THE HON. ANDREW PEACOCK M.P.

4 July 1979 EMBARGOED UNTIL 3.30p.

ON 5 JULY 1979

AUSTRALIA/UNITED STATES NUCLEAR CO-OPERATION  AND SAFEGUARDS AGREEMENT

Date

The Minister for Foreign Affairs,  Mr Andrew Peacock,  announced today that. Australia had signed a nuclear cooperation  and safeguards agreement with the United StatesÃ¢ÂÂ The agreement  was signed, by Mr Peacock, and. the US Secretary of State, Mr Cyrus Vance0

Mr Peacock recalled the Prime Minister’s statement of  25 August .1977 that, "by exporting uranium, and standing with the  US and Canada on the crucial, issue of adequate safeguards,   Australia is contributing to the application of effective nuclear

safeguards and. to the avoidance of the misuse of nuclear  materials"= .

Mr Peacock, emphasised the importance of the agreement.  It further demonstrates the commitment by both Australia and  the US to acquire stringent controls on exports of nuclear  material and reflects our shared non-proliferation objectives.

Mr Peacock, also referred to the significant energy  and. fuel, problems being experienced internationally = Australia's  potential to supply uranium to an energy deficient world had  already been recognised. With this important safeguards agreeÂ­ ment in place, supply of uranium under new contracts to a major  potential, customer,  the US, can take place.

Mr Peacock said he was pleased that this agreement  would continue to provide a framework for peaceful nuclear  co-operation which commenced well before 1956 when the two  governments had concluded an agreement concerning the civil  use of atomic energy. That agreement,  which had been amended

in 1960 and 1967, would be superseded by this new agreement. The stage now reached, marked a positive development in the  close relationship between Australia and the US in nuclear  matters. Mr Peacock noted that the new agreement was of

special importance to the US as it is the first signed under  the US Nuclear Proliferation Act of 1978=

Mr Peacock said that the agreement incorporates all  the Australian Government's safeguards requirements as announced  by the Prime Minister on 24 May 1977. .

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The basic undertaking that material and equipment  transferred under the agreement will, not be diverted  to military or explosvie purposes (Artiple 8);

The application of International Atomic Energy  Agency (IAEA) safeguards to Australian-origin?,   nuclear material in the United States (Article 9)= As a nuclear weapon state the United States is not

required under the NPT to institute IAEA safeguards  in its territory. It has however signed a voluntary  safeguards agreement with the IAEA to provide for  safeguards on its facilities "not of national

security interest". This agreement has yet to be  approved by the US Senate preparatory to being  brought into force. For this reason the Agreed  Minute to the agreement provides that deliveries

of Australian uranium under new contracts can only  start upon entry into force of the US/IAEA agreement.

Fallback arrangements (Article 9) to ensure  continued safeguarding of nuclear material should  IAEA safeguards for any reason cease to apply;

Provisions on retransfer to ensure that uranium  supplied by Australia is not re-exported by the  US unless we are satisfied as to the ultimate  destination and the controls that would apply;

Provisions on high enrichment and reprocessing to  ensure that these operations cannot take place  unless Australia is fully satisfied about the  arrangements and conditions. The requirement that  these operations can only take place by agreement

reserves our position on processing as we have  said we wish to pending the outcome of current  international studies;

Provisions ensuring that adequate physical security  (Article 7) will be maintained, to guard against  theft or other illegal use of nuclear material by  groups or individuals;

All these safeguards and controls to cover nuclear  material derived from Australian uranium so long as  it remains in a form relevant from the point of view  of safeguards (Article 14); and

Provisions for consultations to ensure effective  implementation of the agreement (Article 13).

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The agreement would also supersede the interim  agreement on nuclear safeguards between Australia and the  US concluded on 8 August 1978 as the substance of that  interim agreement was incorporated in the new government, Ã¢ÂÂ

Mr Peacock said that the draft agreement is different  in format from the safeguards agreement -t;hat Australia had  previously signed with Finland, the Philippines and the  Republic of Korea, This was because pf the elaborate

cooperation provisions covering not; only nuclear material  but also other material, equipment and information, and  the need to meet the provisions of United States nuclear  safeguards policy as legislated in the Nuclear Non-ProliferÂ­

ation Act of 1978, This act contains some provisions which  are not among Australia's own requirements and reflects the  involvement of the United States in a wide range of peaceful  nuclear activities. These provisions were, however, consistent  with the intent:'of Australia's own stringent safeguards  measures.

Mr Peacock said that the texts of the agreement and  the Agreed Minute were being made public and would bp tabled  in Parliament at an early date.

