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COM (85) 294 
 
 
 
Vol. 1985/0 126 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), t his file is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februa r 1983 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 v om 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION OF THE EUROPEAN COMMUNITIES
C0MC85) 294 final
Brussels, 6 June 1985
Commission communication to the Council  
Position to be adopted
concerning the expiry on 23 June 1985 of the  
1961 Euratom-Brazil Agreement
C0MC85) 294 final

Commission communication to the Council
Position to be adopted
concerning the expiry on 23 June  1985 of the  
1961 Euratom-Brazil Agreement
-  The 1961 Agree m e n t
The 1961 Euratom-Brazil Agreement, which expires on  
23 June 1985, has hardly been implemented. The lack  
of administrative activity under the Agreement is  
particularly worthy of mention, as no consultations  
between the parties under Article XIV have taken  
place.
A number of factors have helped bring about this  
state of affairs :
(i) the fact that significant nuclear measures  
by Brazil, aimed at mastering the technology  
of the PWR concept and its fuel cycle, date  
only from  1975 and the adoption of a major  
nuclear power programme ;
(ii) the fact that the Agreement was aimed mainly  
at cooperation in research and the exchange  
of knowledge, whereas applied nuclear power  
techniques emerged from the Laboratory as  
far back as the early seventies to become in­
dustrial activities ;
Ciii) the non-binding nature of the Agreement, even  
with regard to administrative matters.
It would seem therefore that the negotiation of a new  
Euratom-Brazil Agreement along the lines  of its 1961 
predecessor can be ruled out.
Brazil's nuclear activities
Wi thout 
nuclear 
t i  on of 
clear), 
to date 
betweenunderestimating Brazil's fairly diversified
activities, notably under the 
(Commisaò Nacional de Energiadi rec- 
Nu- i
said that Brazil's nuclear progressresearch  
the CNEN  
i t  can be  
is mainly  
NUCLEBRAS
1975 nuclear power programme, and industrial underta­
kings from the Community, notably the KWU and Pechineythe result of  
a state bodyindustrial cooperation  
set up to carry out th

In the case of the KWU, a high Level of industrial  coo­
peration has developed in the framework of an agreement between  
the Federal Republic of Germany and Brazil (which con­
tains a reference in its preamble  to the 1961 Euratom-  
Brazil Agreement).
Brazil has also developed industrial nuclear cooperation  
with Argentina, which is pursuing nuclear independence  
objectives similar to its own. Argentina and Brazil con­
cluded a nuclear cooperation agreement  in 1980.
On the other hand, there has been no development of nu­
clear cooperation between the United States and Brazil, !
on account of the dispute over  the 1968 Non-Proliferation  
Treaty, which was rejected by Brazil.* Although Brazil  
is in favour of a nuclear-free zone in Latin America,  
the United States' opposition to the acquisition by Brazil  
of sensitive technologies (enrichment and reprocessing)  
has hampered Brazil's progress in these fields.
Brazil's nuclear trump cards at present are its uranium  
resources (hardly exploited so far) and the capacity it  
now possesses for the manufacture of heavy components  
for pressurized reactors. In contrast, the power plant  
under construction (two 1  350 MWe power stations schedu­
led for completion  in 1990 and 1991) or in service (one  
600 MWe power station) are still plagued by technical  
and financial problems ;  fuel fabrication would appear  
to be under control but enrichment and reprocessing are  
still at the laboratory or pilot scheme stage.
Despite these uneven results, the amount that has gone  
into the efforts so far probably means that Brazil is  
to pursue its nuclear development by keeping up the  
industrial cooperation already established.
Present situation
The 1961 Agreement will expire at a time when the delays  
affecting the 1975 nuclear power programme coincide with  
a situation that has changed greatly since the mid-70s :  
slower increase of energy - and notably electricity - consumption,  
major dams have been brought into service, and there have  
been large discoveries of natural gas and oil. In addi­
tion, the level of indebtedness and financial stringency  
cast a shadow at present over the maintenance of Brazil's  
nuclear effort at its current level, if not over the aim  
of establishing a viable nuclear power sector. The reduced
As it was by Argentina

3.
priority given to this aim may lead Brazil to develop  
its uranium resources for export.
There have been many indications recently that Brazil's  
new government is preparing to adjust the country's nu­
clear policy to current and foreseeable economic circum­
stances. Any decisions that may be made will in any  
case have an impact on cooperation and nuclear trade  
with the Community area.
^■  Position to be adopted with regard to Brazil
The contacts established early  in 1984 have shown that  
Brazil sees a political value in maintaining a Euratom-  
Brazil cooperation framework. Because of current po­
litical developments, however, the Brazilian government  
is not yet ready to make specific statements on the mat­
ter. The Commission informed the Working Party on Ato­
mic Questions accordingly at the beginning of this year.
Despite this uncertainty with regard to Brazil's inten­
tions, the Commission departments have set out some ideas  
on the content of a possible Euratom-Brazil agreement  
or arrangement which would be compatible with Community  
interests, in working paper  SEC(85)466 of 27 March 1985 
(Annex I). The Working Party on Atomic Questions held  
a discussion on the basis of this document  on 21 May 1985.
The meeting found that the imminence of the expiry  of 
the 1961 Euratom-Brazil Agreement, together with the  
timetable resulting from political developments at pre­
sent under way in Brazil, made it impossible by any stan­
dard to conclude with Brazil an agreement following imme­
diately upon  its 1961 predecessor. However, it was ack­
nowledged that it was not desirable in Brazil's case to  
allow the 1961 Agreement to expire in silence, and refe­
rence was made to the previous case of the expiry of the  
Euratom-Argentina Agreement in November  1983.
As a preliminary step the Working Party also expressed  
itself in favour of a framework that would promote the  
development of cooperation between Euratom and Brazil,  
provided théfc Brazil confirmed its interest.
The Commission will therefore maintain appropriate con­
tacts with Brazil, so as to be ready - should Brazil's  
attitude so warrant - to start considering directives for  
negotiations with a view to a Euratom-Brazil arrangement.
For the present the Commission intends to present to the  
Brazilian Mission before 23 June  1985, in view of the expiry

4.
of the 1961 Agreement on that date, a Note verbale (see  
draft in Annex II) inviting Brazil to indicate its desi­
derata, when it is ready, with regard to a possible fu­
ture agreement or arrangement on cooperation between  
Euratom and Brazil.

COMMISSION OF THE EUROPEAN COMMUNITIES
SEC(85) 466 Brussels, 28 March 1985.
V  COMMISSION STAFF PAPER
Subject :  Euratom/BraziL cooperation :  situation in view of the  
impending expiry of the 1961 Agreement.
1· 1961 Euratom/BraziL Agreement :  review
Negotiated and concluded by Euratom in 1961 and entering into  
force, after ratification by Brazil, only in 1965 (24 June 1965)  
for a period of 20 years, the "Agreement for cooperation between the  
European Atomic Energy Community (Euratom) and the Government of the  
United States of Brazil concerning the peaceful uses of atomic  
energy" expires on 23 June 1985.
This Agreement, for the purpose of developing the peaceful uses of  
atomic energy (Article I), defined the areas (Article II) in respect  
of which the parties were free to "agree... case by case" (Article III)  
the„procedures for their cooperation. As regards the administration  
of the Agreement, provision was made for the holding of consultations  
"from time to time... at the request of either party" (Article XVI)  
with a view to examining, in particular, "the problems raised by  
the implementation of the Agreement". Specifically envisaged in  
this connection, was the application of a system of safeguards  
intended to ensure the exclusively peaceful use of the materials and  
equipment supplied under the agreement, account being taken, in  
particular, of the Euratom safeguards and of the international role  
of the IAEA (Article XIII).
Today, three months before the Agreement is due to expire, the  
situation can readily be summarized as follows :  
administration :  none; activities :  limited to reciprocal visits  
of experts and the provision of radiation-protection courses for  
Brazilian trainees on the basis of a memorandum of 29 September 1981  
which was agreed between the JRC-Ispra and the Institute of Radiation  
Protection and Dosimetry of Rio de Janeiro. An approach made by a  
Brazilian official in 1982 to the official in charge of the fusion  
programme was not followed up.
At more formal level, the Euratom Safeguards Directorate has recorded  
since 1979 the importation of about 338 tonnes of Brazilian-owned  
natural uranium and the exportation to Brazil of about 16 tonnes  
of slightly enriched and 5 kg of highly enriched uranium; about  
149 tonnes of Brazilian-owned natural uranium is at present on the  
territory of the Community.

Brazilian nuclear achievements
It can thus be seen that the application of the Euratom/Brazil  
Agreement, which admittedly was not binding as regards either  
the activities to be conducted or the administration procedures,  
has been very limited. This contrasts with the fact that Brazil  
has called heavily upon the assistance of the Community's nuclear  
industry, mainly in Germany and France. The paradox is only an  
apparent one, for there were few points in common between the actual  
activities of Euratom and those of Brazil, especially after the 
launching in 1975 of a Brazilian nuclear power programme of 10 800 MWe  
to be completed in 15 years (1975-1990) , by which time Brazil was
to have acquired full industrial autonomy in all the sectors concerned,  
namely power-station design, construction and operation and the fuel  
cycle from enrichment to plutonium recycling. Simultaneously, priority  
was accorded to the inventory of uranium resources, the development  
of which, together with that of uranium chemistry, was undertaken  
with the assistance of Péchiney.
Ten years after the setting up of NUCLEBRAS, Brazil's nuclear  
achievements can be summarized as follows :
- Mining and uranium chemistry :  prospecting and mining development  
are the responsibility of NUCLEBRAS and its two subsidiaries  
NUCLAM (uranium) and NUCLEMON (thorium) :  at present, only one  
mine, with a capacity of 500 t/year, is in operation :  however,  
the resources discovered make Brazil a potential raw-materials  
supplier of significance on a world scale; the entry into service
of a facility for conversion into hexafluoride was planned for 1984.
- Enrichment :  the Bntry into service of the first unit of a facility  
(NUCLEI) based on a new technique developed in cooperation with the  
Germans was announced in February 1985; in the long term, it cannot  
be ruled out that Brazil (like and possibly in association with  
Argentina) will enter the market as a supplier of enrichment services.
- Fabrication of PWR fuel :  NUCLEBRAS possesses an installation (FEC)  
which has been in service for a number of years and to which will 
shortly be added a facility for the production of uranium-oxide  
pellets.
- Nuclear steam-raising systems :  NUCLEP, a firm set up in 1976 by  
NUCLEBRAS (with the participation of KWU), is already fully equipped  
to manufacture heavy components for pressurized reactors on a com­
petitive basis at least in the regional context.
* The implementation of this programme, entrusted to NUCLEBRAS, a  
body set up for that purpose, benefits from the assistance of the  
West German firm Kraftwerk-Union. The NUCLEBRAS-KWU association  
guaranteed at governmental level by an agreement for cooperation  
in nuclear matters between the Federal Republic of Germany and  
Brazil which was signed and concluded on 27 June 1975 and, in its  
preamble, refers to the Euratom/Brazil Agreement.

Nuclear power stations :  to a Westinghouse power station (600 MWe),  
ordereci in 1972, which recently entered into service cter numerous  
difficulties, will be added two KWU power stations (each of 1  350 MWe)  
at present under construction. Within a relatively short time,  
razi s ould therefore possess solid experience in the construction  
and operation of nuclear power stations.
Research and development :  although less spectacular than the 1975  
nuclear power programme, nuclear R&D activities are being conducted  
in many laboratories (at universities and other research bodies).
Some of these activities relate to the nuclear power programme,  
e;?-' reprocessing and a variety of enrichment techniques,
while others are carried out independently of it, e.g. work per­
formed by means of research reactors, applications of radioactive  
elements, of course, but also work on certain fast-reactor techno­
logies, on fusion and, as is only proper, on radiation protection,  
installation safety and nuclear nuisances-
External constraints and assistance
Brazil's nuclear achievements, to which the Euratom/Brazil agreement  
has contributed virtually nothing, are still deficient in many  
respects. It should be pointed out that among the factors under­
lying these deficiencies are the external constraints that result  
from the attitude of Brazil with regard to non-proliferation.
Brazil, confident in its support for the denuclearization of Latin  
America (see the Treaty of Tlatelolco of 1967, to which it was a  
signatory) and relying on its acceptance of IAEA safeguards (see,  
in particular, the tripartite agreement of February 1976 between  
the Federal Republic of Germany, Brazil and the IAEA, considers  
that it provides adequate guarantees in respect of non-proliferation.  
It should also be noted that there seem to be no activities in Brazil  
likely to be interpreted as relating to a military programme.
Like Argentina, however, Brazil has constantly rejected the Non-  
Proliferation Tfeaty of 1968, which is regarded as unequal. This 
is at the root of a dispute with the USA, which, from the outset,  
and especially since 1975, has been determined to obtain Brazil's  
accession to the Non-Proliferation Treaty. The efforts made to  
that end, although they have not lessened Brazil's determination, have  
been effective in delaying the attempts of NUCLEBRAS to attain  
proficiency in enrichment and fuel-reprocessing technologies.
In view of these constraints, which seem likely to persist, it must  
be asked what Brazil's attitude will be when its nuclear activities  
are beiuo re-examined by a new political authority (assumption of  
office by the new President on 15 March).

4.
Conditions at present are very di f!'.-rent tror those obtaining in 1975  
(budgetary restrictions, slonn« cown of electricity consumption owing  
to the economic crisis, entry into service of the great dams, etc.).
It is thus all but inevitable that brazil, making of necessity virtue,  
will weigh the advantages cf rescheduling  the implementation of its  
nuclear power programme over a period extending well beyond 1990.
The severity of the constraint;; ·  oferred * 0 above would accordingly  
be lessened, even if Brazi!  *  -  .unOam-^tal attitude to the Non-  
Proliferation Treaty were to remain unchanged.
Among the foreseeable cens;-q"vnet 1 of extending the nuclear programme  
over a longer period, accoun. should be taken, in particular, of a  
possible reorientation towards exportation of mining-resources deve­
lopment and uranium production, originally  conceived exclusively for  
the purpose of making the nuclear power programme self-sufficient  
with regard to supplies.
This having been sain', 1 ' ■ ■ ■ of tin· ..-ifort undertaken probably
commits Brazil irrevocably +  ■ }  the nur1  ear option, while it still  
needs external industria1  assistance in order to attain its objectives  
within a reasonable time and at reasonable cost.
★In this connection, it may be thought that the NUCLEBRAS-KWU ,  
the role of Péchiney in the develonment of mining and uranium chemistry  
in Brazil **, the similarities  between that country and Argentina and  
the way in which the two countries complement each other will in large  
measure predetermine the origin of the assistance upon which Brazil
Where the Germans are concerned, considerable care was taken to main­
tain the credibility (with the exception of deadlines) of the 1975  
nuclear power programme and to leave no room for doubts about the  
firmness of the contractual :  omnritruer:ts relating to its implementation.
Pechiney constructed the ins' .9 !  > ;  · ■  n ;  at the Popos de Caldas uranium  
mine and the facility for co·· ' , · · · -ton into  hexafluoride, but there is  
no inter-governmental . ’ .gr··. ·  - .  with  France on nuclear cooperation.
Brazil and Argentina  t in have the same desire to become self-  
sufficient in nud'' ;r technology; they also both reject the Non-  
Proliferation Tf,.aty. Among other things, the reactor concepts  
chosen (Argentina :  heavy water; Brazil :  PWR), the existing nuclear  
achievement (Argentina .  10 / · ■ >  ■••s of experience in the operation of  
nuclear power stat ions,' mat icrialfzation"of diffusion enrichment  
technology; Brazil :  equipped cu;· the manufacture of heavy power  
reactor components), arc tc some extent complementary. Both coun­
tries, traditionally reputes tv be rivals if not antagonists, seem  
to have learnt a lesson from ; .h<y by engaging in nuclear cooperation  
which is now endorsed at ;··;a! ·  ‘ *v?l by virtue of an agreement
concluded in May 1980. l":m ·  le'ism that marks the internal  
political development of ‘ d |p .  countries should facilitate a  
strengthening of cooper nl ins· tv !  we on them.

will continue to call in view of the interests at stake in the countries  
concerned.
Points to be studied
The present situation can be summarized as follows :
the 1961 Euratom/Brazil Agreement was applied only to a very
limited extent, even though since the 1960s nuclear science
has emerged from the laboratory to become a real industrial sector;
Brazil has to cope with external constraints arising from its  
attitude with regard to the Non-Proliferation Treaty;
European economic operators have a privileged position in Brazil  
as suppliers of nuclear equipment and services; cooperation between  
Brazil and Argentina in nuclear matters is continuing to develop;
Brazil is now in a position to manufacture heavy power*-reactor  
components;
- in the medium term, Brazil may well become a supplier of nuclear  
raw materials,while being capable of meeting its own requirements  
of special fissile materials either from its own resources or in  
cooperation with Argentina.
In these circumstances, a complete review of the situation would  
seem to be necessary, and the following provisional list of points  
to be studied, prior to the definition of Community guidelines for  
cooperation with Brazil in the nuclear field, can be put forward;
1. Advisability and feasibility of contractual arrangements between
the Community and Brazil :
(a) with a view to safeguarding the Community's commercial and  
industrial interests, account being taken of the fact that  
the nuclear sector is excluded from the scope of the 1980  
Framework Agreement for Commercial and Economic Cooperation  
between the European Economic Community and Brazil;
(b) with a view to ensuring full accordance with Euratom's task
of establishing with other countries relations for the purpose  
of contributing to progress in the peaceful uses of nuclear  
energy;
(c) with a view to promoting cooperation in nuclear research,  
including Euratom programmes, particularly in support of  
industrial cooperation;
(d) with a view to securing supplies of raw materials of  
Brazilian origin to the Community, while keeping to an  
absolute minimum any constraints that might possibly affect  
such materials.

6.
2. The advisability of taking into account, with a view to possible  
negotiations with Brazil, the desire to maintain, in the Community's  
external relations an equitable balance between Brazil and Argentina;  
at the appropriate time, the Community may find itself called upon  
to conclude with the latter country arrangements similar to those  
that will have been concluded with Brazil.
3. Policy to be pursued if Brazil's attitude with regard to continua­
tion of Euratom/Brazil cooperation is not made known soon enough  
to enable the Community to adopt a position before expiry of the  
1961 Agreement (a precedent is the expiry of the Euratom/Argentina  
Agreement in November 1983).

Draft ANNEX II
NOTE VERBALE
The Directorate-General for External Relations of  
the Commission of the European Commuiiities presents  
its compliments to the Brazilian,Mission to the Eu­
ropean Communities and has the honour to refer  to 
the 1961 Cooperation Agreement between the European  
Atomic Energy Community (Euratom) and the Govern­
ment of the United States of Brazil for cooperation  
concerning the peaceful uses of atomic energy, which  
was signed  in 1961 and expires on 23 June  1985.
Contacts between the above Directorate-General and  
the Brazilian Mission since April  1984 have shown  
that Brazil values the maintenance of a Euratom-  
Brazil framework for cooperation.
The Directorate-General for External Relations is  
aware, however, that circumstances have not so far  
allowed the Brazilian Government to confirm official­
ly its wish to begin discussions on this matter, or  
to specify the bases on which such discussions should  
take place. However, the fact that such discussions  
will not have begun, and hence will obviously not have  
resulted in a new agreement before 23 June  1985, lea­
ves open the possibility of beginning discussions at  
a later date to be determined by joint agreement.
In the light of the broader commercial and economic  
cooperation provided  for by the 1980 Framework Agreement  
for Cooperation between the European Economic Communi­
ty and the Federative Republic of Brazil which was si­
gned in 1980, and the scale of the industrial nuclear  
cooperation which has grown up between the Community  
area and Brazil, the Commission remains open to preli­
minary discussions on an appropriate framework for  
Euratom-Brazil cooperation.
Without prejudging the content of a new Euratom-Brazil  
agreement or arrangement, the Directorate-General for  
External Relations would stress that even in the absence  
of such a legal framework, and hence notably in the in­
tervening period between the expiry  of the 1961 Agree­
ment and the possible entry into force of a new agree­
ment or arrangement, the Commission is empowered to  
initiate or continue any form of cooperation with the  
Brazilian nuclear bodies in the context of programmes  
financed from Euratom's research budget.

The Directorate-General for External Relations of the  
Commission of the European Communities takes this  
opportunity of renewing to the Brazilian Mission to  
the European Communities the assurance of its highest  
consideration.