ML20057C041

Requests Commission Approval of Proposed Ltr to President Providing Commission Comments on Proposed Renewal of US- Indonesia Agreement for Cooperation

ML20057C041
Person / Time
Issue date:	01/29/1992
From:	Harold Denton NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To:
References
SECY-92-032, SECY-92-32, NUDOCS 9309240326
Download: ML20057C041 (26)

Text

- - - - - -

l eee^ectoccactocaeateeces nsLEmo m w= Poa l

a ar n,,

l

_f.

i ee

<m i

,r w o ?

x

=

=. U L,5 /

s; i

POLICY ISSUE (Notation Vote)

Jam ary 29, 1992 SE:; ;2-032

)

For:

The Commissioners From:

Harold R. Denton, Director Office of International Programs Subiect:

PROPOSED RENEWAL OF THE U.S.-INDONESI A AGREEMENT FOR COOPERATION

Purpose:

To obtain Commission approval of a proposed letter to the President providing the Commission's comments on the proposed renewal of the U.S.-Indonesia Agreement for Cooperation.

Discussion:

The Department of State has requested the views of the Commission on the proposed renewal of the Agreement for Cooperation between the U.S. and Indonesia concerning Peaceful Uses of Nuclear Energy signed June 30, 1980 (Attachment 1).

State proposes that this Agreement, which expired by its terms on December 29, 1991, be renewed i

without change for an additional ten-year period.

As has been the practice in the past for bringing new or renewed agreements for cooperation into force, the formal views of the Commission will be attached to the memorandum forwarded by the Secretaries of State and Energy to the President for approval to execute the necessary diplomatic notes with Indonesia to effect the renewal. The memorandum will note that ACDA's Nuclear Proliferation Assessment Statement on the proposed renewal will be transmitted separately.

It is a preliminary view of ACDA staff that the Director of l

ACDA will reach a favorable assessment and recommend that the Agreement be approved.

The staff notes that Indonesia is a party to the NPT and shares the non-proliferation objectives of the U.S.

The U.S. has maintained a long, SENSih1W:UFOP43fTIpr' -AIrITd

Contact:

OTE :

E. Hemoy, 0IP

77. ::P.cfC;LZS S,THE f'O:' C 5720:/'

504-2341 gg73gqn 3g 07HEPJ/Isr/

/

/

230058 EZEE.3 SED TO THE PUT3LIC C:' 9 / 21/ 93

^

9309240326 920129 PDR SECY

.f '92-032 PDR

The Commissioners ;

close cooperation with Indonesia in the peacefui nuclear l

field for over thirty years.

The staff is not aware of v.

changed circumstances in Indonesia that would suoport a different conclusion.

The staff believes that the proposed renewal of this Agreement meets all the applicable statut:ry requirements of the Atomic Energy Act of 1954 including tr.e provisions of the Nuclear Non-Proliferation Act of 1978, and conforms with current U.S. policy.

Accordingly, the staff finds no reason for the Commission to object to the proposed i

renewal of the Agreement. State Department and Department of Energy officials have been briefed on the human rights situation in Indonesia.

State intends that the text of the proposed renewal rema;r the same as that reviewed in 1979/1980 (SECY-79-663, datec December 17, 1979).

In that regard, two points should be noted.

First, the Agreement language on physical security

.~

refers to the recommendations contained in the IAEA document INFCIRC/225/ Revision 1, rather than the current and preferred INFCIRC/225/ Revision 2.

The staff is satisfied with State's plan to confirm via an exchange of side letters with the Indonesian government that the current version of INFCIRC/225 will, in fact, be accepted and used by both countries as the appropriate reference for maintaining the physical security standards of U.S.-origin nuclear materials in Indonesia.

The second point concerns so-called f all-back i

safeguards.

That is, what rights does the United States l

have with regard to inspecting U.S.-origin material in Indonesia in the event that the IAEA does not continue to carry out its international safeguards inspections in Indonesia?

In 1980, the Commission's letter to the President recommended that the language on this subject be r

strengthened.

That same statement also was included in l

NRC's letters to the President on other proposed agreements in the early to mid-1980's, but in no instance was any agreement renegotiated or disapproved by the Congress on that point.

The NRC staff has come to accept the sufficiency of the now-standard language which is in the proposed renewal of the U.S.-Indonesia Agreement and the recently negotiated agreements with Japan, Czecnoslovakia.

and Hungary.

Therefore, the staff's proposed letter to tr,e President does not include any statement on fall-back i

safeguards.

EDO concurs in the paper. OGC has no legal objection.

i

k l

The Commissioners i Recommendation:

That the Commission approve the proposed letter for the President at Attachment 2. concurring in the renewal of the l

Agreement.

j f

/I.Y,-,

/. -

//

Ni-I c.

f Harold R. Denton, Director Office of International Programs Attachments:

1.

Documents fr State Dept. re renewal of the U.S.-Indonesia Agreement 2.

Proposed letter for the President l

Commissioners' comments or consent should be provided directly to the Office of the Secretary by COB Wednesdav, February 12, i

1992.

i Commission Staff Office comments, if any, should be submitted to the Commissioners NLT Wednesday, February 5, 1992, with an information copy to the Office of the Secretary.

If the paper l

is of such a nature that it requires additional review and 4

comment, the Commissioners and the Secretariat should be apprised of when comments may be expected.

l I

DISTRIBUTION-.

Commissioners f

OGC OCAA l

OIA IP l

OCA OPIs EDO SECY

{

1 1

i

_ _ ~.

,i t

..t,

(

?

I r

V k

ATTACHMENT 1 v

P

.d 3

j 4

i i

d t

J I

J 1

-.. z..

7

. 3,.,

United States Departmem Of State Q

Bureau of Oceans andInternamnal v

Environmentaland Scientifi:Afairs Washington, D.C. 20320 October 9,

1991 VNCisSiiTE1ED METRANDUM TO:

L/OES/N - N.

Highsmith S/NP - H.

Levin EAP/IMBS - A.

Barr li<

6/T - G. Taft N

0 32 H - W.

Miele

~20

' ~' $

C - R.

Wilson b ~'

.]

y P - C.

Kelly

.5 m

'd T - S. Aoki

~ ^ ~ ~

3 S/P - J.

Hughes N

FMP/MP - A.

Fairchild

'~

iO ACDA/NP - D.

Rust DOE /IE - S. Ceja Schcchtcr

1. n C,'I P FROM:

OES/N - Fred McGoldrick, Acting

SUBJECT:

Extension of Agreement for Peaceful Nuclear Cooperation with Indonesia Attached for your clearance / comment is a package of documents relating to a proposed ten-year extension of the existing U.S.-Indonesia agreement for peaceful nuclear cooperation.

The agreement was negotiated after passage of the Nuclear Non-Proliferation Act of 1978 and continues to satisfy all requirements of U.S.

law.

We propose to extend it without change.

Please provide your views to John Dooley of my staf f (547-4752) no later than COB Friday, October 18.

Thank you.

Attachments:

As stated.

111:- 9 %

1

B I

MEMORANDUM FOR:

THE PRESIDENT FROM:

James A.

Baker, III James D.

Watkins r

SUBJECT:

Proposed Extension of the Agreement for Cooperation Between the United States of.

America and the Republic of Indonesia Concerning Peaceful Uses of Nuclear Energy We are proposing to extend for an additional period of years the agreement for peaceful nuclear cooperation between the United States and Indonesia signed at Washington June 30, 1980.

This agreement will otherwise expire by its terms December 29, 1991.

This memorandum recommends that you sign the determination, approval and authorization at Attachment 1,

which, pursuant to section 123 b.

of the Atomic Energy Act of 1954, as amended, sets forth:

(1) your approval of the proposed exchange of diplomatic notes effecting the extension; (2) your determination that continued performance of the agreement will promote, and will not constitute an unreasonable risk to, the common defense and security; and (3) your authorization for execution of the agreement on. extension.

If you decide to take this action, the diplomatic notes will be signed and czchanged by representatives of the United States and Indonesia.

Afterwards, in accordance with section 123 b.

and d. of the l

Act, the proposed extension will be submitted to both Houses of

(

Congress.

A draft letter of transmittal to the Congress is at

for your signature.

(This letter will be held until afint the notes are signed and exchanged.)

The extension must lie before Congress for 90 days of continuous session.

Unless a joint resolution of disapproval is enacted, the extension may thereafter become effective.

Congress may also act affirmatively to approve the extension.

A copy of the proposed diplomatic notes to effect the extension is at Attachment 3.

A copy of the 1980 agreement.

itself is at Attachment 4.

The agreement provides a comprehensive framework for peaceful nuclear cooperation i

between the United States and Indonesia reflecting our mutual commitment to nuclear non-proliferation.

Indonesia is a party to the Treaty on the Non-Proliferation of Nuclear Weapons (NPT) and has complied fully with its com.mitments under that Treaty.

i ;

l The 1980 agreement permits the transfer of nuclear technology, material, equipment (including reactors) and components, for nuclear research and nuclear power production.

It provides for U.S.

consent rights to retransfers, enrichment and reprocessing as required by U.S.

law.

It does ntt permit transfers of any sensitive nuclear tecnnology, restricted data, or sensitive nuclear facilities or major critical components thereof.

Cooperation under the agreement has provided opportunities for U.S.

exports on terms fully protecting vital U.S.

national security interests.

Both we and Indonesia believe that the agreement has served our mutual interests well, and we propose to extend it without change for more

years, i

The Atomic Energy Act of 1954, as amended by the Nuclear l

Non-proliferation Act of 1978 (NNpA), establishes specific l

requirements f or agreements for cooperation in the peaceful uses of nuclear energy.

The U.S.-Indonesia agreement satisfied all requirements of U.S.

law at the time it entered into force in 1981, and in our judgment it continues to satisfy these requirements.

Congress reviewed the agreement in 1980/1981 prior to its entry into force and raised no objections to it.

The proposed extension was negotiated by the concurrence of the Department of Energy and in consultation with the Arms Control and Disarmament Agency (ACDA).

The views and recommendations of the Director of ACDA are at Attachment 5.

A Nuclear proliferation Assessment Statement concerning the proposed extension is being submitted to you separately by the Director of ACDA.

The proposed extension has also been reviewed by the members of the Nuclear Regulatory Commission.

Their views are at Attachment 6.

i While the Atomic Energy Act sets forth detailed procedures for bringing new agreements for cooperation into force, it r

establishes no specific procedures for extending such agreements.

We are therefore processing the proposed extension as if it were a new agreement.

This means that the proposed exchange of diplomatic notes with Indonesia to effect the extension may only be carried out after you have authorized i

this step and determined in writing that extension of the agreement will promote, and will not constitute an unreasonable risk to, the common defense and security.

We recommend that you take these actions.

ACDA Director Lehman concurs in this recommendation.

RECOMMENDATIQB That you sign the determination, approval and authorization at Attachment 1 and the transmittal to Congress at (The transmittal will be held until the agreement itrelf is signed).

l t

I l

ATTACHMENTS 1.

Draft Determination, Approval and Authorization 2.

Draft Transmittal to the Congress (To be held until after the agreement is signed) 3.

Proposed Exchange of Diplomatic Notes Between the United States of America and the Republic of Indonesia to Extend Their Agreement for Cooperation Concerning Peaceful Uses of Nuclear Energy 4.

Agreement for Cooperation Between the United States of America and the Republic of Indonesia Concerning Peaceful Uses of Nuclear Energy (1980) 5.

Views and Recommendations of the Director of the Arms Control and Disarmament Agency 6.

Views of the Members of the Nuclear Regulatory Commission l

t n

i P

l i

e I

1 i

MEMORANDUM FOR:

THE SECRETARY OF STATE THE SECRETARY OF ENERGY i

SUBJECT:

Presidential Determination on Exrending the i

Agreement for Cooperation Between the United States of America and the. Republic of Indonesia Concerning Peaceful Uses of Nuclear Energy

.j t

h I have considered the proposed agreement to extend for a l

period of years the Agreement f or Cooperation Between the I

United States of America and the Republic of Indonesia Concerning Peaceful Uses of Nuclear Energy, signed at i

Washington June 30, 1980, along with the views, l

recommendations, and statements of the interested agencies.

l f

i I have determined that the performance of the agreement for r

an additional period of years will promote, and will not r

constitute an unreasonable risk to, the common defense and security.

Pursuant to Section 123 b.

of the Atomic Energy Act of 1954, as amended (42 U.S.C.

2153 (b)), I hereby approve the proposed agreement on extension and authorize you to arrange

~

for its execution.

'I I

1 George Busn i

I h

ID TIE CDESRESS OF THE UNITED STATES:

)

I am pleased to transmit to the Congress, pursuent to sections 123 b.

and 123 d.

of the Atomic Energy Act of 1954, as amended (42 U.S.C.

2153 (b), (d)), the texts of the proposed exchange of diplomatic notes between the United States and Indonesia constituting an agreement to extend the Agreement for Cooperation Between the United States of America and the 1

1 Republic of Indonesia Concerning Peaceful Uses of Nuclear Energy signed at Washington June 30, 1980.

I am also pleased to transmit my written approval, authorization and determination concerning the extension, and a memorandum of the l

Director of the United States Arms Control and Disarmament Agency with the Nuclear Proliferation Assessment Statement.

The joint memorandum submitted to me by the Secretary of State and the Secretary of Energy, which also includes other acency views, is also enclosed.

The proposed extension of the agreement for cooperation with the Republic of Indonesia has been negotiated in accordance with the Atomic Energy Act of 1954, as amended by the Nuclear Non-Proliferation Act of 1978 and as otherwise amended.

In my judgment, the proposed extension meets all statutory requirements and will advance the non-proliferation and other foreign policy interests of the United States.

It provides for the agreement to remain in force for an additional

I period of years.

In all other respects, the text of the f

agreement remains the same as that reviewed favorably by t

Congress in 1980/1981.

i Indonesia is a party to the Treaty on the Non-Proliferation l

i of Nuclear Weapons (NPT) and is fully in compliance with its

+

nuclear non-proliferation commitments under that Treaty.

I have considered the views and recommendations of the interested agencies in reviewing the proposed' extension and i

have determined that continued performance of the agreement for cooperation will promote, and will not constitute an unreasonable risk to, the common defense and security.

i Accordingly, I have approved the agreement on extension and authorized its execution.

I urge that the Congress give it favorable consideration.

This transmission shall constitute a submittal for purposes of both sections 123 b.

and 123 d. of the Atomic Energy Act.

l The Administration is prepared to begin immediately the consultations with the Senate Fcreign Relations and House 3

Foreign Affairs Committees as provided in section 123 b.

Upon completion of the 30-day continuous session period provided for in section 123 b.,

the 60-day continuous session period provided for in section 123 d.

shall commence.

r George Bush i

I

1 Text of U.S. Embassy Note i

Excellency, I have the honor to refer to the Agreement for Cooperation Between the United States of America and The Republic of Indonesia Concerning Peaceful Uses of Nuclear Energy, signed at Washington June 30, 1980.

I have the further honor to propose that the agreement be extended for an additional period of ten years, until December 30, 2001.

If the foregoing is acceptable to your government, I have the honor to propose that this note, together with your favorable reply, shall constitute an agreement between the two governments, which shall enter into force upon written notification by both governments of the completion of their respective legal requirements for its entry into force.

I Accept, Excellency, the renewed assurances of my highest consideration.

i t

P Text of Government of Indonesia Reply i

Excellency, I have the honor to acknowledge receipt of Your Excellency's note no.

dated which reads as follows:

"I have the honor to refer to the Agreement for Cooperation Between the United States of America and The Republic of-Indonesi'a Concerning Peaceful Uses of Nuclear Energy, signed at Washington June 30, 1980.

I have the further honor to propose that the agreement be extended for an additional period of ten years, until December 30, 2001.

i If the foregoing is acceptable to your government, I have the honor to propose that this note, tocether with your favorable reply, shall constitute an agreement between the two govermments, which shall enter into force upon written notification by both governments of the completion of their respective legal requirements for its entry into force".

I have the further honor to confirm and to agree that Your Excellency's note and this note shall constitute an agreement between the two governments which shall enter into force upon written notification by both governments of the completion of their respective legal requirements for its entry into force.

3 Accept, Excellency, the assurances of my highest consideration.

i i

[

1 i

t 1

i l

i AGREE 31ENT FOR COOPERATION BETWEEN THE GOV-ERN31ENT OF THE UNITED : TATE.4 OF.OIERICA AND THE GOVERN 3IENT OF THE REPUBLIC OF INDONESLt l

CONCERNING PEACEFUL U5ES OF NUCLEAR ENERGY

~

The Government of the United Str.tes of America and the Govern-ment of the Republic of Indonesia.

31indful that both the United States and Indonesa are Parties to the Tiratv on the Non Proliferation of Nuclent Weanons t herem-after referred to as NPT") and desire to promote um' versal adher-ence to the NPT:

J Readirming their conunitment to ensuring that the international development and use of nuclear energy for peaceful purposes are entried out under arrangements which will to the maximum possible i

estent further the objectives of the NPT:

Affirming their support of the objectives of the International Atomic Energy Acency t hereinafter referred to as -LLEA"):

Considering their cooperation in the development. use and control of peaceful uses of nuclear energy pursuant to the Agreement for Cooperation between the Govemment of the United States of Amer-ica and the Government of the Republic of Indonesia Concerning Civil Uses of Atomic Energy, signed June S.1960. as amended:

Desiring to continue and espand their cooperation in this field: and i

Mindful that peaceful nuclear activities must be undertaken with

, a view to protecting the internajonal environment from radioactive, 4

chemical and thermal contanunntion:

Have agreed as follows:

Armcz.x 1-Scorn or Coornamox

1. The United States and Indonesia shall cooperate in the use of nuclear energy for peaceful purposes in accordance with the provi-sions of this Agnement and other applienble titaties, national laws.

regulations andlicense requirements.

2. Transfers of information. material, equipment and components

{

under this Agreement mnv be undertaken directiv between the Par-ties or through authorized person i. Such transfers shall be subject to i

this Agreement and to such additional terms and conditions as may be agtved by the Parties.

f Atmct.t 2-Drrixmoxs For the purposes of this Agreement:

(a) " byproduct material" means any radioactive material (ex-cept special nuclear material) yielde'd in or made radioactive by exposure to the radiation incident to the process of produeme or utilizing special nuclear material-i (3)

,n ib) " component" means a component part of eqmpment or other item. 30 derignated by agreement of the Parues:

(c) " equipment ' means.any reactor other than one designed or used prunanly for the formauon of plutonium or uranium 233, or any other nein so designated by agreement of the Parties; (d) "high enriched uranium" means uranium ennched to twenty ieu) percent or greater in the isotope 235; (e) " low ennched uranium" means uranium enriched to less than twenty (20) percent in the isotope 235; (f) major entical component" means any part or group of parts essential to the operation of a sensitive nuclear facili~ty; l (g) material" means source matenal, special nuclear matena or byproduct material, radioisotopes other than byproduct ma-terial. moderator material, or any other such substance so desig-nated by agreement of the Parties; (b) " moderator material" means heavy water. or graphite or bervllium of a purity suitable for use m a reactor to slow down high velocity neutrons and increase the likelihood of_ further Es-sion, or any other such material so designated by agreement of the Parties; (i) " Parties" means the Govemment of the United States of America and the Government of the Republic of Indonesia; (j) peaceful purposes include the use of information, ma-tenal, equipment and components in such fields as research, power generation, medicine. agriculture and industry but do not include use in. research on or development of any nuclear explosive de-vice, or any military purpose; (k) ' person" means any individual or any entity subject to the inn lsdiction of either Party but does not include the Parties to this Agreement; (1) " previous Agreement" means the Agreement for Coopera-tion between the Govenunent of the United States of America and the Government of the Republic of Indonesia Concerning Civil Uses of Atomic Energy, signed June 8.1960, as amended; (m) "teactor" means any apparatus, other than a nuclear weapon or other nuclear explostre device, in which a self. sustain-ing fission chain reaction is maintained by utilizing uranium, plutonium or thorium, or any combination thereof; (n) " restricted data" means all data concerning (1) design, manufacture or utilization of nuclear weapons. (2) the produc-tion of special nuclear material. or (3) the use of special nuclear material in the production of energy, but shall not include data of a Party which it has declassified or removed from the category of testricted data; (o) " sensitive nuclear facility" means any facility designed or used primarily for uranium enrichment, reprocessing of nuclear fuel. hearr water production. or fabrication of nuclear fuel con-taining pfutonium; (p) "mnsitive nuclear technolory" means any information (in-cluding information incorporated in equipment or an important component ) which is not in the public domain and which is impor-tant to the design, construction. fabrication. operation or mam-7

5

+

I i

}

tenance of any sensitive nuclear iacility, or other such information i

wmen may te so designated by agreement of the Parties:

I (q) " source matenal' means (11 uranium, thorium. or any i

other mater:al so designated by nereement of the Parties. cr (2) ores contammg one or more of the foregome matenals in such l

concentration as the Pan:es may agree from tune to time:

t ry "special nuclear material" means (1) plutonium. uramum

.:33. or uranium ennched in the isotope 23 2. or (2) any other i

i j

mater:ai so designated by agreement of the Partics.

Airnetz 3-Tnastr.n or Ixmantnox j

)

1. Information concerning the use of nuclear energy for peaceful purposes may be transferred. Fields which may be covered inciude. but shall not be limited to.the following:

(a) development, design, construction, operation, maintenance i

and use of reactors and reactor expenments; (b) the use of material in physical and biological research, medicine, agriculture and industry ;

(c) fuel evele studies of wars to meet future worldwide civil nuclear need's, including multifateral approaches to guaranteemg nuclear fuel supply ano appropriate techniques for management of nuclearwastes; (d) safeguards and physical security of material and equip.

ment; (e) health, safety and environmental considerations related to the foregomg; (f) assessmg the role nuclear power may play in national energy plans;and (g) exploration for and development of uramum resources.

2. This Agtrement does not require the tnmsfer of any information which the Parties are not pennitted to transfer.

3. Restricted data shall not be transfened under this Agreement.

4. Sensitive nuclear technology shall not be tntnsferred umler this Agreement unless provided by an amendment to this Agreement.

A2rnetz 4--Taasmi or Err.nt.st, Eocirurn.txn Couroxrvrs i

1. mierial, equipment and components may be transferred for ap-plications consistent with this Agreement. However, sensitive nuclear facilities and major critical components shall not be transfened under this Agreement unless provided by an amendment to this Acreement.

i

2. Low enriched uranium may be transferred for use as fuel in re-actor experiments and in reactoh, for conversion or f abrication. or for meh other purposes as may be agreed by the Parties.

3. Special nuclear material other than low enriched uranitun and I

material contemplated under paragraph 6 may,if the Parties agree, be transfened for specified applications where technically and econom-ically justined or where jusufied for the development and demonstra-tion of reactor fuel cycles to meet energy security and non. prolifera-tion objectives.

4. The quantity of special nuclear material transferred under this Agtvement shnl! not at any time be in excess of the quantity the ep.

6 Parties agite is necessary for any of the followmg purposes: use in reacter err >erunents or the loadir.c of reactors. tr.e dicient and con-tmuous conduct of such reactor es;5eriments or opecucn of such reac-tors. and the accomphshment of c:her purposes as may be agreed by the Parnes. If hich enriched uranium in excess cf the cuantity re-quired for these purposes exists in Indonesia, the Un:ted litates 'shall '

have the nght to require the return of any high enriched uranium trsnsferred pursuant to this Agreement (inclucm; irradiated high ennched uranium) which contnbutes to this excess. If this nght is exercised, the Parties shall make appropriate cc:nmercial arrange-ments which shall not be subject to any further agreement between the Parties as otherwise contemplated under Articles 5 and 6.

5. Any high enriched uranium transfened pursuant to this Agree-ment shall not be at a level of enrichment in the isotope 235 in excess of levels to which the Parties agree are necessary for the purposes de-scribedin paragraph 4.

6. Small quantities of special nuclear material may be transferred t

for use as samples. standards. detectors, targets and for such other purposes as the Parties may acree. Transfers pursuant to this para-graph shall not be subject t the quantity limitations in paracraph 4.

7. The United States shall take such actions as necessary and feasible to ensure a reliable supply of nuclear fuel to Indonesta. including the export of nuclear matenal on a timelv basis and the availability of the capacity to carry out this undertaking during the period of this Agreement.

Annent 5-SronAct Axn Rrrnaxstras

1. Each Pany guarantees that any plutonium or umnium 233 (except as contained in arradiated fuel elements) or high enriched uramum transferred to and under its jurisdiction pursuant to this Agreement or used in or produced through the use of any material or equipment transferred to and under its jurisdiction pursuant to this Agreement shall be stored only in a facility that has been agreed to in advance by the Parties.

2. Each Party guarantees that any material, equipment or compo-nents transfentd to and under its jurisdiction pursuant to this Agree-ment and any special nuclear material pmduced throuch the use of any

~

such materiil or equipment shall not be transferred to unauthorized persons or, unless the Parties agree, beyond its terntorial jurisdiction.

Arncz.t 6-Rzrnocmmo Axn Exxzemernr

1. Each Party guarantees that material transferred to and under its junsdiction putsuant to this Agreement and material used in or produced through the use of any material or equipment transferred to and under its jurisdiction pursuant to this Agreement shall not be repmcessed unicas the Parties acree.

2. Each Party guarantees teat any plutonium, uranium 233, hi;;h enriched uranium or irradiated source or special nuclear matenal transferred to and under its jurisdiction pursuant to this Agreement or used in or produced through the use of any material or equipment transferred to and under its jurisdiction pursuant to this Agreement shall not be altered in form or content, except by irradiation or fur-therir=diation, unless the Parties agire

7

3. Each Party guarantees that utsnium transferred to and under its iurisdiction pursuant to this Agreement and uranium used in any equipment transferred to and under its jurisdiction pumant to this Agreement shall not be enriched after transfer unJess de Parties j

agree.

AJrrictz T-PirrsicAt. Sternrrr l

L Each Party guarantees that adequate physical secu:-ty shall be maintained with respect to any mater 2al and, equipment t-ansferred to and under its jurisdiction pursuant to this Agreement and with respect to any special nuclear material used in or produced thrtuch the use of any material or equipment transferred to and under its junsdiction pursuant to this Agreement.2. The Parties agree to the lev security set forth in the A2mes. which levels may be modifica v mu-tual consent of the Parties. The Parties shall maintain ade'quate physical security, measures in accordance with such levels. These meas-ures shall as a mmimum provide protection comparable to the recom-mendations set forth in IAEA document INFCIRC/225/ Revision I concernine the physical protection of nuclear material. cr in any revision of that dochment agreed to by the Parties.

3. The adequacy of physical security measures maintained pursuant to this Article sha'11 be suoject to review and consultation bv th'e Parties '

periodically and whenever either Party is of the view'that revised measures may be required to mnintain adequate physical secanty.

4. Each Party shall identify those agencies or authorities having re-sponsibility for ensuring that levels of p,hysical security are a,dequately

~

met and havina responsibility for cooramating response anc recovery operations in t1e event of unauthorized use or handling of material 3

subject to this Article. Each Party shall also designate points of con-tact within its national authorit2es to cooperate on matters of out-of-country transportation and other matters of mutual concern.

5. The provisions of this Article shall be implemented in such a manner as to avoid hampering, delay or undue interference in the Par-ties' nuclear activities and so as to be consistent with prudent manage-ment practices required for the economic and safe conduct of their nuclear programs.

Amersexx 8-No Exrtosm on h rAar Arrt.tcAr:ox Each Party guarantees that no material. equipment or component transferred to and under its jurisdiction pursuant to this Agreement i

and no material used in or produced through the use of any material, equipment or components t ransferred to and under its jurisdiction pur-suant to this Acteement shall be used for any nuclear explosive de-vice. for research on or development of any nuclear explosive device.

or for any military purpose.

Annetx 9-S.mcorAats

1. Cooperntion under this Agreement shall irquire the application of IAEA safeguards with iespect to all nuclear activities within the territory of Indonesia under us jurisdiction or entried out undet its control anywhere. Implementation of a safeguards ag:tement pursu-

~

a e

e

5 d to fulfill the aut to Anicle III H) of the NPT shall be consitiere nmuirement stated in the forceome sentence.

and any source or special nuclear matenal used in h

f d shall the use of any material. equipment or components so trsns erre be subject to safecuards m accordance with the Ag tion with the NPT.

or Indonesia becomes await of circum-

L If the United 8 tate 3 i not or will-stances which demonstrate that the IAEA for any reason s not be applying safeguards in acconlance with t'he a d

i sure etlective contmuity of safeguards, the Pan es s a d

i enter into arrangements which conform with IAE be graph and which provide assunnee equivalent to that intended t secuted by the system they replace.

4. Each Part'v guarantees it shall take such measures as are neces-ided sary to maintai2i and f acilitate the appliention of safeguards prov

5. Each Party shall establish and maintain a system of accounting for under this Article.

for and control of all material transferred pursua il hich shall equipment or components so innsferred,the procedures of w be comparable to those set forth in IAEA docu h

or pennit the IAEA to report to the requesting Parties.

h t tus of all inventories of any materials subject to this Agreement.

7. The provisions of'this Article shall be implemented in such a h

manner as to avoid hampering, delav or undue interference in t e Parties' nucient netivities and so as to be con fhi nuclear programs.

.brncLt 10-Mrterrrt.t StrrrLita Corracze If an agreement between either Party and another nation or group i ht equiv-of nations provides such other nation or group of nations r g s 7 with nient to any or all of those set forth under Articles 5,6, or i Agree-respect to material, equipment or components ht the implementation of any such rights will be accomp s e other nation or group of nations.

Annett 11-Otasertow or Coorrianox i

1. If either Party at any time following entry into force of th s (a) does not comply with the provisions of Articles 5,6,7, A greement (b) terTninates. nbrocates or materinlly violates a safec or D.or I

f agreement with the IAEA,

I 9

the other Party shall have the rights to cease further cooperation under this Agreeme5t and to require tne return of any matenal equipment and comt>cnents transferred under this Agreement and any special nuclear thaterial produced throuch their use.

2. If Indonesia at any time following entre into force of this Agree-ment detonates a nuclea'r explosive device. th'e United States shall have the same r:chts as specified in paracraph 1.

3. If either Party exercises its rights under this Article to require the return of any inaterial. equipment or components, it shall, after removal from the territory of the other Party, reimburse the other Party for the fair market value of such material, equipment or com-1 ponents. In the event this right is esercised, the P.arties snall make such other appropriate arrangements as may be required which shall not I

bp subject to any further agreement between the Parties as otherwise contemplated under Articles 5 and 6.

1EnCLI 12-Parvrocs A<:nrrvr.xr TraxIsarzn

1. The Acreement for Cooperation between the Gevernment of the United States of America and the Government of the Republic of Indonesia Concerning Civil Uses of Atomic Energy signed June 8.

1960, as amended. shall terminate on the date this Agreement enters into force.

2. Cooperation initiated under the previous Agreement shall con-tinue in accordance with the provisions of this Agreement. The pro-visions of this Agreement shall apply to material ano equipment sub-ject to the previous Agreement. -

A5rncLt 13-Coxsm/ranoxs an ExvrmoxxtxrAn Paarzenox

1. The Parties undertake to consult at the request of either Party regarding the interpretation or implementation of this Agreement and the development of further cooperation in the field of peaceful uses of nuclear energy. If differences arise between the Parties con.

cerning interp ttation or implementation of this Agreement, the Parties shall consult with a view to resolving them amicablv.

2. 'The Parties shall consult, with regard to activities under this Agreement, to identify the international environmental implications ansmg from such activities and shall cooperate in protecting the international environment from radioactive, chemical or thermal con-tammation ansmg from peaceful nuclear activit2es under this Agree-ment and in related matters of health and safety.

l ArncLt M--ENTxt IxTo Fonce an Denanox

1. Each Pany shall provide the other Party with written notiSca-tion that it has comphed with its legal requirements for entry into force of this Ag~reement. This Agreement shall enter into force on the date of the latter notification and shall remain in force for a period of ten (10) years. This tenn may be extended for such addi-tional periods as may be agreed between the Parties in accordance with theirlecal requirements.

2. Notwithstanding the suspension. termination or expiration of this Agree =ent or any cooperation hereunder for any reason. Articles i

10 5,6. 7. 5. D. and 11 shall continue in erlect so long a any material.

equipment or components' subject to these Articles remains in the temtory of the Party concerned or under its jurisdiction or control anywhere. or until such time as the Parties neree t:.at such material, equipment or components are no k,nger useable for any nuclear ac-tiv2ty relevant from the point of view of safeguards.

b WtTxtss Wuratwr. the undersigned being daiy authorized by their respective governments. have siened this Agreement.

Dost at Washington this 30th dny of. lune.1950. in duplicate.

PoR THE toVERNMENr of TBE FoR TBE TCVERNMENT or TBE TED STATES oF RICA:

REPcBLIC CF INDoNEs1As e

s,

, M' 3

w ANNEX Pursuant to paragraph 2 of Article 7 the agreed levels of physical security to be ensured bv the competent national authorities in the use. storage and transpottation of the materials listed in the attached

~

table shall as a minimum include protection characteristics as below.

Category III Use and storage within an area to which access is controlled.

Transportation under special precautions including prior arrange-ments among sender, recipient and carrier, and prior agreement be-tween entities subject to the jurisdiction and regulation of supplier and recipient states, respectively, in ense of international transport specifying time, place and procedutts for transferring transport responsibility.

Category 11 Use and storage within a protected area to which access is controlled.

i.e.. an area under constant surveillance by guards or electronic devices, surrounded by a physical barrier with a limited number of points of entry under appropriate control, or any area Mth an equivalent levelof physicalprotect2on.

Transportation.under special precautions including tirior arrange-ments among sender, reciptent and carrier, and prior agtrement be-tween entities subject to the jurisdiction and regulation of supplier and recipient states, respectively, in case of international transport, specifyine time, place and procedures for transferring transport responsibility..

Category I Material in this category shall be protected with highly avlinble srstems against unauthorized use as follows:

' Use and storace within a highly protected area. i.e.. a pmtected area as defined f6r Catecory II aldre. to which. in addition, access is

~.

I i

11 t

restricted to persons whose trustworthiness has been determined. and thich is under surv-mee by guards who are in close conanunication with appropriate rt e forces. Specific measures taken m inis con.

text should have as t..

abjective the detection and prevention of any assault. unauthorized access or unauthorized removal of :nnerial.

Transportation under special precautions as identified soove for transportation of Categories II and III materials and. in addition.

under constant surveiliance by escorts and under conditiens under which assure close communication with appropriate response forces.

TABLL4.Af tGCRIIATION OF NUCLEAR Id AftRIAll ii ca -v e

==n.i r

i n

ni t.n mm.mn._ u.inw.we 2 a:

s.. L th.. : a inri m.,e sao g., seat.

s than too s.

2. Uranium.235e Umtree.tes:e Uramum emced ta 20 pws-t S 6g or rete.. Lass man 5 ks but enore i kg er neste s'*u or mort.

than 1 hg.

Uramum enrcod to 10 pertant 13 6g or move.

'. ass man 10 63 8 n*U 991 boss than 20 pertant Uramum erintPed 3 Dove Mt. _

.$ttDfW.ft ural but less man 10 percMt n*U.

2. Uranium 213 Unstracwted * -

- 2 h3 of :n.ro.. Lass than 2 b but more 600 g orlemos man 600 g.

l 4 trradieted fuel should be armotted as r.stegory 6. n et til nuctest mat. rial sesencing on me category of the freen fue L Mowever. fuel artuch Dv earturat1ts originas fmans material coment as inclosed as catetory i er u betere erreemen snevid oniv De teouted I catertery level. wnos es escistion es,si from the toes esteens 100 rassai et 1 meter sannie+ees, s ali piutomum escept mst.itn asatopec concentre1on escaecing 80 percent s. putomem 138.

sua u,5.tste a competent evtnorrry snev.ie e,ssermine n.there is a crecismo threat to d.isce..rne put.a se maee 8 The a e. ms rmme.uine st.co.nm, so o.a a.ie, m i. n, ni e. rein.= tne, m. n is..n.d.. m.e

uni, in e

-. i.=

am on= us.u.,t.o.r.rys.ui..ea n ee. rem

.=

e

,n.

e.e..n c..e.

.m. e e =rui o, ne nm e

t au w nm e. w m.,

rueno.

,n.m ame..,e

., m,..,,a.m..e a..n-i

. ru.m..e.g. eu.

.m e ion ni e mue4.

s Lers t.han a.racessogicapy sigmfzant essality showld te.e.sempted

.. ateem in s, m..e.,m.a o.m.m e

m orwe=== e

,m ncaw = ie= m in.or== -i tis...

e am..

i,

d ut,.

me

...e..

. =sa.

i AGREED MINUTE During the negotianon of the Agreement for Cooperation between the Government of the United States of A2nerica and the Government of the Republic of Indonesia Concerning Peaceful Uses of Nuclear Energy (hereinafter referred to as " Agreement") signed today, the i

followmg understandines, which shall be an integral part of +he Agreement,were reached.

i Coverage of Agreement l

Material, equipment and components transferred from the terri-tory of one Party to the territorv of the other Partv for peaceful pur-3 posies. whether directly or throu'gh a third country', shall be regarded as having been transferred pursuant to the Agreement only upon confirmation by the appropriate government authority of the recipi-ent Party to the appmpnate government authority of the supplier -

Party, that such material, equipment or components shall be subject l

tothe Acreement.

+

For the purpose of implementi ig the rights speci6ed in Articles 5, 6 and 7 with respect to special nuclear material produced through the l

use of material transferred pursuant to the Acreement and not used in or pmduced through the use of equipment tmnsferred pursuant i

n i

e i

b

"~

.m.

m h

12 to the Acreement. such r:chts shall in practice be applied to that pro-

~

portion of special nuclear 'r.ater:a1 produced whien represents the ratio of transferrea material used in the production of the spec:a!

nuclear material to the total nmom:t of material so used. and similarly for subsequent generations Safeguards If either Party becomes aware of circumstances referred to in para-graph 3 of Article 9. followine consultation with Indonesia. the L n:ted States shall be permitted to conduct the activities listed below unless the United States nerees that the need to conduct such activities is being satisfied by the applicatwn of IAEA safeguards under ar-rangements pinsuant to paragraph 3 of Article 9:

(1) to review in a timely fashion the design of any equipment transferred punuant to the Agreement, or of any facility widch is to use. fabricate, process or store any material so transferred or any special nuclear material used in or produced through the use of such material or equipment :

(2) to require the mamtenance and production of records and of relevant reports for the purpose of assistmg in ensuring ac-countability for material transferred pursuant to the Agreement and any source material or special nuclear matdal used in or produced through the use of any material. equipment or compo-nents so transferred: and (3) to designate personnel. in consultation with Indonesia, who shall have access to all places and data necessary to account for the material in paragraph (2), to inspect any equipment or facility referred to m paragraph (1). and to install any devices and m'ake such independent measurements as may be deemed necessary to account for such material. Such perso'nnel shall be accompanied by persotmel designated by Indonesia.

With ttference to Article D. it is confirmed that design information relevant to safeguards for new equipment er facilities where safe-mards will be required under the Agreement shall be pmvided to the IAEA in a timely fashion upon its request.

Tranitional Arrangemeras With reference to paragraphs 1 and 2 of Article 7, while most fa-cilities in the United States provide physical protection comparable to that specified for materials classified as category II and III in the table attached to the Annex. the regulations of th'e United States with respect to physical protection of these materials do not require im-plementation until July 1980. If any proposed recipient of category II or III material tra'sferred pursuant to the Agreement does not n

provide physical protection as a minimum comparable to that set forth in INFCIRC/225/ Revision 1. the United States shall so inform Indonesia prior to shipment of such material and seek interim ar-rancements satisfactory to both Parties.

With respect to paragraph 2 of Article 10. in order to facilitate the j

npplication of the provisions of this Agreement. the Parties shall i

establish a list of sucn material and equipment.

)

1 m-w

v d

13 1

FO R "? E GOVE PA E NT Cr TH E foR W E Co7ERfiMENT cr S E UNITm STATQ Cr A.MEPIC A:

PEPteLIC OF IN DCN ESI A c2 O. ~a -

n

\\

TnE Wimt Horse.

TVa.sitington, June 19,1980.

Memorandum for: The Secretary of State and the Secretary of Energy.

Subject:

Proposed Agreement Between the United States and Indo-nesia Concerning Peaceful Uses of Nuclear Energy.

I have considered the proposed Acreement Between the United States and Indonesia Concerning Peaceful Uses of Nuclear Energy, alone with the views, recommendations and statements of the inter-ested acencies that have been submitted to me.

I have determined that performance of the agreement will pro-mote, and will not constitute an unreasonable risk to, the common defense and security. Pursuant to Section 123 b of the Atomic Energy Act of 19M. as amended. I hereby approve the proposed agreement and authorize you to arrange for its execution.

Jterr Carrr.a.

U.S. ARus ConRot, Axu DISARM.tMENT AGENCT, Trasitington, June 16,1980.

MEMoRANDI M FoR THE PRESIDENT Nuclear Proliferation Assessment Statement for the Pro-

Subject:

posed Agreement for Cooperation between the Government of the United States of A2nerica and the Government of the Repub-lic of Indonesia concerning Peaceful Uses of Nuclear Energy.

Putsuant to Section 123 n. of the Atomic Energy Act of 19M, as amended, I am submitting to you hentwith an unclassified Nuclear Proliferation Assessment Statement with itspect to the proposed Agreement for Cooperation between the Government of the Laited States of.buerica and the Government of the Republic of Indonesia oneerning Peaceful Uses of Nuclear Energy.

After setting forth background on the non-proliferation policy of i

Indonesia and its nuclear prognimdPgt I), this statement describes the nature and scope of the cooperatWristhorized by the proposed i

ngreement and how each of the applicihle st$stantive tequirementr.

of the Nuclear Non-Proliferation Act of iDER add the Atomic Energy I

Act are met (Part II). Part III of the stateYtwnt discusses other non.

proliferation policy issues involved in this cash and Pan IV presents mv assessment. conclusions, views and recomm&dation.

L

v

~

4 ?-

ATTACHMENT 2 t

a

- - - - ~ ~ ~ '

---

I

t DRAFT The President The White House Washington, D.C.

20500

Dear Mr. President:

in accordance with the provisions of the Atomic Energy Act of 1954, as amended, the U.S. Nuclear Regulatory Commission has reviewed the proposed renewal of the U.S.-Indonesia Agreement for Peaceful Nuclear Cooperation as forwarded by the Department of State.

It is the view of the Commission that the proposed renewal meets all applicable requirements of the Atomic Energy Act and the Nuclear Non-Proliferation Act of 1978.

The Commission therefore concurs in the proposed renewal and recommends that you make the requisite statutory determination, approve the renewal of the Agreement, and authorize its execution.

Respectfully, Ivan Selin r

1 f

DRAFT l

.