CELEX: 51976PC0133
Language: en
Date: 1976-03-31
Title: DRAFT PROPOSAL FOR DIRECTIVES TO NEGOCIATE A NEW EURATOM/CANADA AGREEMENT (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 133
Vol. 1976/9006
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
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Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
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 ---pagebreak---                                                             COM(76)133 final.
     COMMISSION                                              Brussels , 31 March 1976 *
       OF THE
EUROPEAN COMMUNITIES
                                                            CONFIDENTIAL
       Secretariat
                                          DRÀFT
                        PROPOSAL POR DIRECTIVES TO NEGOCIATE A NEW
                                  EURATOM/CANADA AGREEMENT
                        ( submitted. to the Council by the Commies ion)
            COM(76 ) 133 final .
 ---pagebreak---                                                          XII/297/76 E
                                                                CONFIOEN j' FL
          Since the month of April 1975 , the Canadian Authorities have-
  let the Commission know that , on the one hand , the decision of the
  Government of Canada , announced to the House of Commons on the
  20 December 197^, to require stricter safeguards on foreign sales
  of nuclear technology , facilities and material , and , on the other ,
  the. impending ratification of the Treaty on the Non-Proliferation of
  Nuclear/and the verification agreements concluded on this basis by
, all the interested EAEC member countries , have made the conclusion
  of a new Eur atom/Canada agreement both necessary and possible , -one
  which will contain safeguards clauses adapted to 'the new international
  situation in this field , 'and which will be intended to replace the
  agreement of October 6 , 1959 *   As is known , the latter is still in
  force , but its existence is precarious in view of the fact that ,
  since October 6 , 1969 , it can , in accordance with its article XV , be
  denounced either by the Community or by the Government of Canada
  after 6 months notice .
          The Canadian Minister for Energy , Mines and Resources , stated
  in his declaration to the House of Commons on December 20j 197^
    ... that the Canadian Government was determined to require that the
  "maximum - safeguards " be applied to ensure that nuclear exports should
  not serve for military uses or the fabrication of nuclear explosive
  devices . He pointed out that such safeguards would cover material ,
  equipment , facilities or technology supplied by Canada or obtained
  from or with the latter and would be administered by the International
  atomic Energy Agency ( IAEA ) or through appropriate alternative proce­
  dures meeting the requirements of the Non-Proliferation Treaty .
  ( See in Annex I excerpts tif this statement ).
          It was in this spirit that Canada took part in the elaboration
  of the guidelines for nuclear transfers of the "London Club " and has
  undertaken to apply them .
          The Canadian Authorities have been active in putting the new
  Canadian safeguards policy into effect and during the year 1975 ,
  revised all their nuclear co-operation agreements, with third countries
  to take this into aocount .
          With regard to the European Atomic Energy Community , the
  Canadian Government realized that its safeguards policy could be
  expressed in a new Euratom/Canada agreement only after the entry into
  force of the verification agreement of April 5 , 1973 , concluded
  between Euratom , the 7 non-nuclear weapon member countries and the
  IAEA , and the conclusion of appropriate agreements for the two
  nuclear weapon member states .
 ---pagebreak---                                   - 2 -                   XII/297/76 E
                                                                    CONFIDENTIEL
         Meanwhile -and in order to avoid any interruption of existing
nuclear co-operation between Canada and Euratom , particularly the
supply of Canadian nuclear material to the EAEC , a "Joint Technical
Working Group" ( JTWG ) , made up of Canadian and Commission safeguards
experts , was created on the basis of articles IX , 3 and XIII , 1 of
the Euratom/Canada agreement of October 6 , 1959 .       The task of this
Group , which already met on February 19 last , is to discuss technical
measures by which both parties can be assured that the Community 's
safeguards and control system and the measures for accounting for the
use of material or equipment established by the Government of Canada
are satisfactory and effective for the purpose of the existing
Euratom/Canada co-operation agreement .
         Furthermore , the Group must evaluate the effectiveness of the
safeguards measures applied by both parties on nuclear materials
falling under the scope of the existing Euratom/Canada agreement for
co-operation .
         But this is a "modus vivendi " which is bound to be short-lived .
In fact , these provisional - measures were accepted by the Canadian
Authorities on January 5 , 1976 , for a period of six months only .
Before this period expires , it is therefore necessary that the nego­
tiation of the new Euratom/Canada agreement should have started and
progressed as far as possible .
         In view of the fact that' Canada attaches great importance to
beginning this negotiation as soon as possible , and that it is likely
that the Council will soon approve the new Euratom safeguards regu­
lations enabling the Euratom/IAEA verification agreement to enter
into force as well as the implementation of appropriate verification
agreements between Euratom , each of both nuclear weapon member states
and the IAEA , it seems that the time has now come for the Commission
to request a directive from the Council to negotiate a new agreement
which will allow nuclear co-operation between the Community and
Canada to develop , particularly in the area of nuclear material
supply, along the lines of the new Canadian safeguards policy .
        The Community, for lis part , has every reason to encourage a framework of
this THrv* and develop these bases for cooperation, mainly to promote its supplies
of natural uranium of which Canada could supply an increasingly substantial
proportion.
        The attached draft directives are designed for the negotiation of a frame­
work nuclear agreement on : the basis of which specifio agreements and contracts
can "be later negotiated in the different fields of peaceful nuclear cooperation,
in particular supply oontraots for nuclear material , arid R&D agreements.
        This cooperation agreement will itself form part of the economio and
commercial cooperation agreement between the European Communities and Canada
now tinder negotiation on the basis of the directives issued by the Council on
February 9 last . The nuclear sector is particularly suitable for fruitful
cooperation between the Communities and Canada, which is just as much an
objective of the European Communities as of Canada.
        To conclude, the Commission forwards to the Council in the Annex II to the
present communication, a draft decision laying down directives for the Commission
to negotiate a new agreement between the European Atomic Energy Community and
Canada for cooperation in the peaceful uses of atomio energy .
 ---pagebreak---                                                         XI 1 /297/76 E
                                 COmiEL                 ANNEX I
              EXCERPTS OF STATEMENT M*J)E BY THE CANADIAN MINISTER
              FOR ENERGY , MINES AND RESOURCES BEFORE THE HOUSE OF
                   COMMONS IN OTTAWA ON DECEMBER 20 . 197^
"... with uranium resources in excess of our requirements and a
competitive Canadian reactor we.r-are in the position to make an
important contribution to the pressing energy needs of the world
and are willing to make it .
       At the same time , the Government is more than ever conscious
of it responsibility to ensure that Canadian nuclear resources do not
contribute to nuclear proliferation . This requires that Canada should
apply the maximum safeguards or restraints attainable to inhibit
importing states from using nuclear supplies to further the production
of nuclear explosive devices . The export of certain nuclear equipment
including reactors , fuel fabrication and reprocessing plants , and
heavy water plants , and their major components , and related technology ,
will require safeguards .
       I would like now to outline the provisions that will be required
in every safeguards arrangement . The provisions , to be administrated
by the International Atomic Energy Agency , or through appropriate
alternative procedures meeting the requirements of the Treaty on
the Non-Proliferation of Nuclear weapons , will cover all nuclear
facilities and equipment supplied by Canada for the life of those
facilities and equipment . They will cover all nuclear facilities
and equipment using Canadian-supplied technology .    They will cover
all nuclear material -uranium , thorium , plutonium , heavy water-
supplied by Canada , and future generations of fissile material
produced from or with these materials . They will cover all nuclear
materials , whatever their origin , produced or processed in facilities
supplied by Canada .
       Most importantly , all safeguards arrangements will contain
binding assurance that Canadian-supplied nuclear material , equipment
and technology will not be used to produce a nuclear explosive device ,
whether the development of such a device be stated to be for peaceful
purposes or not".
 ---pagebreak---                                    C0NHIEL                XII/297/7b E
                                                         ANNEX II .
               DRAFT COUNCIL DECISION LhYING DOWN DIRECTIVES FOR THE
               COMMISSION TO NEGOTIATE A NEW AGREEMENT BETWEEN EURATOM
               AND CANADA FOR CO-OPERATION IN THE PEACEFUL USES OF
                                    ATOMIC ENERGY
    The Council of the European Communities ,
    Having regard to the - Treaty establishing the European Atomic Energy
    Community and in particular the second paragraph of article 101
    thereof ,
                        draft
    Having regard to thevproposal from the Commission ,
    Whereas the Council decided on February 9 , 1976 , to authorize the
    opening of negotiations with Canada with a view to the conclusion
    of a framework economic and commercial co-operation agreement between
    the European Communities and Canada ,
    Whereas the nuclear sector p.s a particularly suitable area for a
    development in greater depth of the co-operation referred to in that
    agreement ,
    Whereas a fruitful co-operation has been developed between the EAEC
    and the Government of Canada in the framework of the Euratom/Canada
    agreement of October 6 , 1959 ? in the peaceful uses of nuclear energy ,
    particularly with regard to supply and safeguards ,
    Whereas it has how become urgent to replace that agreement with a new
    agreement taking into account both the present state of relations
    between the Community and Canada and the future perspectives for the
    development of such relations ,
Consider!^ in particular
            1° the growing Community needs and the excess of Canadian
    natural uranium resources ; .
            2° Canadian safeguards policy and Euratom responsibilities in
    this matter , by virtue of both the Euratom Treaty and the verification
    agreement signed with the I AEA on April 5 » 1973 ;
            3° the possibilities for co-operation between Euratom and
    Canada in peaceful nuclear research , development 'and industry ,
    HaS DECIDED AS FOLLOWS :
1 ) The Commission is instructed to negotiate with the Government of
    Canada , on the basis of article 101 , paragraph 2 of the Treaty
    establishing the European Atomic Energy Community , an agreement
    between Euratom and the Government of Canada for co-operation in the
    peaceful uses of atomic energy .
 ---pagebreak---                                        -• ^                  XII/297/76 E
                                               CONFIDENTIEL
2 ) That agreement shall replace the agreement of October 6 , 1959 » which
    shall be terminated on the entry into force of the agreement now to
    be negotiated .
3) The agreement shall contain clauses constituting a framework for as
    close a peaceful nuclear co-operation as possible between the Parties
    and persons and firms under their jurisdiction , and embracing the
    most diverse sectors . Such co-operation should in particular extend
     to the following areas :
    - supply of material , nuclear material , equipment , devices and
       facilities ;
    –• exchange of information , particularly on
                 - research and development ;
                 - problems of health and safety ;
                 - equipment , facilities and devices ( including the supply
                    of designs , drawings and specifications );
                 - uses of equipment , facilities , devices and material ;
                 - access to and use of equipment and facilities ;
                 - provision of technical services ;
                 - improvement of prospecting techniques and mining research ;
                 - implementation of joint projects for research and develop­
                    ment as well as for the " design " and application of atomic
                    energy in such areas as electricity production , agriculture
                    industry and medicine ;
                - participation of persons or enterprises from either
                    Contracting Party in any nuclear industrial enterprise
                    of the other , particularly in enterprises specifically
                    concerned with the exploration and exploitation of
                    uranium deposits , the transformation of minerals and
                    source material , the fabrication of fuel elements , all
                    activities connected with the management and storage of
                    radioactive waste , the chemical reprocessing of fuel
                    elements and uranium enrichment .
H ) The agreement shall provide that the Parties shall use their best
    endeavours to encourage , wherever possible , the implementation of the
    Euratom/Canada co-operation agreement by means of specific agreements ,
    conventions or contracts designed to contribute to the attainment
    of the objectives defined in the directives of February 9 » 1976 , for
    the negotiation of the economic and commercial co-operation agreement
    to be concluded between the European Communities and Canada , taking
    as a basis , in particular , the means of co-operation laid down in
 ---pagebreak---                                                                  11/297/76 E
                                                 CONFIDENTIEL
                         (•)
     point B , 3 , c )        of these directives . Particular reference shall
      be made to the need for the European Atomic Energy Community to find
      in Canada, on the basis of the two afore-mentioned agreements , a
      source of uranium supply which can significantly, contribute to the
      Community 's security of supply .
 5 ) The agreement shall lay down that the envisaged co-operation will
     be carried out without prejudice to the laws and regulations in force
      within the Community and in Canada .
                                                                       ν
 6 ) The agreement should provide for the application , on a reciprocal
      basis , of such safeguards as will give the assurance to each Party
      that the material , equipment , facilities and information supplied
      to the other pnrsuant to the agreement , or obtained fro® or with
      the help of the latter , shall not be used by that Party in such a
     .way as to promote military uses or the fabrication of nuclear explo-
^     sive devices .
W                                                                     4
      With regard to the application of safeguards within the Community , .
      such, safeguards should not prejudice the provisions of the Treaties
      establishing the European Communities or the free movement of goods
     between all Member States . They should take acoount of the different
      situations in the Member states in relation to the Non-Proliferation
     Treaty .       They shall be based , whenever applicable , on the safeguards
     agreements concluded between the Community , the Member States and the
     International Atomic Energy Agency .
 7 ) The supply of nuclear material , facilities and equipment which will
     be carried out in application of the agreement could be contingent
     upon the implementation of appropriate physical protection measures
     pursuant to I*»EA recommendations . As far as it is concerned , Eur atom
     shall undertake to use its best endeavours to effectively carry out
     such measures .                                                .?
                                       «
     (*)
     \  y llmi   A»       a •
          "The Contracting Parties could encourage and facilitate inter alia l
               - broader inter-corporate links between their respective
                 industries , especially in the form of joint ventures ;
               - greater participation by their respective " national firms
                 in the industrial development of the Contracting Parties on
                 mutually advantageous terms ;
               - increased and mutually beneficial investment ;     •*
               - technological and scientific exchanges ;
               - joint operations in thifrd countries ."
 ---pagebreak---                                                             ΧΪΪ729777ΕΤ
                                                        CONFIOENm
                                                                   »
 8 ) An appropriate mechanism for consultations between the Parties shall
      be organized with a view to facilitating the carrying out of the
      agreement , and to promoting the co-operation it aims to develop .
      The joint body established for this purpose shall constitute one of
      the sectoral sub-committees provided for in the directives for the
      negotiation of an economic and commercial co-operation agreement
      between the European Communities and Canada .
 9 ) The agreement shall be of indeterminate duration .    However , it may be
      revoked only after five years , subject to one year 's notice .
10 ) The material , facilities , equipment and information falling under the
      scope of this agreement shall remain , after its expiration and until
     .otherwise agreed among the Parties , under the safeguards and physical
      protection measures which are laid down in it .
                                                                 *
                                                               4