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63 D

Guaranteng

Ragip lent nation guaranteos that the safeguarda provided in the Agreement will be maintained. No material, including equipment and devices trar-ferred to the recipient nation or its authorized persons by lease, sale, or otherwise, will be used Lor atomic weapons, r&d on atomic weapons or for any other military purposes. No such material will be transferred to unauthorized persons or beyond the Jurisdiction of the recipient nation except as the U.S.(ERDA) may Agree to such a transfer. The transfer will be agreed to only 11,1t fallswithin the scope of an agreement for cooperation between the U.S. and the recipient nation.

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Recipient nation guarantees. Sy feguards will be maintained. No items under this agreement to be used for atomic wear ors, r&d on atonic weapons, or other military purposes. No trarters of items originally transferred under this Agreement to be transferred to unauthorized persons unless within the score of an Agreement for cooperation. With the U.S.

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Lurther Copperation

The Partleg hope and expect that the initial Agreement for Cooperation will lead to the consideration of further cooperation. Accordingly, the Parties will corsult with each other concerning the feasibility of an additional agreement with respect to the production of power from atomic energy.

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At the expiration of this Agreement or any extersion thereof the recipient nation vill deliver all ruel elements containing reactor fuel, and reactor materials leased by ERDA to a site in the U.S. designated by ERDA. The expense of the delivery will be borne by the original recinient nation and made under appropriate safeguards against radia'lon hazards.

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XIXIXX

--The supply for use in Agency activities of 5,000 kilograms of con

tained uranium-235 together with "amounts of special nuclear material which

will match in

amount the sum of all quantities of special nuclear material

made available by all other Members of the Agency prior to July 1, 1960."

The United States also is committed to make available to the Agency such additional quantities of special nuclear materials "as may be authorized by

the United States." Enrichment is limited to 20 percent provided, however,

the parties may agree to a higher enrichment for uranium to be used in

research reactors, in material testing reactors or for research purposes.

Note the absence of the approval by the Energy Research and Development

Administration for supply of more highly enriched material.

--The special nuclear material made available to the Agency will be

used or distributed under its direction,

The United States will retain such

material until needed by the Agency and will deliver it upon request to the Agency or to a Member or group of Members designated by the Agency. At such times the parties shall agree on the compensation for such material,

its form and composition and delivery schedule and related matters. *

--The United States is committed to assist the Agency in obtaining

source and reactor materials from persons within U.S. jurisdiction if the

Agency wishes.

If no commercial sources are available to the Agency on

reasonable terms, the United States may make such material available to

the Agency or to Members designated by it under terms to be agreed upon.

--The United States is also committed, at the request of the Agency

and subject to laws of the United States, to purchase, solely for peaceful

uses, special nuclear material recovered or produced from special nuclear

material and source material as a result of Agency activities, at such prices

and on such other terms and conditions as may be agreed.

--The United States also has agreed that persons under U.S. jurisdiction will be permitted to make arrangements to transfer and export mate

rial, equipment or facilities and to perform services for the Agency or upon

request of the Agency for a Member or group of Members in connection with

an Agency activity.

This commitment is subject to applicable laws, regu

lations and license requirements of the United States.

The Agency made three guarantees that resemble those typical of other

agreements, but are slightly different.

It guarantees, to the full extent

of its statutory powers, that:

a. The safeguards set forth in the Agency statute shall be maintained and implemented as provided in the Agency statute with respect to material, equipment or facilities, made available by the United States or persons under its jurisdiction for use in Agency activities.

b. No material, equipment or facilities, transferred pursuant to this Agreement will be used for atomic weapons or for development of atomic weapons or for any other military purposes.

c. Material, equipment or facilities used, transferred or retransferred pursuant to this Agreement shall be used or transferred only in accordance with the Agency Statute and this Agreement.

* Note, the first Director General of the Agency attempted to get the United States to supply special nuclear materials at a special low price so that the Agency could fund some of its operations by a markup of the price of U.S. materials for Agency resale. This proposal was turned down and U.S. policy has been for the Agency to pay the same price as any other customer.

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The agreements with EURATOM. --The United States entered into its

initial agreement for cooperation with the European Atomic Energy Community (EURATOM) in 1958. The agreement has been revised several times,

with the latest version signed on September 20, 1972. It is based upon both

section 123 of the Atomic Energy Act of 1954 as amended and the EURATOM

Cooperation Act of 1958. *

Terms of the agreement for cooperation with the Community are similar

to those of other agreements for cooperation for research and power. The agreement differs from these other agreements in two respects: establish

ment of a joint program of research and development and construction of

several nuclear powerplants, and establishment of safeguards for the Euro

pean Community.

The purpose of the joint program was twofold:

to bring into operation

nuclear powerplants with a total capacity of about 1,000 megawatts by the

end of 1963, and to immediately initiate a joint research and development

program centered on the types of reactors to be used. **

* Public Law 85-846, 72 Stat. 1084.

** The original agreement committed the United States and the Community to cooperate by establishing a joint program that would, in part, '... bring into operation within the European Atomic Energy Community (EURATOM) large-scale powerplants using nuclear reactors of types on which research and development have been carried to an advanced stage in the United States, having a total installed capacity of approximately one million kilowatts of electricity by December 31, 1973 (except that two reactors may be selected to be in operation by December 31, 1965), and under conditions which would approach the competitive range of conventional energy costs in Europe.

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