Summary

The International Atomic Energy Agency (IAEA) has provided technical aid to Cuba, including $680,000 for nuclear safety assistance for two Soviet-designed power reactors on which construction has been suspended because of a lack of financial support. Russia has announced that it intends to resume construction with financing provided by an international consortium. The United States opposes the completion of these reactors and discourages other countries from providing assistance to Cuba, except for safety purposes. GAO found that IAEA spent about $12 million on nuclear technical assistance projects for Cuba from 1963 through 1996. About three-quarters of the assistance consisted of equipment, such as computer systems, and radiation-monitoring and laboratory equipment. IAEA recently approved an additional $1.7 million for nuclear technical assistance for Cuba through 1999. Most of IAEA's assistance projects were funded through the agency's technical cooperation fund, which is supported by member states' voluntary contribution. In 1996, the United States contributed more than $16 million, about 30 percent, of the total $53 million in the fund. From 1981 through 1995, the United States withheld about $2 million from its voluntary contribution that otherwise would have gone for nuclear technical assistance for Cuba. Of the total dollar value of all projects IAEA has provided for Cuba, about $680,000 was approved for nuclear safety assistance for Cuba's nuclear power reactors from 1991 through 1998, of which about $313,000 has been spent. U.S. officials told GAO they did not object to IAEA providing nuclear safety assistance to Cuba's reactors because the United States generally supports nuclear safety assistance.

GAO noted that: (1) IAEA spent about $12 million on nuclear technical assistance projects for Cuba from 1963 through 1996; (2) about three-fourths of the assistance Cuba received through these projects consisted of equipment; (3) IAEA's assistance for Cuba was given primarily in the areas of general atomic energy development and in the application of isotopes and radiation in agriculture; (4) IAEA recently approved an additional $1.7 million for nuclear technical assistance projects for Cuba for 1997 through 1999; (5) IAEA spent about $2.8 million on training for Cuban nationals and research contracts for Cuba that were not part of specific assistance projects; (6) most of IAEA's nuclear technical assistance projects for Cuba were funded through the agency's technical cooperation fund; (7) in 1996, the United States contributed over $16 million, about 30 percent, of the $53 million in the fund; (8) from 1981 through 1993, the United States was required, under the Foreign Assistance Act of 1961, to withhold a share of its voluntary contribution to the fund because the fund provided assistance for Cuba, Libya, Iran, and the Palestine Liberation Organization; (9) in 1994, the act was amended to exempt IAEA from the withholding requirement; (10) although the United States was no longer required to withhold the portion of its voluntary contribution that would have gone to proscribed entities, State Department officials continued to withhold funds in 1994 and 1995 but did not withhold any of the United States' voluntary contribution to IAEA's technical cooperation fund for 1996; (11) from 1981 through 1995, the United States withheld a total of about $2 million that otherwise would have gone for assistance for Cuba; (12) of the total value of all nuclear technical assistance projects that IAEA has provided for Cuba, about $680,000 was approved for nuclear safety assistance for Cuba's nuclear power reactors from 1991 through 1998, of which about $313,000 has been spent; (13) IAEA is assisting Cuba in developing the ability to conduct a safety assessment of the nuclear power reactors and in preserving the reactors while construction is suspended; (14) IAEA is also implementing a training program for personnel involved in the operational safety and maintenance of all nuclear installations in Cuba; and (15) State Department and U.S. Mission officials in Vienna, Austria, told GAO that they did not object to IAEA's providing nuclear safety assistance to Cuba's reactors because the United States generally supports nuclear safety assistance for IAEA member states that will promote the establishment of a safety culture and quality assurance programs.