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# 52012DC0027

**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 South Africa /\* COM/2012/027 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 South Africa

1.           Introduction

The Agreement between the Euratom Atomic
Energy Community ("Community) and the Government of South Africa ("South
Africa") for cooperation in the peaceful uses of atomic energy covers most
fields of mutual interest.

The Agreement provides 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 which will facilitate the cooperation in this field between the Parties.

2.           Importance of the Agreement

With a view to strengthening the overall
co-operative relationship between the Community and South Africa, the
importance of concluding this Agreement is mainly based on the mutual interest
to establish a stable legal framework in order to facilitate equal, reciprocal
cooperation in the peaceful uses of nuclear energy, including commercial
exchanges, taking into account that South Africa has large uranium reserves and
starts to play a growing role in the civil nuclear field.

Further the
Agreement would foster the scientific cooperation between the Community and
South Africa, in particular to facilitate the participation of South African
research entities in research projects carried out in the framework of the
relevant Community research programmes and to ensure a reciprocal participation
of research entities of the Community and its Member States in South African
projects in similar areas of research.

Thus, as a
concrete example, South Africa has developed the Pebble Bed Modular Reactor
(PBMR), which could become a viable alternative to other reactor types.
European R&D organisations are already involved in this programme.

South Africa is
also active on medical applications of nuclear energy and is a major producer
of medical radio-isotopes.

For Euratom, the interest in signing this
Agreement stems from the fact that it ensures a corresponding level of physical
protection, safeguards, and export control standards and facilitates nuclear
trade between the Parties. The Agreement also ensures the free movement of
nuclear and non-nuclear materials, equipment and technology within the
Community, as well as requires that transfers of nuclear material and
provisions of relevant services be carried out under fair commercial
conditions.

The conclusion of a new agreement between
the European Atomic Energy Community ('Euratom') and South Africa for
cooperation in the peaceful uses of nuclear energy will create a long-term and
stable framework for both Parties and their governments and industrial
operators, within which such co-operation could take place, as well as
encourage and facilitate the scientific co-operation in research and
development in the field of nuclear energy on the basis of mutual benefit,
equality and reciprocity.

3.           General scheme of the Agreement

The Agreement has as its objective
cooperation in the peaceful uses of nuclear energy between Euratom and South
Africa. The scope and forms of cooperation (Article III) mainly comprise research
and development in the field of nuclear energy, use of nuclear materials and
technologies, transfers of nuclear material and equipment and nuclear
safeguards.

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 Trade in nuclear
material, non-nuclear material or equipment (Article V). It is underlined that
nuclear material shall be used for peaceful purposes and in compliance with the
safeguards agreements (for the Community: the Euratom safeguards pursuant to
the Euratom Treaty and to the IAEA safeguards and its Additional Protocols[1]).

Specific provisions on the Exchange of
Information and Intellectual Property (Article VII) and implementing provisions
(Article VIII) follow. In order to guarantee the smooth implementation of the
Agreement, a specific article on Consultation and dispute resolution (Article
XII) is inserted to address questions on the correct application of the Agreement.
The duration of the Agreement is set with an initial period of 10 years,
thereafter automatically renewed for additional periods of five years (Article
XV).

4.           Conclusion

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 South Africa, the adoption of
which is proposed:

–
is in conformity with the negotiating directives
issued by the Council on 8 October 2010;

–
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 the South Africa 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 South Africa, in Annex.

ANNEX

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

PREAMBLE

The Government
of the Republic of South Africa, hereinafter referred to as South Africa, and
the European Atomic Energy Community (Euratom), hereinafter referred to as
"the Community", and hereinafter jointly referred to as the
"Parties",

CONSIDERING the
friendly relations and co-operation existing between the two Parties;

NOTING with
satisfaction the fruitful outcome of economic, technical and scientific
co-operation between the Parties;

TAKING into
account the Agreement on Trade, Development and Cooperation between the
European Community and its Member States, of the one part, and the Republic of
South Africa, of the other part, done on 11 October 1999;

TAKING into
account the Partnership Agreement between the Members of the African, Caribbean
and Pacific Group of States on the one part, and the European Community and its
Member States, on the other Part, done on 23 June 2000;

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

REAFFIRMING
the strong commitment of the Republic of South Africa, the Community and the
Governments of its Member States to nuclear non-proliferation including 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 the Republic of South Africa and the Community should be carried out;

REAFFIRMING
the support of the Republic of South Africa, 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 Republic of South Africa, the Community and its Member
States to the Convention on the Physical Protection of Nuclear Material done on
3 March 1980;

WHEREAS the
Republic of South Africa and all Member States of the Community are Parties to
the Treaty on the Non-Proliferation of Nuclear Weapons done on 1 July 1968,
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;

TAKING into
account the African Nuclear-Weapon-Free zone treaty (Pelindaba Treaty), done on
11 April 1996 and entered into force on 15 July 2009;

NOTING that
the Republic of South Africa and the Governments 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 Republic of South Africa
and the Government of each Member State of the Community in the framework of
the Nuclear Suppliers Group;

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
Republic of South Africa under the World Trade Organisation;

REITERATING
commitments of the Republic of South Africa 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 therein,

1.
"competent authority" means:

(a)
for the Republic of South Africa, the Department
of Energy;

(b)
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;

2.
"equipment" means those items listed
in Sections 1, 3, 4, 5, 6 and 7 of Annex B of IAEA document INFCIRC/254/Rev.10/Part
1 (Guidelines for Nuclear Transfers), as amended from time to time;

3.
"information" means scientific or
technical data, results or methods of research and development stemming from
the joint research projects and any other information deemed necessary by the
Parties and/or participants engaged in the joint research projects to be
provided or exchanged under this Agreement or research pursuant thereto;

4.
"intellectual property" shall have the
meaning set out in Article 2 of the Convention establishing the World
Intellectual Property Organization, done on 14 July 1967, as amended on 28
September 1979, and may include other subject matter as mutually determined by
the Parties;

5.
"joint research projects" means
research or technological development that is implemented with or without
financial support from one or both Parties and that involves collaboration by
participants from both the Community and South Africa and is designated as
joint research in writing by the Parties or their scientific and technological
organisations and agencies implementing the scientific research programmes. In
the case where there is funding by only one Party the designation is made by
that Party and the participant in that project;

6.
"nuclear material" means any source material
or special fissionable material as those terms are defined in Article XX of the
Statute of the IAEA. Any determination by the Board of Governors of the IAEA
under Article XX of the IAEA 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;

7.
"non-nuclear material" means:

(a)
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 Information Circular INFCIRC/254/Rev.10/Part 1,

(b)
Nuclear grade graphite: graphite, for use in a
nuclear reactor, as defined in paragraph (1.1) of Annex B of IAEA Information
Circular INFCIRC/254/Rev.10/Part 1, having a purity level better than 5 parts
per million boron equivalent and with a density greater than 1.50 grams per
cubic centimetre;

8.
"participant" means any person, any
research institute, any legal entity or firm or any other body otherwise
allowed by either Party to participate in cooperative activities and or joint
research projects under this Agreement including the Parties themselves;

9.
"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;

10.
"results of intellectual activity"
(RIA) means information and/or intellectual property;

11.
"Parties" means the Republic of South
Africa on the one hand and the Community on the other hand;

"the Community" means both:

(a)
the legal person created by the Euratom Treaty;
and

(b)
the territories to which the Euratom Treaty
applies;

12.
"technology" has the meaning defined
in Annex A of IAEA Information Circular INFCIRC/254/Rev.10/Part 1.

Article
II

Objective

1.
The objective of this Agreement is to encourage
and to facilitate, on the basis of mutual benefit, equality and reciprocity,
cooperation in the peaceful uses of nuclear energy with a view to strengthening
the overall co-operative relationship between the Community and South Africa,
in accordance with the needs and priorities of their respective nuclear
programmes.

2.
The Agreement aims to foster the scientific
cooperation between the Community and South Africa, in particular to facilitate
the participation of South African research entities in research projects
carried out in the framework of the relevant Community research programmes and
to ensure a reciprocal participation of research entities of the Community and
its Member States in South African projects in similar areas of research.

3.
Nothing contained in this Agreement shall be
construed as binding the Parties to any form of exclusivity and each Party
shall be entitled to conduct business independent of the other where market
requirements so dictate.

Article
III

Scope
and forms 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 nuclear explosive device, for
research or for development of any such device, nor for any military purpose.

2.
The co-operation intended by this Agreement relates
to the peaceful uses of nuclear energy and may include, inter alia:

(a)
research and development in the field of nuclear
energy (including fusion technologies);

(b)
use of nuclear materials and technologies such
as applications in health, agriculture;

(c)
transfers of nuclear materials and equipment;

(d)
nuclear safety, radioactive waste and spent fuel
management, decommissioning, radiation protection including emergency
preparedness and response;

(e)
nuclear safeguards;

(f)
other areas to be agreed by the Parties, insofar
as they are covered by the Parties’ respective programmes.

3.
The co-operation referred to in paragraph 2 of
this Article may be undertaken in the following forms:

(a)
supply of nuclear and non-nuclear materials,
equipment and related technologies;

(b)
provision of nuclear fuel cycle services;

(c)
establishment of Working Groups, if necessary,
to implement specific studies and projects in the area of scientific research
and technological development;

(d)
exchange of experts, scientific and
technological information, organization of scientific seminars and conferences,
training of administrative, scientific and technical personnel;

(e)
consultations on research and technological
issues and performing joint research under agreed programmes;

(f)
co-operation activities in promoting nuclear
safety; and

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

4.
The co-operation referred to in paragraph 2 of
this Article may also take place between authorised persons and undertakings
established in the respective territories of the Parties.

Article
IV

Items
subject to the Agreement

1.
This Agreement shall apply to 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, provided that the supplying Party has
notified the receiving Party in writing of the intended transfer, in accordance
with procedures defined in the Administrative Arrangement, and that the
proposed recipient, if other than the receiving Party, is an authorised person
under the territorial jurisdiction of the receiving Party.

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 Arrangements:

(a)
that such item has been re-transferred beyond
the jurisdiction of the receiving Party in accordance with the relevant
provisions of this Agreement; or

(b)
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 VI or has become practically irrecoverable; or

(c)
that equipment or non-nuclear material is no
longer usable for nuclear purposes; or

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

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 South Africa, on the other, should be given before each
transfer.

Article V

Trade in nuclear material, non-nuclear material or equipment

1.
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 the Republic of South Africa
in relation to peaceful uses of nuclear energy as listed in Article VI.

2.
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 Republic of South
Africa, of nuclear material, non-nuclear material or equipment.

3.
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 Republic of South Africa.

4.
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.

5.
Transfers of nuclear material subject to this
Agreement and the provision of relevant services shall be carried out under
fair commercial conditions and not jeopardise the international obligations of
the Parties under the World Trade Organisation. The implementation of this paragraph
shall be without prejudice to the Euratom Treaty and its derived legislation,
and to South African laws and regulations.

6.
Any retransfers of any nuclear material,
non-nuclear material, equipment 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
Republic of South Africa within the group of nuclear supplier countries known
as the Nuclear Suppliers Group. In particular, the Guidelines for Nuclear
Transfers, as set out in IAEA Information Circular INFCIRC/254/Rev. 9/Part 1,
shall apply to retransfers of any nuclear material, non-nuclear material,
equipment or technology subject to this Agreement.

7.
Upon entry into force of this Agreement, the
Parties shall exchange lists of the third countries to which retransfers
pursuant to paragraph 6 of this Article are authorised without the need to
obtain prior authorisation from the supplier Party. Each Party shall notify the
other Party of changes to its list of third countries.

8.
The prior written consent of the supplier Party
shall be required for retransfers pursuant to paragraph 6 of this Article to
countries not figuring upon the supplier Party's list of third countries.

Article VI

Applying
conditions to 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 relevant, and as they may be revised and
replaced, so long as coverage as required by the Non-Proliferation Treaty is
provided for:

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

ii)       The Agreement between France, European
Atomic Energy Community and the International Atomic Energy Agency, which
entered into force on 12 September 1981 (published as INFCIRC/290);

iii)      The Agreement between the United
Kingdom, European Atomic Energy Community and the International Atomic Energy
Agency, which entered into force on 14 August 1978 (published as INFCIRC/263);

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

(b)
In South Africa, to the IAEA safeguards pursuant
to the Agreement between the Government of the Republic of South Africa and the
IAEA for the Application of Safeguards in connection with the Treaty on the
Non-Proliferation of Nuclear Weapons, which was signed and entered into force
on 16 September 1991 and was published as INFCIRC/394, supplemented by the
Additional Protocol, which was signed and entered into force on 13 September
2002, and to the African Nuclear-Weapon-Free Zone Treaty which was signed on 11
April 1996 and entered into force on 15 July 2009.

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 South Africa,
the relevant Party shall enter into an agreement with the IAEA which provides 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,
or, if that is not possible,

(a)
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,

(b)
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.

3.
Application of physical protection measures shall
be at all times at levels which satisfy as a minimum the criteria set out in Annex
C of IAEA Information Circular INFCIRC/254/Rev.10/Part 1 as it may be revised;
supplementary to this document, the Member States of the Community, the
European Commission, as appropriate, and South Africa will refer
when applying physical protection measures to its 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 Nuclear Security Recommendations on Physical Protection of
Nuclear Material and Nuclear Facilities (INFCIRC/225/Revision 5), IAEA Nuclear
Security Series No. 13. International 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 Materials (IAEA Safety Standards Series No. TS-R-1).

4.
Nuclear safety and waste management shall be
subject to the Convention on Nuclear Safety (IAEA Information Circular
INFCIRC/449), the Joint Convention on the Safety of Spent Fuel Management and
on the Safety of Radioactive Waste Management (IAEA Information Circular INFCIRC/546),
the Convention on Assistance in the case of a Nuclear Accident or Radiological
Emergency (IAEA Information Circular INFCIRC/336), the Convention on Early
Notification of a Nuclear Accident (IAEA Information Circular INFCIRC/335).

Article VII

Exchange
of Information and Intellectual Property

Utilisation and diffusion of information
and intellectual property rights, including industrial property, patents and
copyrights, and technology transferred pursuant to the cooperative activities
under this Agreement shall be in accordance with provisions in Annex A.

Article
VIII

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 South Africa 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.

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 South Africa and
the Community.

3.
Nuclear material subject to this Agreement shall
be handled based on the principles of proportionality, fungibility and the
equivalence of nuclear materials.

4.
Any amendment to the documents published by the
IAEA mentioned in Articles I, V or VI 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
IX

Administrative
Arrangements

1.
The competent authorities of both Parties shall
establish Administrative Arrangements to ensure the effective implementation of
the provisions of this Agreement.

2.
Such Administrative arrangements may, inter
alia, cover financing provisions, assignment of management responsibilities,
and detailed provisions on dissemination of information and intellectual
property rights.

3.
An administrative arrangement established
pursuant to paragraph 1 of this Article may be amended as mutually determined
in writing by the competent authorities.

Article
X

Applicable
law

The co-operation provided for in this
Agreement shall be in accordance with the laws, regulations in force in South
Africa 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.

Article
XI

Non-Compliance

1.
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.

2.
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. Such action shall be
taken only if there has been failure to take decided measures within the time decided
by the Parties or, in the event of failure to find a solution after the lapse
of a period of time defined by the Parties.

3.
Termination of this Agreement shall not affect
the implementation of any arrangements and/or contracts, made during the period
of its validity but still not completed by the date of its termination, unless
otherwise agreed upon by the Parties.

Article
XII

Consultation
and dispute resolution

1.
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 interpretation or the implementation of the present
Agreement, to supervise its operation and to discuss arrangements for co-operation
additional to those provided in the present Agreement. Such consultations may
take also the form of an exchange of correspondence.

2.
Any dispute arising out of the interpretation,
the application or the implementation of this Agreement which is not settled by
negotiation or as may otherwise be agreed 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 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
XIII

Complementary
Provisions

1.
This agreement is without prejudice to the right
of the Member States to conclude bilateral agreements with South Africa,
respecting the competences of the Member States on the one hand and the
Community on the other, and in so far as such bilateral agreements are in full
conformity with the aims and terms of the present Agreement. Bilateral
agreements concluded by certain Member States before the entry into force of
the Agreement between the Community and South Africa may continue to apply.

2.
Provisions for articulating these agreements and
the Agreement should be projected where appropriate, in accordance with the
respective competence of the Parties, and subject to the agreement of concerned
parties.

Article XIV

Amendments and Status of the Annex

1.
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.

2.
This Agreement may be amended if the Parties so
agree.

3.
Any amendment shall enter into force on the date
the Parties, by exchange of diplomatic notes, specify for its entry into force.

4.
The Annex to this Agreement forms an integral
part of this Agreement and may be amended in accordance with paragraphs 1 to 3
of this Article.

Article
XV

Entry
into force and duration

1.
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.

2.
This Agreement shall remain in force for a
period of ten years. Thereafter this Agreement shall be automatically renewed
for additional periods of five 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.

3.
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 and X 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 determined 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.

Done at            in duplicate, 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 Republic of South Africa

ANNEX A

Guiding principles on the allocation of intellectual property rights
resulting from joint research activities under the Agreement for cooperation in
the peaceful uses of nuclear energy

I. OWNERSHIP, ALLOCATION AND EXERCISE OF
RIGHTS

1. This Annex shall apply to cooperative
activities under this Agreement except as otherwise agreed by the Parties. The
participants shall jointly develop technology management plans (TMPs) in
respect of the ownership and use, including publication, of information and
intellectual property, to be created in the course of cooperative activities.
The TMPs shall be approved by the Parties before the conclusion of any specific
Research and Development cooperation contracts to which they refer.

The TMPs shall be developed taking into
account the aims of the cooperative activities, the relative contributions of
the participants, peculiarities of licensing by territory or for a specific
field of use, requirements imposed by laws applicable and other factors deemed
appropriate by the participants. The rights and obligations concerning the
research generated by visiting researchers under this Agreement in respect of
RIA shall also be addressed in the joint TMPs.

2. RIA created in the course of cooperative
activities and not addressed in the TMP shall be allocated, with the approval
of the Parties, according to the principles set out in the TMP. In case of
disagreement, such RIA shall be owned jointly by all the participants involved
in the joint research from which the RIA results. Each participant to whom this
provision applies shall have the right to use such RIA for his own commercial
exploitation with no geographical limitation.

3. Each Party shall ensure that the other
Party and its participants shall have the rights to RIA allocated to them in
accordance with these principles.

4. While maintaining the conditions of
competition in areas affected by this Agreement each Party shall endeavor to
ensure that rights acquired pursuant to this Agreement and arrangements made
under it are exercised in such a way as to encourage in particular:

(i) the dissemination and use of information
created, disclosed legally, or otherwise legally made available, under the
Agreement;

(ii) the adoption and implementation of international
technical standards.

II. COPYRIGHT WORKS

Under this Agreement, copyright belonging to
the Parties or to their participants shall be accorded treatment consistent
with the Berne Convention for the protection of literary and artistic work
(Paris Act 1971).

III. SCIENTIFIC LITERARY WORKS

Without prejudice to section IV of this Annex,
unless otherwise agreed in the TMP, publication of results of research shall be
made jointly by the Parties or participants to those cooperative activities.
Subject to the foregoing general rule, the following procedures shall apply:

(a) in the case of publication by a Party or
its other participants, of scientific and technical journals, articles,
reports, books, including video and software, of the results arising from
cooperative activities. pursuant to this Agreement, the other Party or its
other participants shall be entitled to a worldwide, non-exclusive,
irrevocable, royalty-free license to translate, reproduce, adapt, transmit and
publicly distribute such works;

(b) the Parties shall ensure that literary
works of a scientific character arising from cooperative activities. Pursuant
to this Agreement and published by independent publishers shall be disseminated
as widely as possible;

(c) all copies of a copyright work to be
publicly distributed and prepared under the provisions of this Agreement shall
indicate the names or pseudonyms of the author(s) of the work unless an author
or authors expressly declines or decline to be named. The copies shall also
bear a clearly visible acknowledgment of the cooperative support of the Parties
and/or their representatives and/or organizations.

IV. UNDISCLOSED INFORMATION

1. Documentary undisclosed information

(a) Each Party or its participants, as
appropriate, shall identify at the earliest possible moment and preferably in
the TMP, the information that it wishes to remain undisclosed in relation to
this Agreement, taking account, inter alia, of the following criteria:

- secrecy of the information in the sense that
the information is not, as a body or in the precise configuration or assembly
of its components, generally known among or readily accessible by lawful means
to experts in the field,

- the actual or potential commercial value of
the information by virtue of its secrecy,

- previous protection of the information in
the sense that it has been subject to steps that were reasonable under the
circumstances by the person lawfully in control, to maintain its secrecy.

The Parties and their participants may, in
certain cases, agree, that, unless otherwise indicated, parts of or all the
information provided, exchanged or created in the course of cooperative
activities pursuant to the Agreement shall not be disclosed.

(b) each Party shall ensure that undisclosed
information under this Agreement and its ensuing privileged nature is readily
recognizable as such by the other Party, for example by means of an appropriate
marking or restrictive legend. This also applies to any reproduction of the
said information, in whole or in part;

Party receiving undisclosed information
pursuant to this Agreement shall respect the privileged nature thereof. These
limitations shall automatically terminate when this information is disclosed by
the owner without restriction to experts in the field;

(c) undisclosed information communicated under
this Agreement may be disseminated by the receiving Party to persons within or
employed by the receiving Party, and other concerned departments or agencies in
the receiving Party authorized for the specific purposes of the cooperative
activities. under way, provided that any undisclosed information so
disseminated shall be pursuant to a specific agreement on confidentiality and
shall be readily recognizable as such, as set out above;

(d) with the prior written consent of the
Party providing undisclosed information under this Agreement, the receiving
Party may disseminate such undisclosed information more widely than otherwise
permitted in paragraph (c). The Parties shall cooperate in developing
procedures for requesting and obtaining prior written consent for such wider
dissemination, and each Party will grant such approval to the extent permitted
by its domestic policies, regulations and laws.

2. Non-documentary undisclosed information

Non-documentary undisclosed or other
confidential or privileged information provided in seminars and other meetings
arranged under this Agreement, or information arising from the attachment of
staff, use of facilities, or joint projects, shall be treated by the Parties or
their participants according to the principles specified for documentary
information in this Annex, provided, however, that the recipient of such
undisclosed or other confidential or privileged information has been made aware
of the confidential character of the information communicated at the time such
communication is made.

3. Control

Each Party shall endeavor to ensure that
undisclosed information received by it under this Agreement shall be controlled
as provided therein. If one of the Parties becomes aware that it will be, or
may reasonably be, expected to become unable to meet the non-dissemination
provisions of paragraphs 1 and 2, it shall immediately inform the other Party.
The Parties shall thereafter consult to define an appropriate course of action.

V. Indicative features of a technology
management plan (TMP)

The TMP is a specific agreement to be
concluded between the participants, about the implementation of cooperative
activities and the respective rights and obligations of the participants. With
respect to RIA, the TMP will normally address, inter alia: ownership,
protection, user rights for R & D purposes, exploitation and dissemination,
including arrangements for joint publication, the rights and obligations of
visiting researchers and dispute settlement procedures. The TMP may also
address foreground and background information, licensing and deliverables.

[1]               INFCIRC/540.

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