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13054 Multilateral - Agreement Concerning Cooperation on the Application of Non-Proliferation Assurances to Low Enriched Uranium Transferred to the US for Fabrication into Fuel and Retransfer to Taiwan


   
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TREATIES AND OTHER INTERNATIONAL ACTS SERIES 13054

 

ATOMIC ENERGY

Cooperation

 

 


Agreement Between the
UNITED STATES OF AMERICA
and OTHER GOVERNMENTS


Effected by Exchanges of Notes
Dated at Washington July 21, 1999

with

Annex

and

Related Side Letter

 

 



 

 


NOTE BY THE DEPARTMENT OF STATE

Pursuant to Public Law 89—497, approved July 8, 1966
(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued
under the authority of the Secretary of State shall be competent
evidence . . . of the treaties, international agreements other than
treaties, and proclamations by the President of such treaties and
international agreements other than treaties, as the case may be,
therein contained, in all the courts of law and equity and of maritime
jurisdiction, and in all the tribunals and public offices of the
United States, and of the several States, without any further proof
or authentication thereof.”


 

 

 

 


MULTILATERAL

Atomic Energy: Cooperation

Agreement effected by exchanges of notes
Dated at Washington July 21, 1999;
Entered into force May 1, 2000.
With annex.
And related side letter.

 

 

 

 

The Department of State refers to the German
Embassy's Note dated July 21, 1999 concerning
cooperation between the Governments of the Federal
Republic of Germany, the Kingdom of the Netherlands,
and the United Kingdom of Great Britain and Northern
Ireland (hereinafter referred to as the Troika) and
the Government of the United States of America (the
four Governments hereinafter referred to as the
Parties) concerning cooperation between the Troika and
the Government of the United States of America on the
application of non-proliferation assurances to low
enriched uranium transferred from the Troika countries
to the United States for fabrication into fuel and
retransfer to Taiwan for use in Taiwan's light water
nuclear reactor programs. The Government of the
Federal Republic of Germany proposed that the terms
and conditions set forth in the Annex to that Note
shall govern that cooperation.
The Department of State confirms that the
Government of the Federal Republic of Germany's
proposal is acceptable to the Government of the United
States of America and that the Embassy's Note,
including its Annex, and this reply, together with the
equivalent exchanges of Notes between the Governments
of the Kingdom of the Netherlands and the United
Kingdom on the one hand and the Government of the
United States of America on the other, shall
constitute an
Agreement among the Parties, which shall enter into
force on the first day of the second month following
the date on which the last of the Troika countries has
informed the Department of State that the national
requirements for the entry into force of the Agreement
have been fulfilled and which shall remain in force
indefinitely, unless terminated by any Party upon six
months' written notice to the other Parties.
2
Department of State
Washington, July 21, 1999
The Department of State refers to the Royal
Netherlands Embassy's Note dated July 21, 1999
concerning cooperation between the Governments of the
Federal Republic of Germany, the Kingdom of the
Netherlands, and the United Kingdom of Great Britain
and Northern Ireland (hereinafter referred to as the
Troika) and the Government of the United States of
America (the four Governments hereinafter referred to
as the Parties) concerning cooperation between the
Troika and the Government of the United States of
America on the application of non-proliferation
assurances to low enriched uranium transferred from
the Troika countries to the United States for
fabrication into fuel and retransfer to Taiwan for use
in Taiwan's light water nuclear reactor programs. The
Government of the Kingdom of the Netherlands proposed
that the terms and conditions set forth in the Annex
to that Note shall govern that cooperation.
The Department of State confirms that the
Government of the Kingdom of the Netherlands' proposal
is acceptable to the Government of the United States
of America and that the Embassy's Note, including its
Annex, and this reply, together with the equivalent
exchanges of Notes between the Governments of the
Federal Republic of Germany and the United Kingdom on
the one hand and the Government of the United States
of America on the other, shall constitute an Agreement
among the Parties, which shall enter into force on the
first day of the second month following the date on
which the last of the Troika countries has informed
the Department of State that the national requirements
for the entry into force of the Agreement have been
fulfilled and which shall remain in force
indefinitely, unless terminated by any Party upon six
months' written notice to the other Parties.
Department of State
Washington, July 21, 1999
2
The Department of State refers to Her Britannic
Majesty's Embassy's Note dated July 21, 1999
concerning cooperation between the Governments of the
Federal Republic of Germany, the Kingdom of the
Netherlands, and the United Kingdom of Great Britain
and Northern Ireland (hereinafter referred to as the
Troika) and the Government of the United States of
America (the four Governments hereinafter referred to
as the Parties) concerning cooperation between the
Troika and the Government of the United States of
America on the application of non-proliferation
assurances to low enriched uranium transferred from
the Troika countries to the United States for
fabrication into fuel and retransfer to Taiwan for use
in Taiwan's light water nuclear reactor programs. The
Government of the United Kingdom proposed that the
terms and conditions set forth in the Annex to that
Note shall govern that cooperation.
The Department of State confirms that the
Government of the United Kingdom's proposal is
acceptable to the Government of the United States of
America and that the Embassy's Note, including its
Annex, and this reply, together with the equivalent
exchanges of Notes between the Governments of the
Federal Republic of Germany and the Kingdom of the
Netherlands on the one hand and the Government of the
United States of America on the other, shall
constitute an Agreement among the Parties, which shall
enter into force on the first day of he second month
following the date on which the last of the Troika
countries has informed the Department of State that
the national requirements for the entry into force of
the Agreement have been fulfilled and which shall
remain in force indefinitely, unless terminated by any
Party upon six months' written notice to the other
Parties.
2
Department of State
Washington, July 21, 1999
ANNEX
Recognizing that the Governments of the
Federal Republic of Germany, the Kingdom of the
Netherlands and the United Kingdom of Great Britain
and Northern Ireland (hereinafter referred to as the
Troika) and the Government of the United States of
America (hereinafter referred to as the United States)
have a common desire to ensure that low enriched
uranium transferred to Taiwan for use in peaceful
nuclear activities and any special nuclear material
produced therefrom is not used to manufacture or
otherwise acquire nuclear weapons or other nuclear
explosive devices;
Recognizing that the Troika seeks to ensure that
low enriched uranium produced in the Troika countries
and special nuclear material produced therefrom is
subject on Taiwan to nuclear non-proliferation
assurances consistent with the non-proliferation
policies of the Troika;
Recognizing that low enriched uranium transferred
from the Troika countries to the territory of the
United States for fabrication into fuel and retransfer
to Taiwan will be subject to the Agreement for
Cooperation in the Peaceful Uses of Nuclear Energy
Between the United States of America and the European
Atomic Energy Community, signed at Brussels on
November 7, 1995 and March 29, 1996 and which entered
into force on April 12, 1996 (hereinafter referred to
as the "U.S.-EURATOM Agreement"), while it is in the
United States of America;
Recognizing that under Article 8.1.(C)(i) of the
U.S.-EURATOM Agreement retransfers of low enriched
uranium to third parties may be undertaken when
carried out according to procedures set out in the
Agreed Minute thereto, including consideration, on a
case-by-case basis, for nuclear fuel cycle activities
other than the production of highly enriched uranium;
In order for the Troika to make low enriched
uranium available to Taiwan for use in light water
nuclear reactor programs on Taiwan:
1. Prior to the transfer of low enriched
uranium from the Troika countries to the United States
for retransfer to Taiwan, the Troika shall collaborate
with EURATOM in order to notify the United States that
such low enriched uranium is intended for fabrication
2
into fuel and retransfer to Taiwan for use in light
water nuclear reactors on Taiwan.
Low enriched uranium that has been the
subject of this notification and has been
retransferred from the territory of the United States
to Taiwan is referred to in this Agreement as "Troika
uranium."
2. "Troika uranium" will consist of low
enriched uranium as defined in Article 21.7 of the
U.S.-EURATOM Agreement.
3. At the time of transfer of low enriched
uranium from the Troika countries to the territory of
the United States for retransfer to Taiwan, the Troika
shall collaborate with EURATOM in accordance with
paragraph 4 of the Agreed Minute to the U.S.-EURATOM
Agreement in order to obtain the approval for the
retransfer of the low enriched uranium from the
territory of the United States to Taiwan.
4. The United States shall ensure that "Troika
uranium" and special nuclear material produced
therefrom are, while on Taiwan, subject to all
provisions of the Agreement for Cooperation Between
the United States of America and the Republic of China
Concerning Civil Uses of Atomic Energy, signed April
4, 1972, as amended and extended (hereinafter referred
3
to as the 1972 Agreement), while the 1972 Agreement is
in force or, in the event that the 1972 Agreement is
replaced, to the provisions of any succeeding
agreement while such succeeding agreement is in force.
The United States shall consult with inter alia the
Troika about the amendment, replacement, suspension or
termination of the 1972 Agreement or of any succeeding
agreement.
5. Except as provided in paragraph 9, the
United States shall ensure that "Troika uranium" and
special nuclear material produced therefrom are, while
on Taiwan, subject to the Safeguards Transfer
Agreement, signed December 6, 1971, under which the
International Atomic Energy Agency applies safeguards
on Taiwan (reproduced in International Atomic Energy
Agency document INFCIRC/158 of March 8, 1972 and
hereinafter referred to as the Safeguards Agreement),
while the Safeguards Agreement is in force or, in the
event that the Safeguards Agreement is replaced, to
the provisions of any succeeding agreement while such
succeeding agreement is in force. The United States
shall consult with inter alia the Troika about the
amendment, replacement, suspension or termination of
the Safeguards Agreement or of any succeeding
agreement.
6. For each transfer of "Troika uranium"
notified pursuant to paragraph 1, from the territory
4
of the United States to Taiwan, the United States
shall, through appropriate channels, identify such
uranium to Taiwan as "Troika uranium."
7. The United States shall approve the
retransfer from Taiwan of "Troika uranium" or special
nuclear material produced therefrom only to EURATOM or
to any third party that has been identified by EURATOM
in accordance with Article 8.1(C) of the U.S.-EURATOM
Agreement and paragraph 4 of the Agreed Minute to the
U.S.-EURATOM Agreement as acceptable under the U.S.-
EURATOM Agreement. This commitment applies only when
the United States has been advised that "Troika
uranium" or special nuclear material produced
therefrom is involved.
8. In the event that the consent of the United
States is sought for the reprocessing or enrichment to
twenty percent or greater in the isotope U-235 of
"Troika uranium" or special nuclear material produced
therefrom, on Taiwan, the United States shall consult
the Troika inter alia with a view to reaching
agreement prior to exercising any rights it has to
approve enrichment or reprocessing. This commitment
applies only when the United States has been advised
that "Troika uranium" or special nuclear material
produced therefrom is involved.
5
9. If, for any reason or at any time, the
International Atomic Energy Agency is not applying
safeguards pursuant to the Safeguards Agreement, or
(in the event that such Agreement is replaced)
pursuant to the provisions of any succeeding
agreement, the United States shall consult the Troika
inter alia to reach agreement on the application of
fallback safeguards to "Troika uranium" and special
nuclear material produced therefrom. Fallback
safeguards may include the invocation by the United
States of its existing rights under the 1972 Agreement
with a view to ensuring that the safeguards provided
for in the 1972 Agreement are applied to "Troika
uranium" or special nuclear material produced
therefrom.
10. If the United States, after consultation
with the Troika, exercises its rights under the 1972
Agreement to require the return from Taiwan of
material subject to that Agreement, "Troika uranium"
or special nuclear material produced therefrom that is
returned to the United States shall become subject to
the U.S.-EURATOM Agreement.
11. In the event that the United States finds it
necessary to exercise its rights to apply fallback
safeguards, in accordance with paragraph 9, or to
exercise its right of return, in accordance with
paragraph 10, the Troika shall ensure that all
necessary steps are taken to require URENCO to share
6
with the United States the cost of implementing these
rights as they apply to "Troika uranium" or special
nuclear material produced therefrom on a proportionate
basis based on the relative value of the enrichment
and fabrication components of the nuclear fuel
supplied.
12. The United States shall maintain an
inventory of "Troika uranium" on Taiwan, and, based on
information received through appropriate channels from
Taiwan, of special nuclear material on Taiwan produced
therefrom. The United States shall provide this
inventory to the Troika annually.
13. The United States shall, to the extent
permitted by United States law, consult the Troika
inter alia if it has reason to believe:
i. that the United States has not been
advised that a request for consent to retransfer from
Taiwan, to reprocess in Taiwan, or to enrich to twenty
percent or more in the isotope U-235 on Taiwan,
"Troika uranium" or special nuclear material on Taiwan
produced therefrom, actually involves "Troika uranium"
or special nuclear material produced therefrom, or
ii. that "Troika uranium" or special
nuclear material produced therefrom is not being
identified as from the Troika while on Taiwan.
7
In the case of (i) or (ii), the United States and the
Troika shall seek to reach an agreement on measures
that the United States and/or the Troika will take to
rectify the problem.
14. The Troika and the United States shall
consult at any time at the request of any Party to
ensure the effective implementation of this Agreement.
Such consultations may take the form of an exchange of
correspondence.
15. The Troika and the United States shall seek
to resolve any dispute concerning the interpretation
or application of this Agreement by negotiation,
inquiry, mediation, conciliation, arbitration,
judicial settlement, or other peaceful means as they
may mutually agree.
16. The United States confirms that in
accordance with an October 26, 1978 letter of
assurance from the "Embassy of the Republic of China"
to the United States Department of Energy, "Troika
uranium" and special fissionable material produced
therefrom shall be subject to measures of physical
protection in accordance with the criteria set out in
Annex C of the Guidelines for Nuclear Transfers as
promulgated by the International Atomic Energy Agency
in the Appendix to INFCIRC/254/Rev.3/Part 1.
8
The Troika and the United States shall consult at
the request of either concerning matters relating to
physical protection, including the application, for
the purposes of the preceding paragraph, of the
recommendations that may be made from time to time by
international expert groups.
17. Notwithstanding the suspension or
termination of this agreement, paragraphs 4, 5, 6, 7,
8, 9, 10, 11, 12, 13, 14, 15, and 16 shall remain in
force:
(i) while any source material or special
nuclear material subject to these provisions is on
Taiwan, or
(ii) until such time as the Troika and the
United States agree that source material or special
nuclear material subject to these provisions is no
longer usable for any nuclear activity relevant from
the point of view of safeguards.
9
Side Letter
The Department of State refers to the Agreement
of July 21, 1999 between the Governments of the
Federal Republic of Germany, the Kingdom of the
Netherlands, and the United Kingdom of Great Britain
and Northern Ireland (hereinafter referred to as "the
Troika") and the Government of the United States of
America (hereinafter referred to as "the U.S.")
concerning cooperation between the Troika and the U.S.
on the application of non-proliferation assurances to
low enriched uranium transferred from the Troika
countries to the United States for fabrication into
fuel and retransfer to Taiwan for use in Taiwan's
light water nuclear reactor programs.
Paragraph 11 of the Annex of that Agreement
requires that the Troika shall ensure that all
necessary steps are taken to require URENCO to share
the costs of the U.S. implementing its right to apply
fallback safeguards, in accordance with paragraph 9 of
the Agreement, or the costs of the U.S. implementing
its right of return, in accordance with paragraph 10
of the Agreement, as they apply to "Troika uranium" or
special nuclear material produced therefrom on a
proportionate basis based on the relative value of the
enrichment and fabrication component- of the nuclear
fuel supplied.
The Department of State would like to confirm
that "a proportionate basis based on the relative
value of the enrichment and fabrication components of
the nuclear fuel supplied" means that URENCO will
assume 70 percent of all costs incurred by the U.S. in
its exercise of the enumerated rights, while the U.S.
will assume 30 percent of all these costs. This
allocation of costs is predicated on the basis that no
other parties are contributing, directly or indirectly
through URENCO, to the cost of U.S. exercise of the
enumerated rights. Should, following negotiation,
additional parties assume a share of the exercise of
the enumerated rights, the U.S. will seek to agree
with the Troika on a different allocation of costs
between the U.S. and URENCO. Such additional parties
would include, for example, those supplying the
natural uranium feed material or the conversion
services for material enriched by URENCO or the party
supplying the conversion services for the enriched
product from URENCO.
The Department of State would like to further
confirm the understanding that the cost of the return
of the nuclear fuel, whether irradiated or
2
unirradiated, would include any required compensation
to Taiwan, transportation costs, storage costs, and
disposal costs. These costs would be offset by any
revenue that may be accrued from the sale of the fuel.
Department of State
Washington, July 21, 1999
3
Note No: 46
Her Britannic Majesty's Embassy presents its compliments to the Department of
State and has the honour to refer to discussions between officials of the Governments of
the Federal Republic of Germany, the Kingdom of the Netherlands and the United
Kingdom of Great Britain and Northern Ireland (hereinafter referred to as the Troika) and
the Government of the United States of America (the four Governments hereinafter
referred to as the Parties) concerning cooperation between the Troika and the
Government of the United States of America on the application of non-proliferation
assurances to low enriched uranium transferred from the Troika comities to the United
States for fabrication into fuel and retransfer to Taiwan for use in Taiwan's light water
nuclear reactor programmes. Pursuant to these discussions, the Government of the United
Kingdom proposes that the terms and conditions set forth in the Annex to this Note shall
govern that cooperation.
The Government of the United Kingdom has the further honour to propose that
this Note, including its Annex, and the Department of State's reply confirming that the
foregoing is acceptable to the Government of the United States of America, together with
the equivalent exchanges of Notes between the Governments of the Federal Republic of
Germany and the Kingdom of the Netherlands on the one hand and the Government of
the United States of America on the other, shall constitute an Agreement among the
parties, which shall enter into force on the first day of the second month following the
date on which the last of the Troika countries has informed the Department of State that
the national requirements for the entry into force of the Agreement have been fulfilled
and which shall remain in force indefinitely, unless terminated by any Party upon six
month's written notice to the other Parties.
The British Embassy avails itself of this opportunity to renew to the Department
of State the assurances of its highest consideration.

BRITISH EMBASSY
Washington
21 July 1999
NOTE: Annex to Note will not be printed in this publication.
 



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