Brazilian nationalism has often posed a challenge to US official precepts on the way the world should work and these estimates convey the deep Brasilia-Washington gap over nuclear policy during the 1980s. The SNIEs from 1983 and the 1985 update emphasize Brazil’s quest for technological-industrial autonomy which in nuclear terms meant developing an indigenous program to master the fuel cycle, including uranium enrichment and plutonium reprocessing capabilities. In seeking those objectives, Brazil did not want to face any constraints, and its leaders were unresponsive to U.S. or other pressures for safeguards on nuclear facilities.

According to the 1985 report, the Argentines “have achieved at least a proof of principle of uranium enrichment via gaseous diffusion.” In other words, they had a workable system. Nevertheless, the enrichment plant would not be “fully operational until 1987-1988.” While the assessment of Argentine interest in nuclear weapons did not change, CIA analysts asserted that “Argentina continues to develop the necessary facilities and capabilities that could support a nuclear weapons development effort.”

Argentina, like its neighbor, Brazil, was determined to develop an “independent nuclear fuel cycle,” with the capacity to reprocess plutonium and enrich uranium. Also like Brazil, Argentina was one of the few Latin American countries to refuse to sign the Nuclear Nonproliferation Treaty. Thus, Argentina’s nuclear activities were under routine scrutiny to see if they involved anything that suggested an interest in a weapons capability. US intelligence agencies continued to monitor developments but perspectives shifted as Argentina’s domestic politics evolved. Prepared after the Argentine-British conflict over the Falklands Islands, in which Washington helped London, this special estimate professed “great uncertainty” over Argentina’s nuclear intentions. While “emotionally” the Argentine military leadership was interested in a weapons option, it had “reduced capability to fulfill this desire.”

With proliferation becoming a “greater threat to US interests over the next five years,” intelligence analysts believed that the “disruptive aspect of the proliferation phenomenon will constitute the greater threat to the United States.” While the estimators saw “low potential” for terrorist acquisition of nuclear weapons, the likelihood of terrorist/extortionist hoaxes was on the upswing. Significant portions of the NIE are excised, especially the estimate of Israel’s nuclear arsenal and its impact in the Middle East. Nevertheless, much information remains on the countries of greatest concern: Iraq and Libya in the Near East, India and Pakistan in South Asia, Brazil and Argentina in Latin America, and the Republic of South Africa, as well as those of lesser concern: Iran, Egypt, Taiwan and the two Koreas.

Union Carbide Nuclear Company updates their previous study on the ease with which other nations could secretly create nuclear weapon facilities using the gas centrifuge.

The US Embassy in Brazil quotes a Brazilian ministry official who declares Brazil will continue its nuclear program “despite all the threats and reprisals” from the US. The unnamed official goes on to say, “The Americans, our allies, are behaving in a way worse than that of our common enemies, the Russians.”

Just a few months into President Reagan’s first term his administration wanted to make its own mark on nonproliferation policy. The report suggests building “broader bilateral relationship[s]” and offering political and security incentives could persuade states considering developing nuclear weapons to cease these efforts.

A source in President Giscard's staff informed the US embassy that Pakistan was determined to complete the reprocessing plant and was searching for another country willing to supply the necessary technology. Also discusses a developing nuclear deal between West Germany and Brazil.