Materials - Materials, other than source materials or special nuclear materials needed for fuel, which are required for the Station but which are not available commercially, will be transferred by the U. S. Government to the Indian Government on terms and conditions, and in amounts as may be mutually agreed.

Responsibility for Information The Parties disclaim responsibility for the accuracy, completeness, and suitability of information, materials, equipment and devices transferred under the Agreement.

Supply by private sources The U.S. will permit persons under its jurisdiction to transfer and export materials, equipment and devices, other than source or special nuclear materials to, and perform services for, the Indian Government. Persons under the jurisdiction of the Indian Government are authorized to receive these items, subject to applicable laws, etc. in both nations.

Safeguards - Both Parties emphasize their common interest in assuring that the items transferred for use in the Tarapur Station be used solely for peaceful purposes. The fact that the Tarapur Station will be operated only on special nuclear material furnished by the U. S. and special nuclear material produced therefrom was reiterated in this article.

Both Parties have reviewed the design of the Tarapur Station and may review any significant modifications to it. The Parties may also review the design of other facilities which will use, fabricate or process any special nuclear material made available pursuant to this Agreement or produced in the Tarapur Station. Such a review will not be required if the

Indian Government places an agreed upon equivalent amount of the same type

of SNM, under the scope of this Agreement, under mutually acceptable mea

surement arrangements.

An agreed upon system of records and reports shall be established

as described below.

A. With respect to records, information covering the following will

be included:

1. receipts of all nuclear materials,

2. internal movements of all nuclear materials,

3. any removal of nuclear materials, including shipments, known

losses, and unaccounted for quantities,

4. inventories of all nuclear materials on hand at the end of each accounting period, showing form, quantity, and location, and

5. reactor-operating data necessary for determining and reporting on the production and consumption of any nuclear materials and the use of the Tarapur Atomic Power Station. B. With respect to reports, information covering the following will

be included:

1. all receipts and removals of nuclear materials,

2. any production and consumption of nuclear materials,

3. any known losses and unaccounted-for nuclear materials,

4. all inventories of nuclear materials, and

5. the operation of the Tarapur Atomic Power Station, includ

ing unusual incidents; and significant modifications made or to be made in the plant or in the fueling program.

Routine reports covering this information are to be submitted to both nations monthly. Any losses of nuclear materials or unusual incidents will be reported as soon as the incident has been discovered. If any special nuclear material transferred or produced under this agreement is placed in any facilities in India, other than Tarapur, the safeguards and reporting system outlined in this Agreement will apply. In the event of unusual incidents, special reports may be requested, including amplifications and elucidations which each party considers relevant.

Surplus special nuclear material either transferred to Tarapur or produced in this reactor, will be stored at the Tarapur Station unless otherwise agreed.

There will be consultations and periodic exchanges of visits between the Parties to assure that the objectives set forth in this Agreement concerning transfers are being observed. Personnel designated by the United States in consultation with India and personnel designated by India shall have full access to the Tarapur Station and to conversion, fabrication and chemical processing facilities in India, when special nuclear material transferred to India for the Tarapur Station is located at such facilities, and at other relevant times. Personnel so designated will also be afforded access to other places, data, and persons for the accomplishment of those objectives. The designated personnel may make independent measurements as either Party considers necessary. The United States will keep such access to a minimum, consistent with the need for effective verification.

The Government of India obtained an unusual right to remove quantities of U. S. supplied SNM from the scope of the agreement and to substitute equivalent material. The agreement provides that:

Notwithstanding anything contained in this Agreement, the Government of India shall have the right, upon prior notice to the Government of the United States, to remove from the scope of this Agreement quantities of special nuclear material provided it has, pursuant to mutually acceptable measurement arrangements, placed agreed equivalent quantities of the same type of special nuclear material under the scope of this agreement.

Noncompliance - In the event of noncompliance with the safeguards or guarantees in this Agreement, and the subsequent failure of the Indian Government to fulfill the guarantees and safeguards within a reasonable time, the U.S. Government has the right to suspend or terminate this Agreement and to require the return of any special nuclear material equipment and devices transferred and safeguarded under this Agreement.

Guarantees

The Indian Government guarantees that no material, equipment or device transferred to it or its authorized persons will be used for atomic weapons, for research or development of atomic weapons, or for any other military purpose. Further, India guarantees that no material, equipment or device will be transferred to unauthorized persons or beyond its jurisidction except as the U. S. and India agree. If the Parties agree

to transfer such material the U. S. Commission must determine whether such transfer falls within the scope of an Agreement for Cooperation between the U.S. and the other nation, group of nations or international organization. The U.S. guarantees that no special nuclear material produced at the Tarapur Station and acquired by it, or an equivalent amount of the same type substituted therefore, shall be used for atomic weapons or for r & d on atomic weapons or for any other military purpose.

Agreement with the IAEA - Recognizing the desirability of making use of the facilities and services of the IAEA, the Parties agree in principle that at a suitable time, the LAEA would be requested to enter into a trilateral

agreement with the Parties for the implementation of the safeguards provisions of this Agreement. The United States was prepared, in principle, to include appropriate provisions in the trilateral for the application of Agency safeguards for SNM produced in the Tarapur Station, as may be received in the U. S., or equivalent material substituted therefor.

In addition, after the IAEA adopted a system of safeguards for reactors the size of the Tarapur Sation, the Parties agreed to consult to determine if this system would be consistent with the safeguards provisions of the agreement. If so. the Parties would request the Agency to enter into a trilateral agreement. The Indian Government could specify that the trilateral agreement would not be implemented until the Station reached reliable fullpower operation.

In the event the Parties did not reach a mutually satisfactory agreement on the terms of a trilateral agreement, either Party may, by notification, terminate this bilateral agreement. Before either Party took steps to terminate, the Parties would carefully consider the economic effects. As for long term operations, neither Party will invoke its termination rights until the other Party has been given sufficient advance notice to permit arrangements by India for an alternative source of power or to permit adjustment of U. S. production schedules. The United States agreed not to invoke its termination rights unless there has been widespread acceptance, by those nations with whom it has bilateral agreements, of the implementation of IAEA safeguards or provisions similar to those in this Agreement. In the event of termination by either Party, the Indian Government, at the request of the U. S. Government, shall return to the U. S. all special nuclear materials received pursuant to this Agreement and in its possession or the