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power. The U.S. agreements for cooperation have obtained for the United

States unique concessions from other sovereign nations, particularly the

right to send our inspectors or those of the International Atomic Energy

Agency into an agreement country to inspect use of U.S. -supplied materials

and equipment.

The agreements have provided a framework for growing exports by the

U.S. nuclear industry, and a channel for U.S. influence through our supply

of enriched uranium by lease, sale, or contracts for enrichment services.

On the other hand, the agreements have not been a sure way of influencing

nations that would wish to make muclear weapons or that would permit their

nuclear industries to export products or technology that the United States

considers to be undesirable.

The times and conditions have changed substantially from 1955 when

the agreements were authorized until today when many nations have nuclear

powerplants, some have factories that can produce nuclear materials suit

able for weapons, and others have industries capable of exporting nuclear

powerplants and the technology and equipment for nuclear fuel material pro

duction.

The times seem likely to change as much during the coming two

decades.

Therefore, at issue for Congress is how the agreements function today,

how well they are likely to function for the years ahead, and what is to be

expected of them in support of national policy to limit proliferation.

Effects of the agreements upon proliferation

Judging the effects of U.S. agreements for cooperation upon prolifer

ation is uncertain at best and disagreement by other analysts is as likely

and conditions, subject to limitations arising from shortages or other limi

tations.

The agreements with Australia, Italy, and South Africa do not, how

ever, provide for the transfer of equipment and devices,

U. S. supply of enriched uranium and other special nuclear material

The research and power agreements all commit the United States to provide enriched uranium or enrichment services and, in some cases, other special nuclear materials. Some agreements commit the United States to supply normal uranium if this is not available to the other nation for

enrichment.

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Transfers of enriched uranium are to be under agreed upon terms

and conditions and the transferred materials are limited to research and

power use. Suitable research uses mentioned in agreements include reactor

experiments, and reactors for research, materials testing, experimental,

scientific and industrial uses.

The uranium supplied may be enriched up

to twenty percent. However part of the uranium may be enriched to more than 20 percent if ERDA determines there is a technical or economic justifi

cation.

The amount of enriched uranium transferred may not exceed that

necessary to fuel the reactors or reactor experiments involved plus an addi

tional quatity that

determined by the parties to be necessary for the

efficient and continuous operation.

Upon the request of a recipient nation,

ERDA may sell enriched uranium to a recipient nation under agreed terms

and conditions.

When the recipient nation is ready to contract for enrich

ment services, the United States assures it of equitable access with other

purchasers to available U.S. capacity which has not already been allocated.

The preceding provisions appear in the agreements with Austria,

China, Japan,

Korea,

Portugal, South Africa, Sweden, Switzerland and

Thailand. The agreements with Argentina, Australia, Brazil, Finland, Italy,

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Norway and the Philippines in addition commit the United States to supply

normal uranium for enrichment upon terms and conditions to be agreed,

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including fuel for maritime appreciations in Argentina.

The agreement with Norway additionally provides for ERDA to trans

fer up to 10 kilograms of enriched uranium-233 under terms and conditions

to be agreed to in advance. For Italy, the United States, through ERDA,

may make available up to 8 kilograms of 90 percent enriched uranium for

use in research reactors, materials testing reactors, and reactor experi

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ments. Also the Italian agreement permits that government to allow its au

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thorized users to acquire title to uranium that it has purchased from the

United States.

The agreements with Brazil and Argentina provide that plutonium

may be transferred to either government or its agents for use as fuel in reactors and reactor experiments under terms and conditions to be agreed

upon in advance of each transfer. In addition, the Brazilian agreement allows the United States to transfer responsibility for supplying special nuclear material or enrichment services to private enterprise under U. S. jurisdic

tion.

Under the agreement with Venezuela, ERDA will transfer, as may be agreed, enriched uranium for use in defined applications, including research, experimental power, demonstration and power reactors which the Govern

ment of Venezuela decides to construct or operate, or authorizes private

persons to do so.

Terms and conditions and delivery schedules for each

transfer are to be agreed upon in advance.

Amounts of materials and separative work

The agreements with Austria, China, Japan, Korea, Portugal, South

Africa, Spain, Sweden and Switzerland limit the amount of separative work

to be performed by the United States to the amount needed to support the

fuel cycle of a specific installed reactor capacity, (designated in each Agree

ment).

The six agreements with Argentina, Australia, Brazil, Finland, Nor

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way, and the Philippines contain a formula that limits the amount of enriched

uranium to be transferred under the agreements. The aggregate of the net

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quantity of U-235 enriched uranium transferable under the agreements may

not exceed on amount designated in each agreement.

Within that ceiling,

transfers may be made using the following method of calculation.

From the quantity of U-235 contained in enriched
uranium transferred the quantity of U-235 contained
in an equal quantity of uranium of normal isotopic
assay is subtracted. From this amount the fol-
lowing quantity is subtracted:

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The Italian agreement provides that the net amount of enriched ura

nium sold or leased may not exceed 7,000 kg. of contained U-235.

The agreement with Venezuela states that the net amount of U-235

in enriched uranium transferred during the period of the agreement shall

not at any time exceed 25 kilograms.

This net amount shall be the gross

quantity of contained U-235 in uranium transferred less the quantity of con

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tained U-235 in recoverable uranium which has been resold or otherwise

Table VII. Provisions of Agreements for Cooperation that Require

Additional Negotiations and Decisions

The following provisions in a typical agreement for cooperation for research and power indicate the many negotiations of subordinate arrangements and contracts and exercises of judgment and decisions required by the Energy Research and Development Administration.

Supply of materials

Certain listed materials may be transferred for defined applications in such quantities and under such terms and conditions as may be agreed when such materials are not commercially available.

Specialized research facilities and reactor materials testing facilities may be made available under such terms and conditions as may be agreed.

Equipment and devices may be transferred under such terms and conditions as may be agreed.

Supply of enriched uranium

ERDA at its option and under terms and conditions to be agreed may sell enriched uranium for transfer for use as fuel in power applications.

Under such terms and conditions as may be agreed, ERDA may transfer enriched uranium (including inter alia supply through enrichment services contracts) to the agreement or authorized persons under its jurisdiction.

Enrichment of transferred uranium

Some uranium transferred may be enriched to more than 20 percent when ERDA finds there is a technical or economic justification for such a transfer.

Limitations on quantities of enriched uranium transferred

The quantity of enriched uranium transferred for the fueling of reactors or reactor experiments shall not at any time be in excess of the quantity thereof necessary for the loading of such reactors or reactor experiments plus such additional quantity as, in the opinion of the Parties, is necessary for the efficient and continuous operation of such reactors or reactor experiments.

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