AGREEMENT in the form of an exchange of letters between the European Atomic Energy Community (Euratom) and the Government of Canada, amending the Agreement between the European Atomic Energy Community (Euratom) and the Government of Canada of 6 October 1959 for cooperation in the peaceful uses of atomic energy (85/C 191/03)

A. Letter from the Community

Brussels, 21 June 1985

Your Excellency,

I refer to the Agreement between the European Atomic Energy Community (Euratom) and the Government of Canada for Cooperation in the Peaceful Uses of Atomic Energy, signed on 6 October 1959 and subsequently amended by the exchange of letters of 16 January 1978 and 18 December 1981, hereinafter referred to as the "Agreement".

The nuclear relationship between Euratom and Canada has grown significantly and undergone transformation since 1959. There is therefore some importance in updating the Agreement so that it should provide a more stable, predictable and administratively effective legal framework for the expanded relationship between the Contracting Parties.

To this end, I have the honour to propose that the Agreement be updated and completed as follows: 1. Pursuant to Article XV.2 of the Agreement, after the initial period of 10 years, which expired on 17 November 1969, either Contracting Party can terminate the Agreement at any time, subject to six months' notice. The Contracting Parties hereby agree that the Agreement shall remain in force for a further period of 20 years from today's date. If neither Contracting Party has notified the other Contracting Party of its intention to terminate the Agreement at least six months prior to expiry of that period, the Agreement shall continue in force for additional periods of five years each unless, at least six months before the expiration of any such additional period, a Contracting Party notifies the other Contracting Party of its intention to terminate the Agreement.

2. Article IX (1) of the Agreement provides that the prior consent in writing of the Community or the Government of Canada, as the case may be, is required for the transfer beyond the control of either Contracting Party of material or equipment obtained pursuant to the Agreement or source of special nuclear material derived through the use of such material or equipment. In order to facilitate the administration of the Agreement: (a) In the case of natural uranium, depleted uranium, other source materials, uranium enriched to 20 % or less in the isotope U-235 and heavy water, Canada hereby provides its consent to the future retransfers of such items by the Community to third parties, provided that: (i) such third parties have been identified by Canada;

(ii) procedures acceptable to both Contracting Parties relating to such retransfers shall be established;

(b) retransfers to third parties of material or equipment other than those referred to in (a) above, shall continue to require the prior written consent of Canada prior to the retransfer;

(c) in the case of non compliance by Euratom with the provisions in this paragraph, Canada shall have the right to terminate the arrangements made pursuant to this paragraph in whole or in part.

3. Further to Article IX (1) of the Agreement, Canada hereby provides its consent for the retransfer, in any given period of 12 months, to any third party, signatory to the NPT, of the following materials and quantities: (a) special fissionable material (50 effective grams);

(b) natural uranium (500 kilograms);

(c) depleted uranium (1 000 kilograms), and

(d) thorium (1 000 kilograms).

The Joint Technical Working Group shall establish administrative arrangements for the purpose of reviewing the implementation of this provision.

4. With reference to paragraph (d) of the exchange of letters of 16 January 1978 amending the Euratom/Canada Agreement of 1959, Euratom agrees to waive the requirement for prior notification in cases where natural uranium, depleted uranium, other source materials, uranium enriched to 20 % or less in the isotope U-235 and heavy water are received by Euratom from a third party, identified in accordance with paragraph 2 (a) (i) above, which has identified the item or the items as being subject to an Agreement with Canada. In such cases, the item or items shall become subject to the Agreement upon receipt.

5. The Contracting Parties may wish, in particular circumstances, to apply mechanisms other than those set forth in the Agreement in order to: (a) make material subject to the Agreement, or

(b) remove material from coverage of the Agreement.

There shall be prior written agreement between the Contracting Parties in each case on the conditions under which such mechanisms are to be applied.

6. The Contracting Parties recognize that the programme provided for in Article II of the Agreement has been successfully carried out and brought to conclusion and reaffirm their commitment to mutual cooperation in nuclear research and development as laid down in Article I. They note that the list of fields of cooperation, set out in Article I, is illustrative and not exhaustive.

If the foregoing is acceptable to the Government of Canada, I have the honour to propose that this letter, which is authentic in both English and French, together with Your Excellency's reply to that effect shall constitute an agreement amending the Agreement. The present agreement shall take effect as of the date of Your Excellency's reply to this letter.

Please accept, your Excellency, the assurance of my highest consideration.

For the European Atomic Energy Community

WILLY DE CLERCQ

B. Letter from the Government of Canada

Brussels, 21 June 1985

Sir,

I have the honour to acknowledge receipt of your letter of today's date which reads as follows:

"I refer to the Agreement between the European Atomic Energy Community (Euratom) and the Government of Canada for Cooperation in the Peaceful Uses of Atomic Energy, signed on 6 October 1959 and subsequently amended by the exchange of letters of 16 January 1978 and 18 December 1981, hereinafter referred to as the "Agreement".

The nuclear relationship between Euratom and Canada has grown significantly and undergone transformation since 1959. There is therefore some importance in updating the Agreement so that it should provide a more stable, predictable and administratively effective legal framework for the expanded relationship between the Contracting Parties.

To this end, I have the honour to propose that the Agreement be updated and completed as follows: 1. Pursuant to Article XV.2 of the Agreement, after the initial period of 10 years, which expired on 17 November 1969, either Contracting Party can terminate the Agreement at any time, subject to six months' notice. The Contracting Parties hereby agree that the Agreement shall remain in force for a further period of 20 years from today's date. If neither Contracting Party has notified the other Contracting Party of its intention to terminate the Agreement at least six months prior to expiry of that period, the Agreement shall continue in force for additional periods of five years each unless, at least six months before the expiration of any such additional period, a Contracting Party notifies the other Contracting Party of its intention to terminate the Agreement.

2. Article IX (1) of the Agreement provides that the prior consent in writing of the Community or the Government of Canada, as the case may be, is required for the transfer beyond the control of either Contracting Party of material or equipment obtained pursuant to the Agreement or source of special nuclear material derived through the use of such material or equipment. In order to facilitate the administration of the Agreement: (a) In the case of natural uranium, depleted uranium, other source materials, uranium enriched to 20 % or less in the isotope U-235 and heavy water, Canada hereby provides its consent to the future retransfers of such items by the Community to third parties, provided that: (i) such third parties have been identified by Canada;

(ii) procedures acceptable to both Contracting Parties relating to such retransfers shall be established;

(b) retransfers to third parties of material or equipment other than those referred to in (a) above, shall continue to require the prior written consent of Canada prior to the retransfer;

(c) in the case of non compliance by Euratom with the provisions in this paragraph, Canada shall have the right to terminate the arrangements made pursuant to this paragraph in whole or in part.

3. Further to Article IX (1) of the Agreement, Canada hereby provides its consent for the retransfer, in any given period of 12 months, to any third party, signatory to the NPT, of the following materials and quantities: (a) special fissionable material (50 effective grams);

(b) natural uranium (500 kilograms);

(c) depleted uranium (1 000 kilograms), and

(d) thorium (1 000 kilograms).

The Joint Technical Working Group shall establish administrative arrangements for the purpose of reviewing the implementation of this provision.

4. With reference to paragraph (d) of the exchange of letters of 16 January 1978 amending the Euratom/Canada Agreement of 1959, Euratom agrees to waive the requirement for prior notification in cases where natural uranium, depleted uranium, other source materials, uranium enriched to 20 % or less in the isotope U-235 and heavy water are received by Euratom from a third party, identified in accordance with paragraph 2 (a) (i) above, which has identified the item or the items as being subject to an Agreement with Canada. In such cases, the item or items shall become subject to the Agreement upon receipt.

5. The Contracting Parties may wish, in particular circumstances, to apply mechanisms other than those set forth in the Agreement in order to: (a) make material subject to the Agreement, or

(b) remove material from coverage of the Agreement.

There shall be prior written agreement between the Contracting Parties in each case on the conditions under which such mechanisms are to be applied.

6. The Contracting Parties recognize that the programme provided for in Article II of the Agreement has been successfully carried out and brought to conclusion and reaffirm their commitment to mutual cooperation in nuclear research and development as laid down in Article I. They note that the list of fields of cooperation, set out in Article I, is illustrative and not exhaustive.

If the foregoing is acceptable to the Government of Canada, I have the honour to propose that this letter, which is authentic in both English and French, together with Your Excellency's reply to that effect shall constitute an agreement amending the Agreement. The present agreement shall take effect as of the date of Your Excellency's reply to this letter."

I have the honour to inform you that the Government of Canada is in agreement with the contents of your letter, and to confirm that your letter and this reply, which is authentic in English and French, shall constitute an agreement amending the Agreement between the Government of Canada and the European Atomic Energy Community (Euratom) of 6 October 1959, as amended, which shall enter into force on the date of this letter.

Please accept, Sir, the assurance of my highest consideration.

For the Government of Canada

Jacques GIGNAC

AGREED MINUTES to the Agreement in the form of an exchange of letters between the European Atomic Energy Community (Euratom) and the Government of Canada, amending the Agreement between the European Atomic Energy Community (Euratom) and the Government of Canada of 6 October 1959 for cooperation in the peaceful uses of atomic energy

1. Paragraph 2 (a) of the present Agreement contemplates simplified procedures for transfers of nuclear items.

2. In implementation of such provision Canada shall provide the Community with, and keep up to date, the list of countries to which nuclear items can be transferred in accordance with the aforementioned provision. In identifying such countries Canada will take into account both the non-proliferation policy of the Canadian Government and requests made by the Community to cover its industrial and commercial interests. Canada will be prepared to consider any requests by the Community for the maintenance of any countries on the list or the inclusion of any additional countries on it.

3. During the negotiations on 19 and 20 November 1984, the Canadian delegation stated, with reference to paragraph 2 (a) (ii) of the present Agreement, that Canada would use its best endeavours in discussions with other trading partners concerned progressively to simplify as far as possible, consistent with its non-proliferation policy, the notification and related procedures connected with retransfers. Canada's general aim is to establish a network of partner countries amongst which Canadian-origin nuclear material could circulate as easily as possible.

4. With reference to paragraph 5 of the present Agreement, the intention of the Contracting Parties would be, jointly and progressively, to develop a body of administrative precedents aimed at enabling individual cases to be treated expeditiously.