CONSUMPTION OR DILUTION OF NUCLEAR MATERIAL

Article 11

Safeguards under this Agreement shall terminate on nuclear material upon determination by the Community and the Agency that the material has been consumed, or has been diluted in such a way that it is no longer usable for any nuclear activity relevant from the point of view of safeguards, or has become practically irrecoverable.

TRANSFER OF NUCLEAR MATERIAL OUT OF THE STATES

Article 12

The Community shall give the Agency notification of transfers of nuclear material subject to safeguards under this Agreement out of the States, in accordance with the provisions of this Agreement. Safeguards under this Agreement shall terminate on nuclear material when the recipient State has assumed responsibility therefore as provided for in this Agreement. The Agency shall maintain records indicating each transfer and, where applicable, the re-application of safeguards to the transferred nuclear material.

PROVISIONS RELATING TO NUCLEAR MATERIAL TO BE USED IN NON-NUCLEAR ACTIVITIES

Article 13

Where nuclear material subject to safeguards under this Agreement is to be used in non-nuclear activities, such as the production of alloys or ceramics, the Community shall agree with the Agency, before the material is so used, on the circumstances under which the safeguards under this Agreement on such material may be terminated.

NON-APPLICATION OF SAFEGUARDS TO NUCLEAR MATERIAL TO BE USED IN NON-PEACEFUL ACTIVITIES

Article 14

If a State intends to exercise its discretion to use nuclear material which is required to be safeguarded under this Agreement in a nuclear activity which does not require the application of safeguards under this Agreement, the following procedures shall apply:

a. The Community and the State shall inform the Agency of the activity, and the State shall make it clear:

i. That the use of the nuclear material in a non-proscribed military activity will not be in conflict with an undertaking the State may have given and in respect of which Agency safeguards apply, that the material will be used only in a peaceful nuclear activity; and

ii. That during the period of non-application of safeguards under this Agreement the nuclear material will not be used for the production of nuclear weapons or other nuclear explosive devices;

b. The Agency and the Community shall make an arrangement so that, only while the nuclear material is in such an activity, the safeguards provided for in this Agreement will not be applied. The arrangement shall identify, to the extent possible, the period or circumstances during which such safeguards will not be applied. In any event, the safeguards provided for in this Agreement shall apply again as soon as the nuclear material is reintroduced into a peaceful nuclear activity. The Agency shall be kept informed of the total quantity and composition of such material out of that State or those States; and

c. Each arrangement shall be made in agreement with the Agency. Such agreement shall be given as promptly as possible and shall relate only to such matters as, inter alia, temporal and procedural provisions and reporting arrangements, but shall not involve any approval or classified knowledge of the military activity or relate to the use of the nuclear material therein.

FINANCE

Article 15

The Agency, the Community and the States will bear the expenses incurred by each of them in implementing their respective responsibilities under this Agreement. However, if the Community, the States or person under their jurisdiction, incur extraordinary expenses as a result of a specific request by the Agency, the Agency shall reimburse such expenses provided that it has agreed in advance to do so. In any case, the Agency shall bear the cost of any additional measuring or sampling which Agency inspectors may request.

THIRD PARTY LIABILITY FOR NUCLEAR DAMAGE

Article 16

The Community and the States shall ensure that any protection against third party liability in respect of nuclear damage, including any insurance or other financial security which may be available under their laws or regulations shall apply to the Agency and its officials for the purpose of the implementation of this Agreement, in the same way as that protection applies to nationals of the States.

INTERNATIONAL RESPONSIBILITY

Article 17

Any claim by the Community or a State against the Agency or by the Agency against the Community or a State in respect of any damage resulting from the implementation of safeguards under this Agreement, other than damage arising out of a nuclear incident, shall be settled in accordance with international law.

MEASURES IN RELATION TO VERIFICATION OF NON-DIVERSION

Article 18

If the Board, upon report of the Director General, decides that an action by the Community or a State, in so far as either Party is individually concerned, is essential and urgent in order to ensure verification that nuclear material subject to safeguards under this Agreement is not diverted to nuclear weapons or other nuclear explosive devices, the Board may call upon the Community or that State to take the required action without delay, irrespective of whether procedures have been invoked pursuant to Article 22 for the settlement of a dispute.

Article 19

If the Board, upon examination of relevant information reported to it by the Director General, finds that the Agency is not able to verify that there has been no diversion of nuclear material required to be safeguarded under this Agreement, to nuclear weapons or other nuclear explosive devices, it may make the reports provided for in Article XII(C) of the Statute and may also take, where applicable, the other measures provided for in that paragraph. In taking such action, the Board shall take account of the degree of assurance provided by the safeguards measures that have been applied and shall offer the Community or the State, in so far as either Party is individually concerned, every reasonable opportunity to furnish the Board with any necessary reassurance.

INTERPRETATION AND APPLICATION OF THE AGREEMENT AND SETTLEMENT OF DISPUTES

Article 20

At the request of the Agency, the Community or a State, there shall be consultations about any question arising out of the interpretation or application of this Agreement.

Article 21

The Community and the States shall have the right to request that any question arising out of the interpretation or application of this Agreement be considered by the Board. The Board shall invite the Community and the State concerned to participate in the discussion of any such question by the Board.

Article 22

Any dispute arising out of the interpretation or application of this Agreement except a dispute with regard to a finding by the Board under Article 19 or an action take by the Board pursuant to such a finding, which is not settled by negotiation or another procedure agreed to by the Agency, the Community and the States shall, at the request of any one of them, be submitted to an arbitral tribunal composed of five arbitrators. The Community and the States shall designate two arbitrators and the Agency shall also designate two arbitrators, and the four arbitrators so designated shall elect a fifth, who shall be the Chairman. If, within thirty days of the request for arbitration, the Community and the States, or the Agency, have not designated two arbitrators each, the Community or the Agency may request the President of the International Court of Justice to appoint these arbitrators. The same procedure shall apply if, within thirty days of the designation or appointment of the fourth arbitrator, the fifth arbitrator has not been elected. A majority of the members of the arbitral tribunal shall constitute a quorum, and all decisions shall require the concurrence of at least three arbitrators. The arbitral procedure shall be fixed by the tribunal. The decisions of the tribunal shall be binding on the Agency, the Community, and the States concerned.

ACCESSION

Article 23

a. This Agreement shall come into force for non-nuclear-weapon States Party to the Treaty which become Members of the Community, upon:

i. Notification to the Agency by the State concerned that its procedures with respect to the coming into force of this Agreement have been completed; and

ii. Notification to the Agency by the Community that it is in a position to apply its safeguards in respect of that State for the purposes of this Agreement.

b. Where the State concerned has concluded other agreements with the Agency for the application of Agency safeguards, upon the coming into force of this Agreement for that State, the application of Agency safeguards under such agreements shall be suspended while this Agreement is in force; provided, however, that the State’s undertaking in those agreements not to use items which are subject thereto in such a way as to further any military purpose shall continue to apply.

AMENDMENT OF THE AGREEMENT

Article 24

a. The Agency, the Community and the States shall, at the request of any one of them, consult on amendment to this Agreement.

b. All amendments shall require the agreement of the Agency, the Community and the States.

c. The Director General shall promptly inform all Member States of the Agency of any amendment to this Agreement.

ENTRY INTO FORCE AND DURATION

Article 25

a. This Agreement shall enter into force on the date upon which the Agency receives from the Community and the States written notification that their own requirements for entry into force have been met. The Director General shall promptly inform all Member States of the Agency of the entry into force of this Agreement.

b. This Agreement shall remain in force as long as the States are Parties to the Treaty.

PROTOCOL

Article 26

The Protocol attached to this Agreement shall be an integral part thereof. The term „Agreement” as used in this instrument means the Agreement and the Protocol together.

PART II

INTRODUCTION

Article 27

The purpose of this part of the Agreement is to specify, as required, the procedures to be applied in the implementation of the safeguards provisions of Part I.

OBJECTIVE OF SAFEGUARDS

Article 28

The objective of the safeguards procedures set forth in this Agreement is the timely detection of diversion of significant quantities of nuclear material from peaceful nuclear activities to the manufacture of nuclear weapons or of other nuclear explosive devices or for purposes unknown, and deterrence of such diversion by the risk of early detection.

Article 29

For the purpose of achieving the objective set forth in Article 28, material accountancy shall be used as a safeguards measure of fundamental importance, with containment and surveillance as important complementary measures.

Article 30

The technical conclusion of the Agency’s verification activities shall be a statement, in respect of each material balance area, of the amount of material unaccounted for over a specific period, and giving the limits of accuracy of the amounts stated.

S SYSTEM OF SAFEGUARDS)~THE COMMUNITY’S SYSTEM OF SAFEGUARDS

Article 31

Pursuant to Article 3, the Agency, in carrying out its verification activities, shall make full use of the Community’s system of safeguards.

Article 32

The Community’s system of accounting for and control of nuclear material under this Agreement shall be based on a structure of material balance areas. The Community, in applying its safeguards, will make use of and, to the extent necessary, make provision for, as appropriate and specified in the Subsidiary Arrangements such measures as:

a. A measurement system for the determination of the quantities of nuclear material received, produced, shipped, lost or otherwise removed from inventory, and the quantities on inventory;

b. The evaluation of precision and accuracy of measurements and the estimation of measurement uncertainty;

c. Procedures for identifying, reviewing and evaluating differences in shipper/receiver measurements;

d. Procedures for taking a physical inventory;

e. Procedures for the evaluation of accumulations of unmeasured inventory and unmeasured losses;

f. A system of records and reports showing, for each material balance area, the inventory of nuclear material and the changes in that inventory including receipts into and transfers out of the material balance area;

g. Provisions to ensure that the accounting procedures and arrangements are being operated correctly; and

h. Procedures for the provision of reports to the Agency in accordance with Articles 59 to 65 and 67 to 69.

Article 33

Safeguards under this Agreement shall not apply to material in mining or ore processing activities.

Article 34

a. When any material containing uranium or thorium which has not reached the stage of the nuclear fuel cycle described in paragraph (c) is directly or indirectly exported to a non-nuclear-weapon State not Party to this Agreement, the Community shall inform the Agency of its quantity, composition and destination, unless the material is exported for specifically non-nuclear purposes;

b. When any material containing uranium or thorium which has not reached the stage of the nuclear fuel cycle described in paragraph (c) is imported into the States, the Community shall inform the Agency of its quantity and composition, unless the material is imported for specifically non-nuclear purposes; and

c. When any nuclear material of a composition and purity suitable for fuel fabrication or for isotopic enrichment leaves the plant or the process stage in which it has been produced, or when such nuclear material, or any other nuclear material produced at a later stage in the nuclear fuel cycle, is imported into the States, the nuclear material shall become subject to the other safeguards procedures specified in this Agreement.

TERMINATION OF SAFEGUARDS

Article 35

a. Safeguards under this Agreement shall terminate on nuclear material, under the conditions set forth in Article 11. Where the conditions of that article are not met, but the Community considers that the recovery of nuclear material subject to safeguards under this Agreement from residues is not for the time being practicable or desirable, the Agency and the Community shall consult on the appropriate safeguard measures to be applied.

b. Safeguards under this Agreement shall terminate on nuclear material, under the conditions set forth in Article 13, provided that the Agency and the Community agree that such nuclear material is practicably irrecoverable.

EXEMPTION FROM SAFEGUARDS

Article 36

At the request of the Community, the Agency shall exempt nuclear material from safeguards under this Agreement, as follows:

a. Special fissionable material, when it is used in gram quantities or less as a sensing component in instruments;

b. nuclear material, when it is used in non-nuclear activities in accordance with Article 13, if such nuclear material is recoverable; and

c. plutonium with an isotopic concentration of plutonium-238 exceeding 80%.

Article 37

At the request of the Community, the Agency shall exempt from safeguards under this Agreement nuclear material that would otherwise be subject to such safeguards, provided that the total quantity of nuclear material which has been exempted in the States in accordance with this Article may not at any time exceed: