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Exchange of Notes between the Government of Canada and the Government of Sweden amending the 1977 Agreement concerning the Uses of Nuclear Material, Equipment, Facilities and Information transferred between Canada and Sweden [1981] CATSer 25 (18 December 1981)

E100352 - CTS 1981 No. 27

EXCHANGE OF NOTES BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF SWEDEN AMENDING THE 1977 AGREEMENT CONCERNING THE USES OF NUCLEAR MATERIAL, EQUIPMENT, FACILITIES AND INFORMATION TRANSFERRED BETWEEN CANADA AND SWEDEN

I

The Secretary of State for External Affairs to the Ambassador of Sweden

OTTAWA, December 18, 1981

FLE-1625

His Excellency Kaj Bjork
Ambassador of Sweden
Ottawa

Excellency,

I have the honour to refer to the Agreement between the Government of Canada and the Government of Sweden Concerning the Uses of Nuclear Material, Equipment, Facilities and Information Transferred Between Canada and Sweden signed at New York, September 27, 1977, (hereinafter referred to as the Agreement) and to the related Exchange of Notes of September 29, 1978, and in particular to Article III.1 of the Agreement which states, inter alia, that nuclear material subject to the Agreement shall be reprocessed only as agreed in writing between the Parties.

I have the further honour to propose, on the basis of discussions between officials of our two countries, that the guidelines set forth in this Note should govern the exercise of the provision respecting mutual agreement over reprocessing contained in Article III.1 of the Agreement.

I note that in those discussions officials of Canada and Sweden took into account the findings of the International Nuclear Fuel Cycle Evaluation including, inter alia: 1) the recognition that countries in reaching decisions as to their nuclear fuel cycle activities will bear in mind a broad range of political, economic and energy considerations; 2) the recognition that countries with significant nuclear energy programmes in which economies of scale are relevant will wish to look particularly closely at reprocessing and plutonium recycle in thermal or advanced reactors in order to make the maximum use of available resources or to implement required spent fuel management and waste disposal programmes; 3) the recognition that the best technical, safeguards and institutional measures should be developed so as to minimize the risk of nuclear proliferation in the context of reprocessing; 4) with regard to the exercise of prior consent rights, recognition that these rights should be exercised in a predictable manner that takes account of the national policies and particular circumstances of the countries concerned with the objective of avoiding, wherever possible, problems in the planning and implementation of nuclear energy programmes; and 5) the general principle, asserted by the International Nuclear Fuel Cycle Evaluation, that assurance of supply and assurance of non-proliferation are complementary.

I also note that both the Government of Canada and the Government of Sweden are determined to continue to support the development of international safeguards relevant to reprocessing and the storage and use of plutonium, including an effective international plutonium storage scheme, and of other measures relevant to reprocessing and the storage and use of plutonium.

Against this background, I have the honour to set forth the guidelines referred to above as mutually agreed between Canada and Sweden. These are:

(a) the party seeking agreement for reprocessing should have made and should continue to maintain an effective commitment to non-proliferation;

(b) the party seeking agreement for reprocessing should provide a description of its current and planned nuclear energy programme including in particular a detailed description of the policy, legal and regulatory elements relevant to reprocessing and plutonium storage and use;

(c) the nuclear material in facilities involved in reprocessing and the storage and use of plutonium should be subject to effective IAEA safeguards;

(d) all nuclear material in facilities involved in reprocessing and subsequent storage and use activities, including related transport, should be subject to adequate physical protection measures;

(e) mutually-satisfactory notification and material reporting procedures should be in place between the parties;

(f) requests for agreement for reprocessing not forming an integral part of a nuclear energy programme should be considered in the light of specific requirements;

(g) the party seeking consent for reprocessing should agree to periodic and timely consultations with the other party at which, inter alia, the information provided under guideline (b) above would be updated and significant changes in the nuclear energy programme would receive the fullest possible consideration;

(h) the party giving agreement in advance for reprocessing on a long term basis should do so only when information provided on the nuclear energy pro­gramme of the other party has been received, when the undertakings, arrangements and other information called for by the guidelines are in place or have been received, and the parties have agreed that reprocessing and plutonium storage and use are an integral part of the described nuclear energy programme; and

(i) the party giving agreement should have the right to revoke that agreement should the commitment of the other party to non-proliferation change or should the other party fail to honour its commitment to the periodic and timely consultations referred to in guideline (g).

I note that we are agreed that the objectives of the above guidelines have been satisfied by our two Governments.

I further note that the Government of Sweden has provided to the Government of Canada the information called for by the guidelines and in particular the description of Sweden’s current and planned nuclear energy programme as called for by the guidelines. I recognize that the Government of Canada and the Government of Sweden have agreed that the documents containing the information shall be confidential to our two Governments.

I have the honour to inform Your Excellency that the Government of Canada, pursuant to the above and subject to confirmation that the guidelines contained in this Note are acceptable to the Government of Sweden, considers that this Note and the Embassy’s reply thereto constitute the agreement in writing required under Article III.1 of the Agreement for the reprocessing envisaged in the nuclear energy programme delineated by the Government of Sweden. I also wish to inform you that, on the condition that nuclear material to be retransferred will be subject to non-proliferation controls and safeguards satisfactory to the Governments of Canada and Sweden, the appropriate Canadian governmental authority give its consent under Article III.1 of the Agreement for the retransfer of nuclear material associated with the reprocessing envisaged in the delineated nuclear energy programme of Sweden.

I have the honour to confirm that these undertakings are given by the Government of Canada subject to the Government of Sweden maintaining its effective commitment to non-proliferation as expressed through its adherence to the Treaty on the Non-Proliferation of Nuclear Weapons and to the Agreement as well as observing its commitment to periodic and timely consultations.

If the foregoing is acceptable to the Government of Sweden, I have the honour to propose that this Note, which is authentic in English and French, and your reply to that effect shall constitute an agreement between our two governments which shall enter into force on the date of your reply.

Accept, Excellency, the assurances of my highest consideration.

Mark MacGuigan

Secretary of State for External Affairs

II

The Ambassador of Sweden to the Secretary of State for External Affairs

SWEDISH EMBASSY

OTTAWA, December 18, 1981

The Honourable Mark MacGuigan, P.C., M.P.
Secretary of State for External Affairs
Ottawa

Sir,

I have the honour to refer to your Note No. FLE-1625 of today’s date concerning the Agreement between the Government of Canada and the Government of Sweden Concerning the Use of Nuclear Material, Equipment, Facilities and Information Transferred between Canada and Sweden signed at New York, September 27, 1977, (hereinafter referred to as the Agreement) and to the related Exchange of Notes of September 29, 1978, and in particular to Article III.1 of the Agreement.

I have the honour to confirm that the Government of Sweden agrees with the guidelines set forth in your Note and agrees that your Note and this Note in reply thereto shall constitute the agreement in writing between the Parties required under Article III.1 of the Agreement for the reprocessing envisaged in the nuclear energy programme delineated by the Government of Sweden. I also recognize that the undertakings embodied in your Note are given by the Government of Canada subject to the Government of Sweden maintaining its effective commitment to non-proliferation as expressed through its adherence to the Treaty on the Non-Proliferation of Nuclear Weapons and to the Agreement as well as observing its commitment to periodic and timely consultations.

Accordingly, I have the honour to confirm that your Note and this reply shall constitute an agreement between our two governments which shall enter into force on the date of this reply.

Accept, Sir, the assurances of my highest consideration.

Kaj Bjork

Ambassador