- - Thursday, March 21, 2013

China and Pakistan reached a formal agreement last month to construct a third nuclear reactor at Chashma that the Obama administration says will violate Beijing’s promises under an international anti-nuclear weapons accord.

According to U.S. intelligence and diplomatic officials, the secret agreement for the Chashma 3 reactor was signed in Beijing during the visit by a delegation from the Pakistan Atomic Energy Commission from Feb. 15 to 18.

The agreement calls for the state-run China National Nuclear Corp. (CNNC) to construct a 1,000-megawatt power plant at Chashma, located in the northern province of Punjab, where two earlier Chinese reactors were built.

China’s government last month issued an internal notice to officials within its nuclear establishment and to regional political leaders urging care to avoid any leaks of information about the nuclear sale that Beijing expects will be controversial, said officials who spoke on condition of anonymity.

The reactor deal had been in the works for several years and prompted high-level U.S. government efforts to block the sale because of concerns it will boost Pakistan’s nuclear weapons program.

The CNNC is China’s main nuclear weapons producer and has been linked in the past to Pakistan’s nuclear arms program by U.S. intelligence agencies. CNNC sold thousands of ring magnets to Pakistan during the 1990s that were used in centrifuges that produced highly enriched uranium for weapons.

Additionally, recent U.S. intelligence reports indicate that China, which supplied Pakistan with nuclear weapons design data and technology, is in the process of modernizing Islamabad’s nuclear arsenal, which is estimated to contain as many as 110 warheads.

The arms cooperation is said to include development of a new warhead for Pakistan’s growing missile arsenal as well as assistance in reprocessing spent nuclear fuel.

A Congressional Research Service report published Feb. 13 stated, “Pakistan’s nuclear arsenal probably consists of approximately 90-110 nuclear warheads, although it could be larger.”

Islamabad is producing fissile material, adding to related production facilities, and deploying additional delivery vehicles,” the CRS report said. “These steps could enable Pakistan to undertake both quantitative and qualitative improvements to its nuclear arsenal.”

The report warned that spent fuel from Pakistan’s Karachi and Chashma nuclear power plants are vulnerable to theft or attack.

Pakistan produced one of the most dangerous cases of nuclear proliferation in the early 2000s when weapons technology was supplied to Libya, Iran, and North Korea by the supplier group led by Pakistani nuclear scientist A.Q. Khan.

The Obama administration has not publicly contested the nuclear cooperation between the two countries in the past to avoid upsetting U.S. covert efforts against Islamist terrorism in the region.

The Beijing-Islamabad nuclear cooperation also has been limited as a result of U.S. efforts to win Chinese support for sanctions on Iran for its illicit nuclear program.

The new reactor sale also will undermine the Nuclear Suppliers Group, a voluntary association with no enforcement mechanisms that is viewed as a key tool in the administration’s effort to prevent the spread of nuclear weapons.

China in 2004 joined the group and agreed not to sell additional reactors to Pakistan beyond the two reactors sold earlier. China is not permitted under NSG guidelines to sell nuclear goods to any country that is not part of the International Atomic Energy Agency.

Two U.S. officials confirmed that the Chashma reactor deal was finally reached.

Spokesmen for the Chinese and Pakistani embassies could not be reached for comment.

A State Department official declined to provide details of the sale but said it is not permitted under the U.S. understanding of China’s admission to the nuclear group. That understanding is that China would not sell additional reactors to Pakistan’s Chashma complex.

Nuclear Suppliers Group (NSG) participating governments have discussed the issue of China’s expansion of nuclear cooperation with Pakistan at the last several NSG plenary sessions,” the official said.

“We remain concerned that a transfer of new reactors at Chashma appears to extend beyond the cooperation that was ‘grandfathered’ in when China was approved for membership in the NSG.”

The administration is expected to protest the sale at an upcoming NSG meeting in June.

Pakistan does not have full-scope IAEA safeguards in place, something that is required before China could provide the third Chashma reactor.

The 46-member NSG was formed in 1974 and its stated mission is to “contribute to the non-proliferation of nuclear weapons through the implementation of guidelines for nuclear exports and nuclear related exports.”

China agreed as part of its NSG membership that it would limit future reactor sales to Pakistan to the Chashma 1 and Chashma 2 reactors.

The officials said China specifically directed Pakistani officials not to make the latest reactor deal public. Beijing sought to avoid the negative publicity expected from the deal that could upset the leadership transition that took place last week at the National People’s Congress, the communist mock parliament that formally appointed top communist leaders to government posts, the officials said.

China also sought to keep the reactor agreement secret from the United States, which this year is serving as the rotating head of the NSG.

The Chinese also urged the Pakistani delegation from the Atomic Energy Commission to play down the recent transfer of control to a Chinese company of the key port of Gwadar that U.S. officials said likely will be used by Chinese warships for port calls.

The port is close to the Persian Gulf, where some 20 percent of the world’s oil is produced.

The deal for Chashma was announced in July 2010 during the visit to China by Pakistani President Asif Ali Zardari. However, the announced arrangement was limited to a memorandum of understanding.