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entitled 'U.S.-Russia Nuclear Agreement: Interagency Process Used to 
Develop the Classified Nuclear Proliferation Assessment Needs to Be 
Strengthened' which was released on June 29, 2009. 

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GAO-09-743R: 

United States Government Accountability Office: 
Washington, DC 20548: 

June 30, 2009: 

Congressional Requesters: 

Subject: U.S.-Russia Nuclear Agreement: Interagency Process Used to 
Develop the Classified Nuclear Proliferation Assessment Needs to Be 
Strengthened: 

On May 13, 2008, the President submitted to Congress a proposed 
Agreement Between the Government of the United States of America and 
the Government of the Russian Federation for Cooperation in the Field 
of Peaceful Uses of Nuclear Energy (henceforth referred to as the U.S.- 
Russia 123 agreement) in accordance with the review requirements 
established under Section 123 of the Atomic Energy Act of 1954 (AEA), 
as amended.[Footnote 1] The United States has agreements for peaceful 
nuclear cooperation governing nuclear exports to nearly 50 countries, 
Taiwan, and the International Atomic Energy Agency (IAEA). Such 
agreements provide the framework and authorization for civilian nuclear 
cooperation, but do not guarantee that cooperation will take place or 
that nuclear material or technology transfers will occur. The proposed 
agreement with Russia would, among other things, establish the legal 
basis for the Department of Energy (DOE) to work with Russia on large- 
scale development of nuclear energy. However, owing to Russia's status 
as a nuclear weapons state, the size of its nuclear complex, and past 
proliferation concerns, including weaknesses in the Russian export 
control system, an agreement for peaceful nuclear cooperation between 
the United States and Russia raised a number of concerns among Members 
of Congress. 

Section 123 of the AEA (Section 123) identifies the key U.S. government 
agencies and sets forth the procedures for negotiating, proposing, and 
entering into peaceful nuclear cooperation agreements with foreign 
nations. Consistent with Section 123, the Department of State (State) 
is responsible for negotiating any proposed agreement, with the 
technical assistance and concurrence of DOE. After consultation with 
the Nuclear Regulatory Commission (NRC), State and DOE jointly submit 
the proposed agreement to the President, accompanied by the views and 
recommendations of State, DOE, and NRC. Section 123 also provides that 
State supply the President with an unclassified Nuclear Proliferation 
Assessment Statement (NPAS) for each proposed agreement, accompanied by 
a classified annex, prepared in consultation with the Director of 
National Intelligence that summarizes relevant classified information. 
[Footnote 2] The NPAS serves as an analysis of the proposed agreement 
to ensure compliance with provisions of the AEA as well as the adequacy 
of safeguards and other control mechanisms to ensure assistance 
furnished under the agreement is not used to further any military or 
nuclear explosive purpose. 

The NPAS further addresses whether the proposed agreement is consistent 
with the nine criteria set forth in Section 123(a). These criteria 
include guarantees that cooperating parties maintain the safeguards set 
forth in the agreement with respect to nuclear materials and equipment 
transferred under the agreement, and adequate physical security for all 
such material and equipment, and a stipulation that the United States 
has a right to require the return of any nuclear material and equipment 
transferred under the terms of the agreement if the cooperating party 
is a nonnuclear weapons state and either detonates a nuclear weapon or 
abrogates an IAEA safeguards agreement.[Footnote 3] Although NRC's role 
in the NPAS development process is primarily consultative, any actual 
transfers of nuclear equipment, technology, or materials to a foreign 
nation that are made subsequent to the negotiation and ratification of 
the agreement are subject to licensing regulations, requiring that NRC 
and, in certain cases, DOE, make independent determinations that such 
exports would not be inimical to the national security interests of the 
United States.[Footnote 4] 

When the negotiations are completed on an agreement for peaceful 
nuclear cooperation, the Secretaries of State and Energy are to jointly 
submit the agreement and related documents, including the NPAS and 
classified annex, to the President. NRC's views on the agreement are to 
be provided to the President in a separate letter. The President 
reviews the documents to determine if the proposed agreement will 
promote, and not undermine, the common defense and security. If the 
President approves the agreement, he will authorize the Secretary of 
State to arrange for its execution (signature). The President then 
transmits the proposed agreement, along with the NPAS and any 
accompanying annexes, to Congress for: 

its review. As a general matter, the agreement may be brought into 
effect after 90 days of continuous session of Congress unless a joint 
resolution of disapproval is enacted before the end of this period. 
[Footnote 5] 

On September 8, 2008, in a message to Congress, the President made a 
determination that, in light of military actions taken by the Russian 
Federation against Georgia, the statutorily required certification that 
he had earlier made regarding the proposed U.S.-Russia 123 agreement 
was no longer effective. As a result, the statutory prerequisite for 
the agreement to become effective, as required by the AEA, was no 
longer satisfied. The President's message stated that, if circumstances 
should permit future consideration of this agreement, a new 
determination would be made and the agreement would be resubmitted for 
congressional review pursuant to the AEA. This action had the effect of 
ending further congressional consideration of the agreement. If and 
when the President resubmits the agreement to Congress for 
consideration, the documents accompanying the agreement, such as the 
NPAS and classified NPAS annex, would likely be updated. 

As agreed with your offices, GAO assessed the process by which the NPAS 
and classified annex that accompanied the U.S.-Russia 123 agreement 
were researched, written, and approved through the interagency process, 
prior to submission to Congress. To conduct our review, we met with 
officials from State, DOE, NRC, and the Office of the Director of 
National Intelligence (ODNI). We reviewed the unclassified NPAS and 
classified annex that accompanied the U.S.-Russia 123 agreement and 
discussed the documents' contents and process for development with 
relevant agency officials. We conducted our review from June 2008 to 
June 2009 in compliance with generally accepted government auditing 
standards. Those standards require that we plan and perform the audit 
to obtain sufficient, appropriate evidence to provide a reasonable 
basis for our findings and conclusions based on our audit objectives. 
We believe that the evidence obtained provides a reasonable basis for 
our findings and conclusions based on our audit objectives. 

Results in Brief: 

We identified weaknesses in the process State used to ensure 
interagency consultation during the development of the classified NPAS 
annex that accompanied the U.S.-Russia 123 agreement. First, there are 
no formal guidelines or procedures governing the interagency 
consultation and review process used to develop 123 agreements and 
supporting documentation. Second, in part due to the lack of formal 
guidelines, the NRC Commissioners did not base their vote to approve 
the agreement on the final version of the classified NPAS annex, but 
instead relied on a draft version of the document. We found that the 
differences between the draft version NRC used to inform its vote and 
the final version of the classified NPAS annex were not merely 
editorial in nature. Third, ODNI officials told us the intelligence 
community's review of the classified NPAS annex would have benefited 
from additional time and that State did not provide the final version 
of this document to the intelligence community prior to the agreement's 
submission to the President to ensure that the intelligence community's 
views were adequately incorporated. In our view, these weaknesses need 
to be addressed to ensure adequate consultation of all key interagency 
parties. As a result, we are recommending improvements to the 
interagency review process, including establishing written guidance and 
ensuring adequate time for interagency consultations. 

We provided a draft of this report to DOE, State, NRC, and ODNI. State 
and ODNI provided written comments, which can be found in enclosures I 
and II, respectively. State agreed with our recommendations and 
believes that they can help to streamline the process of developing and 
coordinating nuclear proliferation assessment statements and classified 
annexes associated with 123 agreements in the future. ODNI neither 
agreed nor disagreed with our recommendations, but did provide 
technical comments, which we incorporated as appropriate. NRC also 
provided technical comments, which we incorporated as appropriate. DOE 
reviewed but provided no comments on our draft report. 

Lack of Guidance and Time Constraints Hampered Interagency 
Consultations on the Development and Review of the U.S.-Russia 123 
Agreement's Classified NPAS Annex: 

We identified weaknesses in the process State used to ensure 
interagency consultation during the development of the classified NPAS 
annex that accompanied the U.S.-Russia 123 agreement, including a lack 
of formal guidelines, failure of NRC to analyze the final version of 
the annex prior to the Commission's vote on the agreement, and concerns 
with the consultative process involving the intelligence community. 

State Has Not Developed Formal Guidelines to Clarify the Interagency 
Development and Review Process for the NPAS and Classified Annex: 

Section 123 provides that proposed agreements for peaceful nuclear 
cooperation shall be submitted to the President jointly by the 
Secretaries of State and Energy after consultation with NRC. NRC's 
views and recommendations on whether the President should approve the 
proposed agreement and authorize its execution, which, as a matter of 
practice, take into account NRC's review of the NPAS and classified 
annex, accompany the proposed agreement when the President submits it 
to Congress. The integrity of this consultative process is dependent 
upon NRC receiving the documents and information it needs in a timely 
manner. Both State and NRC officials told us that there are no formal 
guidelines or procedures to establish how and when such consultations 
are to take place, in part because of the infrequency with which 123 
agreements are negotiated and signed. State and NRC officials noted 
that, until 2008, there had been few new 123 agreements in recent years 
and that the majority of past 123 agreements had not been 
controversial. 

With regard to the specific process State employed to consult with NRC 
for the proposed U.S.-Russia 123 agreement, NRC was part of the 
interagency negotiating team that worked with State to prepare the 
agreement for signature by the President. According to State officials, 
NRC was first provided with a copy of the unclassified NPAS on January 
16, 2008. During this time, State was working to draft the classified 
NPAS annex. Due to issues associated with the classification level of 
this document and sensitivity of information in it, State transmitted 
it to different interagency parties at different times as security 
clearances were being validated. According to State, NRC initially 
received a draft of the classified NPAS annex on March 19, 2008, and 
provided staff-level comments to State on March 21, 2008. State then 
provided an updated copy of the classified annex to NRC (and other 
interagency partners) on April 8, 2008, with a request for any 
additional comments to be provided by April 17, 2008. After reviewing 
these documents, the NRC Commissioners voted unanimously on April 29, 
2008, to recommend that the President approve the proposed agreement 
and authorize its execution. However, NRC officials told us that 
subsequent to the Commission's vote, State notified NRC that the 
version of the classified NPAS annex the Commission used to inform its 
vote was not the final version of the document. NRC officials told us 
that the version of the classified annex State provided to the 
Commission on April 8, 2008, was not marked "draft" and that the 
Commissioners and NRC staff believed that it was the final version. In 
commenting on an early version of this report, State officials accepted 
responsibility for not marking the version of the classified NPAS annex 
provided to NRC as draft, but also noted that NRC should bear 
responsibility for ensuring that they have the most up-to-date 
information prior to conducting a vote on an agreement. According to 
State, NRC did not request an updated version of the classified NPAS 
annex until July 29, 2008. State provided NRC with a final version of 
the document on July 31, 2008. 

We reviewed both versions of the classified NPAS annex and found that 
the differences between the two versions were not merely editorial in 
nature. In some instances, the final version of the classified annex 
updated certain points with new information, while in other sections 
significant amounts of new text and further substantive information 
were added and other information was deleted. 

Despite the differences between the two versions of the classified NPAS 
annex, the NRC Commissioners decided it was not necessary to conduct 
another vote or to revise their previous unanimous vote to approve the 
agreement. One NRC Commissioner told us that, although he would not 
have changed his vote on the agreement based on the changes State made 
to the classified NPAS annex, he was concerned about the integrity of 
the process State employed to solicit the Commission's views. He said 
that, in the interest of good governance, the Commission should base 
its analysis and vote on the most complete and accurate information 
possible. 

State officials acknowledged that the NRC Commissioners did not cast 
their votes based on the final version of the classified NPAS annex. 
However, State officials asserted that there were no material 
differences between the two versions that would have fundamentally 
altered the outcome of NRC's vote. State officials explained to us that 
in the interest of getting the U.S.-Russia 123 agreement to the 
President (and subsequently to Congress) to ensure that the agreement 
could take effect before the 110th Congress adjourned, consistent with 
Section 123, the department provided a draft version of the classified 
NPAS annex to NRC for its consideration and clearance. Further, State 
officials told us the Administration wanted to submit the agreement and 
supporting documents to Congress early enough in May 2008 to allow for 
at least 90 days of continuous session to be left in the 110th Congress 
before it adjourned sine die, which was expected to occur earlier than 
usual due to the November 2008 elections.[Footnote 6] 

In addition, NRC officials raised other concerns stemming from its 
classified NPAS annex review that they believed could have implications 
on NRC's future role in issuing licenses for nuclear exports that may 
take place under the terms of the proposed agreement. NRC officials 
told us that their review and approval of licenses for nuclear exports 
to Russia would depend on their receipt of timely and accurate 
information from the intelligence community. However, these officials 
expressed concern about what they viewed as insufficient information 
sharing with the intelligence community about specific issues of 
proliferation concern that came to light during NRC's review of the 
classified NPAS annex. Specifically, NRC officials told us that they 
was not previously aware of certain sensitive issues raised in the 
classified NPAS annex that they believed NRC should have been made 
aware of earlier as a matter of basic information sharing between 
government agencies involved in nuclear proliferation matters. 
According to NRC officials, the lack of information sharing in this 
instance raises questions about the timeliness and sufficiency of 
information NRC would receive in the future from the intelligence 
community that it would need to efficiently make determinations about 
nuclear export licenses to Russia permitted under the proposed 123 
agreement. 

Concerns about the Consultative Role the Intelligence Community Plays 
in Developing the Classified NPAS Annex: 

The intelligence community plays an important, statutorily mandated 
consultative role in the development of the classified NPAS annex. 
However, while State officials told us they complied with the Section 
123 requirement that the classified NPAS annex be prepared in 
consultation with the intelligence community, ODNI officials told us 
the intelligence community's review of the classified NPAS annex would 
have benefited from additional time. Furthermore, they noted that State 
did not provide the final version of this document to the intelligence 
community prior to the agreement's submission to the President to 
ensure that the intelligence community's views were adequately 
incorporated. 

Regarding the specific process State employed for this consultation, 
State officials told us that the intelligence community reviewed and 
commented on an initial draft of the classified NPAS annex, and also 
reviewed a subsequent version to ensure proper dissemination of the 
sensitive, classified information contained in the annex. State 
officials told us that the initial draft of the classified NPAS annex 
was released from the Bureau of International Security and 
Nonproliferation (ISN) for intelligence community review on January 31, 
2008. According to State, the document was sent to ODNI's Office of 
Legislative Affairs from State's Bureau of Intelligence and Research 
(INR) through the standard procedure that had been utilized for past 
123 agreements. Officials from the National Intelligence Council within 
ODNI told us they received a draft of the classified annex on February 
5, 2008, with a request for comments back to State on February 15, 
2008. They told us that the draft of the classified NPAS annex was 
forwarded to five other agencies involved in nuclear intelligence 
matters for their review and comments. 

ODNI officials noted several ways in which the process of integrating 
intelligence community input into the classified NPAS annex could be 
improved. For example, ODNI officials noted that they were provided 
only a short period of time--less than 10 working days--to review the 
initial draft and obtain and consolidate comments from the five 
relevant intelligence agencies. ODNI officials said the review was 
further complicated because information in the draft was not well 
sourced, meaning it took longer for the intelligence agencies to verify 
certain points in the draft document. ODNI officials told us that the 
comments they provided back to State were mostly technical in nature 
and that the limited comment period did not allow the intelligence 
agencies to conduct more substantive analysis of the information 
presented in the classified annex to determine, for instance, if 
additional issues should have been addressed. 

On May 20, 2009, State officials commented on an early version of this 
report and told us that while the requested period of time was 
comparatively short, the intelligence community's comments were not 
received by State until March 4, 2008. Further, State noted that it 
received no request from the intelligence community for an extension to 
the review period. Finally, State officials maintained that they were 
not aware of the intelligence community's concerns regarding sourcing 
of the classified NPAS annex until they came to light as a result of 
our review. However, according to ODNI, State was informed of ODNI's 
concerns with the document's sourcing when it provided the intelligence 
community's comments on March 4, 2008. 

In addition to the time limitation, ODNI officials told us that, 
generally, the meaning and understanding of Section 123 as they relate 
to State's consultation with the intelligence community in preparing 
the classified NPAS annex are vague and not well defined. ODNI 
officials said that specific guidelines, requirements, and procedures 
have not been developed to establish the type or level of consultation 
that is expected to take place between State and the intelligence 
community during the development process for the classified NPAS annex. 
For instance, ODNI officials said they had little knowledge of the 
internal processes within the State INR or ISN bureaus for developing 
the classified NPAS annex, including how the intelligence community's 
comments were utilized or incorporated into subsequent versions of the 
document. ODNI officials said that they only communicated with State 
ISN through ODNI's Office of Legislative Affairs and did not work or 
consult directly with State ISN officials to discuss intelligence or 
other relevant matters related to the classified NPAS annex. Moreover, 
ODNI officials said that the intelligence community did not receive the 
final version of the classified annex until after it had been submitted 
to Congress. 

Conclusions: 

In our view, State and other members of the interagency--such as DOE, 
NRC, and the intelligence community--have an opportunity to improve the 
consultation and review process for 123 agreements and accompanying 
documents. It is clear there was a breakdown of communication between 
State and NRC in the review process for the U.S.-Russia 123 agreement, 
which led to NRC's Commissioners not basing their votes to approve the 
agreement on the final version of the classified NPAS annex. We believe 
that improving this process is important because the U.S.-Russia 123 
agreement represents a formal strengthening of ties between the 
civilian nuclear sectors of both countries, is an important political 
symbol of bilateral relations, and could lead to trade involving 
nuclear material, technology, and expertise with potential security and 
proliferation implications. 

For these reasons, it is imperative that the process used to ensure 
adequate consultation of all interagency parties is clearly defined and 
strictly adhered to. In part because no formal guidelines or procedures 
are in place and the timing of submission of the agreement to Congress 
for consideration was critical, NRC Commissioners did not base their 
votes on the U.S.-Russia 123 agreement on an analysis of the final 
version of the classified NPAS annex. The lack of clarity on the role 
of the intelligence community and the amount of time those agencies are 
afforded for review and consultation also raise concerns. For all 
future 123 agreements, including the U.S.-Russia 123 agreement should 
the President choose to resubmit it, formalizing requirements for the 
review process could assist State and other agencies in carrying out 
their statutorily mandated roles. 

Recommendations for Executive Action: 

We recommend that the Secretary of State, working with the Secretary of 
Energy, Chairman of the Nuclear Regulatory Commission, and Director of 
National Intelligence, as appropriate, take the following three 
actions: 

* Clarify how interagency participants will implement their statutorily 
assigned roles and responsibilities in the review process for 123 
agreements and associated documents, such as the NPAS and classified 
annex that accompany 123 agreements. 

* Establish written procedures to carry out the process used to 
develop, review, and transmit 123 agreements and associated documents. 
Such procedures should afford relevant members of the intelligence 
community an opportunity to review the final classified NPAS annex 
prior to any agreement's submission to Congress. 

* Ensure adequate time for consultation with NRC and provide for the 
commission to be given the final versions of all necessary documents 
prior to any vote on approval for, and submission of its views and 
recommendations on, a 123 agreement. 

Agency Comments and Our Evaluation: 

We provided a draft of this report to DOE, State, NRC, and ODNI. State 
and ODNI provided written comments, which can be found in enclosures I 
and II, respectively. State agreed with our recommendations and 
believes they can help to streamline the process of developing and 
coordinating nuclear proliferation assessment statements and classified 
annexes associated with 123 agreements in the future. ODNI neither 
agreed nor disagreed with our recommendations, but did provide 
technical comments, which we incorporated as appropriate. NRC also 
provided technical comments, which we incorporated as appropriate. DOE 
reviewed but provided no comments on our draft report. 

As agreed with your offices, unless you publicly announce its contents 
earlier, we plan no further distribution of this report until 30 days 
after the date of this report. At that time, we will then send copies 
to interested congressional committees; the Secretaries of Energy and 
State; the Chairman of NRC; the Director of National Intelligence; the 
Director, Office of Management and Budget; and other interested 
parties. In addition, this report will be available at no charge on the 
GAO Web site at [hyperlink, http://www.gao.gov]. 

If you or your staffs have any questions about this report, please 
contact me at (202) 512-3841 or aloisee@gao.gov. Contact points for our 
Offices of Congressional Relations and Public Affairs may be found on 
the last page of this report. Glen Levis (Assistant Director), Ryan T. 
Coles (Assistant Director), R. Stockton Butler, and William Hoehn made 
key contributions to this report. Additional assistance was provided by 
Alison O'Neill and Thomas Lombardi. 

Signed by: 

Gene Aloise:
Director, Natural Resources and Environment: 

Enclosures: 

List of Congressional Requesters: 

The Honorable Henry A. Waxman:
Chairman:
The Honorable John D. Dingell:
Chair Emeritus:
Committee on Energy and Commerce:
House of Representatives: 

The Honorable Bart Stupak:
Chairman:
Subcommittee on Oversight and Investigations:
Committee on Energy and Commerce:
House of Representatives: 

The Honorable Edward J. Markey:
Chairman:
Subcommittee on Energy and Environment:
Committee on Energy and Commerce:
House of Representatives: 

[End of section] 

Enclosure I: Comments from the Department of State: 

United States Department of State: 
Washington, DC 20520: 

June 16, 2009: 

Ms. Jacquelyn Williams-Bridgers: 
Managing Director: 
International Affairs and Trade: 
Government Accountability Office: 
441 G Street, N.W. 
Washington, D.C. 20548-0001: 

Dear Ms. Williams-Bridgers: 

We appreciate the opportunity to review your draft report,
"U.S.-Russia Nuclear Agreement: Interagency Process Used to Develop the 
Classified Nuclear Proliferation Assessment Needs to Be Strengthened," 
GAO Job Code 360979. 

The enclosed Department of State comments are provided for 
incorporation with this letter as an appendix to the final report. 

If you have any questions concerning this response, please contact hard 
Nephew, Foreign Affairs Officer, Bureau of International Security and 
Nonproliferation at (202) 647-7680. 

Sincerely, 

Signed by: 

James L. Millette: 

cc: 
GAO - Stockton Butler: 
ISN - Eliot Kang (Acting): 
State/OIG - Mark Duda: 

[End of letter] 

Department of State Comments on GAO Draft Report: 
U.S.-Russia Nuclear Agreement: Interagency Process Used to Develop the
Classified Nuclear Proliferation Assessment Needs to Be Strengthened
(GAO-09-743C, GAO Code 360979): 

The Department has reviewed GAO's draft report on the interagency 
process associated with the development and coordination of the Nuclear 
Proliferation Assessment Statement (NPAS) and the Classified Annex in 
support of the U.S.Russia Agreement for Cooperation in the Peaceful 
Uses of Nuclear Energy (also known as a 123 Agreement), and the 
recommendations presented by the GAO in that report, and appreciates 
the opportunity to respond. The Department has no objection to these 
recommendations, which can help to streamline the process of developing 
and coordinating nuclear proliferation assessment statements and 
classified annexes associated with 123 Agreements in the future. The 
Department does not, however, believe that the deficiencies identified 
in the interagency consultative process prevented the State Department 
from carrying out its responsibilities with regard to the NPAS and 
classified annex for this agreement. Our specific comments on the three 
recommendations are as follows: 

Recommendation 1: Clarify the specific roles and responsibilities of 
the interagency participants in the review process for 123 Agreements 
and associated documents, such as the NPAS and classified annex that 
accompany 123 Agreements. 

State agrees that there would be value in discussion of the roles and 
responsibilities of interagency participants in the 123 Agreement 
review process. State will engage with the interagency to discuss the 
review and coordination process to that end. 

Recommendation 2: Establish written procedures to carry out the process 
used to develop, review, and transmit 123 Agreements and associated 
documents. Such procedures should afford relevant members of the 
intelligence community an opportunity to review the final classified 
NPAS annex prior to any agreement's submission to the Congress. 

Although it is accurate that the Atomic Energy Act of 1954, as amended, 
does not describe how "consultations" with the Nuclear Regulatory 
Commission on a proposed 123 Agreement or with the Director of National 
Intelligence on the classified annex to the NPAS should take place, 
generally, such consultations have followed a fairly standard process 
of review and coordination. The State Department believes that process 
was followed in this case and was unaware of any concerns in this 
regard on the part of the Nuclear Regulatory Commission or the 
intelligence community while the review was ongoing. After engaging 
with the interagency to discuss roles and responsibilities in this 
process, State will consider working with the interagency to establish 
more formal procedures for future agreements. 

Recommendation 3: Ensure adequate time for consultation with the NRC 
and provide for the Commission to be given the final versions of all 
necessary documents prior to any vote on approval for, and submission 
of its views and recommendations on, a 123 Agreement. 

The Nuclear Regulatory Commission has an important consultative role in 
the negotiation process of these agreements and, by longstanding 
customary practice, in the development of the NPAS. The State 
Department believes that role was fulfilled in this case and was 
unaware of any concerns on the part of the Nuclear Regulatory 
Commission while the review was ongoing. The timing of Presidential 
submission of 123 Agreements to the Congress for review is an 
Administration rather than a State Department decision, but, State 
concurs that all agencies should be given as much time as possible, 
with the time constraints established by the Administration, to review 
associated materials. State intends to address the issue of timeliness 
of review as part of its engagement with the interagency described 
above. 

[End of enclosure] 

Enclosure II: Comments from the Office of the Director of National 
Intelligence: 

Unclassified: 
Office Of The Director Of National Intelligence: 
Washington, DC 20511: 

June 15, 2009: 

Mr. Gene Aloise: 
Director, Natural Resources and Environment: 
United States Government Accountability Office: 
Washington, D.C. 20548: 

Dear Mr. Aloise: 

(U) This letter provides a response to your request for review of the 
draft report entitled "U.S.-Russia Nuclear Agreement: Interagency 
Process Used to Develop the Classified Nuclear Proliferation Assessment 
Needs to Be Strengthened", GAO-09-743C. 

(U) ODNI requests the following changes to the draft report: 

1) Page 9, third paragraph - Change "March 11, 2008." to March 4, 
2008." [See comment 1] 

2) Page 9, third paragraph - Either remove the final sentence that 
begins with "Finally, State maintained"..., or alternatively leave the 
current final sentence and this as the new final sentence: "ODNI 
informed State of the sourcing issue when the comments were sent on 4 
March, 2008." Regardless of the option GAO selects in this instance, 
the current final sentence beginning with "Finally, State maintains"... 
is factually incorrect as it currently reads. [See comment 2] 

3) Page 10, midway through the first partial paragraph,
Change this - ..."only communicated with State through the ODNI 
Legislative Affairs, and did not work or consult directly with State 
INR or ISN officials to discuss"...
To this- ..."only communicated with State ISN through the ODNI 
Legislative Affairs, and
did not work or consult directly with State ISN officials to 
discuss"... [See comment 3] 

(U) Additionally, ODNI has no classification concerns over this 
document. 

(U) If you have any questions regarding this matter, please do not 
hesitate to contact me at (703) 275-2473. 

Sincerely, 

Signed by: 

Kathleen Turner: 
Director of Legislative Affairs: 

Unclassified: 

GAO Comments: 

The following are GAO's comments in response to the Office of the 
Director of National Intelligence's letter dated June 15, 2009. 

1. We have changed the date in question to March 4, 2008, per ODNI's 
suggestion. 

2. We have inserted the sentence: "However, according to ODNI, State 
was informed of ODNI's concerns with the document's sourcing when it 
provided the intelligence community's comments on March 4, 2008" in 
response to ODNI's comment. 

3. We have clarified our report to state: "ODNI officials said that 
they only communicated with State ISN through ODNI's Office of 
Legislative Affairs and did not work or consult directly with State ISN 
officials to discuss intelligence or other relevant matters related to 
the classified NPAS annex." 

[End of section] 

Footnotes: 

[1] Atomic Energy Act of 1954, ch. 1073, § 123, 68 Stat. 919, 946, as 
amended (codified at 42 U.S.C. § 2153). The Atomic Energy Act, as 
amended, is codified at chapter 23 of title 42, U.S. Code. 

[2] Title I of the Intelligence Reform and Terrorism Prevention Act of 
2004 established the position of the Director of National Intelligence 
as the head of the U.S. intelligence community. See Pub. L. No. 108- 
458, § 1011, 118 Stat. 3638, 3643-62 (2004). Consistent with the 
authority granted under this Act, responsibility for consulting with 
the Secretary of State in preparation of the classified annex to the 
NPAS transferred from the Director of Central Intelligence to the 
Director of National Intelligence. 

[3] See 42 U.S.C. § 2153(a). 

[4] See, e.g., 42 U.S.C. § 2155. 

[5] Pursuant to Section 123, the President submits the text of a 
proposed agreement along with the accompanying unclassified NPAS to the 
Committee on Foreign Relations of the Senate and the Committee on 
Foreign Affairs of the House of Representatives for consultation for a 
period of 30 days of continuous session. The proposed agreement, with 
the NPAS and any annexes, is then submitted to Congress (and referred 
to the above mentioned Committees) for a period of 60 days of 
continuous session, during which the committees consider it and report 
recommendations. Continuity is only broken by a sine die adjournment of 
a Congress (the final adjournment of an annual or 2-year session of 
Congress) though a recess by either House in excess of 3 days will not 
count against the requisite time periods. Therefore, the timely 
approval of a proposed agreement may be dependent upon the dates the 
President makes the requisite submissions. 

[6] According to the Congressional Research Service (CRS), Congress was 
expected to adjourn on September 26, 2008. However, CRS believes that 
this represented only the 77th day of "continuous session" for the 
110th Congress. Only a later sine die adjournment, "lame duck" session, 
recall by the President or congressional leadership, or the use of pro 
forma sessions instead of recesses would have allowed the 90th day of 
"continuous session," consistent with Section 123 to have been reached 
within the 110th Congress. See CRS, Nuclear Cooperation Agreement with 
Russia: Statutory Procedures for Congressional Consideration and Their 
Implementation (Washington, D.C., Nov. 26, 2008). GAO has not evaluated 
the accounting of days and has not independently determined whether the 
May 13, 2008, submission by the President would have provided for the 
requisite number of days of continuous session. 

[End of section] 

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