Statement by Mr. MATSUDA Iwao
Minister of State for Science and Technology Policy
at the 50th General Conference of the IAEA
18 September, 2006

1. Opening Address
Mr. President, Mr. Director General, Distinguished Delegates, Ladiesand Gentlemen,
On behalf of the Government of Japan, I would like to congratulate
you, Mr. President, on your election as President of the 50th GeneralConference. I would also like to welcome the Republic of Malawi, theRepublic of Montenegro, the Republic of Mozambique, and theRepublic of Palau, who are expected to become members of the IAEA.

On this occasion, let me offer my heartfelt congratulations to theIAEA and Director General, Dr. ElBaradei, on being awarded the2005 Nobel Peace Prize.

Mr. President,Japan, as the only country to have suffered atomic bombings, strongly
believes in its mission to appeal to the world for the elimination of all
nuclear weapons. As the IAEA will celebrate its 50th anniversary nextyear, Japan once again calls upon all countries to demonstrate theirfirm determination to realize a peaceful and safe world free of nuclearweapons.

1Japan highly values the IAEA’s activities and will continue to work
closely with the Agency in various areas. Since October last year, theResident Representative of Japan, Ambassador Amano, has been
serving as the Chair of the Board of Governors. I believe this is one
way, in which we have made a positive contribution to the effectivefunctioning of the Agency.
This 50th General Conference marks the beginning of a series of events
commemorating the IAEA’s anniversary.

I am pleased to announce

that, as part of our contribution, Japan will host an IAEA symposium
on nuclear energy in April next year. I hope that this symposium will
be successful with the participation of a wide range of countries.

2. Peaceful Uses of Nuclear Energy and the IAEA
Mr. President,
In recent years, the role of nuclear energy has been re-evaluated andthe momentum for the promotion of nuclear energy has grown acrossthe globe. The use of nuclear energy needs to be promoted in amanner that fully takes into account various elements of nuclear
non-proliferation, safety and security. From this perspective, the roleof the IAEA has become even more important.

Japan has utilized nuclear energy for peaceful purposes, fully
ensuring international confidence and maintaining high transparency
through faithful implementation of its IAEA safeguards agreement fornearly 30 years. As a result, in September 2004, the implementation ofintegrated safeguards commenced in Japan. Japan is committed to2

fully cooperating with the IAEA in strict implementation ofsafeguards in Japan.

In October last year, Japan announced the “Framework for Nuclear
Energy Policy”, which lays down our basic viewpoints regarding ournuclear energy policy. Identifying nuclear energy as a key source ofelectricity, Japan seeks to establish the nuclear fuel cycle, while
strictly limiting the use to the peaceful purposes.

This policy isarticulated in the Framework as Japan’s basic stance. Furthermore,
my country will promote research and development on FBR cycle
technology which has the advantage in ensuring stable energy supplyand reduction in radioactive waste, and we are prepared to share theresults with the international community as a contribution on ourpart.

3. Strengthening of the Non-Proliferation Regime
Mr. President,
The international community needs to reinforce the NPT regime.
Despite our achievements in this regard, such as the progress towards
the universalization of the Additional Protocol, the amendment to theNSG Guidelines, and the establishment of the Advisory Committee on
Safeguards and Verification, the NPT regime remains under strain
with challenges such as the nuclear issues of the DPRK and Iran.
Nuclear proliferation is a threat to international peace and security,and it directly affects the security of all nations. From this standpoint,
we need to redouble our efforts to strengthen the nuclear
non-proliferation regime.
3Various proposals were made aiming at reinforcing the existing
nuclear non-proliferation regime, such as the Russian initiative, thesix-nation initiative, and the GNEP as a framework of international
cooperation including research and development, alongside the MNA
proposed by the IAEA Director General.

Japan welcomes these proposals, but bringing them forward is achallenging, yet important task. We need to examine how to promote
peaceful uses of nuclear energy while ensuring consistency with
non-proliferation requirements. In so doing, Japan believes that due
consideration should be given to questions such as whether the right ofpeaceful uses will not be unduly restricted, and whether additionalburden will not be imposed on those countries that fully comply withrelevant international rules. Japan will take part in, and contribute tointernational discussions at the IAEA and other forums in aconstructive manner.

The assurance of nuclear fuel supply is indeed the most pressing issue
that needs to be addressed.

At the June Board of Governors meeting,the six-nation initiative on reliable access to nuclear fuel was brought
to the attention of member states. Japan would like to propose theestablishment of an “IAEA Standby Arrangements System for Nuclear
Fuel Supply,” with a view to complementing the contents of thesix-nation initiative.

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This Standby Arrangements System covers not only uranium
enrichment but all phases of the whole front-end of the nuclear fuelcycle, such as uranium ore supply, conversion and fuel fabrication,uranium stock and reserve, so that many countries will be allowed toparticipate under certain conditions and to make contributions, whilereflecting the diversity of participating countries. This will also help
prevent and respond to market failure. I hope that this proposal will
be our most valuable contribution.

With the preparatory process of the 2010 NPT Review Conference dueto commence next year, Japan will play its part to secure the smoothlaunching of the process with a view to ensuring the success of theReview Conference.

4. Nuclear Issues of the DPRK and Iran
Mr. President,
While the nuclear issues of the DPRK and Iran remain as matters ofimmediate and grave concern, the Libyan decision to abandon its
weapons of mass destruction (WMDs) provides a good precedent tofollow. Last month, I paid a visit to Libya, making the first-ever visit
by a Japanese cabinet minister. It is important that the international
community makes a positive response to Libya’s renunciation of its
WMDs. The international community should demonstrate the benefitsof a strategic decision to cooperate with the international community
and to be a part of the global non-proliferation mainstream. We
should do our utmost to extend cooperation to Libya so that Libya canbecome a role model for others to follow. During my visit to Libya, the5Libyan leader and I confirmed our intention to strengthen bilateralrelations in the future.

Nearly a year has passed since the Six-Party Talks adopted the Joint
Statement last year, in which the DPRK has committed to abandoning
all nuclear weapons and existing nuclear programmes.

As is clearlymentioned in the UN Security Council Resolution 1695, we urge theDPRK to return immediately to the Six-Party Talks without
precondition and to work towards the expeditious implementation ofthe Joint Statement. We also urge the DPRK to respond to othersecurity and humanitarian concerns of the international community,including early resolution of the abduction issue, as is pointed out in
the Chair’s Summary of the G8 Summit meeting this year.

The multiple launches by the DPRK of ballistic missiles last July areclosely related to the nuclear issue, given the potential of such systems
to be used as a means of WMDs delivery. This act by the DPRK is amatter of grave concern to the security of Japan and to the peace andsecurity of the international community, as well as from theperspective of non-proliferation of WMDs. Furthermore, it is a
deplorable act that impedes the efforts by the countries concerned forthe resumption of the Six-Party Talks. Japan is determined to make its
utmost effort toward steady implementation of the Resolution 1695 incooperation with the international community.

Turning to the Iranian nuclear issue, it is regrettable that Iran has
been continuing uranium enrichment in defiance of the UN Security
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Council Resolution 1696.

The issue is not about whether Iran has theright to use nuclear energy for peaceful purposes.

Rather, what is

important is that the right can only be exercised on the premise thatIran restore the confidence of the international community that waslost because of its past activities.

The Resolution 1696 is not meant to deprive Iran of its right as Iranargues, but it stresses that the right has to be exercised in accordancewith internationally-established rules and with confidence of theinternational community. Japan supports the “comprehensiveproposals” presented by the EU3, China, Russia and the United States,
which also underline this point. Japan strongly urges Iran to accept
the Resolution, immediately suspend uranium enrichment-relatedactivities and return to the negotiation table. Japan believes it is thebest option that will benefit all parties concerned.

Japan will work

for a peaceful and diplomatic resolution of the issue in concert withthe international community.

5. Nuclear Terrorism
Mr. President,
It is imperative that the international community collectively address
the issue of nuclear security in order to counter the threat of nuclear
terrorism.

From this viewpoint, the International Convention for theSuppression of Acts of Nuclear Terrorism which Japanese Prime
Minister Koizumi signed last September at the United Nations, andthe Amendment to the Convention on the Physical Protection ofNuclear Material adopted at the Diplomatic Conference in July last7

year, are a testament to the international community’s firm union
against nuclear terrorism.

Japan has been conducting intensive consultations domestically for theearly conclusion of these instruments in order to facilitate their early
entry into force. In this regard, Japan will host an IAEA seminar on
nuclear security, including the issue of smooth implementation ofthese conventions, in Tokyo this November, with the participation of
Asian countries.

Japan welcomes the U.S.-Russian Global Initiative to Combat Nuclear
Terrorism announced by U.S. President Bush and Russian President
Vladimir Putin on 15 July in St. Petersburg, which, we believe, will
help strengthen measures against nuclear terrorism.

6. International Cooperation for the Promotion of Peaceful Uses ofNuclear Energy
Mr. President,
Peaceful uses of nuclear energy, including radioactive sources, areextremely beneficial for the socio-economic development of theinternational society. The role of the IAEA in this area is of great
importance.

Japan attaches significance to IAEA technical cooperation activities.
Japan has been making a considerable contribution to the RCA(Regional Cooperative Agreement for Research, Development andTraining) and also is one of the few Member States that have8

continuously contributed 100% of its share to the TechnicalCooperation Fund amid its tight budgetary situations. We strongly
encourage all Member States to pay their share of the Fund in full andwithout delay. We also urge recipient countries to fulfill their shared
responsibilities.

The Forum for Nuclear Cooperation in Asia (FNCA), in which Japan
plays a leading role, is a framework that has promoted peaceful usesof nuclear energy in Asia, encouraging voluntary cooperation among
participating countries. A similar kind regional forum could be
beneficial to achieving the same objective in other regions such asAfrica. Japan would like to extend its support through the IAEA
framework, and to work toward strengthening such regional forums.

As a country that leads the world in science and technology, Japan
believes it important to apply innovative technologies to the peacefuluse of nuclear energy.

Japan also believes that the IAEA should

expand its activities to engage more in such fields. I assure you thatJapan will spare no efforts in supporting the Agency in this respect.

In recent times, I have had various opportunities to meet withMinisters in charge of nuclear energy policy from countries aroundthe world, such as Bangladesh, China, Malaysia, the Philippines, theRepublic of Korea, Vietnam, and the United States. We have allconfirmed the importance of peaceful uses of nuclear energy with aview to securing stable supply of energy as well as preventing globalwarming.
9Last month, Japanese Prime Minister Koizumi visited Kazakhstan
and met with President Nazarbaev, with the two leaders confirming
their intention to strengthen bilateral cooperation in the area ofpeaceful uses of nuclear energy. For my part, during my visit to Libya,
I also confirmed the importance of peaceful uses of nuclear energy
with the Libyan leader and ministers concerned.

7. Nuclear Safety
Mr. President,
To promote the peaceful uses of nuclear energy, ensuring safety is thefundamental precondition. In particular, it is useful to conduct policy
dialogue and a peer review among high-level officials of regulatory
authorities of the countries with advanced nuclear safety regulations.
In this connection, Japan is planning to receive the Integrated
Regulatory Review Service (IRRS) next year in cooperation withrelevant countries. Taking into consideration the usefulness of theReview Service, Japan would like to encourage Member States toreceive the IRRS in order to enhance nuclear safety.

8. Transport of Radioactive Material
Mr. President,
The safe transport of radioactive material is essential for the peacefuluses of nuclear energy. On the basis of the right of freedom ofnavigation under the international law, Japan has conducted suchtransport, while employing the most stringent safety measures inaccordance with the international standards set by the relevant
10international organizations. At the same time, Japan is willing tomaintain dialogue between shipping and coastal states, aimed at
improving mutual understanding and building confidence.

Furthermore, a Transport Safety Appraisal Service (TranSAS)
mission was conducted in Japan last year. Japan finds the mission
profoundly useful in that the objective appraisal by the IAEA verified
the effectiveness of Japan’s regulatory practices in the safe transportof radioactive materials. Japan is highly appreciative of the smooth
conduct of the mission and will commit itself to the further
enhancement of safety.

9. IAEA Budget
Mr. President,
There is no doubt that sufficient financial resources are necessary for
the IAEA to play its expected role. In preparing the 2008-2009
Programme and Budget Proposals, however, Japan would like torequest the Secretariat to pay due consideration to the budgetarysituation of Member States and to continue its efforts toward
improving efficiency in budget management through prioritization ofprojects and reduction of costs.

10. Closing Remarks
Mr. President,
With the mounting challenges to peace and security today, the IAEA’svital role can only grow. I assure you of Japan’s continued support tothe IAEA.
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Thank you for your attention.

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