IAEA, an autonomous international organization affiliated with the United Nations, was established in Vienna, Austria, in 1957. The Agency has the dual role of promoting the peaceful uses of nuclear energy through its nuclear safety and technical cooperation programs, and verifying, through its safeguards program, that nuclear materials subject to safeguards are not diverted to nuclear weapons or other proscribed purposes. IAEA’s governing bodies include the General Conference, composed of representatives of the 127 IAEA member states; and the 35-member Board of Governors, which provides overall policy direction and oversight to IAEA. A Secretariat, headed by the Director General, is responsible for implementing the policies and programs of the General Conference and Board of Governors. IAEA derives its authority to establish and administer safeguards from its statute, the NPT and regional nonproliferation treaties, bilateral commitments between states, and project agreements with states. Article III of the NPT binds each of the treaty’s 180 signatory states that had not manufactured and detonated a nuclear device prior to January 1, 1967, (referred to in the treaty as non-nuclear weapon states) to conclude an agreement with IAEA that applies safeguards to all source and special nuclear material in all peaceful nuclear activities within the state (known as comprehensive safeguards agreements). The regional treaties contain similar obligations. As of March 1998, all but four of the non-nuclear weapons states with significant nuclear activities had comprehensive safeguards agreements with IAEA. India, Pakistan, Israel, and Cuba, because they are not parties to the NPT or other regional nonproliferation treaties, do not have comprehensive safeguards agreements with IAEA, thus, they are not required to declare all of their nuclear material to the Agency. Instead, these four states have IAEA safeguards agreements that limit the scope of the Agency’s safeguards activities to monitoring only specific material, equipment, and facilities. India and Pakistan are known to have nuclear weapons programs and detonated several nuclear devices during May 1998. Israel is also believed to have produced nuclear weapons. The five nuclear weapon states that are parties to the NPT—China, France, the Russian Federation, the United Kingdom, and the United States—are not obligated by the NPT to accept IAEA safeguards but have voluntarily submitted designated materials and facilities to IAEA safeguards inspections to signal to the non-nuclear weapon states their willingness to share in the administrative and commercial costs of safeguards. (App. I lists states that are subject to safeguards inspections, as of February 1998.) IAEA safeguards are a set of technical measures and activities by which IAEA seeks to verify that nuclear material subject to safeguards is not diverted to nuclear weapons or other proscribed purposes. Material-accounting measures verify quantities of nuclear material declared to the Agency and any changes in the quantity over time. Containment measures use physical barriers, such as walls and seals, to control the access to and the movement of nuclear material, while surveillance devices, such as cameras, detect the movements of nuclear material and any tampering with IAEA’s containment measures. Finally, IAEA uses on-site inspections, among other things, to help ensure that a state has reported all of the material it is required to report. In 1997, IAEA’s total expenditures were $313 million, of which about $93 million was spent on the safeguards program. IAEA funds its programs through its regular budget, for which all members are assessed, and by voluntary extrabudgetary contributions from the United States and other member states. In 1997, IAEA spent about $82 million for safeguards through its regular budget and almost $11 million from extrabudgetary contributions. Since 1985, IAEA’s member states have generally limited the Agency’s regular budget to zero real growth, allowing only nominal increases for inflation and staff salaries. Also, IAEA endeavors to meet the demands of less developed member states to maintain a balance in funding between its technical cooperation program and its safeguards program. IAEA safeguards play a vital role in seeking to prevent nuclear weapons proliferation by verifying the peaceful use of nuclear materials. According to a State Department official, prior to the discovery of Iraq’s secret nuclear weapons program, states had been reluctant to accept a more intrusive safeguards regime. However, events in Iraq clearly demonstrated the need for expanding the scope of safeguards. Following revelations about Iraq in 1991, IAEA adopted several measures to strengthen certain reporting requirements and to improve the Agency’s access to information. The Agency and its member states also launched a thorough study of its safeguards system, known as Programme 93 plus 2, which resulted in the development of a new, two-part, strengthened safeguards system. IAEA expects that changes to strengthen its safeguards program will enhance its capability to detect clandestine or undeclared nuclear activities in non-nuclear weapon states. Following the revelations about Iraq’s clandestine nuclear program in 1991, IAEA adopted three measures to strengthen reporting and access to information. In 1992 and 1993, IAEA’s Board of Governors reiterated the Agency’s right to exercise authority to conduct special inspections at locations other than those declared to the Agency, based on all information available to it, including that provided by member states. The Board also adopted changes requiring more timely reporting by states of certain design information for new facilities that will handle safeguarded materials. Furthermore, the Board also adopted a voluntary reporting system for exports of certain nuclear materials and equipment on the Nuclear Suppliers Group Trigger List. Currently 52 states and Taiwan have agreed to participate in the reporting system. IAEA’s Board of Governors approved part 1 of the new strengthened safeguards system in 1995. Part 1 measures being implemented through existing safeguards agreements include obtaining additional information from states regarding facilities that once contained, or will contain, nuclear material subject to safeguards; the expanded use of unannounced inspections; the collection of environmental samples at locations where inspectors now have access; and the use of advanced technology to remotely monitor the movements of nuclear material. Part 1 measures include the following: Non-nuclear weapons states are now required to provide IAEA with additional information about nuclear activities undertaken prior to entry into force of their safeguards agreements. IAEA’s inspectors are now allowed to perform environmental sampling at facilities and locations where they currently have access. Environmental samples taken from the surfaces of equipment and buildings and the air, water, vegetation, and soil at declared nuclear facilities can help IAEA detect the presence of certain types of undeclared activities, including uranium enrichment and plutonium reprocessing. IAEA is increasing its access to all declared nuclear and nuclear-related locations and will employ the use of unannounced inspections. IAEA is testing new safeguards measurement and surveillance systems that can operate unattended and can transmit safeguards data remotely. Remote monitoring technology—including electronic seals, radiation and motion detectors, and video surveillance—is intended to make IAEA’s traditional safeguards program effective, and at the same time more efficient, by reducing many of the regular safeguards inspections, particularly at light water nuclear power reactors and storage facilities. IAEA is increasing its cooperation with state and regional systems of accounting and control, including those in the European Union, performed by the European Atomic Energy Community (EURATOM) inspectorate of the European Commission and those between Brazil and Argentina carried out by their Agency for Accounting and Control of Nuclear Material in the conduct of inspections. In May 1997, IAEA’s Board of Governors approved part 2 of its strengthened safeguards measures in the form of a model agreement known as the Model (or Additional) Protocol. This new protocol supplements member states’ safeguards agreements and will give the Agency new authority to collect information and conduct inspections. Part 2 measures are designed to more quickly and effectively alert the international community to the possible production or diversion of nuclear material for nuclear weapons or other proscribed purposes. Implementing part 2 measures will require each state to adopt an Additional Protocol as a supplement to its existing safeguards agreement that will give IAEA the additional legal authority the Agency believes it needs to implement the new measures. Part 2 measures include the following: IAEA will gather information about all aspects of a state’s nuclear fuel cycle, including information about research and development on the nuclear fuel cycle, the manufacture and export of sensitive and other key nuclear-related equipment, and all buildings on a nuclear site. IAEA inspectors will be provided access (also referred to as “complementary access”) to all aspects of a state’s nuclear fuel cycle including; facilities at which nuclear fuel-cycle research and development is carried out; manufacturing and import locations and all buildings on a nuclear site, including undeclared or suspect sites. This is intended to provide, among other things, a deterrent to the co-location of clandestine and peaceful activities. IAEA may exercise this right through short notice inspections on sites where nuclear material is located and at other locations. This access will include the right to take environmental samples. IAEA inspectors will be provided access to conduct “wide-area” environmental monitoring, that is, collecting environmental samples beyond declared locations when deemed necessary. States will improve their administrative arrangements for designating inspectors and issuing multiple-entry visas to facilitate unannounced/short notice inspections and permit access to modern means of communication. Since 1995, IAEA has tested and started to implement some of the strengthened safeguards measures. For example, IAEA is conducting field tests of remote monitoring systems in Switzerland, South Africa, and the United States. IAEA has also held unannounced inspections in Sweden, South Africa, and Canada. By the end of 1998, IAEA expects that seven facilities in Switzerland will be remotely monitored and IAEA will begin using this technology at light water nuclear power plants in Japan.