MINISTER FOR

FOREIGN AFFAIRS

NEWS RELEASE

Date 27 June 1979 THE HON. ANDREW PEACOCK M.P.

AUSTRALIA’S NUCLEAR SAFEGUARDS

The Minister for Foreign Affairs, Mr Andrew Peacock,  said today that there was absolutely no question of  watering down the Government's nuclear safeguards policy, Mr Peacock was commenting on press reports concerning the

requirement of Australian nuclear safeguards policy that  any future sales arrangements for exports of Australian  uranium should be such that the uranium will be in a form  which attracts full International Atomic Energy Agency

safeguards by the time it leaves Australian ownership= This requirement was one of a number of the elements  of policy announced by the Prime Minister in his statement  of 24 May 1977=

The Foreign Minister recalled that the Australian  ownership requirements was additional to the safeguards  measures proposed by the Ranger Uranium Environmental  Inquiryo The .Inquiry had noted that the full intensity of

International Atomic Energy Agency safeguards does not apply  to uranium until it is in a form suitable for fuel fabrication  ,  or enrichment, i=e= until it is converted to uranium

hexafluoride (UF6), uranium dioxide (U02) or, in certain  reactors, natural uranium metal= Australia exports uranium  in the form of yellowcake and the only requirement covering  yellowcake under International NPT safeguards is that when

exports of yellowcake take place the transfer has to be  notified to the IAEA= The Ranger Inquiry saw the lack of  -i verification in this procedure as providing opportunities for

states to divert material to weapons production. The Inquiry  i saw the simplest means of dealing with the situation as

being to require that no retransfer of Australian-origin  uranium take place without Australian consent= Prior consent  to such retransfer is a requirement of Australian policy. It  is included in the agreements which Australia has already  .concluded and. will remain so =

Mr Peacock noted that implementation of the ownership  element of the Government's nuclear safeguards policy has  been complicated by developments in the antitrust suit  against certain Australian companies which had proceeded to

judgment in the United States since the safeguards policy was  I  developed. As a result of the judgment, uranium owned overseas

by those Australian companies might be at risk of seizure  in execution of the judgment. In the face of such difficulties

it is naturally desirable for the Government to examine  alternative measures which fully meet the purpose and  intent of the Government's nuclear safeguards policy.

There was no prospect,  however,  of any weakening  of the Government's nuclear safeguards policy, Mr Peacock  stressed that the Government was deeply committed to  maintaining the integrity of its stringent safeguards  policy. Any changes in measures necessary to give effect

to it will only be made if the Government is satisfied  that those changes maintain or increase assurance against  diversion of yellowcake.

