Prime M inister

Canberra

T '4 FEB 1977

Dear Mr President, '

I have been most interested in the views you have  expressed on the question of strengthening restraints on nuclear  weapons proliferation. For Australia1s part we share the  concerns you have expressed and fully support the objective of

strengthening the non-proliferation regime. The importance  which you have attached to this accords with my own assessment  that there is a need for intensified efforts to reinforce the  control regimes necessary to prevent peaceful nuclear development

from giving rise to the proliferation of nuclear weapons  capabilities.

I have noted, in, particular, the emphasis you have  placed on effective control of that portion of the nuclear fuel  cycle concerned with spent nuclear fuel, reprocessing and  plutonium. This corresponds with the emphasis of the first

report of our own Environmental Inquiry and the Inquiry recently  conducted in the United Kingdom. I am aware that there is a  good deal of new thinking internationally on adequate control  of reprocessing and plutonium management, including studies  being conducted by the International Atomic Energy Agency. I

shall be most interested in the way your policies evolve in  coming months.

Apart from our general commitment to non-proliferation  Australia's particular interest - and perhaps our scope in  future to exert influence on international developments -  relates to our potential as a supplier of uranium. Australia  would certainly want nuclear material deriving from any uranium

it may supply to be subject to stringent control. You may be  aware that the Australian Government does not intend to take  final decisions on the issue of future marketing of Australian  uranium until it has received the final report of the  Environmental Inquiry which is currently being conducted in

Australia. .

The first report of the Environmental Inquiry, which  dealt with the more general issues involved in uranium export  and nuclear power, stressed the need to ensure that effective  restraints exist against nuclear weapons proliferation and it

stressed also the need for the fullest and most effective  safeguards on uranium exported by Australia.

.../2

The Australian Government will be giving close  consideration to these matters in the near future in the  context of. formulating a national Australian policy on  nuclear safeguards. Naturally we wish to take full account

of any new thinking as.it develops in this area, especially  to ensure that our policies and those of the United States  and other like-minded countries, such as Canada, are mutually  reinforcing. Australian officials already have held detailed  and useful consultations with United States officials and I

am sure you would agree that it is highly desirable that this  be an ongoing process. I believe this constitutes a  particularly fertile and important area for co-operation and  for co-ordination of the policies of our two countries.

In view of Canada's well-known interest in this  field and its position asÂ· an important nuclear supplier, I  am sending a copy of this letter to Mr Trudeau.

Tours sincerely,

(Malcolm Fraser)

Mr Jimmy Carter, .

President of the United States  of America, The White House, WASHINGTON D.C.

U.S.A.

Prime M inister

Canberra

<  F E B  1977

My dear Prime Minister,

I understand that you will shortly be having  discussions with President Carter and that nuclear  safeguards and non-proliferation stand high on the  agenda.

I therefore enclose, for your information,  a copy of a letter I have written today to President  Carter about Australia's concerns for co-operation in  the development of policies in those fields.

Tours sincerely,

(Malcolm Fraser)

The Right Honourable P. E. Trudeau, M.P.,  Prime Minister of Canada, Parliament House, OTTAWA Ontario,

CANADA

MARCH 11, 1977

Dear Mr Prime Minister,

Thank you for your letter of February 4. As you  know, I am deeply concerned over the implications of  further nuclear weapons proliferation for our common  security and well being. International progress in

dealing with the non-proliferation problem is one of  the key foreign policy goals of this Administration. That is why I was so glad to get your letter of support.

Ã¢ÂÂ¢  As you are aware, we are currently making a

comprehensive review of U.S. non-proliferation policies.  Among other things, we are actively examining ways to  provide guaranteed fuel supplies to countries which are  willing to accept constraints consistent with our nonÂ­

proliferation objectives. This will help to reduce  proliferation by giving nations an incentive to place  their nuclear facilities under international safeguards  and not to acquire sensitive nuclear facilities. As you  noted in your letter, Australia's potentialÃ¢ÂÂ as a major

supplier of uranium gives you a particular interest in  this aspect of the subject. If the U.S., Australia, Canada and other like-minded countries collaborate on  policies for the supply of natural uranium, we can play  a vital role in reducing the threat of proliferation.

In view of your Government's past support of  non-proliferation and the importance I attach to holding  early consultations between allies whenever possible, I  would hope that your Government would soon be in a position

to arrange exploratory consultations here with appropriate  U.S. officials so that we can have the benefit of Australian  thinking.

Sincerely,

(SIGNED: JIMMY CARTER)

