Source: EURLEX
Language: en
Format: md

**EN**

# **EN EN**

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**

# **EN EN**

**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.** **I** **NTRODUCTION**

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.** **I** **MPORTANCE OF THE** **A** **GREEMENT**

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](http://www.world-nuclear.org/inf12.html)
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

# EN 2 EN

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.** **G** **ENERAL SCHEME OF THE** **A** **GREEMENT**

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 Protocols [1] ). Transports of nuclear
materials should be in conformity with the provisions of the International Convention on the
Physical Protection of Nuclear Material [2] .

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 INFCIRC/540
2 INFCIRC/274/Rev.l

# EN 3 EN

**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.

# EN 4 EN

**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 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 Australia and the
Community is carried out;

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;

# EN 5 EN

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:

–
for the Government of Australia, the Australian Safeguards and NonProliferation 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.

3. "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.

4. "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.

5. "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:

# EN 6 EN

–
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.

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 to this Agreement.

10. "technology" has the meaning as defined in Annex A of IAEA
INFCIRC/254/Rev.9/Part 1 (Guidelines for Nuclear Transfers).

**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.

# EN 7 EN

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

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

b) 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;

c) 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) nuclear safety and radiation protection;

h) safeguards, and physical protection of nuclear material and facilities;

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

j) 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. 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.

4. 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) establishment of bilateral working groups for implementation of the joint
projects;

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

# EN 8 EN

e) trade and commercial cooperation relating to the nuclear fuel cycle;

f) 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 cooperation. 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;

# EN 9 EN

(ii) equipment [3] subject to this Agreement was wholly responsible for the
production, processing or use of that nuclear material and;

(iii) equipment [3] 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 Agreement [4] .

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) 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;

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 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;

c) that non-nuclear material and equipment are no longer usable for nuclear

purposes; or

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

3 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.
4 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.

# EN 10 EN

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.

**Article VI**

**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 Australia in relation to peaceful uses of nuclear energy as listed in Article VII.

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 Government of Australia, 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 Government of Australia.

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 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.

6. 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
particular, the Guidelines for Nuclear Transfers, as set out in IAEA

# EN 11 EN

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 NonProliferation 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

# EN 12 EN

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
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).

4. 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).

5. 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.

6. 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.

# EN 13 EN

**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. (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.

2. (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.

# EN 14 EN

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.

3. 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.

4. 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**

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

2. 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**

1. 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.

2. 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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**Article XIV**

**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.

3. 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.

4. 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**

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 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.

2. 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. 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 specified by the Parties, by an
exchange of diplomatic notes between the Parties.

4. 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**

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 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.

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, 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) Exchange of Notes constituting an Implementing Arrangement, concerning
International Obligation Exchanges, 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;

c) 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

d) 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:

**Article 1**

NMSA may be reprocessed subject to the following conditions:

a) 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;

b) 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;

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

d) reprocessing and use of the recovered plutonium for other peaceful nonexplosive 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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**Article 2**

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

a) to review the operation of the provisions of this Annex;

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

c) 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

d) 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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