AMENDMENT TO THE ADDITIONAL AGREEMENT FOR C00PERATION of 11 June 1960 between the European Atomic Energy Community (Euratom) and the Government of the United States of America (74/254/Euratom)

Preamble

Whereas the European Atomic Energy Community (Euratom) and the Government of the United States of America signed an Agreement for Cooperation on 8 November 1958 (hereinafter referred to as the "Joint Program Agreement") which was amended by the Agreement signed on 21 and 22 May 1962;

Whereas the Parties signed an Additional Agreement on 11 June 1960 (hereinafter referred to as the "Additional Agreement"), to provide for further cooperation, which was amended by the Agreements signed on 21 and 22 May 1962, and 22 and 27 August 1963, to provide supplementary requirements for special nuclear material;

Whereas the Parties wish to bring up to date the provisions of the Additional Agreement concerning transfers of special nuclear material, as well as the performance of services with respect to special nuclear material;

The Parties agree to amend the Additional Agreement as follows:

Article I

Article I of the Additional Agreement, as amended, is amended to read as follows:

"A. Subject to the availability of capacity in United States Commission facilities for uranium enrichment and within such quantities as may be authorized for transfer, contracts with Euratom, or with authorized persons within the Community, may be entered into by the United States Commission as herein set forth for the production or enrichment of uranium enriched in the isotope U-235 for use as fuel in power applications undertaken within the Community. It is understood by the Parties that, at such times as Euratom, or such authorized persons, have requirements for such services and are prepared to execute firm contracts under the United States Commission's standard terms which set forth the agreed delivery schedules and other conditions for supply of such services, Euratom, or such authorized persons, will have access on an equitable basis with other purchasers of such services to uranium enrichment capacity then available to the United States Commission and not already allocated, or to other means of supply in accordance with existing United States Commission policy. Contracts for supply of such services will be negotiated and executed on a timely basis.

B. Additionally, upon request by Euratom or authorized persons within the Community, the United States Commission may, at its option and under such terms and conditions as may be agreed, sell uranium enriched in the isotope U-235 in such amounts as are within quantities authorized for transfer for use as fuel in power applications undertaken within the Community.

C. Under such terms and conditions as may be agreed and within such quantities as may be authorized for transfer, the United States Commission may transfer (including inter alia supply through enrichment services contracts) to Euratom or authorized persons within the Community uranium enriched in the isotope U-235 for use in research applications, including inter alia fuel for research, materials testing, and experimental reactors and reactor experiments. The principle of equitable treatment among its foreign customers will govern the United States Commission in its decisions on the situations under which such uranium will be supplied and on the type of transfer to be employed.

D. Special nuclear material may also be transferred (including inter alia supply through enrichment services contracts) to either Party, or to persons authorized by it to receive such material, under such terms and conditions as may be agreed and within such quantities as may be authorized for transfer, for the performance within the territory of the receiving Party of conversion or fabrication services, or both, and for subsequent return to the territory of the Party from which it was transferred, or for subsequent transfer to any other nation or group of nations pursuant, in case of the performance of the conversion or fabrication services within the Community, to Article XI of the Joint Program Agreement.

E. Irradiated special nuclear material of United States origin may be transferred to Euratom, or to authorized persons within the Community, under such terms and conditions as the Parties may agree and within such quantities as may be authorized for transfer, for chemical reprocessing and subsequent retention within the Community for applications within the scope of this Agreement, or subsequent transfer to a nation outside the Community or another group of nations pursuant to Article XI of the Joint Program Agreement.

F. Special nuclear material other than uranium enriched in the isotope U-235 may be transferred to Euratom, or to authorized persons within the Community, for use as fuel in reactors and reactor experiments and for other peaceful applications, provided that the net amount of material so transferred by the United States Commission shall not exceed such quantities as may be authorized for transfer, and that the terms and conditions of each such transfer shall be agreed upon in advance.

"

Article II

Article I bis of the Additional Agreement is amended to read as follows:

"A. The enriched uranium supplied under this Agreement may contain up to twenty percent (20 %) in the isotope U-235. A portion of the uranium enriched in the isotope U-235 so supplied may be made available as material containing more than twenty percent (20 %) in the isotope U-235 when the use of such material is technically or economically justified.

B. Subject to the provisions of Article II bis, the quantity of uranium enriched in the isotope U-235 transferred under Article I or Article II to the Community or to authorized persons within the Community for purposes authorized in this Agreement may include such amounts as are mutually agreed are necessary for the accomplishment of such purposes, including the fueling of reactors or reactor experiments within the Community and their efficient and continuous operation.

C. Special nuclear material produced as a result of irradiation processes in any part of the fuel that may be leased by the United States Commission under this Agreement shall be for the account of the lessee and, after reprocessing, title to such produced material shall be in the lessee unless the United States Commission and the lessee otherwise agree.

D. Special nuclear material produced through the use of material transferred to the Community or to authorized persons within the Community pursuant to this Agreement may be transferred to any nation outside the Community or any other group of nations, provided that such nation or group of nations has an appropriate agreement for cooperation with the Government of the United States of America or guarantees the use of such material for peaceful purposes under safeguards acceptable to the Parties.

E. 1 Special nuclear material of non-United States origin which is exported from the Community to the United States of America shall not, if re-exported from the United States of America to the Community, be charged against the quantity authorized for transfer to the Community and, if not improved while in the United States of America, shall be exempt from the safeguards required pursuant to this Agreement.

2 The material shall be deemed to be improved and therefore subject to the safeguards required pursuant to this Agreement when (a) the concentration of fissionable isotopes in it has been increased,

(b) the amount of chemically separable fissionable isotopes in it has been increased, or

(c) its chemical or physical form has been changed so as to facilitate further use or processing.

F. Some atomic energy materials which may be provided in accordance with this Agreement are harmful to persons and property unless handled and used carefully. After delivery of such materials, the Community shall bear all responsibility, insofar as the Government of the United States of America is concerned, for the safe handling and use of such materials. With respect to any special nuclear material which the United States Commission may, pursuant to this Agreement, lease to the Community, or to authorized persons within the Community, the Community shall indemnify and save harmless the Government of the United States of America against any and all liability (including third party liability) for any cause whatsoever arising out of the production, fabrication, ownership, lease, possession and use of such special nuclear material after delivery by the United States Commission.

"

Article III

Article II of the Additional Agreement, as amended, is amended to read as follows:

"A. With respect to the application of atomic energy to peaceful uses, it is understood that arrangements may be made between either Party or authorized persons under its jurisdiction and authorized persons under the jurisdiction of the other Party for the transfer of special nuclear material and for the performance of services with respect thereto for the uses specified in Article I and subject to the relevant provisions of Article I bis and to the provisions of Article II bis.

B. The Parties agree that the activities referred to in paragraph A of this Article shall be subject to the limitations in Article III and, on a non-discriminatory basis, to the export policies of the Community and the Government of the United States of America with regard to transactions involving the authorized persons referred to in paragraph A of this Article.

"

Article IV

A new Article II bis is added to read as follows:

"Article II bis A. The total quantity of U-235 in enriched uranium transferred by the Government of the United States of America or persons authorized by it under Articles I and II of this Agreement shall not exceed the quantity authorized for transfer by the United States Commission pursuant to United States law.

B. The net amounts of special nuclear material other than U-235 in enriched uranium which may be transferred by the United States Commission under Article I, paragraph F of this Agreement shall not exceed the quantities authorized for transfer by United States law. The net amounts of such material shall be the gross quantity of each such special nuclear material transferred less the quantity thereof which has been returned to the United States of America or transferred to any other nation or group of nations pursuant to Article XI of the Joint Program Agreement.

"

Article V

The definition of "person" in paragraph (a) of Article XV of the Joint Program Agreement, incorporated by reference in Article V of the Additional Agreement, is changed to read as follows:

""Person" means any individual, enterprise, corporation, partnership, firm, association, trust, estate, public or private institution, group, government agency, government corporation, or national, regional or local government, but does not include the Parties to this Agreement."

Article VI

Paragraph B of Article VI of the Additional Agreement, as amended, is amended to read as follows:

"B. The Parties agree that their undertakings under this Agreement are subject to appropriate statutory steps, including authorization by competent bodies of the Community and the Government of the United States of America, and the provisions of applicable laws, treaties, regulations and license requirements in effect in the Community, in the United States and within the Member States.

"

Article VII

This Amendment shall enter into force on the date on which each Party shall have received from the other Party written notification that it has complied with all statutory and constitutional requirements for the entry into force of such Amendment and shall remain in force for the period of the Additional Agreement, as amended.

In witness whereof, the undersigned, duly authorized, have signed this Amendment.

Done at Washington, in duplicate, this twentieth day of September, 1972.

FOR THE GOVERNMENT OF THE UNITED STATES OF AMERICA:

Walter J. Stoessel Jr.

James R. Schlesinger

FOR THE EUROPEAN ATOMIC ENERGY COMMUNITY (EURATOM):

A. M. Mazio