RECOMMANDATION DE LA COMMISSION AU CONSEIL concernant l'approbation d'un accord de coopération dans le domaine des utilisations pacifiques de l'énergie nucléaire entre la Communauté européenne de l'énergie atomique (Euratom) et le gouvernement de l'Australie
Date: 2011-03-02
Institutions: European Commission
Subjects: Australia, EAEC, international agreement, nuclear energy, nuclear fuel, peaceful use of energy

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EUROPEAN COMMISSION 

Brussels, 2.3.2011 
SEC(2011) 243 final 

RECOMMENDATION FROM THE COMMISSION TO THE COUNCIL 

on the approval of an Agreement for cooperation in the peaceful uses of nuclear energy 
between the European Atomic Energy Community (Euratom) and the Government of 
Australia 

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RECOMMENDATION FROM THE COMMISSION TO THE COUNCIL 

on the approval of an Agreement for cooperation in the peaceful uses of nuclear energy 
between the European Atomic Energy Community (Euratom) and the Government of 
Australia 

A. 

EXPLANATORY MEMORANDUM 

1. 

INTRODUCTION 

There  is  an  existing  Euratom-Australia  Agreement  which  will  expire  in  early  2012.  Since 
Australia is one of the main uranium suppliers to the EU nuclear power plant operators, there 
is a need to maintain the agreement in order to provide a stable legal framework for relations 
in this domain. 

The scope of the current agreement is limited to transfers of nuclear material from Australia to 
the  European  Atomic  Energy  Community.  Therefore,  in  accordance  with  the  directives 
negotiated  with  the  Council,  the  Commission  has  enlarged  the  scope  of  the  Agreement  to 
include transfers of materials, equipment and technology. 

While  certain  EU  Member  States  have  bilateral  agreements  with  Australia,  this  Euratom 
Agreement ensures equal treatment for all Member States and their operators, and reduces the 
need  to  have  numerous  bilateral  agreements  between  Australia  and  individual  EU  Member 
States. 

The Agreement will provide for a broad cooperation in the area of peaceful uses of nuclear 
energy setting up the overall framework for political, technical and industrial cooperation. It 
will  create  a  legal  framework  both  for  the  governments  and  the  industrial  operators  of  the 
Parties  –  the  Government  of  Australia  and  the  Community  -  which  will  facilitate  the 
cooperation in this field. 

2. 

IMPORTANCE OF THE AGREEMENT 

For Euratom, the interest in signing this Agreement is based on the fact that Australia is one 
of its main suppliers of natural uranium. Facilitating trade in the nuclear domain contributes to 
the  Community's  policy  of  security  of  energy  supply  and  diversification  of  energy  sources. 
The  importance  of  the  conclusion  of  this  Agreement  is  mainly  based  on  commercial  needs. 
Australia is the world’s third largest producer of uranium with a production capacity of about 
8 000 t U/year  (19%  of  global  uranium  production).  Australia's  uranium  reserves  are  the 
world's largest, with 23% of the total. Production and exports average about 10,000 tonnes of 
uranium oxide (8500 tU) per year. 

Australia's uranium is sold strictly for electrical power generation only, and safeguards are in 
place to ensure this. Australia is a party to the Nuclear Non-Proliferation Treaty (NPT) as a 
non-nuclear weapons state. Its safeguards agreement under the NPT came into force in 1974 
and it was the first country in the world to bring into force the Additional Protocol in relation 

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to this - in 1998. In addition to these international arrangements Australia requires customer 
countries to have entered into a nuclear cooperation agreement with Australia.  

Furthermore,  the  conclusion  of  the  present  Agreement  reaffirms  the  commitments  of 
Australia, the Community and the Governments of the Member States of the European Union, 
to  the  strengthening  and  strict  application  of  safeguards,  export  controls,  and  physical 
protection. 

3. 

GENERAL SCHEME OF THE AGREEMENT 

The objective of the Agreement is cooperation in the peaceful uses of nuclear energy between 
Euratom  and  Australia.  The  scope  of  cooperation  (Article  III)  mainly  comprises  nuclear 
safety, the supply of nuclear material, technology transfer, transfer of equipment and radiation 
protection, safeguards, use of radioisotopes. The present Agreement builds on the Agreement 
from 1981, which only covered transfers of nuclear material from Australia to Euratom. The 
revised Agreement is bi-directional in nature. 

With the aim of updating, it revises outdated provisions and, as far as possible, consolidates 
the main text with its annexes and the attached exchange of notes. The current provisions on 
non-proliferation,  safeguards,  physical  protection,  transfer  and  retransfer,  as  well  as  on 
consultation and administrative arrangements, confidentiality and dispute resolution as set out 
in the existing Agreement and in the exchange of notes between the Government of Australia 
and the European Atomic Energy Community were kept. 

In order to respond to the wish of both Parties for extension of its scope and in line with the 
most recent developments, like the enlargements of the Community, the new Agreement also 
includes  additional  provisions,  considered  as  of  importance  by  the  concerned  Euratom 
Member States and the Government of Australia. 

In  terms  of  structure,  the  Agreement  further  defines  the  items  subject  to  this  Agreement 
(Article  IV)  –  different  forms  of  nuclear  and  non-nuclear  material  and  describes  in  detail 
modalities for trade in nuclear material, non-nuclear material and equipment (Article VI). The 
Agreement  contains  a  series  of  provisions  determining  criteria  for  the  transfer  of  nuclear 
material  as  well  as  the  way  of  resolving  conflicting  situations.  It  is  underlined  that  nuclear 
material shall be used for peaceful purposes and in compliance with the relevant safeguards 
agreements (in the Community, Euratom safeguards pursuant to the Euratom Treaty as well as 
the  IAEA  Safeguards  Agreements  and  their  Additional  Protocols1).  Transports  of  nuclear 
materials should be in conformity with the provisions of the International Convention on the 
Physical Protection of Nuclear Material2.  

In  addition,  the  Agreement  restates  the  principles  of  free  movement  of  nuclear  materials 
within  the  Community.  Intellectual  property  issues  (Article  IX)  are  dealt  with  in  detail,  as 
well  as  the  modalities  of  Exchange  of  Information  (Article  X).  In  order  to  guarantee  the 
smooth implementation of the Agreement, a specific article on Consultation and Arbitration 
(Article  XV)  is  being  introduced,  if  questions  on  the  correct  application  of  the  Agreement 
should arise. The initial duration of the Agreement will be 30 years, i.e. mirroring the 1981 
Agreement (Article XVIII). 

1 
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INFCIRC/540 
INFCIRC/274/Rev.l 

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B. 

RECOMMENDATION 

The Commission considers that the Agreement for cooperation in the peaceful uses of nuclear 
energy between the European Atomic Energy Community and the Government of Australia, 
whose adoption is proposed: 

–  is in conformity with the negotiating directives issued by the Council on 9 June 2010; 

–  fulfils the goals of simplifying, updating and extending the current agreement; 

–  confirms the clear commitment of the two Parties in favour of non-proliferation and a high 
level of nuclear safety in order to guarantee the peaceful and safe use of nuclear energy; 

–  is in line with the Community's policy on energy security of supply; 

–  will further strengthen the very good relations between the EU and Australia in the field of 

energy policy cooperation. 

The  Commission  therefore  recommends  to  the  Council  to  approve,  pursuant  to  the  second 
paragraph of Article 101 of the Treaty establishing the European Atomic Energy Community, 
the Agreement for cooperation in the peaceful uses of nuclear energy between the European 
Atomic Energy Community and the Government of Australia, in Annex. 

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ANNEX  

AGREEMENT BETWEEN THE GOVERNMENT OF AUSTRALIA AND 
THE EUROPEAN ATOMIC ENERGY COMMUNITY (EURATOM) FOR CO-
OPERATION IN THE PEACEFUL USES OF NUCLEAR ENERGY 

The  Government  of  Australia  and  the  European  Atomic  Energy  Community  (Euratom), 
hereinafter referred to as "the Community", 

DESIRING to promote their cooperation in the use of nuclear energy for peaceful purposes; 

CONSIDERING that the Agreement between the Government of Australia and the European 
Atomic  Energy  Community  concerning  transfers  of  nuclear  material  from  Australia  to  the 
European  Atomic  Energy  Community  done  at  Brussels  on  21  September  1981  is  limited  in 
scope and expires in 2012; 

REAFFIRMING the strong commitment of the Government of Australia, the Community and 
the  Governments  of 
the 
strengthening  and  efficient  application  of  the  related  safeguards  and  export  control  regimes 
under  which  co-operation  in  the  peaceful  uses  of  nuclear  energy  between  Australia  and  the 
Community is carried out; 

to  nuclear  non-proliferation 

its  Member  States 

including 

REAFFIRMING  the  support  of  the  Government  of  Australia,  the  Community  and  the 
Governments  of  its  Member  States  for  the  objectives  of  the  International  Atomic  Energy 
Agency (hereinafter referred to as "IAEA") and its safeguards system; 

REAFFIRMING the strong commitment of the Government of Australia, the Community and 
its Member States to the Convention on the Physical Protection of Nuclear Material done at 
New York and Vienna on 3 March 1980 and entering into force generally on 8 February 1987 
and for Australia on 22 October 1987; 

WHEREAS Australia and all Member States of the Community are Parties to the Treaty on 
the  Non-Proliferation  of  Nuclear  Weapons  done  at  Washington,  London  and  Moscow  on  1 
July 1968 and entering into force on 5 March 1970, hereinafter referred to as "NPT"; 

NOTING that nuclear safeguards are applied in all Member States of the Community pursuant 
to both the Treaty establishing the European Atomic Energy Community (hereinafter referred 
to  as  "the  Euratom  Treaty")  and  the  safeguards  agreements  concluded  between  the 
Community, its Member States and the IAEA; 

NOTING  that  the  Governments  of  Australia  and  of  all  Member  States  of  the  Community 
participate in the Nuclear Suppliers Group; 

NOTING  that  account  should  be  taken  of  the  commitments  made  by  the  Government  of 
Australia and the Government of each Member State of the Community in the framework of 
the Nuclear Suppliers Group; 

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RECOGNISING  the  principle  of  the  free  movement  of  nuclear  material,  equipment, 
non-nuclear material, and technology within the Community; 

AGREEING that the Agreement should be in compliance with international obligations of the 
European  Union  and  the  Government  of  Australia  under  the  World  Trade  Organisation 
agreements; 

REITERATING  commitments  of  the  Government  of  Australia  and  the  Governments  of 
Member States of the Community to their bilateral agreements in the peaceful uses of nuclear 
energy; 

HAVE AGREED AS FOLLOWS: 

Article I 

Definitions 

For the purpose of this Agreement, except as otherwise specified: 

1. 

"by-product"  means  special  fissionable  material  derived  by  one  or  more  processes, 
whether  successive  or  not,  from  nuclear  material  transferred  pursuant  to  this 
Agreement. 

2. 

"competent authority" means: 

3. 

4. 

5. 

– 

– 

for  the  Government  of  Australia,  the  Australian  Safeguards  and  Non-
Proliferation Office; 

for the Community, the European Commission  

or such other authority as the Party concerned may at any time notify in writing to 
the other Party. 

"equipment" means those items listed in Sections 1, 3, 4, 5, 6 and 7 of Annex B of 
IAEA INFCIRC/254/Rev.9/Part 1.  

"intellectual property" shall have the meaning set out in Article 2 of the Convention 
establishing the World Intellectual Property Organization, done at Stockholm on 14 
July 1967, as amended on 28 September 1979, and may include other subject matter 
as mutually determined by the Parties.  

"military  purpose"  includes  but  it  is  not  limited  to  direct  military  applications  of 
nuclear  energy  such  as  nuclear  weapons  or  other  nuclear  explosive  devices 
(including research and development, or production of tritium for use in such nuclear 
weapons  and  other  nuclear  explosive  devices),  military  nuclear  propulsion, 
munitions, including depleted uranium munitions, military nuclear rocket engines or 
military  nuclear  reactors  but  does  not  include  indirect  uses  such  as  power  for  a 
military base drawn from a civil power network, or production of radioisotopes to be 
used for diagnosis in a military hospital. 

6. 

"non-nuclear material" means: 

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– 

– 

Deuterium  and  heavy  water  (deuterium  oxide)  and  any  other  deuterium 
compound in which the ratio of deuterium to hydrogen exceeds 1:5000, for use 
in  a  nuclear  reactor,  as  defined  in  paragraph  (1.1)  of  Annex  B  of  IAEA 
INFCIRC/254/Rev.9/Part 1 (Guidelines for Nuclear Transfers), 

Nuclear  grade  graphite:  graphite,  for  use  in  a  nuclear  reactor,  as  defined  in 
paragraph  (1.1)  of  Annex  B  of  IAEA  INFCIRC/254/Rev.9/Part  1  (Guidelines 
for  Nuclear  Transfers),  having  a  purity  level  better  than  5  parts  per  million 
boron  equivalent  and  with  a  density  greater  than  1.50  grams  per  cubic 
centimetre. 

7. 

"nuclear material" means any source material or special fissionable material as those 
terms are defined in Article XX of the Statute of the IAEA done at the Headquarters 
of the United Nations on 23 October 1956, and which entered into force on 29 July 
1957 (hereinafter referred to as the IAEA's Statute). Any determination by the Board 
of Governors of the IAEA under Article XX of the IAEA's Statute that amends the 
list  of  material  considered  to  be  "source  material"  or  "special  fissionable  material", 
shall  only  have  effect  under  this  Agreement  when  the  Parties  have  informed  each 
other in writing that they accept that determination.  

8. 

"Parties" means the Government of Australia on the one hand and the Community on 
the other hand;  

"the Community" means both: 

– 

– 

the legal person created by the Euratom Treaty; and 

the territories to which the Euratom Treaty applies. 

"persons"  means  any  natural  person,  undertaking  or  other  entity  governed  by  the 
applicable laws and regulations in the respective territorial jurisdiction of the Parties, 
but does not include the Parties to this Agreement. 

"technology"  has 
INFCIRC/254/Rev.9/Part 1 (Guidelines for Nuclear Transfers). 

the  meaning 

as  defined 

in  Annex  A  of 

IAEA 

9. 

10. 

Article II 

Objective 

The  objective  of  this  Agreement  is  to  provide  a  framework  for  co-operation  between  the 
Parties in the peaceful uses of nuclear energy on the basis of mutual benefit and reciprocity 
and without prejudice to the respective competences of each Party. 

Article III 

Scope of co-operation 

1. 

Nuclear material, equipment, non-nuclear material or nuclear material produced as a 
by-product  shall  be  used  only  for  peaceful  purposes;  and  shall  not  be  used  for  any 
military purpose. 

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2. 

The co-operation envisaged between the Parties under this Agreement may include, 
inter alia: 

a) 

b) 

c) 

the supply of nuclear material, non-nuclear material, and equipment; 

technology  transfer,  including  supply  of  information  relevant  to  this  Article, 
providing that individual Member States of the Community had expressed their 
willingness to place such transfers in the framework of this Agreement; 

transfer  of equipment  which has been designated by the  Parties as  equipment 
designed, constructed or operated on the basis of or by the use of information 
obtained from the other Party and which is within the jurisdiction of one of the 
Parties at the time of designation;  

d) 

the procurement of equipment and devices; 

e) 

access to and use of equipment and facilities; 

f)  management of spent fuel and radioactive waste; 

g) 

h) 

i) 

j) 

nuclear safety and radiation protection; 

safeguards, and physical protection of nuclear material and facilities; 

use of radioisotopes and radiation in agriculture, industry and medicine; 

geological  and  geophysical  exploration,  development,  production,  further 
processing and use of uranium resources; 

k) 

nuclear forensics; 

l) 

regulatory aspects of the peaceful uses of nuclear energy; and 

m) 

other  areas  relevant  to  the  subject  of  this  Agreement,  insofar  as  they  are 
covered by the Parties’ respective programmes. 

3. 

4. 

Co-operation  shall  extend  to  nuclear  research  and  development  activities  of  mutual 
interest  to  the  Parties  according  to  complementary  provisions  to  be  agreed  by  the 
Parties. 

The co-operation referred to in paragraph 2 of this Article may be undertaken in the 
following forms: 

a) 

organisation of symposia and seminars; 

b) 

organisation of joint projects and establishment of joint ventures; 

c) 

d) 

establishment  of  bilateral  working  groups  for  implementation  of  the  joint 
projects; 

supply  of  nuclear  fuel  cycle  services  including  uranium  conversion  and 
isotopic enrichment; 

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e) 

f) 

trade and commercial cooperation relating to the nuclear fuel cycle; 

transfer of industrial equipment and industrial technology; and 

g) 

other forms of cooperation as may be determined by the Parties in writing. 

5. 

The  co-operation  in  specific  areas  outlined  in  paragraph  2  of  this  Article  may  be 
implemented as necessary through arrangements between a legal entity of Australia 
and  a  legal  entity  of  the  Community,  which  the  respective  competent  authority 
notifies the other competent authority as being duly authorised to implement such co-
operation. Any such arrangements  shall  include provisions dealing with intellectual 
property rights protection where such rights exist or arise. 

Article IV 

Items subject to the Agreement 

1. 

This Agreement shall apply to: 

a)  Nuclear material, non-nuclear material, or equipment, transferred between the 

Parties or their respective persons, whether directly or through a third country. 

Such  nuclear  material,  non-nuclear  material,  or  equipment  shall  become 
subject  to  this  Agreement upon its entry into  the  territorial  jurisdiction  of  the 
receiving Party. The supplying Party shall notify the receiving Party in writing 
of  the  intended  transfer,  and  the  receiving  Party  shall  confirm  in  writing  that 
such  item  will  be  held  subject  to  this  Agreement.  The  proposed  recipient,  if 
other than the receiving Party, will be an authorised person under the territorial 
jurisdiction of the receiving Party. 

b)  All  forms  of  nuclear  material  prepared  by  chemical  or  physical  processes  or 
isotopic  separation  provided  that  the  quantity  of  nuclear  material  so  prepared 
shall only be regarded as falling within the scope of this Agreement in the same 
proportion as the quantity of nuclear material used in its preparation, and which 
is subject to this Agreement, bears to the total quantity of nuclear material so 
used;  

c)  All  generations  of  nuclear  material  produced  by  neutron  irradiation  provided 
that  the  quantity  of  nuclear  material  so  produced  shall  only  be  regarded  as 
falling  within  the  scope  of  the  Agreement  in  the  same  proportion  as  the 
quantity  of  nuclear  material  which  is  subject  to  this  Agreement  and  which, 
used in its production, contributes to this production;  

d)  Nuclear material produced, processed or used in equipment where: 

(i)  non-nuclear  material  subject  to  this  Agreement  was  principally  or  wholly 
responsible for the production, processing or use of that nuclear material and; 

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(ii)  equipment3  subject  to  this  Agreement  was  wholly  responsible  for  the 
production, processing or use of that nuclear material and; 

(iii) equipment3 has been designated by the supplying Party after consultation 
with  the  recipient  Party  as  being  designed,  constructed,  manufactured  or 
operated on the basis of, or by the use of technology transferred subject to this 
Agreement. 

e)  Nuclear material which was subject to the Agreement concerning transfers of 
nuclear  material  from  Australia  to  the  European  Atomic  Energy  Community, 
done at Brussels on 21 September 1981; 

f) 

Nuclear material which was transferred from Member States of the Community 
to  Australia  pursuant  to  bilateral  agreements,  and  which  is  notified  to  the 
Community at the time this Agreement comes into force; 

g)  Nuclear  material  recovered  for  nuclear  purposes  from  ores  or  concentrates, 
other than uranium ore concentrates, which are transferred between the Parties 
directly or through a third country, and which recovery has been notified by the 
transferring Party as being of relevance to the Agreement4.  

2. 

Nuclear  material,  non-nuclear  material,  or  equipment,  referred  to  in  paragraph  1  of 
this Article shall remain subject to the provisions of this Agreement until it has been 
determined,  in  accordance  with  the  procedures  set  out  in  the  Administrative 
Arrangement: 

a) 

b) 

c) 

d) 

that such item has been re-transferred beyond the jurisdiction of the receiving 
Party in accordance with paragraphs 5 and 6 of Article VII of this Agreement; 

that nuclear material is no longer usable for any nuclear activity relevant from 
the point of view of safeguards referred to in paragraph 1 of Article VII or has 
become practically irrecoverable. For the purpose of determining when nuclear 
material  subject  to  this  Agreement  is  no  longer  usable  or  is  no  longer 
practicably recoverable for processing into a form in which it is usable for any 
nuclear  activity  relevant  from  the  point  of  view  of  safeguards,  both  Parties 
shall  accept  a  determination  made  by  the  IAEA  in  accordance  with  the 
provisions  for  the  termination  of  safeguards  of  the  relevant  safeguards 
agreement to which the IAEA is a party; 

that  non-nuclear  material  and  equipment  are  no  longer  usable  for  nuclear 
purposes; or 

that  the  Parties  mutually  determine  that  it  should  no  longer  be  subject  to  this 
Agreement. 

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4 

For  the  purpose  of  this  article,  equipment  is  restricted  to  items  1.1,  3,  4,  5,  6,  7  of  Annex  B  of 
INFCIRC/254/Rev.9/Part 1, but does not include their sub-components. 
If such nuclear material cannot be subject to the all of the conditions set out in Article VII, then such 
nuclear  material  shall  not  be  used  until  the  Parties  have  consulted  and  decided  on  safeguards  and 
physical protection measures to apply. 

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3. 

Technology transfer shall be subject to this Agreement for the Member States of the 
Community  that  have  expressed  their  willingness  to  place  such  transfers  in  the 
framework of this Agreement through a written notification from the Member State 
concerned  to  the  European  Commission.  A  prior  notification  between  the  Member 
State(s) concerned and the European Commission, on one side, and the Government 
of Australia, on the other, should be given before each transfer. 

Article V 

Enrichment 

Prior  to  the  enrichment  of  any  nuclear  material  subject  to  this  Agreement  to  twenty  (20) 
percent or more in the isotope U 235, the written consent of both Parties shall be obtained and 
the  IAEA  shall  be  notified.  Such  consent  shall  describe  the  conditions  under  which  the 
uranium enriched to twenty (20) percent or more may be used. An arrangement to facilitate 
the implementation of this provision may be established by the Parties. 

1. 

2. 

3. 

4. 

5. 

6. 

Article VI 

Trade in nuclear material, non-nuclear material or equipment 

Any  transfer  of  nuclear  material,  non-nuclear  material  or  equipment  carried  out 
pursuant to the co-operation activities shall be made in accordance with the relevant 
international commitments of the Community, the Member States of the Community, 
and Australia in relation to peaceful uses of nuclear energy as listed in Article VII. 

The  Parties  shall,  to  such  extent  as  is  practicable,  assist  each  other  in  the 
procurement,  by  either  Party  or  by  persons  within  the  Community  or  under  the 
jurisdiction of the Government of Australia, of nuclear material, non-nuclear material 
or equipment. 

The  continuation  of  the  co-operation  envisaged  in  the  present  Agreement  shall  be 
contingent  upon  the  mutually  satisfactory  application  of  the  system  for  safeguards 
and  control  established  by  the  Community  in  accordance  with  the  Euratom  Treaty 
and  of  the  system  for  safeguards  and  control  of  nuclear  material,  non-nuclear 
material or equipment established by the Government of Australia. 

The provisions of this Agreement shall not be used to impede the free movement of 
nuclear  material,  non-nuclear  material,  equipment,  and  technology  within  the 
territory of the Community. 

Transfers of nuclear material and appropriate services shall be carried out under fair 
commercial  conditions.  The  implementation  of  this  paragraph  shall  be  without 
prejudice  to  the  Euratom  Treaty  and  its  derived  legislation,  and  to  Australian  laws 
and regulations. 

Further  to  paragraphs  5  and  6  of  Article  VII  any  retransfers  of  any  items  or 
technology subject to this Agreement outside the jurisdiction of the Parties shall only 
be  made  in  the  framework  of  the  commitments  undertaken  by  the  Governments  of 
individual Member States of the Community and the Government of Australia within 
the  group  of  nuclear  supplier  countries  known  as  the  Nuclear  Suppliers  Group.  In 
IAEA 
particular, 

for  Nuclear  Transfers,  as  set  out 

the  Guidelines 

in 

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INFCIRC/254/Rev.  9/Part  1,  shall  apply  to  retransfers  of  any  items  subject  to  this 
Agreement. 

Article VII 

Nuclear Material Subject to the Agreement 

1. 

Nuclear  material  subject  to  this  agreement  shall  be  subject  to  the  following 
conditions: 

a) 

In the Community, to the Euratom safeguards pursuant to the Euratom Treaty 
and to the IAEA safeguards pursuant to the following safeguards agreements, 
as  they  may  be  revised  and  replaced,  and  in  accordance  with  the  Non-
Proliferation Treaty: 

i) 

The Agreement between the Community's non-nuclear weapon Member 
States,  the  European  Atomic  Energy  Community  and  the  International 
Atomic  Energy  Agency,  done  at  Brussels  on  5  April  1973  and  which 
entered 
into  force  on  21  February  1977  (published  as  IAEA 
INFCIRC/193); 

ii)  The  Agreement  between  France, 

the  European  Atomic  Energy 
Community  and  the  International  Atomic  Energy  Agency,  done  in  July 
1978 and which entered into force on 12 September 1981 (published as 
IAEA INFCIRC/290); 

iii)  The  Agreement  between  the  United  Kingdom  of  Great  Britain  and 
Northern  Ireland,  the  European  Atomic  Energy  Community  and  the 
International Atomic Energy Agency for the application of safeguards in 
the United Kingdom of Great Britain and Northern Ireland in connection 
with  the  Treaty  on  the  Non-Proliferation  of  Nuclear  Weapons,  done  at 
Vienna on 6 September 1976 and which entered into force on 14 August 
1978 (published as IAEA INFCIRC/263);  

iv)  The  Additional  Protocols  concluded  on  22  September  1998  which 
entered  into  force  on  30  April  2004  on  the  basis  of  the  IAEA 
INFCIRC/540 (corrected) (Strengthened Safeguards System, Part II); 

b) 

In  Australia,  to  the  IAEA  safeguards  pursuant  to  the  Agreement  between 
Australia and the International Atomic Energy  Agency  for  the  Application  of 
Safeguards in connection with the Treaty on the Non-Proliferation of Nuclear 
Weapons,  which  entered  into  force  on  10  July  1974  (IAEA  INFCIRC/217); 
supplemented  by  a  Protocol  Additional  to  the  Agreement  between  Australia 
and the International Atomic Energy Agency for the application of safeguards 
in  connection  with  the  Treaty  on  the  Non-Proliferation  of  Nuclear  Weapons, 
done  at  Vienna  on  23  September  1997  and  which  entered  into  force  on  12 
December 1998 (published as IAEA INFCIRC/217/Add.1). 

2. 

In the event of the application of any of the Agreements with the IAEA referred to in 
paragraph 1 of this Article being suspended or terminated for any reason within the 
Community  or  Australia,  the  relevant  Party  shall  enter  into  an  agreement  with  the 
IAEA which provides for effectiveness and coverage equivalent to that provided by 

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the  safeguards  agreements  referred  to  in  provisions  a)  or  b)  of  paragraph  1  of  this 
Article, or, if that is not possible, 

a) 

b) 

the Community, as far as it is concerned, shall apply safeguards based on the 
Euratom  safeguards  system,  which  provides  for  effectiveness  and  coverage 
equivalent  to  that  provided  by  the  safeguards  agreements  referred  to  in 
provision a) of paragraph 1 of this article or, if that is not possible; 

the  Parties  shall  enter  into  arrangements  for  the  application  of  safeguards, 
which  provide  for  effectiveness  and  coverage  equivalent  to  that  provided  by 
the safeguards agreements referred to in provisions a) or b) of paragraph 1 of 
this Article. 

set  out 

the  criteria 

in  Annex  C  of 

Application  of  physical  protection  measures  shall  be  at  all  times  at  levels  which 
satisfy  as  a  minimum 
IAEA 
INFCIRC/254/Rev.9/Part 1 (Guidelines for Nuclear Transfers); supplementary to this 
document,  the  Member  States  of  the  Community,  the  European  Commission,  as 
appropriate, and Australia will refer when applying physical protection measures to 
their  obligations  under  the  Convention  on  the  Physical  Protection  of  Nuclear 
Material done on 3 March 1980, including any amendments that are in force for each 
Party  and  the  recommendations  in  IAEA  INFCIRC/225/Rev.4  corrected  (Physical 
Protection  of  Nuclear  Material).  Transport  shall  be  subject  to  the  provisions  of  the 
International  Convention  on  the  Physical  Protection  of  Nuclear  Material  done  on  3 
March 1980, including any amendments that are in force for each Party, and to the 
IAEA  Regulations  for  the  Safe  Transport  of  Radioactive  Material  (IAEA  Safety 
Standards Series No. TS-R-1). 

Nuclear safety and waste management shall be subject to the Convention on Nuclear 
Safety, done at Vienna on 17 June 1994 and which entered into force on 24 October 
1996  (IAEA  INFCIRC/449),  the  Joint  Convention  on  the  Safety  of  Spent  Fuel 
Management and on the Safety of Radioactive Waste Management, done at Vienna 
on  5  September  1997  and  which  entered  into  force  on  18  June  2001  (IAEA 
INFCIRC/546), the Convention on Assistance in the Case of a Nuclear Accident or 
Radiological Emergency, done at Vienna on 26 September 1986 and which entered 
into  force  on  26  February  1987  (IAEA  INFCIRC/336),  the  Convention  on  Early 
Notification of a Nuclear Accident, done at Vienna on 26 September 1986 and which 
entered into force on 27 October 1986 (IAEA INFCIRC/335). 

Nuclear  material  subject  to  this  Agreement  shall  not  be  transferred  beyond  the 
territorial jurisdiction of the receiving Party without the prior written consent of the 
supplier Party, except in accordance with paragraph 6 of this Article. 

Upon  entry  into  force  of  this  agreement,  the  Parties  shall  exchange  lists  of  third 
countries  to  which  retransfers  by  the  other  Party  pursuant  to  paragraph  5  of  this 
Article are authorised. Each Party shall notify the other Party of changes to its list of 
third countries.  

3. 

4. 

5. 

6. 

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Article VIII 

Reprocessing 

The Parties grant their consent to the reprocessing of nuclear fuel containing nuclear material 
subject to this Agreement provided that such reprocessing takes place in accordance with the 
conditions set out in Annex A. 

Article IX 

Intellectual Property 

The Parties shall ensure the adequate and effective protection of intellectual property created 
and technology transferred pursuant to the co-operation under this Agreement in accordance 
with  documented  arrangements  between  the  Parties  and  with  the  relevant  international 
agreements and the laws and regulations in force in Australia and in the European Union, the 
Community or their Member States. 

Article X 

Exchange of information 

1. 

2. 

(a)  The  Parties  may  make  available  to  each  other  and  to  persons  within  the 
Community or under the jurisdiction of the Government of Australia, information at 
their disposal on matters within the scope of this Agreement. 

(b)  The  supply  of  information  received  from  any  third  party  under  terms 
preventing such supply shall be excluded from the scope of this Agreement. 

(c) 

Information  regarded  by  the  supplying  Party  as  being  of  commercial  value 
shall be supplied only under terms and conditions specified by the Parties. 

(a)  The Parties shall encourage and facilitate the exchange of information between 
persons under the jurisdiction of the Government of Australia on the one hand and 
persons within the Community on the other hand on matters within the scope of this 
Agreement. 

(b) 

Information owned by such persons shall be supplied only with the consent of 
and under terms and conditions to be specified by those persons. 

3. 

The  Parties  shall  take  all  appropriate  precautions  to  preserve  the  confidentiality  of 
information received as a result of the operation of this Agreement. 

Article XI 

Implementation of the Agreement 

1. 

The  provisions  of  this  Agreement  shall  be  implemented  in  good  faith  in  such  a 
manner as to avoid hampering, delay or undue interference in the nuclear activities in 
Australia  and  in  the  Community  and  so  as  to  be  consistent  with  the  prudent 
management  practices  required  for  the  economic  and  safe  conduct  of  nuclear 
activities. 

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2. 

3. 

4. 

1. 

2. 

1. 

2. 

The  provisions  of  this  Agreement  shall  not  be  used  for  the  purpose  of  seeking 
commercial  or  industrial  advantages,  nor  of  interfering  with  the  commercial  or 
industrial  interests,  whether  domestic  or  international,  of  either  Party  or  authorised 
persons,  nor  of  interfering  with  the  nuclear  policy  of  either  Party  or  of  the 
Governments  of  the  Member  States  of  the  Community,  nor  of  hindering  the 
promotion of the peaceful and non-explosive uses of nuclear energy, nor of hindering 
the movement of items  subject to or notified to be made subject to this Agreement 
either  within  the  respective  territorial  jurisdiction  of  the  Parties  or  between  the 
Government of Australia and the Community. 

The  accounting  of  nuclear  material  subject  to  this  Agreement  will  be  based  on  the 
fungibility  of  the  nuclear  material  and  the  principles  of  proportionality  and 
equivalence  of  nuclear  materials  as  set  out  in  the  Administrative  Arrangements 
pursuant to Article XII of this Agreement. 

Any amendment to IAEA Information Circulars mentioned in Articles I, IV, VI and 
VII of this Agreement shall have effect under this Agreement only when the Parties 
have  informed  each  other  in  writing  through  diplomatic  channels  that  they  accept 
such amendment. 

Article XII 

Administrative arrangements 

The competent authorities of both Parties shall establish administrative arrangements 
to ensure the effective implementation of the provisions of this Agreement. 

An  administrative  arrangement  established  pursuant  to  paragraph  1  of  this  Article 
may be amended as mutually determined in writing by the competent authorities. 

Article XIII 

Applicable law 

The  co-operation  provided  for  in  this  Agreement  shall  be  in  accordance  with  the 
laws, regulations in force in Australia and within the European Union as well as with 
the  international  agreements  entered  into  by  the  Parties.  In  the  case  of  the 
Community  the  applicable  law  includes  the  Euratom  Treaty  and  its  derived 
legislation. 

Each Party shall be responsible toward the other for ensuring that the provisions of 
this  Agreement  are  accepted  and  complied  with  as  to  Australia  by  all  of  its 
governmental  enterprises  and  by  all  persons  under  its  jurisdiction,  and  as  to  the 
Community  by  all  persons  within  the  Community  to  whom  authorisation  has  been 
granted pursuant to this Agreement. 

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1. 

2. 

3. 

4. 

1. 

2. 

Article XIV 

Non-Compliance 

If either Party or any Member State of the Community violates any of the material 
provisions  of  the  Agreement,  the  other  Party  may,  on  giving  written  notice  to  that 
effect, suspend or terminate in whole or in part co-operation under this Agreement.  

Before either Party takes action to that effect, the Parties shall consult with a view to 
reaching  a  decision  on  whether  corrective  measures  are  needed,  and  if  so,  the 
corrective measures to be taken and the time-scale within which such measures shall 
be taken.  

Action pursuant to paragraph 1 of this Article shall be taken only if there has been 
failure to implement the decided measures within the time determined by the Parties 
or, in the event of failure to find a solution, after the lapse of a reasonable period of 
time.  In  these  cases,  the  supplier  Party  shall  have  the  right  to  require  the  return  of 
nuclear material subject to this Agreement. 

In  the  event  of  detonation  of  a  nuclear  explosive  device  by  a  non-nuclear  weapon 
Member  State  of  the  Community  or  by  Australia,  the  aforementioned  provisions 
would apply 

Article XV 

Consultation and arbitration 

At  the  request  of  either  Party,  representatives  of  the  Parties  shall  meet  when 
necessary to consult with each other on matters arising out of the application of this 
Agreement,  to  supervise  its  operation  and  to  discuss  arrangements  for  co-operation 
additional to those provided in this Agreement. Such consultations may also take the 
form of an exchange of correspondence. Specifically, the Parties shall consult before 
the  commencement  of  new  enrichment  or  reprocessing  projects  relevant  to  nuclear 
material subject to this Agreement. 

Any dispute arising out of the interpretation or application of this Agreement which 
is  not  settled  by  negotiation  or  as  may  otherwise  be  resolved  between  the  Parties 
shall, on the request of either Party, be submitted to an arbitral tribunal which shall 
be  composed  of  three  arbitrators.  Each  Party  shall  designate  one  arbitrator  and  the 
two  arbitrators  so  designated  shall  elect  a  third,  not  a  national  of  either  Party,  who 
shall be the Chairman. If within thirty days of the request for arbitration either Party 
has  not  designated  an  arbitrator,  the  other  Party  to  the  dispute  may  request  the 
President  of  the  International  Court  of  Justice  to  appoint  an  arbitrator  to  the  Party 
which  has  not  designated  an  arbitrator.  If  within  thirty  days  of  the  designation  or 
appointment  of  arbitrators  for  both  the  Parties  the  third  arbitrator  has  not  been 
elected, either Party may request the President of the International Court of Justice to 
appoint the third arbitrator. A majority of the members of the arbitral tribunal shall 
constitute  a  quorum,  and  all  decisions  shall  be  made  by  majority  vote  of  all  the 
members of the arbitral tribunal. The arbitral procedure shall be fixed by the tribunal. 
The  decisions  of  the  tribunal  shall  be  binding  on  both  Parties  and  implemented  by 

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them. The remuneration of the arbitrators shall be determined on the same basis as 
that for ad hoc judges of the International Court of Justice. 

3. 

For dispute resolution purposes, the English version of this Agreement shall be used. 

Article XVI 

Complementary Provisions 

The  provisions  of  any  bilateral  nuclear  co-operation  agreements  in  force  between  Australia 
and Member States of the Community shall be regarded as complementary to this Agreement 
and shall, where appropriate, be superseded by the provisions of this Agreement. 

Article XVII 

Amendments 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

The  Parties  may  consult,  at  the  request  of  either  Party,  on  possible  amendments  to 
this  Agreement,  particularly  to  take  account  of  international  developments  in  the 
field of nuclear safeguards. 

This Agreement may be amended if the Parties so agree. 

Any  amendment  shall  enter  into  force  on  the  date  specified  by  the  Parties,  by  an 
exchange of diplomatic notes between the Parties. 

The Annex to this Agreement forms an integral part of this Agreement and may be 
amended in accordance with this Article. 

Article XVIII 

Entry into force and duration 

This Agreement shall enter into force on the date of the latter written notification that 
internal  procedures  necessary  for  its  entry  into  force  have  been  completed  by  the 
Parties. 

This Agreement shall remain in force for an initial period of thirty years. Thereafter 
this  Agreement  shall  be  automatically  renewed  for  additional  periods  of  ten  years, 
unless, at least six months before the expiration of any such additional period, a Party 
notifies the other Party of its intention to terminate the Agreement. 

Notwithstanding the suspension, termination or expiration of this Agreement or any 
co-operation hereunder for any reason, the obligations in Articles III, IV, V, VI, VII, 
VIII, IX, X, XI, XII and XIII shall continue in effect so long as any nuclear material, 
non-nuclear material or equipment subject to these Articles remains in the territory of 
the  other  Party  or  under  its  jurisdiction  or  control  anywhere  or  until  it  is  mutually 
determined by the Parties in accordance with the provisions of Article IV that such 
nuclear  material  is  no  longer  usable,  or  is  practicably  irrecoverable  for  processing 
into a form in which it is usable, for any nuclear activity relevant from the point of 
view of safeguards. 

4. 

This Agreement replaces: 

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a)  Agreement  between  the  Government  of  Australia  and  the  European  Atomic 
Energy  Community  concerning  Transfers  of  Nuclear  Material  from  Australia 
to the European Atomic Energy Community, done at Brussels on 21 September 
1981; 

b) 

c) 

d) 

Exchange  of  Notes  constituting  an  Implementing  Arrangement,  concerning 
International  Obligation  Exchanges, 
the 
Government  of  Australia  and  the  European  Atomic  Energy  Community 
(EURATOM) concerning Transfers of Nuclear Material of 21 September 1981, 
done at Brussels on 8 September 1993; 

the  Agreement  between 

to 

Exchange  of  Notes  constituting  an  Implementing  Arrangement,  concerning 
Plutonium  Transfers,  to  the  Agreement  between  the  Government  of  Australia 
and  the  European  Atomic  Energy  Community  (EURATOM)  concerning 
Transfers  of  Nuclear  Material  of  21  September  1981,  done  at  Brussels  on  8 
September 1993; and 

Exchange  of  Notes  constituting  an  Implementing  Arrangement  between  the 
Government  of  Australia  and  the  European  Atomic  Energy  Community 
(EURATOM)  concerning  Plutonium  Transfers  under  the  Agreement  between 
the Government of Australia and EURATOM concerning Transfers of Nuclear 
Material from Australia to EURATOM, and accompanying Side Letter No. 2, 
of  21  September  1981,  and  the  Implementing  Arrangement  concerning 
Plutonium Transfers of 8 September 1993. 

Done  in  duplicate  at  ………………….,  in  the  Bulgarian,  Czech,  Danish,  Dutch,  English, 
Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, 
Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each text 
being equally authentic. 

IN  WITNESS  WHEREOF,  the  undersigned,  being  duly  authorised  thereto  have  signed  the 
present Agreement. 

For the European Atomic Energy Community 

For the Government of Australia 

[signature] 

[signature] 

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ANNEX A 

REPROCESSING 

Whereas  Article  VIII  of  the  Agreement  provides  that  nuclear  material  subject  to  this 
Agreement  (hereinafter  referred  to  as  NMSA)  shall  be  reprocessed  only  according  to 
conditions set out in this Annex. 

The Parties to this Agreement, 

Acknowledging  that  the  separation,  storage,  transportation  and  use  of  plutonium  require 
particular measures to reduce the risk of nuclear proliferation; 

Recognizing the role of reprocessing in connection with efficient energy use, management of 
materials contained in spent fuel or other peaceful non-explosive uses including research; 

Desiring  predictable  and  practical  implementation  of  the  agreed  conditions  set  out  in  this 
Annex, taking into account both their determination to ensure the furtherance of the objective 
of  non-proliferation  and  the  long-term  needs  of  the  nuclear  fuel  cycle  programmes  of  the 
Parties; 

Determined  to  continue  to  support  the  development  of  international  safeguards  and  other 
measures relevant to reprocessing and plutonium, including measures to promote proliferation 
resistance and effective physical protection; 

Have agreed as follows: 

NMSA may be reprocessed subject to the following conditions: 

Article 1 

a) 

b) 

c) 

d) 

reprocessing shall take place for the purpose of energy use or management of 
materials  contained  in  spent  fuel,  in  accordance  with  the  nuclear  fuel  cycle 
programme  mutually  determined  through  consultation  between  the  competent 
authorities; 

a description of any proposed nuclear fuel cycle programme, including details 
on  the  policy,  legal  and  regulatory  framework  relevant  to  reprocessing  and 
plutonium  storage,  use  and  transportation  shall  be  provided  by  the  Party 
envisaging such activities; 

the  recovered  plutonium  shall  be  stored  and  used  in  accordance  with  the 
nuclear fuel cycle programme referred to in paragraph (a) above; and 

reprocessing  and  use  of  the  recovered  plutonium  for  other  peaceful  non-
explosive  purposes  including  research  shall  take  place  only  under  conditions 
mutually  determined  in  writing  between  the  Parties  following  consultations 
pursuant to Article 2 of this Annex. 

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Consultations shall be held between the Parties within 40 days of the receipt of a request from 
either Party: 

Article 2 

a) 

b) 

c) 

d) 

to review the operation of the provisions of this Annex; 

to  consider  amendments  to  the  nuclear  fuel  cycle  programme  referred  to  in 
Article 1 of this Annex; 

to  consider  improvements  in  international  safeguards  and  other  control 
techniques  including  the  establishment  of  new  and  generally  accepted 
international mechanisms relevant to reprocessing and plutonium; or 

to  consider  proposals  for  reprocessing,  use,  storage  and  transportation  of  the 
recovered  plutonium  for  other  peaceful  non-explosive  purposes  including 
research. 

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