A Surreal Story – 1992

     As most of you know my post-West Point service was in the US Air Force as a B-52 pilot. At that time, the B-52 was one of the primary components of the nuclear deterrence arsenal. B-52s around the country would sit on alert ready to be airborne at a moment’s notice. Crews stood alert in shelters within running distance of the aircraft themselves. The aircraft were loaded with nuclear weapons and the targets were pre-determined. The crew had detailed maps of targets and routes penetrating Soviet airspace which they studied diligently.

     After I resigned my commission in the USAF, I relocated to Silicone Valley and began my career in the infant laser industry (surprising as WP physics was not my best subject). I remained in the laser industry essentially for the rest of my working career with one major exception. While in the laser industry I was recruited by Allied-Signal (large multi-national conglomerate now known as Honeywell) to manage a division growing synthetic crystals that certain solid-state lasers required as the lasing medium. I spent the next 4 years in this position, and I must have done a creditable job as the company asked me to take over their nuclear division which made a critical component (uranium hexafluoride-UF6) of the commercial nuclear fuel cycle (commercial fuel only-no weapons).

     Fast forward to a different world right after the Soviet Union collapsed and the world was left with a pro-America, pro-democracy, pro-capitalism Russia (’91-’92).

And now the Surreal Story starts.

     The wall is down, and Russia under Yeltsin is embracing capitalism, democracy and the United States.  The welcome mat was open for American companies to come to Russia and form joint-ventures (JV) to teach the Russians capitalism.

     The Russian Ministry of Atomic Energy (Minatom) and the US Department of Energy (DOE) decided to work together to form a commercial joint-venture to take the highly enriched uranium out of the former Soviet Union warheads and dilute (using fluorine gas) the highly enriched uranium down to a much lower level capable of being used in commercial energy producing nuclear reactors. Truly Swords into Plowshares. At that point politics entered the scene as the Russians were growing weary of having the US government appear to dictate their capitalism efforts. Therefore, the Russians informed the DOE that they wanted to form this JV with an American commercial company and sell the now diluted uranium commercial reactor fuel to the world market.

     At that time my division of Allied was the largest producer of fluorine and UF6 gas in the world.  The DOE quietly asked us if we could take the lead in working with Minatom to form the JV on a commercial basis with DOE in the background.  The DOE insisted they be involved but not appear to be the lead in any JV.

     We put a plan together and presented it to the Allied CEO.  He reluctantly went along with the concept and supported me by putting the Allied government relations staff in DC at my disposal.

     I had minimal marching orders, the most significant one being the CEO pointing a finger in my face and telling me I could do pretty much what I wanted but under NO circumstances was I to get Allied in trouble with the DOE/US government. My continued employment with Allied depended entirely upon my obeying this edict. Beast Barracks all over again! Needless to say, I had absolutely NO interest in this endeavor, but orders had been issued.

     With the help of Allied’s government relations office in DC we formed the team. Max Kampleman, a former Ambassador-at-Large for the Strategic Arms limitations talks was our first selection. We then selected 2 members of a company with extensive experience in working with DOE/AEC nuclear fuel licensed plants. We also hired a Russian-born US citizen whose parents had immigrated to the US. He was fluent in Russian and English, and his father had connections with the Russian Academy of Science.

     After coordinating with the US (read politicians) and Russian government (Academy of Science and Ministry of Atomic Energy), we flew to Moscow first week of July, ’92.

To say that this trip for me personally was surreal was an understatement. My mission in the USAF was to destroy the country I was now visiting to form a joint business venture.  

     In any case, we approached our mission with dedication (if not enthusiasm). We spent the whole first week of July in negotiations and traveling to previously “secret” towns where nuclear weapons were manufactured. We were hosted and feted by the Yeltsin government and treated like distinguished guests.

     We obtained agreement of a draft joint venture document between ourselves and the Russian Academy of Science and The Ministry of Atomic Energy. This draft was finally executed by all parties. We returned in triumph (see attached period newspaper articles) **.  However, as is the case the majority of the time, the government forces involved (read politicians and bureaucrats) decided they did not really want commercial enterprise running the show. Consequently, DOE and Minatom took over the effort and formed another agreement to recover the war head uranium. To my knowledge everything stalled at this point and in spite of multiple announcements there was no significant highly enriched uranium recovery.

     I have intentionally downplayed the difficulty, serious and often contentious negotiations that occurred. I have also not referred to individuals by name unless they were public figures at that time. 

     At the time, this was a water-shed event and it would take volumes to relate all of the unique things that occurred. A major opportunity lost considering where we are today in our relationship with Russia. I have included several trip vignettes in Part 2 to provide some insights into the uniqueness of this endeavor.

**