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Exchange of Letters between the Government of Canada and the Government of the United States of America constituting an Agreement with regard to Article XII (D) of the Agreement on Atomic Energy signed on June 15, 1955 [1988] CATSer 26 (22 August 1988)

E101789 - CTS 1988 No. 31

EXCHANGE OF LETTERS BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA CONSTITUTING AN AGREEMENT CONCERNING ARTICLE XII(D) OF THE JUNE 15, 1955 AGREEMENT

I

The Minister (Economic) and Deputy Chief of Mission of Canada to the Deputy Assistant Secretary of the United States of America

Washington, D.C., August 22, 1988

Mr. Richard J. K. Stratford,
Deputy Assistant Secretary
Nuclear Energy & Energy Technology Affairs
U.S. Department of State
Washington, D.C.

Dear Mr. Stratford,

I refer to the “Agreement for Cooperation Concerning Civil Uses of Atomic Energy between the Government of Canada and the Government of the United States of America,” signed on June 15, 1955, as amended (hereinafter referred to as “the Agreement”).

2. Article XII (D) of the Agreement provides that “Designated nuclear technology, material, equipment and devices, major critical components, components and Restricted Data subject to this Agreement and over which a Party has jurisdiction, shall not be transferred to unauthorized persons, or, unless the Parties agree, beyond the territorial jurisdiction of that Party”. In order to facilitate the application of this provision, I have the honour to propose that:

(a) in the case of natural uranium, depleted uranium, other source material, uranium enriched to less than 20% in the isotope U-235 and heavy water, Canada hereby provides its agreement to the future transfer of such items by the United States of America beyond its territorial jurisdiction to third parties provided that:

(i) such third parties have been identified as acceptable by Canada in writing from time to time:

(ii) the United States of America, for each such transfer, inform the third party that the material transferred is subject to the provisions of a nuclear cooperation agreement between the United States of America and Canada;

(iii) the United States of America make subject to the Agreement, upon receipt, material transferred to the United States of America from a third party identified pursuant to (i) above when the third party informs the United States of America that the material is subject to a nuclear cooperation agreement between the third party and Canada; and

(iv) notification and reporting procedures acceptable to both Parties relating to such transfers have been established.

(b) transfers other than those transfers referred to in (a) above shall continue to require the written agreement of the Parties prior to the transfer.

3. Further to Article XII (D) of the Agreement, Canada hereby provides its agreement for the transfer beyond the territorial jurisdiction of the United States of America, in any given period of 12 months, to any State Party to the Treaty on the Non-Proliferation of Nuclear Weapons, of the following materials and quantities:

(a) special fissionable material (up to 50 effective grams);

(b) natural uranium (up to 500 kilograms);

(c) depleted uranium (up to 1000 kilograms); and

(d) thorium (up to 1000 kilograms).

The appropriate governmental authorities shall establish reporting procedures for the purpose of reviewing the implementation of this provision.

4. With respect to Article X Bis A of the Agreement, paragraph 2 above shall be regarded as satisfying the requirement for prior exchange of notifications.

If the foregoing is acceptable to the Government of the United States of America, I have the honour to propose that this Letter, 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.

Please accept the assurances of my highest consideration.

Yours sincerely,

L. H. Legault

Minister (Economic) and Deputy Chief of Mission

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The Deputy Assistant Secretary of the United States of America to the Minister (Economic) and Deputy Chief of Mission of Canada

Washington, August 22, 1988

Mr. L. H. Legault,
Minister (Economic) and Deputy Chief of Mission

Dear Mr. Minister:

I refer to your letter dated August 22, 1988, regarding the transfer provisions of the Agreement for Cooperation Concerning Civil Uses of Atomic Energy between the Government of the United States of America and the Government of Canada, as amended, (hereinafter referred to as “the Agreement”), and the retransfer of certain nuclear material and material obligated to Canada.

The Government of the United States is pleased to accept the proposal by the Government of Canada as set forth in the referenced letter and agrees that your letter, together with this reply, shall constitute an agreement between our two Governments, effective on this date.

Sincerely yours,

Richard J. K. Stratford,

Deputy Assistant Secretary
Nuclear Energy & Energy Technology Affairs