from: http://www.aci.net/kalliste/ Click Here: <A HREF="http://www.aci.net/kalliste/">The Home Page of J. Orlin Grabbe</A> ----- Uranium Market Russian Deal Killing US Uranium Company Gore deal could end in another government bailout. USEC, the privatised US uranium enrichment company at the centre of a landmark US/Russian nuclear agreement, could face partial renationalisation due to severe financial difficulties. Moves are under way in Congress to bring back under government control the vital uranium enrichment operations sold off in 1998 in a $1.9bn public offering - the largest US privatisation since 1986. Republicans are planning to use the issue against vice-president Al Gore, the Democratic presidential candidate, who oversaw the Russian deal and was later closely associated with USEC's privatisation. At the centre of the company's problems is USEC's operation of a US-Russian agreement, under which the US promised to buy from Moscow over 20 years 500 tonnes of atomic bomb fuel, recovered from dismantled warheads. The terms of the Russian agreement have undermined USEC's financial performance as the market price of uranium has plummeted below prices fixed in the Russian contracts. Congressman Ted Strickland, a Democrat who represents an Ohio enrichment plant operated by USEC, said the privatisation was achieved through a "flawed, secretive process" which had put at risk national security. "The government should seriously consider assuming ownership of this industry once again," he said. Under consideration is a bill backed by the Paper, Allied-Industrial, Chemical & Energy Workers Union, whose members are fast losing their jobs in the enrichment industry. It would set up a government-owned corporation to assume responsibility for the US-Russian deal, buying up the Russian materials as agreed with government funds if necessary. Republicans in the House commerce committee - which the party controls - have signalled they could support such a move. USEC last year tried and failed to get a $200m government assistance package. Profits are expected to fall by two-thirds to around $40m over the next two years and its share price has fallen 67 per cent since its public offering in July 1998. The company is expected to announce closure of one of two giant enrichment facilities it operates. The House commerce committee is expected to hold hearings on USEC in September, attacking the administration for conducting an "incompetent" privatisation and specifically targeting Mr Gore. "Congress set forth clear guidelines to ensure that this process of privatisation occurred without jeopardising our national security or the viability of our uranium industry," said Eric Wohlschlegel, House commerce committee spokesman. USEC officials argue that they are successfully implementing the Russian uranium programme, which has dismantled the equivalent of 3,254 warheads. "Privatisation was not a mistake," said a company spokesman. "If USEC had remained in government (control), the international market conditions facing it would be exactly the same." Most of the proceeds of the Russian uranium sales to USEC are used by Moscow to support former Soviet nuclear establishments - along with their scientists, engineers, and even guards - in an effort to discourage their employment by terrorist groups. The Financial Times, May 19, 2000 <A HREF="http://www.ctrl.org/">www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are unwelcomed. Substance�not soap-boxing�please! These are sordid matters and 'conspiracy theory'�with its many half-truths, misdirections and outright frauds�is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRL gives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== Archives Available at: http://home.ease.lsoft.com/archives/CTRL.html <A HREF="http://home.ease.lsoft.com/archives/ctrl.html">Archives of [EMAIL PROTECTED]</A> http:[EMAIL PROTECTED]/ <A HREF="http:[EMAIL PROTECTED]/">ctrl</A> ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om
