) the total cost to the United States is unknown but is expected to reach tens of millions of dollars; (3) South Korea and Japan are expected to provide the majority of the estimated $4 billion needed to construct the two light-water reactors; (4) the removal of North Korea's 50,000 kilograms of spent nuclear reactor fuel is expected to begin in about 4 to 7 years; (5) North Korea's spent fuel could either be reprocessed and stored or stored without reprocessing until a deep underground repository is available for the fuel's permanent disposal; (6) the international organization created to implement portions of the Agreed Framework has developed draft guidelines for contracting for services needed to carry out the agreement; (7) details about how the organization's prime contractor will procure goods and services for the reactors' construction will not be known until the contract is finalized; (8) as specified in the Agreed Framework, the United States has taken steps to normalize its economic and political relations with North Korea; (9) further progress will depend on addressing issues of concern to the United States, such as the return of the remains of U.S. soldiers missing in action from the Korean War; (10) progress on issues of concern has been limited; (11) the United States expects that improved relations between the two Koreas will contribute to peace and security on the Korean Peninsula; (12) in April 1996, the United States and South Korea invited North Korea to participate in peace talks; and (13) while North Korea accepted the talks "in principle," there has been no agreement about the timing of the talks or the steps needed to initiate them.