) i ) - - House Document 100-128)

100th Congress.. lot Session - - - - - - - - -

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'1 li-i1 fPROPOSED AGREEMENT BETWEEN THE UNITED

STATES AND JAPAN CONCERNING PEACEFUL USESOF NUCLEAR ENERGY

MESSAGE

FROM

THE PRESIDENT OF THE UNITED STATESTRANSMIMING

A PROPOSED AGREEMENT FOR COOPERATION BETWEEN THEGOVERNMENT OF THE UNITED STATES AND THE GOVERNMENTOF JAPAN CONCERNING PEACEFUL USES OF NUCLEAP ENERGY,INCLUDING AN IMPLEMENTING AGREEMENT PURSUANT TO AR-TICLE 11 OF THE PROPOSED AGREEMENT, PURSUANT TO 42U.S.C. 2163(b)

Novasn 9. 1987.-Message and accompanying papers referred to theCommittee on Foreign Afairs and ordered to be printed

U.S. GOVUNMIaNT PUN1NG1 OfleC7S-476 WASHIGTaON : 1987

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Tob the Congres of the United StatewI am pleased to transmit to the Congress, pursuant to sections123 b. and 123 d. of the Atomic Energy Act of 1964, as amended (42US.C. 2163(b), (d)), the text of a proposed Agreement-for Coopera-tion Between the Government of the United States of America andthe Government of Japan Concerning Peaceful Uses of NuclearEnergy, including an implementing agreement pursuant to Article11 of the proposed agreement. I am also pleased to transmit mywritten approval, authorization and determination concerning theagreement, and the Nuclear Proliferation Assessment Statementby the Director of the United States Arms Control and Disarma-ment Agency concerning the agreement. The joint memorandumsubmitted to me by the Departments of State and Energy, whichincludes a summary of the provisions of the agreement, the viewsof the Director of the United States Arms Control and Disarma-ment Agency, and an analysis of the approvals and consents con-tained in the agreement, including the implementing agreenment,and associated subsequent arrangements are also enclosed.I also enclose for your information the texts of a proposed subse-quent arrangement under the United States-Norway RevisedAgreement for Cooperation Concerning Peaceful Uses of NuclearEnergy and a proposed subsequent arrangement under the UnitedStates-EUR2ATOM Additional Agreement for Cooperation Concern-ing Peaceful Uses of Atomic Energy. These subsequent arrange-ments are designed to give effect to certain provisions of theUnited States-Japan implementing agreement and will enter intoforce only after the agreement enters into force. They are beingprocessed by the Department of Energy in accordance with the ap-plicable provisions of the Atomic Energy Act of 1954, as amended.The proposed agreement with Japan, including the implementingagreement, has been negotiated in accordance with the NuclearNon-Proliferation Act of 1978 (NNPA). In my judgment it meets allstatutory requirements. It will supersede our 19 agreement withJapan and, given the magnitude of our long-standing cooperationwith Japan in the peaceful uses of nuclear energy, will representthe most significont achievement to date in our program initiatedpursuant to section 404(a) of the NNPA to update all existingagreements for peaceful nuclear cooperation to include the morestringent standards established by that Act.I believe that the new agreement will strengthen the basis forcontinued close cooperation between the United States and Japanin the peaceful nuclear area and that it will further the non-prolif-eration and other foreign policy interests of the United States. Theimplementing agreement provides Japan advance, long-term con-sent for reprocessing, transfers,4lteration, and storage of nuclearmaterial subject to the agreement, provided that the reprocessing

and subsequent use of the ilecovered plutonium meet and continuei (it

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to meet the criteria set out in U.S. law, including criteria relatingto safeguards and physical protection. These arrangements shouldenable Japan to plan for its long-term energy needs on a more as-mured, predictable basis, while at the same time embodying themost advanced concepts of physical security and safeguard of anagreement. This step forward in our cooperative relations withJapan will be consistent with the NNPA's injunction to take suchactions as are required to confirm the reliability of the UnitedStates as a nuclear supplier consistent with non-proliferation goals

Japan is not only a close ally of the United States but is also aparty to the Treaty on the Non-Proliferation of Nuclear Weaponsand has long been one of the strongest supporters of the interna-tional non-proliferation regime. Moreover, the United States andJapan have a substantial identify of views and intentions withregard to preventing nuclear proliferation and are prepared towork together on measures that will contribute to the preventionof proliferation consistent with the peaceful uses of nuclear energy.An exchange of letters between the United States and Japan, thetext of which is included in the agreement package, sets forth indetail our shared views on non-proliferation.

I have considered the views and recommendations of the interest-ed agencies in reviewing the proposed agreement and have deter-mined that its performance will promote, and will not constitutean unreasonable risk to, the common defense and security. Accord-ingly, I have approved the agreement and authorized its executionand urge that the Congress give it favorable consideration.

I have also found that this agreement meets all applicable re-quirements of the Atomic Energy Act, as amended, for agreementsfor peaceful nuclear cooperation, and therefore, I am transmittingit to the Congress without exemptig it from any requirement con-tained in section 123 a. of that Act. This transmission shall consti-tute a submittal for purposes of both sections 128 b. and 123 d. ofthe Atomic Energy Act. The Administration is prepared to beginimmediately the consultations with the Senate Foreign Relationsand House Foreign Affairs Committees as provided in section 123b. Upon completion of the 30-day continuous session period provid-ed in section 123 b., the 60-day continuous session period providedfor in section 123 d. shall commence.

RONALD REAGAN.Ton Wur= Housm, November 9, 1987.

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Enclosures

1. Text of Agreement for Cooperation. Including ImplementingAgreement. and Apsociated Documents

2. Presidential Approval. Authoirzation and Determination

3. ACDA Nuclear Proliferation Assessment Statement

4. Femorandum from the Departments of State and Energy to thePresident, with Attachwents

- Summary of the Agreement

- Summary of the Implementing Agreement

- Views of the Director of the Arms Control andDisarmament Agency

- Analysis of the Approvals and ConsentsContained in the Agreement, ImplementingAgreement and Associated SubsequentArrangements

5. Draft Proposed Subsequent Arrangement under the U.S.-NorwayAgreement for Cooperation

6. Draft Proposed Subsequent Arrangement under theU.S.-BURATON Agreement for Cooperation

7. Views of the Members of the Nuclear Regulatory Commission

S. Joint State/Energy/ACDA CoDmments on the NRC Views

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AGREEMENT FOR COOPERATIONBETWEEN THE GOVERNMENT OF

THE UNITED STATES OF AMERICAAND THE GOVERNMENT OF JAPAN

CONCERNING PEACEFUL USES OF NUCLEAR ENERGY

The Government of the United States of Americaand the Government of Japan,

Considering the close cooperation between thetwo countries in the peaceful uses of nuclearenergy pursuant to the Agreement for CooperationBetween the Government of the United States ofAmerica and the Government of Japan ConcerningCivil Uses of Atomic Energy, signed on February26, 1968, as amended (hereinafter referred to asthe previous Agreement*)i

Recognizing the importance of research on anddevelopment and use of nuclear energy forpeaceful purposes;

Desiring to continue and expand cooperationin this field with due respect for theirrelevant national programs;

Desiring to enter into arrangements in thepeaceful uses of nuclear energy on a predictableand reliable basis which take account of thelong-term requirements of their nuclear energyprograms;

Mindful that both Goyernments are parties tothe Treaty on the Non-Proliferation of NuclearWeapons (hereinafter referred to as *theNon-Proliferation Treatys):

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Reaffirming their commitment to ensuring thatthe international research on and developmentand use of nuclear energy for peaceful uses arecarried out in such a manner as will to themaximum extent further the objectives of theN1on-Proliferation Treaty; and

Affirming their support of the objectives ofthe International Atomic Energy Agency(hereinafter referred to as "the Agency-) andtheir desire to promote universal adherence tothe Non-Proliferation Treaty;

Have agreed as follows:

Article 1For the purposes of this Agreement:Ca) "Parties' means the Government of theUnited States of America and the Governmentof Japanl 'Party' means one of the above"parties";

(b) 'Person, means any individual or entityunder the territorial jurisdiction of eitherparty, but does not include the parties,

Cc) *Reactor means any apparatus, other thana nuclear weapon or other nuclear explosivedevice, in which a self-sustaining fissionchain readtion is maintained by utilizinguranium, plutonium or thorium, or anycombination thereof;

Cd) *Equipment' means any reactor as acomplete unit, other than one designed orused primarily for the formation of plutoniumor uranium-233, and any other items specifiedin Part A of Annex A of this Agreement;

(e) aComponent' means a component part ofequipment or other item, so designated byagreement of the parties;

If) 'Material' means material for reactorswhich is specified in Part B of Annex A ofthis Agreement, but does not include Onuclearmaterial':

(g) 'Nuclear materials means (i) *sourcematerial, namely, uranium containing themixture of isotopes occurring in nature;uranium depleted in the isotope 235: thorium;any of the foregoing in the form of metal,alloy, chemical compound, or concentrate; anyother substance containing one or more of theforegoing in such concentration as may beagreed to by the parties; and such othersubstances as may be agreed to by theparties; and.(ii) "special fissionablematerial', namely, plutonium, uranium-233,uranium enriched in the isotope 233 or 235;any substance containing one or more of theforegoing: and such other substances as maybe agreed to by the parties. The term'special fissionable material' does notinclude *source material":(h) uHigh enriched uranium' means uraniumenriched to twenty percent or more in theisotope 235:(i) "Restricted data" means any dataconcerning li) design, manufacture, orutilization of nuclear weapons; (Ci) theproduction of special fissionable material;or Ciii) the use of special fissionable

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material in the production of energy, butdoes not include data of a party which it hasdeclassified or removed from the category ofrestricted data;(j) Sensitive nuclear technology means anydata which are not available to the publicand which are important to the design,.construction, fabrication, operation ormaintenance of enrichment, reprocessing orheavy water production facilities, or suchother data as may be so designated byagreement of the parties.

Article 21. (a) The parties shall cooperate under this

Agreement in the peaceful uses of nuclearenergy in the two countries in the followingways:

(i) The parties shall encouragecooperation between their respectiveorganizations,, public and private, byexchanges of experts. When execution ofan agreement or contract pursuant to thisAgreemedt between United Skates andJapanese organizations requires suchexchanges of experts, the parties shallfacilitate the entry of the experts totheir territories and their stay therein.(ii) The parties shall facilitate supplyand exchange of information on such termsas may be agreed either betweenthemselves, between persons under theirterritorial jurisdiction or between

either party and persons under theterritorial jurisdiction of the otherparty. Subjects that may be coveredinclude health, safety and environmentalconsiderations.

(iii) Either party or its authorizedpersons may supply to or receive from theother party or its authorized personsmaterial, nuclear material, equipment andcomponents on such terms as may be agreedbetween the supplier and the recipient.(iv) Either party or its authorizedpersons may perform services for orreceive services from the other party orits authorized persons on matters withinthe scope of this Agreement on such termsas may be agreed between the supplier andthe recipient.

(v) The parties may cooperate in otherways as deemed appropriate by them.

(b) Notwithstanding the provisions ofsub-paragraph (a) above, restricted data andsensitive nuclear technology shall not betransferred under this Agreement.

2. Cooperation between the parties as specifiedabove shall be subject to the provisions of thisAgreement, and the applicable treaties, laws,regulations and license requirements in force intheir respective countries and shall require, inthe case of cooperation envisaged insub-paragraph (a)(iii) of paragraph 1 above, theapplication of safeguards by the Agency:

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(a)-with respect to'all-nuclear material inall nuclear activities within the territoryof Japan, under its jurisdiction or carriedout under its control anywhere, when therecipient is the Government of Japan or itsauthorized persons. Implementation of theagreement between the Government of Japan andthe Agency in connection with the Non-Proliferation Treaty shall be considered asfulfilling this requirement; and

(b) with respect to all nuclear material inall civil nuclear activities within theterritory of the United States of America,under its jurisdiction or carried out underits control anywhere, when the recipient isthe Government of the United States ofAmerica or its authorized persons.Implementation of the agreement between theUnited States of America and the Agency forthe application of safeguards in the UnitedStates of America shall be considered asfulfilling this requirement. .

3. Material, nuclear material, equipment andcomponents transferred between the twocountries, whether directly or through a thirdcountry, shall become subject to this Agreementupon their entry into the territorialjurisdiction of the receiving party, only if thesupplying party has notified the receiving partyin writing of the intended transfer. Prior tothe notified transfer of such items, thesupplying party shall obtain from the receivingparty a written confirmation that thetransferred item will be held subject to this

Agreement and that the proposed recipient, ifother than the receiving party, will be itsauthorized person.

4. Material, nuclear material, equipment andcomponents subject.to this Agreement shall nolonger be subject to this Agreement if:

(a) such items have been transferred beyondthe territorial jurisdiction of the receivingparty in accordance with the relevantprovisions of this Agreement:(b) in the case of nuclear material, (i) theAgency determines, in accordance with theprovisions for the termination of safeguardsin the relevant agreement referred to inparagraph 2 of this Article, that the nuclearmaterial has been consumed, or has beendiluted in such a way that it is no longerusable for any nuclear activity relevant fromthe point of view of safeguards, or hasbecome practicably.irrecoverable. If eitherparty disputes the Agency determination, thenuclear material will remain subject to thisAgreement until the dispute is resolved; or(ii) in the'absence of a determination by theAgency, it is agreed by the parties that suchnuclear material should no longer be subjectto this Agreement; or

(c) in the case of material, equipment andcomponents, it is agreed by the parties.

Article 3

Plutonium and uranium-233 (except ascontained in irradiated fuel elements), and high

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enriched uranium, transferred pursuant to thisAgreewent or used in or produced through the useof nuclajr material or equipment so transferred,shall enit be stored in a facility to which theparties .gree.

Article 4

Material, nuclear material, equipment andcomponents transferred pursuant to thisAgreement and special fissionable Materialproduced through the use of such material,nuclear material or equipment may be transferredonly to persons authorized by a receiving partyor, if the-parties agree, beyond the territorialjurisdiction of the receiving party.

Article 5

l INuclear material transferred pursuant to thisAgreement and special fissionable material usedin or produced through the use of material,nuclear material or equipment 'so transferred maybe reprocessed if the parties agree.

2. Plutonium, pranium-233, high enriched uraniumand irradiated nuclear material transferredpursuant to this Agreement or used in orproduced through the use of material, nuclearmaterial or equipment so transferred may bealtered in form or content by irradiation. Suchspecial fissionable material may otherwise bealtered in form or content if the parties agree.

Article 6

Uranium transferred pursuant to thisAgreement or used in equipment so transferredmay be enriched to less than twenty percent inthe isotope 235. Such uranium may also beenriched to twenty percept or more in theisotope 235 it the parties agree.

Article 7

Adequate measures of physical protectionshall be maintained with respect to nuclearmaterial transferred pursuant to this Agreementand special fissionable material used in orproduced through the use of material, nuclearmaterial or equipment so transferred, *at levels,as a minimum, comparable to those set out inAnnex 8 of this Agreement.

Article 8

1. Cooperation under this Agreement shall becarried out only for peaceful purposes.

2. Material, nuclear material, equipment andcomponents transferred pursuant to thisAgreement and nuclear material used in orproduced through the use of such items shall notbe used for any nuclear explosive device, forresearch specifically on or development of anynuclear explosive device, or for any militarypurpose.

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Article 9

1. in order to ensure compliance with theprovisions of paragraph 2 of Article 8 of thisAgreement:

(a) Nuclear material transferred to theterritorial jurisdiction of the Government ofJapan pursuant to this Agreement and nuclearmaterial used in or produced through the useof material, nuclear material, equipment orcomponents so transferred shall be subject to'the agreement referred to in sub-paragraph(a) of paragraph 2 of Article 2 of thisAgreement.

(b) Nuclear material transferred to theterritorial jurisdiction of the Government ofthe United States of America pursuant to thisAgreement and nuclear material used in orproduced through the use of material, nuclearmaterial, equipment or components sotransferred shall be subject to (i) theagreement referred to in sub-paragraph (b) ofparagraph 2 of Article 2 of this Agreementand (ii) supplementary measures forsubstitution, to the extent practicable, orfor tracking and accounting for such nuclearmaterial.

2. If either party becomes aware that for anyreason the Agency is not or will not be applyingsafeguards as required by paragraph 1 of thisArticle, the parties shall forthwith consult totake rectifying measures and, in the absence ofsuch rectifying measures, shall immediately

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enter into arrangements which conform tosafeguards principles and procedures of theAgency and provide effectiveness and coverageequivalent to that intended to be provided bythe safeguards required pursuant to paragraph 1of this Article.

Article 10If an agreement between either party and

another nation or group of nations provides suchother nation or group of nations rightsequivalent to any or all of those set forth inArticle 3, 4, 5, 6 or 12 of this Agreement with

.respect to any material, nuclear material,equipment or components subject to thisAgreement, the parties may, at the request ofeither of them, agree that the implementation ofsuch rights will be accomplished by such othernation or group of nations.

Article 11In order to facilitate activities subject to

Articles 3, 4 and 5 of this Agreement, theparties shall make, consistent with theobjective of preventing nuclear proliferationand with their respective national securityinterests, and perform in good faith separatearrangements that will satisfy the requirementsfor mutual agreement set forth in those Articleson a long-term, predictable and reliable basis,and in a manner that will further facilitatepeaceful uses of nuclear energy in theirrespective countries.

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Article 12

1. If either party at any time following entryinto force of this Agreement:

(a) does not'comply with the provisions ofArticle 3, 4, 5, 6, 7, 8, 9 or 11 of thisAgreement or the decisions of the arbitraltribunal referred to in Article 14 of thisAgreement; or

(b) terminates or materially violates asafeguards agreement with the Agency,

the other party shall have the rights to ceasefurther cooperation under this Agreement,terminate this Agreement and require the returnof any material, nuclear material, equipment orcomponents transferred pursuant to thisAgreement or any special fissionable materialproduced through the use of such items.

2. If the United States of America detonates anuclear explosive device using material, nuclearmaterial, equipment or components transferredpursuant to this Agreement or nuclear materialused in or produced through the use of suchitems, the Government of Japan shall have thesame rights as specified in paragraph 1 of thisArticle.

3. If Japan detonates a nuclear explosivedevice, the Government of the United States ofAmerica shall have the same rights as specifiedin paragraph 1 of this Article.

4. Before either party takes steps to ceasecooperation under this Agreement, to terminatethis Agreement, or to require such return, theparties shall consult for the purpose of takingcorrective steps and shall carefully considerthe economic effects of such actions, takinginto account the need to make such otherappropriate arrangements as may be required.

5. If either party exercises its rights underthis Article to require the return of anymaterial, nuclear material, equipment orcomponents, it shall compensate the other partyor the persons concerned for the fair marketvalue thereof.

Article 13

1. The previous Agreement shall terminate on thedate this Agreement enters into force.

2. Cooperation initiated under the previousAgreement shall continue under this Agreement.The provisions of this Agreement shall apply tonuclear material and equipment subject to theprevious Agreement.' Should the separate.arrangements called for in Article 11 of thisAgreement be suspended with respect to suchnuclear material or equipment, they shall besubject to the provisions of this Agreementduring the suspension only to the extent-coveredby the previous Agreement.

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Article 14

1. With a view to promoting cooperation underthis Agreement, the parties may, at"the requestof either of them, consult with-each otherthrough diplomatic channels or otherconsultative fora.

2. If any question arises concerning theinterpretation or application of this Agreement,the parties-shall, at the request of either ofthem, consult with each other.

3. If any dispute arising out of theinterpretation or application of this Agreementis not settled by negotiation, mediation,conciliation or other similar procedure, theparties may agree to'submit such dispute to anarbitral tribunal which shall be composed ofthree arbitrators appointed in accordance withthe provisions of this paragraph. Each partyshall designate one arbitrator who may be anational of its country and the two arbitratorsso designated shall elect a third, a national ofa third country, who shall be the Chairman. If,within thirty days of the request forarbitration, either party has not designated anarbitrator, either party may request thePresident of the International Court of Justiceto appoint an arbitrator. The same procedureshall appiy if, within thirty days of thedesignation or appointment of the secondarbitrator, the third arbitrator has not beenelected, provided that the third arbitrator soappointed shall not be a national of the countryof either party. A majority of the members of

the arbitral tribunal shall constitute a quorum,and all decisions shall require the concurrenceof two arbitrators. The arbitral procedureshall be fixed by the tribunal. The decisionsof the tribunal shall be binding on the parties.

Article 15

The Annexes of this Agreement form anintegral part of this Agreement. The Annexesmay be modified by mutual consent in writing ofthe parties without amendment of this Agreement.

Article 16

}. This Agreement shall enter into force on thethirtieth day after the date on which theparties exchange diplomatic notes informing eachother that their respective internal legalprocedures necessary for entry into force ofthis Agreement have been completed and shallremain in force for a period of thirty years,and shall continue in force thereafter untilterminated in accordance with the provisions ofparagraph 2 of this Article.

2. Either party may, by giving six monthswritten notice to the other party,.terminatethis Agreement at the end of the initialthirty-year period or at any time thereafter.

3. Notwithstanding the suspension or terminationof this Agreement or any cooperation hereunderfor any reason, Article 1, paragraph 4 ofArticle 2 and Articles 3, 4, 5, 6, 7, 8, 9, 11,12 and 14 shall continue in effect to the extentapplicable.

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4. At the request of either party, the partiesshall consult with each other whether'to amendthis Agreement or to replace it with a newagreement.

IN WITNESS WHEREOF the undersigned, beingduly authorized, have signed this Agreement.

DONE at Tokyo, this fourth day of November,1987, in duplicate, in the English and Japaneselanguages, both texts being equally authentic.

FOR THE GOVERNMENT OFAMERICA:

THE UNITED STATES OF

Annex A

Part A

1. Reactor pressure vessels:

Metal vessels, as complete units or as majorshop-fabricated parts therefor, which areespecially designed or prepared to contain thecore of a reactor and are capable ofwithstanding the operating pressure of theprimary coolant.

2. Reactor fuel charging and dischargingmachines as complete units:

Manipulative equipment especially designed orprepared for inserting or removing fuel in areactor capable of on-load operation.

3. Reactor control rods as complete units:

Complete control rod assemblies, includingthe control rod drive mechanism, especiallydesigned or prepared for the control of thereaction rate in a reactor.

4. Reactor primary coolant pumps as completeunits:

Pumps, including the motor, especiallydesigned or prepared for circulating the primarycoolant for a reactor.

FOR THE GOVERNMENT OF JAPAN:

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Part B.

I. Deuterium and heavy water:Deuterium and any deuterium compound in which

the ratio of deuterium to hydrogen exceeds1:5000 for use in a reactor.

2. Nuclear grade graphite:

Graphite having a purity level better than 5parts per million boron equivalent and with adensity greater than 1.50 grams per cubiccentimeter.

Annex B

Levels of physical protection

CATEGORY III

Use and storage within an area to whichaccess is controlled.

Transportation under special precautionsincluding prior arrangements among sender,recipient and carrier, and prior agreementbetween entities subject to the jurisdiction andregulation of supplier and recipient states,respectively, in case of international transportspecifying time, place and procedures fortransferring transport responsibility.

CATEGORY ItUse and storage within a protected area to

which access is controlled, i.e., an area underconstant surveillance by guards or electronicdevices, surrounded by a physical barrier with alimited number of points of entry underappropriate control, or any area with anequivalent level of physical protection.

Transportation under special precautionsincluding prior arrangements among sender,recipient and carrier, and prior agreementbetween entities subject to the jurisdiction andregulation of supplier and recipient states,respectively, in case of internationaltransport, specifying time, place and proceduresfor transferring transport responsibility.

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CATEGORY I

Nuclear material in this Category shall beprotected with highly reliable systems againstunauthorized use as follows.

Use and storage within a highly protectedarea, i.e., a protected area as defined forCategory II above, to which, in addition, accessis restricted to persons whose trustworthinesshas been determined, and which is undersurveillance by guards who are in closecommunication with appropriate responseauthorities. specific measures taken in thiscontext should have as their objective thedetection and prevention of any assault,unauthorized access or unauthorized rembval ofthe nuclear material concerned.

Transportation under special precautions asidentified above for transportation of CategoryII and III nuclear material and, in addition,under constant surveillance by escorts and underconditions which assure close communication withappropriate response authorities.

?A&Lz. CATEGORIZATION Of MUCLA AA EBIAL

Muclr torg Categoy Category Category.Inateriai I________ ......j...... U1

1 Plutoniuca Unitradiatedb 2 kg cc Less than 500 g ormore 2 kg but less but

Roce than So than

uranium- UnrCe61atg6b1235

- uranium 5 kg or Leass than lkg oren fldgad to moes 5 kg but les but2% a a o moce than so thanocs 1kg 1 I

- uranium ii kg or L.. than.onrigbd to 1ore 10 kg hutloi M0 but Mocq thanlean than 20% 1 kg

- uraniux 10 kg orenriched maceabove natural,but hsthan

N U

3 Uraniun- Unireadiatedb 2 kg or Less than 500 9 or233 more 2 kg but less but

rcor than mor, than

4. Irradiated Depletedfuel or natural

uranium,thocrumor lou-enrichedfuel (1*osthan 10%

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a. All plutonium except that with isotopicconcentration exceeding 80% inplutonium-238.

b. Nuclear material not irradiated in areactor or nuclear material irradiated ina reactor but with a radiation levelequal to or less than 100 rads/hour atone meter unshielded.

c. Quantities not falling in Category IIIand natural uranium should be protectedin accordance with prudent managementpractice.

d. Although this level of protection isrecommended, it would be open to a party,upon evaluation of the specificcircumstances, to assign a differentcategory of physical protection.

e. Other fuel which by virtue of itsoriginal fissile nuclear material contentis classified as Category I and II beforeirradiation may be reduced one categorylevel while the radiation level from thefuel exceeds 100 rads/hour at one meterunshielded.

AGREED MINUTES

In connection with the Agreement forCooperation Aetween the Government of the UnitedStates of America and the Government of JapanConcerning Peaceful Uses of Nuclear Energy,signed at Tokyo today (hereinafter referred toas the Agreement"), the undersigned herebyrecord the following understandings:

1. With reference to sub-paragraph (a)(iii) and(iv) of paragraph 1 of Article 2 of theAgreement, it is confirmed that the Governmentof the United States of America will take suchactions as may be necessary and feasible toensure a reliable supply of nuclear fuel toJapan, including the export of nuclear materialand in particular the furnishing of enrichmentservices on a timely basis and the maintenanceof the availability of the capacity to carry outthis undertaking during the period of theAgreement.

2. With reference to sub-paragraph (c) ofparagraph 4 of Article 2 of the Agreement, it isconfirmed that- the parties will consult witheach other for the purpose of developingpractical means for determining when material,equipment and components are no longer usablefor nuclear purposes.

3. With reference to Article 3 and paragraph 2of Article 5 of the Agreement, it is confirmedthat when alteration in form or content orstorage of nuclear material subject to theAgreement is authorized within the terms of an

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export license of the supplying party no furtheragreement between the parties is required forsuch alteration in form or content or storage.

4. With reference to the provisions of Articles3, 4 and 5 of the Agreement, it is confirmedthat with respect to special fissionablematerial produced through the use of nuclearmaterial transferred pursuant to the Agreementand not used in or produced through the use ofequipment so transferred, such provisions shallin practice be applied to that proportion ofspecial fissionable material produced whichrepresents the ratio of transferred nuclearmaterial used in the production of the specialfissionable'material to the total amount ofnuclear material so used and similarly forsubsequent generations. It is further confirmedthat the parties will enter into discussionswith each other and with other governments witha view to developing formulations which willreflect the relative contributions of specialfissionable material and Qther nuclear materialto the production of special fissionablematerial.

5. With reference to the provisions of Articles3, 4, 5, 6, 7 and 9 of the Agreement, it isconfirmed that the said provisions of theAgreement shall be implemented in such a manneras to avoid hampering, delay or undueinterference in the nuclear activities in thetwo countries and so as to be consistent withprudent management practices required for theeconomic and safe conduct of their nuclearprograms. It is further confirmed that the

provisions of the Agreement shall not beutilized for the purpose of seeking commercialor industrial advantages, for the purpose ofinterfering with the nuclear policy of eitherparty or the commercial or industrial interestsof either party or its authorized persons, orfor the purpose of hindering the promotion ofthe peaceful uses of nuclear energy.

6. With reference to Article 7 of the Agreement,it is confirmed that the physical protectionmeasures as applied in the two countries are ator beyond levels required by the said Articlewith due regard for the recommendationscontained in the document of the InternationalAtomic Energy Agency (hereinafter referred to as*the Agency") INFCIRC/225/Rev. 1 and aretherefore adequate.

7. With reference to Article 8 of the Agreement,it is confirmed that peaceful purposes do notinclude use for any nuclear explosive device, orfor research specifically on or development ofany nuclear explosive device, inasmuch as it isnot possible to differentiate between thetechnology for nuclear weapons and that fornuclear explosive devices for peaceful purposes.

8. (a) With reference to the provisions ofArticle 9 of the Agreement, it is confirmedthat for the effective implementation of thesaid Article the parties shall exchangeannually the then current inventories ofmaterial, nuclear material, equipment andcomponents subject to the Agreement and, in

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case of the Government of the United Statesof America, nuclear material substituted forsuch nuclear material.

(b) With reference to paragraph 1 of Article9 of the Agreement, it in confirmed that eachparty has established and will maintain inaccordance with relevant laws and regulationsin force in each country a national system ofaccounting for and control of nuclearmaterial covering all nucleir materialsubject to the Agreement.

9. It is confirmed that the following measuresfulfill the requirements of sub-paragraph (b)(ii) of paragraph 1 of Article 9 of theAgreement:

(a) Pursuant to the agreement referred to insub-paragraph (b) of paragraph 2 of Article 2of the Agreement, the Government of theUnited States of America has undertaken topermit the Agency to apply safeguards on allnuclear material in all facilities within itsterritorial jurisdiction, excluding onlythose associated with activities with directnational security significance.

(b) The Government of the United States ofAmerica shall provide to the Government ofJapan annually the list of facilities whichare eligible for the application of safeguardsby the Agency and the.. list of facilitiesselected by the Agency pursuant to theagreement referred to in sub-paragraph (b)

of paragraph 2 of Article 2 of the Agreementand its Protocol.

(c) When nuclear material is to be madesubject to the Agteement and is to be locatedat facilities not selected by the Agency forthe application of safeguards, the parties,at the request of either, shall make, throughconsultations and without delaying thetransfer of such nuclear material, mutuallysatisfactory arrangements including, toextent practicable, the substitution oFnuccar mamerial. the same quantity andequivalent or higher isotopic content in thefissionable isotopes at facilities which theAgency has selected for the applicabion ofsafeguards .---

(d) When nuclear material is to be madesubject.to the Agreement and is to be locatedat facilities not on the list of facilitieseligible for the application of safeguards bythe Agency and substitution in accordancewith sub-paragraph (c) above is notpracticable, the parties, at the request ofeither, shall make, through consultations andwithout delaying the transfer of such nuclearmaterial, mutually satisfactory arrangementsincluding, to the extent practicable, thesubstitution of nuclear material of the samequantity and equivalent or higher isotopiccontent in the fissionable isotopes atfacilities eligible, but not selected by theAgency, for the application of safeguards.

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(e) The government of the United States ofAmerica shall provide to the Government ofJapan and the Agency, as mutually arranged,a report by facility on an annual basis ofinventories, shipments and receipts ofnuclear material subject to Article 9 of theAgreement that is located at facilitieseligible for the application of safeguardsby the Agency.

(f) The parties shall consult, at therequest of either, concerning any of thereports provided under sub-paragraph (e)above, and shall take appropriate measuresfor resolving any'questions concerning suchreports.

10. (a) With reference to paragraph 2 of Article9 of the Agreement, it is confirmed that thesafeguards arrangements referred to thereinshall include the following characteristicsin accordance with the safeguards principlesand procedures of the Agency:

(i) the review in a timely fashion of thedesign of any equipment transferredpursuant to the Agreement, or of anyfacility which is to use, fabricate,process or store any nuclear materialsubject to the said paragraph;

{ii) the maintenance and production ofoperating records and 6f relevant reportsfor the purpose of assisting in ensuringaccountability for nuclear materialsubject to the said paragraph; and

(iii) the designation of personnelacceptable to the safeguarded party,accompanied if either party so requestsby personnel designated by thesafeguarded party. These personnel shallhave access to all places and data, andany equipment or facility referred to insub-paragraph Ca) Ci) necessary toaccount for the nuclear material referredto in sub-paragraph (a) (i) and shall bepermitted to use devices in connectionwith the performance of inspections andto make such independent measurements asmay be deemed necessary by thesafeguarded party and the'Agency' (or,where applicable, the safeguarding party)to account for such nuclear material.The safeguarded party shall notunreasonably withhold acceptance of suchpersonnel designated by the Agency or thesafeguarding party. The personneldesignated by the Agency (or, whereapplicable, the safeguarding party) shallnot, except pursuant to theirresponsibilities to the Agency (or, whereapplicable, the safeguarding party),disclose any industrial or otherconfidential information coming to theirknowledge by reason of their officialduties.

Cb) With reference to paragraph 2 of Article9 of the Agreement, it is further confirmedthat the simultaneous application ofsafeguards by the Agency and by the other

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party is.not intended; the parties shall asnecessary consult with a view to avoiding thesimultaneous application of safeguards, andif such an exceptional situation shouldoccur, the parties shall consult with theAgency with a view to removing thesimultaneous application of safeguards.

11. With reference to sub-paragraph (b) ofparagraph 1 of Article 12 of the Agreement, itis confirmed that while a party's safeguardsagreement with the Agency referred to inparagraph 2 of Article 2 of the Agreementremains in force the reference to termination of*a safeguards agreement with the Agency' shallnot apply to that party.

12. With reference to paragraph 2 of Article 13of the Agreement, it is confirmed that:

(a) in order to facilitate the application ofthe provisions of the Agreement to nuclearmaterial and equipment subject to theprevious Agreement, the parties shallestablish a list of such items;

(b) items transferred pursuant to theprevious Agreement not included on the listestablished pursuant to sub-paragraph (a)above will not be used for any nuclearexplosive device, for research specificallyon or development of any nuclear explosivedevice or for any military purpose, and willnot be transferred beyond the territorialjurisdiction of either party without theagreement of the other party. Specialfissionable material used in or produced

through the use of such items will not beused for any nuclear explosive device, forresearch specifically on or development ofany nuclear explosive device or for anymilitary purpose, and will be subject tosafeguards in accordance with the relevantagreements with the Agency referred to inparagraph 2 of Article 2 of the Agreement; and

(c) the parties are satisfied with themanner in which the guarantees specified insub-paragraph Ib) above have been implementedunder the previous Agreement.

13. With reference to Article 14 of theAgreement, it is confirmed that the partiesshall consult, at the request of either, onmatters related to the application of physicalprotection measures and safeguards as referredto in Articles 7 and 9 of the Agreementrespectively.

I.

FOR THE GOVERNMENTTHE UNITED STATESOF AMERICA:

FOR THE GOVERNMENT OFJAPAN:

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Implementing AgreementBetween the Government of

the United States of Americaand the Government of Japan

Pursuant to Article 11of Their Agreement forCooperation Concerning

Peaceful Uses of Nuclear Energy

WHEREAS the Government of the United Statesof America and the Government of Japan(hereinafter referred to as *the partiesm)signed the Agreement for Cooperation ConcerningPeaceful Uses of Nuclear Energy on November 4,1987 (hereinafter referred to as 'the Agreementfor Cooperation);

WHEREAS Article 3 of the Agreement forCooperation provides requirements for thestorage of certain special fissionable material;

WHEREAS Article 4 of the Agreement forCooperation provides requirements for thetransfer of certain nuclear material;

WHEREAS Article 5 of the Agreement forCooperation provides requirements for thereprocessing of certain nuclear material and forthe alteration-in form or content of certainspecial fissionable material:

WHEREAS Article 11 of the Agreement forCooperation provides that to facilitate thepeaceful uses of nuclear energy, the partiesshall make, consistent with the objective ofpreventing nuclear proliferation and with theirrespective national security interests, andperform in good faith separate arrangementswhereby the requirements for mutual agreementset forth in Articles 3, 4 and 5 will besatisfied on a long-term, predictable andreliable basis;

The parties, in fulfillmentthe Agreement for Cooperation,follows:

of Article 11 ofhave agreed as

Article 1

1. (a) The parties hereby agree pursuant toArticles 3, 4 and S of the Agreement forCooperation to the following activities:

(i) reprocessing or alteration in form orcontent in the facilities within theterritorial jurisdiction of either partywhich are listed in Annex 1;

(ii) storage in the facilities within theterritorial jurisdiction of either partywhich are listed in Annex I or 2: and

(iii) transfer beyond the territorialjurisdiction of either party ofirradiated nuclear material, exceptirradiated high enriched uranium anduranium-233,tfrom facilities listed inAnnex 1, 2 or 3 to facilities listed inAnnex 1.

K(b) The parties hereby agree pursuant toArticle 4 of the Agreement for Cooperation tothe transfer beyond the territorialjurisdiction of either party of unirradiatedsource material and low enriched uranium tothird countries designated in writing by theparties but not for the production of highenriched uranium.

3839

2. (a) The parties hereby agree pursuant toArticles 3 and 5 of the Agreement forCooperation to the following activitieswithin each calendar year in each of thefacilities within the territorialjurisdiction of either party designated inaccordance with procedures agreed to by thepar

Iji)) alteration'in form or content of'PWtonium, uranium-233 and high enricheduranium in an aggregate quantity not toexceed 1 effective kilogram of theseifnu=iear MaERGRZa andu A itradiatednuclear material containing plutonium,uranium-233 or high enriched uranium inan aggregate quantity not to exceed 1effective kilogram of these nuclearmaterials;

I

I(ii) storage of plutonium and uranium-233(except as contained in irradiated fuelelements) and high enriched uranium in anaggregate quantity not to exceed 5effective kilograms of these nuclearmaterials; and

(iii) reprocessing of irradiated nuclearmaterial containing plutonium oruranium-233 in an aggregate quantity notto exceed 500 grams of these nuclearmaterials.

plutonium in quantities not to exceed 500grams to each facility designated in writingby the parties within the territorialjurisdiction of a third country forirradiation and for its subsequent return tothe territorial jurisdiction of thetransferring party.for testing and analysis.The transfer of unirradiated nuclear materia)shall take place in quantities not to exceed500 grams of contained plutonium per shipment.

3. (a) Each party shall keep the government of athird country informed of the facilitieswithin the territorial jurisdiction of thatgovernment which are listed in Annex 1 orwhich are designated pursuant to sub-paragraph (b) of paragraph 2 of thisArticle. Each party shall give thegovernment of'the third country its consentif required under its agreement with thatgovernment to:

(i) reprocessing, alteration in form orcontent and storage (in the case offacilities listed in Annex 1) andirradiation (in the case of facilitiesdesignated pursuant to sub-paragraph (b)of paragraph 2)t

(ii) return of the nuclear materialconcerned (except recovered plutonium) tothe territorial jurisdiction.of the otherparty; and

(iii) return of the recovered plutoniumconcerned in quantities of two kilogramsor more per shipment to the territorial

(b) The parties hereby agree pursuant toArticle 4 of the Agreement for Cooperation tothe transfer within each calendar year ofunirradiated nuclear material containing

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jurisdiction of the other party inaccordance with the following procedure:prior to each shipment the receivingparty will provide the other party awritten notification which shall includea statement advising that the measuresarranged for the international transportare in accordance with the guidelines setforth in Annex 5 and a description ofsuch measures.

(b) When the procedure set forth in sub-paragraph (a)(iii) above is not to befollowed, the return of the recoveredplutonium may only take place upon consent ofthe non-receiving party under the applicableagreement.

4. Sub-paragraph (a) of paragraph 1 andparagraphs 2 and 3 above shall apply only wherethe recovered plutonium concerned is or will belocated in a facility listed in Annex 1 or 2 ordesignated pursuant to paragraph 2 of thisArticle, unless otherwise accepted in writing bythe parties.

5. The additional procedural conditions for tbisImplementing Agreement are set forth in theAgreed Minutes to this Implementing Agreement.

Article 2

1. Annexes 1, 2, 3 and 4 of this ImplementingAgreement may be modified in accordance with theprocedures set forth in this Article and Annex 5of this Implementing Agreement may be modifiedby agreement of the parties, without amendmentof this implementing Agreement.

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2. Unless otherwise agreed by the parties,either party may add to or delete from Annex 1,2, 3 or 4 a facility within its territorial

jurisdictiop only after notifying the otherparty in writing in accordance with theprovisions of this Article and receiving awritten acknowledgment which shall be limited toa statement that such notification has beenreceived. Such acknowledgment shall be given nolater than thirty days after the receipt of the

notification.(a) For an addition to Annex I or 2 of afacility listed in Annex 3 or 4, thenotification shall contain:

(i) the name of the owner or operator ofthe facility, the facility name and theexisting or planned capacity;

(ii) the facility location, the type ofnuclear material involved, theapproximate date of introduction of suchnuclear material into the facility andthe type of activity; and

(iii) a-statement that a relevantsafeguards arrangement (namely, afacility attachment or, in the case of adhoc inspection, an arrangement therefor)has been agreed upon with theInternational Atomic Energy Agency(hereinafter referred to as the Agency*)and that physical protection measures asrequired by Article 7 of the Agreementfor Cooperation will be maintained

4242 48

(b) In addition to the information specifiedin sub-paragraph (a) above, the notificationshall contain the following information:

(i) For an addition to Annex 1 of afacility listed in Annex 4, except wheresub-paragraph (b) (ii) is applicable, astatement affirming that the safeguardsarrangement is in accordance with therelevant safeguards concept that has beenagreed upon between the parties and adescription of the key elements containedin the safeguards arrangement.

(ii) For an addition to Annex 1 of afacility listed in Annex 4, whensafeguards applicable to that facilityare already being applied at an Annex 1facility within the territoriaijurisdiction of the notifying party, astatement affirming that the safeguardsarrangement will be in all significantrespects the same as that being appliedat the corresponding facility listed inAnnex I and a description of the keyelements contained in the safeguardsarrangement.

(c) To delete a facility from Annex 1, 2, 3or 4 or to add a facility to Annex 3 or 4 thenotification shall contain the facility nameand other relevant information available.

3. A facility within the territorialjurisdiction of the government of a thirdcountry may be added to or deleted from Annex 1by agreement of the parties.

4. (a) When circumstances so require, theparties shall seek to develop as soon aspossible a safeguards concept for a facilitywhich is or will be listed in Annex 4 toavoid delaying its operation.

(b) When the Agency cannot administersafeguards in accordance with the safeguardsconcept that has been agreed upon between theparties with respect to a facility thenlisted in Annex 4, the parties shall makeevery effort to ensure that this does notdelay the operation of the facility. Forthis purpose consultations shall take placebetween the parties or between either partyand the Agency. The facility shall be. addedto Annex 1 pursuant to sub-paragraph (a) ofparagraph 2 above on a provisional basisprovided that the parties are satisfied thatadequate safeguards of the Agency will beapplied in the interim. The parties shallmake every effort to modify, as may benecessary, the relevant safeguards concept toenable the Agency to administer safeguards inaccordance therewith.

Article 3

1. This Implementing Agreement shall enter intoforce at the same time as the Agreement forCooperation and shall remain in force inaccordance with Article 11 of the Agreement forCooperation for the same duration. The partiesshall, at the request of either of them, consultwith each other whether to amend thisImplementing Agreement. or to replace it with anew agreement.

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2. Either party may suspend the agreement it hasgiven in Article 1 of this ImplementingAgreement in whole or in part to prevent asignificant increase in the risk of nuclearproliferation or in the threat to its nationalsecurity caused by exceptional cases such as amaterial breach by the other party of the Treatyon the Non-Proliferation of Nuclear Weapons orwithdrawal therefrom, or a material breach bythe other party of its safeguards agreement withthe Agency, of this Implementing Agreement or ofthe Agreement for Cooperation. Any decision onsuch suspension would only be taken in the mostextreme circumstances of exceptional concernfrom a non-proliferation or national securitypoint of view, would be taken at the highestlevels of government, and would be applied onlyto the minimum extent and for the minimum periodof time necessary to deal in a manner acceptableto the parties with the exceptional case.

3. During the period of suspension the partiesmay agree on a case-by-case basis to theactivities specified in Article 1 of thisImplementing Agreement. Prior to any suspensionthe parties shall consult with each other todetermine the facts of the matter and to discussto what extent, if at all, a suspension isnecessary. The suspending party shall carefullyconsider the economic effects of such suspensionand shall seek to the maximum extent possible toavoid the disruption of international nucleartrade and the fuel cycle operations under thisImplementing Agreement. The parties may agreein accordance with Article 14 of the Agreementfor Cooperation to refer any of these questionsto a third party for resolution.

4. The suspending party shall keep underconstant review the development of the situationwhich caused the suspension and shall withdrawthe suspension as soon as warranted. Theparties shall, at the request of either of them,consult with each other immediately to determinewhether there is a basis for the withdrawal ofsuch suspension.

DONE at Tokyo, this fourth day of November,19g7, in duplicate in the English language.

FOR THE GOVERNMENT OFAMERICA:

* g1THE UNITED ST}

f44ta/1e/

FOR THE GOVERNMENT OF JAPAN:

46 47

Annex 1. facilities for reprocessing alteration to faor occontent add storage

I. Reprocesuing Facilities

"ame of owner Facility name Capacity Locationar operator

Power Reactor and Tokai Reprocessing 210 t/yeer IbacakiNuclear fuel Develop- Plantsant Corporatlon

Power reactor and Chemical Processing 7.2 kge of FOR IbarakiNuclear fuel facility spent fuel/yearDevelopmentCorporation

Uritish Nuclear Xselafjeld Plant 1.200 bt/yeAr U.K.Fuels Public LimitedCompany

Compagnie COnirale La Hague Plant 1,400 t/year Francedes NatiosreNacl4ieire

2. Plutonium Conversion Facilities

Name of owner Facility nome Capacity Locationor oeerator

4. Independent *lutonium Storage Facilities

NIL

5. Other Facilities

NIL

Nucleag FuelDevelopmentCorporation

3. Plutonium fuel

ConvarsionDevelopmentacility

Fabrication Facilities

am A-J lunjany LDo4rax

aet op ovnr Facility name Capacity Locationor perator.1

Power Reactor andNuclear fuelDevelopmentCoepoeation

Tokal PlutoniumFuel FabricationFacility IPIFft

11 t MOE/year Ibacaki

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