162
A Century of War
the Third World who agreed to the draconian IMF terms, to refinance their oil-related deficits. ATOMS FOR PEACE BECOMES A CASUS BELLI But there were growing signs in too many parts of the world that the potential still existed for stronger and potentially decisive initiatives in technology transfer from the key European industrial nations, as well as from Japan, to select developing countries. While the broad front presented at Colombo had been nominally defeated, the idea of specific North–South economic cooperation was taking hold in dramatic new ways. During late 1975, the government of Brazil entered into a major agreement with the German government of Helmut Schmidt for construction of a complex of nuclear power stations, fuel enrichment plants and other related technologies. The German nuclear reactor manufacturer, KWU, signed what at the time was the largest single nuclear contract in the world. Germany was to provide ‘turnkey’ construction of eight nuclear power reactors and facilities for the entire nuclear fuel cycle, including enrichment. Valued at a total cost of $5 billion, the entire project was to be completed by 1990. The European uranium enrichment consortium, Urenco, was to supply the initial uranium fuel. Also in 1975, Brazil signed a $2.5 billion cooperation agreement with France for the construction of an experimental fast breeder reactor. Washington responded with unprecedented efforts to force Germany as well as Brazil to cancel the program. Brazil threatened to become an economic power independent of Anglo-American control and, significantly, independent of their oil blackmail. Mexico, which during the early 1970s was not yet a significant exporter of oil, for sound economic reasons made the decision to develop nuclear power for electricity as part of its plan for rapid industrialization, while conserving its oil ‘patrimony’ for other uses, such as earning export dollars. As an initial part of its nuclear program, Mexico entered into contracts with Mitsubishi of Japan and Siemens of Germany. In 1975, in the wake of the first oil shock, Mexico’s National Energy Commission decided that it was wasteful and inefficient to burn hydrocarbons to produce electricity. They announced plans to build 15 new nuclear power reactors over a 20-year period.
Engdahl 02 chap08 162
24/8/04 8:17:49 am
