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DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(76)133
Vol.1976/9006

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COMMISSION
OFTHE
EUROPEAN COMMUNITIES
SecretariatCOM(76)133final.
Brussels,31March1976*
CONFIDENTIAL
DRÀFT
PROPOSAL PORDIRECTIVES TONEGOCIATE ANEW
EURATOM/CANADAAGREEMENT
(submitted .totheCouncilbytheCommiesion)
COM(76)133final.

XII/297/76E
CONFIOEN j'FL
Since themonth ofApril 1975 ,theCanadian Authorities have -
let theCommission know that ,onthe onehand ,thedecision ofthe
Government ofCanada ,announced totheHouse ofCommons onthe
20December 197^,torequire stricter safeguards onforeign sales
ofnuclear technology ,facilities andmaterial ,and ,onthe other ,
the.impending ratification oftheTreaty ontheNon-Proliferation of
Nuclear /andtheverification agreements concluded onthis basis by
,all theinterested EAEC member countries ,have made theconclusion
ofanewEuratom/Canada agreement both necessary andpossible ,-one
which will contain safeguards clauses adapted to'the new international
situation inthis field ,'and which will beintended toreplace the
agreement ofOctober 6,1959 *Asisknown ,thelatter isstill in
force ,but its existence isprecarious inview ofthe fact that ,
since October 6,1969 ,itcan ,inaccordance with itsarticle XV,be
denounced either bytheCommunity orbytheGovernment ofCanada
after 6months notice .
TheCanadian Minister forEnergy ,Mines andResources ,stated
inhisdeclaration totheHouse ofCommons onDecember 20j197^
...that theCanadian Government wasdetermined torequire that the
"maximum -safeguards "beapplied toensure that nuclear exports should
not serve formilitary uses orthe fabrication ofnuclear explosive
devices .Hepointed out that such safeguards would cover material ,
equipment ,facilities ortechnology supplied byCanada orobtained
from orwith thelatter andwould beadministered bytheInternational
atomic Energy Agency (IAEA )orthrough appropriate alternative proce­
dures meeting therequirements oftheNon-Proliferation Treaty .
(SeeinAnnex Iexcerpts tifthis statement ).
Itwasinthis spirit that Canada took part inthe elaboration
oftheguidelines for nuclear transfers ofthe "London Club "andhas
undertaken toapply them .
TheCanadian Authorities have been active inputting thenew
Canadian safeguards policy into effect andduring theyear 1975 ,
revised all their nuclear co-operation agreements ,with third countries
totake this into aocount .
With regard totheEuropean Atomic Energy Community ,the
Canadian Government realized that its safeguards policy could be
expressed inanewEuratom /Canada agreement only after theentry into
force oftheverification agreement ofApril 5,1973 ,concluded
between Euratom ,the 7non-nuclear weapon member countries and the
IAEA ,and theconclusion ofappropriate agreements forthe two
nuclear weapon member states .

-2- XII/297/76E
CONFIDENTIEL
Meanwhile -and inorder toavoid anyinterruption ofexisting
nuclear co-operation between Canada andEuratom ,particularly the
supply ofCanadian nuclear material totheEAEC ,a"Joint Technical
Working Group "(JTWG ),made upofCanadian andCommission safeguards
experts ,was created onthebasis ofarticles IX,3andXIII ,1of
theEuratom /Canada agreement ofOctober 6,1959 .Thetask ofthis
Group ,which already met onFebruary 19last ,istodiscuss technical
measures bywhich both parties canbeassured that theCommunity 's
safeguards and control system and themeasures for accounting for the
use ofmaterial orequipment established bytheGovernment ofCanada
aresatisfactory andeffective for thepurpose ofthe existing
Euratom /Canada co-operation agreement .
Furthermore ,theGroup must evaluate the effectiveness ofthe
safeguards measures applied byboth parties onnuclear materials
falling under thescope oftheexisting Euratom /Canada agreement for
co-operation .
But this isa"modus vivendi "which isbound tobeshort-lived .
Infact ,these provisional -measures were accepted bytheCanadian
Authorities onJanuary 5,1976 ,foraperiod ofsixmonths only .
Before this period expires ,itistherefore necessary that thenego­
tiation ofthenewEuratom /Canada agreement should have started and
progressed asfar aspossible .
Inview ofthe fact that' Canada attaches great importance to
beginning this negotiation assoon aspossible ,and that itislikely
that theCouncil will soon approve thenewEuratom safeguards regu­
lations enabling theEuratom /IAEA verification agreement toenter
into force aswell astheimplementation ofappropriate verification
agreements between Euratom ,each ofboth nuclear weapon member states
and theIAEA ,itseems that thetime hasnow come fortheCommission
torequest adirective from theCouncil tonegotiate anewagreement
which will allow nuclear co-operation between theCommunity and
Canada todevelop ,particularly inthearea ofnuclear material
supply ,along thelines ofthenewCanadian safeguards policy .
TheCommunity ,forlispart ,hasevery reason toencourageaframework of
this THrv*anddevelop these bases forcooperation ,mainly topromote itssupplies
ofnatural uranium ofwhich Canada could supply anincreasingly substantial
proportion .
Theattached draft directives aredesigned forthenegotiation ofaframe­
work nuclear agreement on:thebasis ofwhich specifio agreements andcontracts
can "belater negotiated inthedifferent fields ofpeaceful nuclear cooperation ,
inparticular supply oontraots fornuclear material ,aridR&D agreements .
This cooperation agreement will itself form part oftheeconomio and
commercial cooperation agreement between theEuropean Communities andCanada
nowtinder negotiation onthebasis ofthedirectives issued bytheCouncil on
February 9last .Thenuclear sector isparticularly suitable forfruitful
cooperation between theCommunities andCanada ,which isjust asmuch an
objective oftheEuropean Communities asofCanada .
Toconclude ,theCommission forwards totheCouncil intheAnnex IItothe
present communication ,adraft decision laying down directives fortheCommission
tonegotiate anewagreement between theEuropean Atomic Energy Community and
Canada forcooperation inthepeaceful uses ofatomio energy .

COmiELXI1/297/76E
ANNEX I
EXCERPTS OFSTATEMENT M*J)E BYTHE CANADIAN MINISTER
FORENERGY ,MINES ANDRESOURCES BEFORE THEHOUSE OF
COMMONS INOTTAWA ONDECEMBER 20.197^
"... with uranium resources inexcess ofourrequirements and a
competitive Canadian reactor we.r-are intheposition tomake an
important contribution tothepressing energy needs ofthe world
and arewilling tomake it.
Atthesame time ,theGovernment ismore than ever conscious
ofitresponsibility toensure that Canadian nuclear resources donot
contribute tonuclear proliferation .This requires that Canada should
apply themaximum safeguards orrestraints attainable toinhibit
importing states from using nuclear supplies tofurther theproduction
ofnuclear explosive devices .The export ofcertain nuclear equipment
including reactors ,fuel fabrication andreprocessing plants ,and
heavy water plants ,and their major components ,andrelated technology ,
will require safeguards .
Iwould like now tooutline theprovisions that will berequired
inevery safeguards arrangement .Theprovisions ,tobeadministrated
bytheInternational Atomic Energy Agency ,orthrough appropriate
alternative procedures meeting therequirements oftheTreaty on
theNon-Proliferation ofNuclear weapons ,will cover allnuclear
facilities and equipment supplied byCanada for thelife ofthose
facilities andequipment .They will cover allnuclear facilities
andequipment using Canadian-supplied technology .They will cover
all nuclear material -uranium ,thorium ,plutonium ,heavy water -
supplied byCanada ,andfuture generations offissile material
produced from orwith these materials .They will cover allnuclear
materials ,whatever their origin ,produced orprocessed infacilities
supplied byCanada .
Most importantly ,allsafeguards arrangements will contain
binding assurance that Canadian-supplied nuclear material ,equipment
and technology will not beused toproduce anuclear explosive device ,
whether thedevelopment ofsuch adevice bestated tobeforpeaceful
purposes ornot".

XII/297/7bE
ANNEX II .
DRAFT COUNCIL DECISION LhYING DOWN DIRECTIVES FOR THE
COMMISSION TONEGOTIATE ANEW AGREEMENT BETWEEN EURATOM
AND CANADA FOR CO-OPERATION INTHE PEACEFUL USES OF
ATOMIC ENERGYC0NHIEL
The Council ofthe European Communities ,
Having regard tothe -Treaty establishing theEuropean Atomic Energy
Community and inparticular thesecond paragraph ofarticle 101
thereof ,
draft
Having regard tothevproposal from theCommission ,
Whereas theCouncil decided onFebruary 9,1976 ,toauthorize the
opening ofnegotiations with Canada with aview totheconclusion
ofaframework economic and commercial co-operation agreement between
the European Communities andCanada ,
Whereas thenuclear sector p.saparticularly suitable area for a
development ingreater depth ofthe co-operation referred tointhat
agreement ,
Whereas afruitful co-operation has been developed between theEAEC
andtheGovernment ofCanada intheframework oftheEuratom/Canada
agreement ofOctober 6,1959 ?inthepeaceful uses ofnuclear energy ,
particularly with regard tosupply andsafeguards ,
Whereas ithas how become urgent toreplace that agreement with anew
agreement taking into account both thepresent state ofrelations
between theCommunity andCanada and the future perspectives forthe
development ofsuch relations ,
Consider !^inparticular
1°thegrowing Community needs and the excess ofCanadian
natural uranium resources ; .
2°Canadian safeguards policy andEuratom responsibilities in
this matter ,byvirtue ofboth theEuratom Treaty and theverification
agreement signed with the IAEAonApril 5»1973 ;
3°thepossibilities forco-operation between Euratom and
Canada inpeaceful nuclear research ,development 'and industry ,
HaS DECIDED ASFOLLOWS :
1)TheCommission isinstructed tonegotiate with theGovernment of
Canada ,onthebasis ofarticle 101 ,paragraph 2oftheTreaty
establishing theEuropean Atomic Energy Community ,anagreement
between Euratom and theGovernment ofCanada forco-operation inthe
peaceful uses ofatomic energy .

-•^ XII/297/76E
CONFIDENTIEL
2)ThatagreementshallreplacetheagreementofOctober6,1959»which
shallbeterminated ontheentryintoforceoftheagreement nowto
benegotiated .
3)Theagreementshallcontainclausesconstituting aframeworkforas
closeapeacefulnuclearco-operation aspossiblebetweentheParties
andpersonsandfirmsundertheirjurisdiction ,andembracingthe
mostdiversesectors.Suchco-operation shouldinparticular extend
tothefollowingareas:
-supplyofmaterial,nuclearmaterial,equipment ,devicesand
facilities ;
–•exchangeofinformation ,particularly on
-equipment,facilitiesanddevices(includingthesupply
ofdesigns,drawingsandspecifications );
-usesofequipment,facilities ,devicesandmaterial;
-accesstoanduseofequipmentandfacilities ;
-provisionoftechnicalservices;
-improvement ofprospecting techniquesandminingresearch;
-implementation ofjointprojectsforresearchanddevelop­
mentaswellasforthe"design"andapplication ofatomic
energyinsuchareasaselectricity production ,agriculture
industryandmedicine;
-participation ofpersonsorenterprises fromeither
ContractingPartyinanynuclearindustrialenterprise
oftheother,particularly inenterprisesspecifically
concernedwiththeexploration andexploitation of
uraniumdeposits,thetransformation ofmineralsand
sourcematerial,thefabrication offuelelements,all
activitiesconnectedwiththemanagement andstorageof
radioactive waste,thechemicalreprocessing offuel
elementsanduraniumenrichment .
H)TheagreementshallprovidethatthePartiesshallusetheirbest
endeavourstoencourage,whereverpossible,theimplementation ofthe
Euratom/Canadaco-operation agreementbymeansofspecificagreements,
conventions orcontractsdesignedtocontributetotheattainment
oftheobjectivesdefinedinthedirectivesofFebruary9»1976,for
thenegotiation oftheeconomicandcommercialco-operation agreement
tobeconcludedbetweentheEuropeanCommunities andCanada,taking
asabasis,inparticular ,themeansofco-operation laiddownin-researchanddevelopment ;
-problemsofhealthandsafety;

CONFIDENTIEL11/297/76E
(•)point B,3,c) ofthese directives .Particular reference shall
bemade totheneed for theEuropean Atomic Energy Community tofind
inCanada ,onthebasis ofthetwoafore-mentioned agreements ,a
source ofuranium supply which cansignificantly ,contribute tothe
Community 'ssecurity ofsupply .
5)Theagreement shall laydown that theenvisaged co-operation will
becarried out without prejudice tothe laws andregulations inforce
within theCommunity andinCanada .
ν
6)Theagreement should provide fortheapplication ,onareciprocal
basis ,ofsuch safeguards aswill give the assurance toeach Party
that thematerial ,equipment ,facilities andinformation supplied
totheother pnrsuant totheagreement ,orobtained fro® orwith
thehelp ofthe latter ,shall not beused bythat Party insuch a
.way astopromote military uses orthe fabrication ofnuclear explo -
^ sive devices .
W 4
With regard totheapplication ofsafeguards within theCommunity , .
such ,safeguards should notprejudice theprovisions oftheTreaties
establishing theEuropean Communities orthe free movement ofgoods
between allMember States .They should take acoount ofthedifferent
situations inthe Member states inrelation tothe Non-Proliferation
Treaty .They shall bebased ,whenever applicable ,onthe safeguards
agreements concluded between theCommunity ,theMember States and the
International Atomic Energy Agency .
7)Thesupply ofnuclear material ,facilities andequipment which will
becarried outinapplication ofthe agreement could becontingent
upon theimplementation ofappropriate physical protection measures
pursuant toI*»EA recommendations .Asfar asitisconcerned ,Euratom
shall undertake touse its best endeavours toeffectively carry out
such measures . .?
«
(*)\ yllmi A» a•"TheContracting Parties could encourage andfacilitate inter alia l
-broader inter-corporate links between their respective
industries ,especially inthe form ofjoint ventures ;
-greater participation bytheir respective "national firms
intheindustrial development oftheContracting Parties on
mutually advantageous terms ;
-increased andmutually beneficial investment ;•*
-technological andscientific exchanges ;
-joint operations inthifrd countries ."

ΧΪΪ729777ΕΤ
CONFIOENm
»
8)Anappropriate mechanism forconsultations between theParties shall
beorganized with aview tofacilitating thecarrying outofthe
agreement ,and topromoting theco-operation itaims todevelop .
The joint body established for this purpose shall constitute one of
the sectoral sub-committees provided for inthe directives for the
negotiation ofaneconomic and commercial co-operation agreement
between theEuropean Communities andCanada .
9)Theagreement shall beofindeterminate duration .However ,itmaybe
revoked only after five years ,subject tooneyear 'snotice .
10)Thematerial ,facilities ,equipment andinformation falling under the
scope ofthis agreement shall remain ,after its expiration and until
.otherwise agreed among theParties ,under thesafeguards andphysical
protection measures which are laid down init.
*
4