Letter, Hoerster and Biagoschi, Kraftwerk Union A.G., to Dr. H.-G. Wieck, 'Turn-key Nuclear Power Plants for Iran including Fuel Management, Exploration of Natural Uranium and Aid in obtaining Enrichment Know-how'

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[illegible handwriting, presumably initials and a date]

His Excellency,

the Ambassador of the Federal Republic of Germany.

Dr. H.-G. Wieck

Teheran[sic]

July 13, 1974

Your Excellency,

Re.: Turn-key Nuclear Power Plants for Iran including Fuel Management, Exploration of Natural Uranium and Aid in obtaining Enrichment Know-how

In connection with the intention of the Government of His Imperial Majesty to instal [sic] nuclear power plants in Iran, we have the honor to inform you as follows:

1. Capability of Kraftwerk Union A.G.

Kraftwerk Union A.G. (KWU) was founded in 1969 by the House of Siemens and the AEG-Telefunken Group and combines the former thermal power plant activities of both parent companies, employing a staff of 12,000 and operating the most modern production facilities.

27 turn-key nuclear power plants have been commissioned or are under construction by KWU as general contractors, 4 of which are large export orders which prove the international competitiveness of KWU both technically and in terms of cost.

More details in respect to our capability and our references are contained in the memorandum inclosed [sic] herewith.

2. Preparation of Bids for Nuclear Plants in Iran

We are prepared at any time to submit bits for turn-key nuclear power plants if so requested by the competent authorities in Iran. This would include our being prepared to discuss co-operation in the field of nuclear fuel element production as well as extensive information and training of technical personnel.

a) Unit Sizes of Nuclear Plants

The standard unit size for both pressurized water reactors and boiling water reactors based on our own concepts is presently 1300 MW. We are of course in a position to supply both smaller and bigger unit sizes after having reached accord with the buyer.

b) Handling of Turn-key Jobs

As elsewhere we are of course prepared to assumed responsibility for the construction of turn-key nuclear plants as general contractor also in Iran. This could include the engineering and construction of pertaining transmission lines and substations. It would be quite in line with our export policy to include into our general contractor’s responsibility to the biggest possible extent Iranian firms and possibly competent international partners. With some pride we may add here that the degree of local content promised by us to be included in a turn-key plant in countries like Argentina, the Netherlands, Switzerland or Astria has always been adhered to by us.

3. Exploration of Natural Uranium in Iran

The Federal Republic of Germany is prepared to cooperate in the field of Uranium Exploration in any manner suitable for Iranian purposes. Detailed discussions on this matter will be held as soon as requested.

4. Uranium Enrichment Facilities for the Self Sufficiency of Iran

In the Federal Republic of Germany important R and D efforts have been undertaken in the field of Uranium Enrichment. As a consequence Germany has know-how and experience with the two enrichment processes: the nozzle separation process and the ultracentrifuge process.

Independent of the type of enrichment process, the Government of Iran is kindly requested to approach the German Government regarding the availability of enrichment technology and the supply and erection of an enrichment plant in Iran. From first contacts KWU has good reasons for the assumption that the German Government is prepared to enter into discussions with the Government of Iran regarding the question of Uranium enrichment and the erection of an enrichment plant in Iran.

KWU is prepared to use its best efforts by relying on its participation in the European centrifuge enrichment activities and its contacts to the German Government, in supporting the efforts aiming at the supply of technology and the erection of an enrichment plant in Iran.

For further details your kind attention is being drawn to the enclosed memorandum.

In order to go more deeply into details to back up the brief statements given above, we are at any time prepared to hold discussions with and render presentations to the competent Iranian authorities. Here again we should like to draw your attention to the attached memorandum which already outlines in greater substance the statements made.

We should be extremely grateful if you would see your way to forward the content of this letter to the attention of His Imperial Majesty.

Thanking you for your kind efforts in this matter, we remain,

very sincerely yours,

KRAFTWERK UNION AKTIENGESELLSCHAFT

[signatures]

(Hoerster) (Biagoschi)

Encl.