$600,000 was allocated to the Foundation. In August, the Brazilian government designated counterparts to U.S. government agencies involved in the program, and cooperation should be initiated early in 1989. In addition, the NSF 1988 Authorization Act directed the Foundation, DOE and NASA to coordinate a study to recommend new directions for U.S.-Latin American cooperation. Completed in June 1988, the study considered the fields of astronomy, biology, geosciences, physics and engineering, and focused on five countries: Argentina, Brazil, Chile, Mexico and Venezuela. The study provided an analysis of S&T capabilities and resources in Latin America; assessed potential mutual benefits from enhanced cooperation; and developed recommendations to advance cooperation in research areas and countries. One suggestion was to establish a high-level panel to address the need for coordination of U.S. efforts with regard to Latin America. U.S. cooperation with India, under the 1982 Indo-U.S. Presidential Initiative in Science and Technology (STI), was extended for three years in September 1988. Studies continue in agriculture, biomass, engineering and solid state sciences, and monsoon research. New areas include a focused case study of the factors contributing to the failure of the monsoon in 1987 (i.e., the Indian Drought of 1987). Expanded cooperation between the U.S. and Pacific Rim countries came under consideration in FY 1988. Rapid shifts in worldwide economic and technological leadership are resulting from advances in Pacific Rim countries, particularly the newly industrializing areas in Korea, Taiwan, Singapore, Hong Kong, Indonesia, Malaysia and Thailand. Building on prior year Administration reestablishment of government-to-government scientific cooperation with Czechoslovakia and Poland, in FY 1988, the NSF concluded agreements for cooperative science programs with these two countries. These new programs build on the NSF experience with other eastern European countries (Hungary, Bulgaria and Romania) and expand their scope to include all countries of the region except the German Democratic Republic. In October 1987, as a component of improved relations between the two countries, the U.S. government initiated exploratory discussions with the Soviets on cooperation in basic research. The proposed Framework Agreement covers individual Memoranda of Understanding (MOUS) between agencies in each country. A proposed MOU between the NSF and the Academy of Sciences of the USSR (ASUSSR) is being considered. The NSF-ASUSSR program would focus on investigator-initiated, competitively-reviewed cooperative research projects in selected, mutually agreed-upon areas. Currently, issues relevant to the Framework Agreement are undergoing review by an interagency group. The International Institute for Applied Systems Analysis (IIASA) is a non-governmental international research organization founded in 1972. NSF provided membership support to IIASA through the National Academy of Sciences from 1973 to 1982. Although membership support has not been reestablished, in March 1988 NSF awarded $455,000 to IIASA for selected Institute projects. Funding was provided through the American Academy of Arts and Sciences which currently serves as the U.S. membership organization for the IIASA. In FY 1987, an Information and Analysis Section was established within the Division of International Programs to collect and analyze information about foreign science and technology, and to coordinate the monitoring activities of NSF offices abroad. This year, an important activity of the section, in cooperation with the Departments of State and Commerce (NTIS), was co-management of the STRIDE (Science and Technology Reporting and Information Dissemination Enhancement) study. The study was conducted in response to Executive Order 12591 of April 10, 1987, which had directed these agencies to develop a mechanism for dissemination of foreign science and technology to U.S. users. Findings and conclusions of the study and the next steps in information dissemination are under review. The Foundation is considering a monthly publication containing staff-generated reports on foreign developments for FY 1989. The NSF Deputy Director continued to chair the CISET Working Group of International Science, Engineering, and Technology Education, Infrastructure, and Facilities. Increasing the availability of information resources on foreign science and technology was emphasized by the Working Group. August 1988, the Working Group began to address issues of comparable access and reciprocity with regard to future implementation of the U.S.-Japan S&T Agreement. In To summarize, international activities have long been central to the Foundation's mission. The NSF continued in FY 1988 to encourage mutually beneficial research relationships between the U.S. and foreign countries, in order to facilitate access to foreign science and technology centers for American scientists and engineers. Growing scientific and technological capabilities abroad placed new demands on the Foundation. The NSF pursued or initiated a wide variety of measures in FY 1988 in response to its international responsibilities. NUCLEAR REGULATORY COMMISSION Bilateral Information Exchange Arrangements Since 1974, the NRC has participated in a wide-ranging, mutually beneficial program of information exchange and cooperative safety and research activities with its counterparts in the international community. The NRC has conducted most of its technical information exchange under the aegis of a series of general safety cooperation arrangements that it has formally concluded. The NRC has some 23 Technical Information Exchange Agreements with regulatory and safety authorities of over 22 countries plus Taiwan. These arrangements call for the establishment of a formal channel for communications with foreign nuclear regulatory organizations for assuring prompt and reciprocal notification of reactor safety problems that could affect both U.S. and foreign nuclear facilities, and for effecting identification of possible "precursor events" that warrant further investigation. As more than 40 percent of the nuclear steam supply systems designed by U.S. firms are located in foreign countries, data from these reactors provide substantial and important input to the NRC operating information data base from which they can, and do, influence U.S. regulatory decisions. These agreements also provide a framework for bilateral cooperation on nuclear safety, safeguards, waste management and environmental protection. They also serve as a vehicle for the NRC to provide assistance in improving nuclear health and safety practices to developing countries importing U.S. power reactors. The agreements typically are written for a period of five years, but contain provisions for renewal by mutual agreement. The NRC bilateral arrangements call for the exchange of all aspects of nuclear safety and regulatory information via cable and telephone, in letters, technical reports, and other publications, and in training courses, seminars and joint discussions. In some cases, they also provide for general cooperation in reactor safety research and for the long-term assignment of foreign regulatory personnel to the NRC staff or to the NRC programs at the national laboratories for on-the-job training in U.S. regulatory practices and procedures. In all cases, they provide for the protection of information which the NRC's foreign partners have given the NRC in confidence under the condition that it be withheld from public disclosure. The NRC arrangements with Italy, Belgium and Israel were renewed during FY 1988. Negotiations on the renewals of existing arrangements with Brazil, Greece and Mexico, as well as on a new arrangement with Argentina, are under way. During this past year, NRC undertook efforts to: (1) expand exchanges of current information with Japan and Western Europe on reactor issues and means to assess and improve operations; (2) broaden and enhance emergency notification and cooperation procedures with Canada, Mexico and in the International Atomic Energy Agency (IAEA); (3) establish information exchange arrangements with Canada and Argentina; (4) expand training support and technical advice to Mexico, Korea and other developing countries; and (5) interact with responsible Canadian parties regarding poor operational performance at Fermi-2. Cooperative Projects and Agreements The NRC has established and maintains a network of general and specific agreements on safety research cooperation. These agreements have grown significantly in both scope and substance over the last few years. The NRC currently is involved in over 55 separate research agreements under which it cooperates with over 20 countries in ongoing nuclear safety research projects both in the U.S. and abroad. These research projects make direct contributions of data and analyses needed to confirm and assess computer codes used in the NRC licensing and regulatory process. Some of this cooperative research involves experiments performed in U.S. facilities with foreign countries making direct cash contributions to participate; some of it involves the foreign country providing the results of other complementary or supplementary research it has sponsored in an area of interest or need to the U.S. The resulting programs often are highly leveraged with research results being obtained at a much lower cost to NRC than would be the case if undertaken alone. NRC benefits from foreign research program costing $100 to $150 million per year, using facilities built by others at a cost of $300 to $400 million. NRC also receives increased peer review of U.S. research results through these cooperative programs. Nuclear Safety Activities During FY 1988, NRC gave high priority to activities which, through NRC participation or support, contributed directly to improved operational safety and radiation protection in the U.S. and in other countries. In addition, high priority was given to activities in the IAEA and the Nuclear Energy Agency (NEA) on radiation protection problems and accountability of sealed sources. Continuing high priority is given to the NRC leadership role internationally in setting the nuclear safety agenda in these two organizations. Bilaterally, NRC sought to define an appropriate cooperative relationship between the U.S. and the USSR (and to a somewhat lesser degree, Eastern Europe) in the power reactor safety area. NRC continues to support a strong research and information exchange relationship with the advanced countries that are members of the NEA. DEPARTMENT OF TRANSPORTATION Safe and efficient national and international transport systems contribute significantly to the economic welfare, quality of life, and political stability of all countries. Nationally the role of the Department of Transportation (DOT) is to assure that U.S. transport systems are adequate, efficient, safe and secure in order to meet the ever-increasing socioeconomic demands involved in the movement of people and commodities. In many respects, however, U.S. national transport goals cannot be accomplished without close and continuous liaison with other countries and regions-particularly in the development, improvement and interfacing_of air and sea operations worldwide. For example, the safety of both American and foreign carrier operations are greatly enhanced by bilateral cooperation and the provision of technical assistance and support to other countries. Further, many national and international transportation regulations and policies (e.g., in areas of safety, security, and trade) are established on the basis of accepted scientific findings. Recognizing, therefore, that cooperation between and among a myriad of national and international entities is inherent in accomplishing many departmental missions and that no country has a monopoly on new ideas or technology (basic or advanced), DOT has continued to encourage and support science and technology (S&T) cooperation. This cooperation is carried out in accordance with the following objectives: - to access and share transport technology and to find innovative solutions to common technical and operational problems, particularly in the areas of safety and security; to participate in multilateral research and other discussions, and to coordinate national positions in international organizations; to support U.S. foreign policy; and to promote sales of U.S. transportation equipment and technology. Currently, DOT has S&T bilateral cooperation arrangements with 24 countries, actively participates in 15 international organizations, and is involved intermittently in the work of other multilateral groups. In addition, during FY 1988, DOT (1) provided cost-reimbursable aviation and highway technical assistance to 67 countries; (2) conducted a large foreign visitor program for technical orientation, general fact-finding, and discussions on policy issues; and (3) provided aviation, highway, maritime and merchant marine training to 490 foreign students. As the level of activity varies from year to year in many of these programs, only major activities for FY 1988 are summarized in this report as these represent progress in achieving one or more of the DOT international program objectives. Bilateral Program Canada. At the June DOT-Transport Canada (TC) Cooperative Program Review meeting, the consensus was that the 1970 bilateral agreement was increasingly beneficial to both countries and should be continued and expanded. In FY 1988, the program involved exchanges in six general areas: marine/maritime, aviation, rail, highway traffic safety, highway construction and maintenance, and accessibility for the handicapped. Plans were made to cooperate on a more structured basis on research and development (R&D) efforts designed to gain more knowledge on the impact of transport systems (e.g.. human factors and effects on safety), dangerous goods surveillance systems, the state of infrastructures and plans for improvement and maintenance thereof, and urban/suburban travel requirements. Deputy Secretary Dawson and a DOT delegation were hosted by Canadian Deputy Minister of Transport Shortliffe at a two-day meeting held in late June at Quebec City. Discussions were held on policy issues of mutual interest, including privatization and cost recovery, elimination of substance abuse from the transportation environment, and issues dealing with aviation, motor carrier, highway safety and rail. A new project agreement to cooperate on general R&D was signed at this meeting. In August, discussions were held at Washington between a Canadian delegation led by Assistant Deputy Minister Sinclair and a DOT delegation chaired by Associate Deputy Secretary Pettit on the interpretation of the U.S.-proposed regulations and legislation on substance abuse testing and the resulting impact on the Canadian transport industry. The active technology sharing and collaboration between DOT and TC specialists and senior-level management on policy issues contribute significantly to the improvement of transport systems in both countries, facilitates and promotes trade, enhances safety and security, and expedites solutions to many transport problems and issues. China (PRC). Under formal agreements with PRC entities, DOT continued expansion of cooperative ties, particularly in the highway, rail and aviation areas. Highlights of FY 1988 activities were: The Federal Highway Administration (FHWA) provided assistance in the development of economic policies to establish a market-based trucking industry and performed a roadway information system survey to assess road conditions and needs. FHWA also hosted a Chinese delegation for a six-week study tour of U.S. toll road operations and facilities to gather information for planning and administering China's first expressways. The Chinese government has proposed that the U.S. construct a demonstration highway in a major industrial corridor of China, utilizing American standards, practices, equipment, products and engineering technology. The Federal Railroad Administration (FRA) began agreed exchanges of technical information in such areas as railway heavy haulage technology, track and train safety, and intermodal operations. The Federal aviation Administration (FAA) has |