Rumsfeld was on ABB board when it supplied North Korea with nuclear power plants

swissinfo ^ | February 21, 2003 | Jacob Greber

[I Believe It's Not Butter]

Donald Rumsfeld, the US secretary of defense, was on the board of technology giant ABB when it won a deal to supply North Korea with two nuclear power plants.

Weapons experts say waste material from the two reactors could be used for so-called “dirty bombs”.

The Swiss-based ABB on Friday told swissinfo that Rumsfeld was involved with the company in early 2000, when it netted a $200 million (SFr270million) contract with Pyongyang.

The ABB contract was to deliver equipment and services for two nuclear power stations at Kumho, on North Korea’s east coast.

Rumsfeld – who is one of the Bush administration’s most strident “hardliners” on North Korea – was a member of ABB’s board between 1990 and February 2001, when he left to take up his current post.

Wolfram Eberhardt, a spokesman for ABB, told swissinfo that Rumsfeld “was at nearly all the board meetings” during his decade-long involvement with the company.

Maybe, maybe not

However, he declined to indicate whether Rumsfeld was made aware of the nuclear contract with North Korea.

“This is a good question, but I couldn’t comment on that because we never disclose the protocols of the board meetings,” Eberhardt said.

“Maybe this was a discussion point of the board, maybe not.”

The defense secretary’s role at ABB during the late 1990s has become a bone of contention in Washington.

The ABB contract was a consequence of a 1994 deal between the US and Pyongyang to allow construction of two reactors in exchange for a freeze on the North’s nuclear weapons programme.

North Korea revealed last year that it had secretly continued its nuclear weapons programme, despite its obligations under the deal with Washington.

The Bush government has repeatedly used the agreement to criticise the former Clinton administration for being too soft on North Korea. Rumsfeld’s deputy, Paul Wolfowitz, has been among the most vocal critics of the 1994 weapons accord.

Dirty bombs

Weapons experts have also speculated that waste material from the two reactors could be used for so-called “dirty bombs”.

Rumsfeld’s position at ABB could prove embarrassing for the Bush administration since while he was a director he was also active on issues of weapons proliferation, chairing the 1998 congressional Ballistic Missile Threat commission.

The commission suggested the Clinton-era deal with Pyongyang gave too much away because “North Korea maintains an active weapons of mass destruction programme, including a nuclear weapons programme”.

From Zurich to Pyongyang

At the same time, Rumsfeld was travelling to Zurich for ABB’s quarterly board-meetings.

Eberhardt said it was possible that the North Korea deal never crossed the ABB boardroom desk.

“At the time, we generated a lot of big orders in the power generation business [worth] around $1 billion…[so] a $200 million contract was, so to speak, a smaller one.”

When asked whether a deal with a country such as North Korea – a communist state with declared nuclear intentions – should have been brought to the ABB board’s attention, Eberhardt told swissinfo:

“Yes, maybe. But so far we haven’t any evidence for that because the protocols were never disclosed. So maybe it was a discussion point, maybe not,” says Eberhardt.

A Pentagon spokeswoman, Victoria Clark, recently told “Newsweek” magazine that “Secretary Rumsfeld does not recall it being brought before the board at any time”.

It was a long time ago

Today, ABB says it no longer has any involvement with the North Korean power plants, due to come on line in 2007 and 2008.

The company finalised the sale of its nuclear business in early 2000 to the British-based BNFL group.

swissinfo, Jacob Greber

[First_Salute]

It just gets better.

[pfflier]

Well Clintoon and Carter brokered the deal authorizing western support in the development of nuclear power in NK.

They just promised to be nice guys and not make bombs.

Bottom line. The power plant sale was perfectly legal. So where's the news?

[Dog Gone]

And what are we supposed to conclude from this story? It was written for a purpose, right?

[Leisler]

"The ABB contract was to deliver equipment and services for two nuclear power stations at Kumho, on North Korea’s east coast.

WTF? What does "equipment and services" mean? That could be anything from mop sinks to reactor rods. Talk about vague. Hum, the writer and critics aren't vague because it doesn't help them with their hatchet job? Na, couldn't be. Not professional writers and editors.

[PhiKapMom]

Don't forget to add -- it was posted for a purpose as well.

I have a pet peeve on here -- people are changing their screen names and keeping their original sign on dates. That means a lot of anti-Bush Administration people now have new screen names and now I have to start a new list!

My mini gripe for the day!

[mabelkitty]

So? He was on this board, and probably several others.

[EggsAckley]

Two words: SO, WHAT?

[mabelkitty]

I agree. I've encountered the same thing over the past couple of days. The "no such thing as terrorism crowd", the "Bush Administration is evil" crowd, etc.

[dpwiener]

What does "equipment and services" mean? That could be anything from mop sinks to reactor rods.

If the article is correct about the contract being for $200 million, I'd lean towards reactor rods rather than mop sinks.

[EggsAckley]

I know what you mean. Never seen this one before today.

[I Believe It's Not Butter]

**So where's the news?**

Scroll half way to see a nasty Korean poster.

http://news.bbc.co.uk/1/hi/world/asia-pacific/2337997.stm

[faithincowboys]

i hope old rummy didn't know about this. it is a credibility killer. if he did he should have resigned.

[cake_crumb]

The contract was for two light water, non plutonium producing plants.

Something about this article stinks.

[Shermy]

Interesting. But the "dirty bomb" focus is misleading. This was the reactor we agreed to pay for if NK gave up it's nuke weapon program and allowed monitoring of weapon facilities - they recently turned off the UN surveillance cameras.

Nuclear waste that can't be converted to weapons was not on the radar screen pre-9/11. We have the same concern to with Iran - Iran quickly agreed to ship all the waste to Russia - who wouldn't agree to that? Thus Iran provides a cover story that they have no nuke weapon intentions. But their actual weapon facilities are unrelated to these power-oriented reactor schemes.

NK already has plutonium, and nuke waste I would think is easily gotten on the black market. But watch, you'll see that Rumsfeld is tied to nuke weapons for NK - when he wasn't, but part of a deal to forbid weapons to NK. NK just outright cheated.

Anyway, Rumsfeld's connections to and active leading of the SDI lobby before 2000 is much more interesting, IMO.

[Leisler]

It looks like ABB is a big player in nuclear power and especially in Korea with eight reactors going. That evil Rumsfeld, he's behind everything.

From ABB website.

ABB to deliver systems, equipment to North Korean nuclear plants


US$ 200 million in orders awarded under multi-government framework agreement


Zurich, Switzerland, January 20, 2000 – ABB, the global technology group, said today it has signed contracts to deliver equipment and services for two nuclear power stations at Kumho, on the east coast of North Korea. The contracts, with a value of US$ 200 million, were awarded by HANJUNG (Korea Heavy Industries and Construction Co. Ltd.) and KOPEC (Korea Power Engineering Corp.).
The two nuclear plants are being supplied to North Korea under a Supply Agreement with KEDO (Korean Energy Peninsula Development Organization), a consortium formed in 1995 by the governments of the United States, Japan, South Korea and the European Union. KEDO is to provide the stations under the Agreed Framework signed by the U.S. and North Korea in 1994.

Under the terms of the contracts, ABB will provide engineering, design and components for the two 1,000-megawatt (Mwe) light water nuclear steam supply systems. The systems are an advanced version of ABB’s System 80 design, which is being employed under license in eight reactors in South Korea. The two power stations are scheduled to begin commercial operation by 2007 and 2008, respectively.

ABB and BNFL announced in late December of 1999 that British-based BNFL will acquire ABB’s nuclear business, pending regulatory approval.

ABB is a global technology company serving customers in power transmission and distribution; automation; oil, gas, and petrochemicals; industrial products and contracting; and in financial services. Power generation customers are served by the joint venture ABB ALSTOM POWER. The ABB Group employs about 170,000 people in more than 100 countries. (End)

[W04Man]

Another user not flying a state flag. Hummmmm..... better check out this story for accuracy.

[onedoug]

Abortion Party talking points.

[Leisler]

You are right, but still at 200 million with the UN, the Federal government and required payoffs, it could be a stainless steal mop sink. Plus mops. Soap. A mirror. Oh, and you need a mop closet. There. That would put you over the top, no problem.

[snooker]

>>>The power plant sale was perfectly legal.

Proves the folly of Jimmy dum-de-dum if you ask me. He was the one who said the NKs would play nice.

... and so approving the government policy to allow the sale to go through was Rumsfelds fault? and he is somehow responsible? Wow what a stretch.

snooker