RECOMMENDATION FROM THE COMMISSION TO THE COUNCIL on the renewal of the Agreement between the European Atomic Energy Community (Euratom) and the Korean Peninsula Energy Development Organisation (KEDO)
Date: 2012-12-17
Institutions: European Commission
Subjects: EAEC, North Korea, negotiation of an agreement (EU), nuclear energy

EUROPEAN 
COMMISSION 

Brussels, 17.12.2012  
COM(2012) 760 final 

RECOMMENDATION FROM THE COMMISSION TO THE COUNCIL 

on the renewal of the Agreement between the European Atomic Energy Community 
(Euratom) and the Korean Peninsula Energy Development Organisation (KEDO) 

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RECOMMENDATION FROM THE COMMISSION TO THE COUNCIL 

on the renewal of the Agreement between the European Atomic Energy Community 
(Euratom) and the Korean Peninsula Energy Development Organisation (KEDO) 

1. 

INTRODUCTION 

The  Euratom  Community  has  been  a  full  member  of  the  Korean  Peninsula  Energy 
Organisation  (KEDO)  since  1997.  The  main  objective  of  KEDO  was  the  provision  of  two 
nuclear  light  water  reactors  to  the  DPRK  (Democratic  People's  Republic  of  Korea  -  North 
Korea), as part of international non-proliferation efforts on the Korean Peninsula. As a result 
of the DPRK’s failure to implement its non-proliferation obligations, the operative activities 
of KEDO were terminated and the 12 year old secretariat closed on 31 May 2007. In spite of 
this KEDO's Executive Board decided not to terminate the organisation immediately, but to 
maintain it in the form of an empty shell (as a pure skeleton, with a secretariat employed on a 
temporary basis) in order to allow it to defend its financial and legal interest and those of its 
four  members  represented  in  the  Executive  Board  (Euratom,  Japan,  South  Korea  and  the 
USA).  

Initially  it  was  estimated  that  a  final  settlement  of  these  legal  and  financial  issues  could  be 
achieved by 31 May 2012. Therefore the Community’s membership was to last until that date 
under  the  latest  Euratom-KEDO  Agreement.  However  since  KEDO  needs  more  time  to 
finalise  its  outstanding  issues,  continued  protection  of  the  Community  interests  requires 
conclusion of a new Agreement between Euratom and KEDO. To that end, the Commission 
submitted  to  the  Council  on  22  March  2012  a  Recommendation  for  a  Council  Decision 
authorising the Commission to negotiate the renewal of the Euratom-KEDO Agreement. The 
Council issued the negotiating directives on 2 May 2012. 

2. 

NEGOTIATIONS 

On  the  basis  of  the  text  proposed  by  the  Commission  services,  following  the  Council's 
negotiating directives, an ad referendum agreement has now been reached with KEDO on the 
attached text for renewal of the Agreement between the European Atomic Energy Community 
(Euratom)  and  the  Korean  Peninsula  Energy  Development  Organisation  (KEDO).  In  the 
opinion of the Commission services, this text includes all the negotiating directives. 

3. 

CONCLUSION 

The Commission considers that the renewal of the Agreement between the European Atomic 
Energy Community (Euratom) and the Korean Peninsula Energy Development Organisation 
(KEDO), the adoption of which is proposed, is in conformity with the negotiating directives 
issued by the Council on 2 May 2012. 

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, 

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the renewal of the Agreement between the European Atomic Energy Community (Euratom) 
and the Korean Peninsula Energy Development Organisation (KEDO) in Annex.  

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ANNEX  

AGREEMENT BETWEEN THE EUROPEAN ATOMIC ENERGY COMMUNITY 
AND THE KOREAN PENINSULA ENERGY DEVELOPMENT ORGANISATION 

THE EUROPEAN ATOMIC ENERGY COMMUNITY, 

Hereinafter referred to as "the Community", and 

THE KOREAN PENINSULA ENERGY DEVELOPMENT ORGANISATION, 

Hereinafter referred to as "KEDO", 

Whereas: 

(1) 

(2) 

(3) 

(4) 

KEDO  was  established  pursuant  to  the  Agreement  of  9  March  1995  on  the 
Establishment of the Korean Peninsula Energy Development Organisation, as amended 
on 19 September 1997, between the Governments of the Republic of Korea, Japan and 
the United States of America; 

The  fifth  Agreement  concluded  between  the  Community  and  KEDO  expired  on  31 
May 2012; 

After its decision to terminate KEDO's nuclear light water reactor project and the 2007 
decision to fulfil the responsibilities of the Secretariat with a greatly reduced staff and 
minimal office facilities, KEDO's Executive Board decided in 2011 to continue KEDO 
beyond 31 may 2012; 

Both  the  Community  and  KEDO  have  expressed  the  wish  to  continue  their  co-
operation with the objective of implementing the termination of the LWR project and 
an orderly winding up of KEDO; 

HAVE AGREED AS FOLLOWS: 

Article 1 

Application of the provisions of previous Agreement 

Unless  otherwise  specified  in  one  of  the  articles  here  below,  the  provisions  of  the  previous 
Agreement between the Community and KEDO, which expired on 31 May 2012, shall remain 
applicable under this Agreement. 

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Article 2 

Community contribution 

There  shall  be  no  financial  contribution  from  the  Community  to  KEDO's  budget  under  this 
Agreement. 

Article 3 

Duration 

This Agreement will expire on 31 May 2013. It will be automatically renewed each year for a 
period of another year, unless a  party notifies the other party that it wishes to terminate the 
Agreement  at  least  one  month  before  the  date  of  expiry.  It  may  also  be  terminated  with 
immediate  effect  after  withdrawal  from  KEDO  by  any  of  the  other  Members  currently 
represented  in  the  Executive  Board.  This  Agreement  will  not  be  renewed  beyond  31  May 
2015. 

Article 4 

Entry into force 

This Agreement shall enter into force upon signature by the Community and KEDO and will 
take effect from 1 June 2012. 

Done at Brussels this ................ day of .................... 2012, in two originals 

For the European Atomic Energy Community 

Done at New York this.............. day of......................2012, in two originals 

For the Korean Peninsula Energy Development Organisation 

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