[House Document 105-197]
[From the U.S. Government Publishing Office]



105th Congress, 2d Session  - - - - - - - - - - House Document 105-197


 
AGREEMENT FOR NUCLEAR COOPERATION BETWEEN THE UNITED STATES AND CHINA

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

 A REPORT RELATING TO THE APPROVAL AND IMPLEMENTATION OF THE AGREEMENT 
  FOR NUCLEAR COOPERATION BETWEEN THE UNITED STATES AND THE PEOPLE'S 
            REPUBLIC OF CHINA, PURSUANT TO 42 U.S.C. 2153(d)





February 3, 1998.--Referred to the Committee on International Relations 
                       and ordered to be printed


                                           The White House,
                                      Washington, January 12, 1998.
Hon. Newt Gingrich,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: I am writing to you with respect to 
sections (b)(1) and (b)(2) of Public Law 99-183, relating to 
the approval and implementation of the Agreement for Nuclear 
Cooperation Between the United States and the People's Republic 
of China, and with respect to section 902(a)(6)(B) of Public 
Law 101-246. The sections of Public Law 99-183 cited above 
require certifications to the Congress and a report to the 
Speaker of the House of Representatives and the Chairman of the 
Committee on Foreign Relations of the Senate before exports or 
retransfers to China under the Agreement may begin. Sections 
902(a)(6)(B) (i), (ii) and (iii) of Public Law 101-246 require 
a certification to the Congress and report to the Congress 
before terminating the suspensions and automatic disapprovals 
of nuclear cooperation with China.
    I have made the certifications pursuant to section (b)(1) 
of Public Law 99-183 and section 902(a)(6)(B)(i) of Public Law 
101-246, a copy of which is enclosed. The certifications 
pursuant to section (b)(1) of Public Law 99-183 satisfy the 
condition under section 902(a)(6)(B)(ii). Submitted herewith, 
in accordance with the requirements of section (b)(2) of Public 
Law 99-183, is a report in unclassified form detailing the 
history and current developments in the nonproliferation 
policies, practices and assurances of the People's Republic of 
China. Because of the information controls that apply to the 
classified report, I am transmitting it by separate letter to 
the House Permanent Select Committee on Intelligence and the 
Senate Select Committee on Intelligence.
    In accordance with Public Law 99-183, I have certified as 
to three matters:
    (A) That the reciprocal arrangements made pursuant to 
Article 8 of the Agreement have been designed to be effective 
in ensuring that any nuclear material, facilities or components 
provided under the Agreement shall be utilized solely for 
intended peaceful purposes as set forth in the Agreement.

          The arrangements for exchanges of information and 
        visits are provided for in a Memorandum of 
        Understanding initialed on June 23, 1987. Side notes on 
        protection of business confidential information were 
        signed on October 22, 1997. These documents, along with 
        a detailed explanation of my certification, are 
        enclosed. These arrangements will provide the United 
        States with the right to obtain all the information 
        necessary to maintain an inventory of the items subject 
        to the Agreement. This will include information on the 
        operation of facilities subject to the Agreement, the 
        isotopic composition, physical form and quantity of 
        material subject to the Agreement and the places where 
        items subject to the Agreement are used or kept. The 
        arrangements also provide the United States with the 
        right to confirm through on-site visits the use of all 
        items subject to the Agreement. Finally, the 
        arrangements apply as long as the provisions of Article 
        8(2) of the Agreement continue in effect, that is, as 
        long as items subject to the Agreement remain in 
        China's territory or under its jurisdiction or control. 
        My determination that these arrangements have been 
        designed to be effective in ensuring that items 
        provided under the Agreement are utilized for intended 
        peaceful purposes is based on consideration of a range 
        of factors, including the limited scope of nuclear 
        cooperation permitted under the Agreement, U.S. export-
        control procedures that will apply to any transfers to 
        China under the Agreement, the fact that the People's 
        Republic of China is a nuclear-weapons state and that 
        the safeguards of the International Atomic Energy 
        Agency (IAEA) or their equivalent are not required by 
        the Atomic Energy Act for agreements for cooperation 
        with nuclear weapon states. These arrangements will be 
        published in the Federal Register using the procedure 
        applicable to subsequent arrangements under section 
        131(a) of the Atomic Energy Act.

    (B) That the Government of the People's Republic of China 
has provided additional information concerning its nuclear 
nonproliferation policies and that, based on this and all other 
information available to the United States Government, the 
People's Republic of China is not in violation of paragraph (2) 
of section 129 of the Atomic Energy Act of 1954.

          The United States Government has received additional 
        information from the People's Republic of China 
        concerning its nonproliferation policies since the 
        enactment of Public Law 99-183 on December 16, 1985, 
        most recently, China's May 1996 statement, its May 1997 
        State Council Notice on nuclear export policy and its 
        September 1997 nuclear export control regulations (all 
        of which are discussed in the enclosed unclassified 
        report on China's nonproliferation policies and 
        practices). On the basis of this and all other 
        information available to the United States Government, 
        I conclude that there is no legal bar to cooperation in 
        this area, and, in particular, that paragraph (2) of 
        section 129 of the Atomic Energy Act does not foreclose 
        nuclear cooperation. The Government of the People's 
        Republic of China has made substantial strides in 
        joining the international nonproliferation regime, and 
        in putting in place a comprehensive system of nuclear-
        related, nationwide export controls, since the nuclear 
        cooperation agreement was concluded in 1985. I believe 
        the initiation of cooperation under the Agreement will 
        bring significant nonproliferation benefits to the 
        United States.

    (C) That the obligation to consider favorably a request to 
carry out activities described in Article 5(2) of the Agreement 
shall not prejudice the decision of the United States to 
approve or disapprove such a request.

          The U.S. consent rights provided for in Article 5(2) 
        of the Agreement satisfy this standard because the 
        specific language used ensures that the United States 
        must exercise an approval right before the activity in 
        question is carried out. During Congressional 
        consideration of the Agreement, the executive branch 
        provided both the Senate Foreign Relations Committee 
        and the House Foreign Affairs Committee with a legal 
        memorandum on issues relating to the Agreement which 
        covered this point in detail.

    In accordance with Public Law 101-246, I have certified 
that China has provided clear and unequivocal assurances to the 
United States that it is not assisting and will not assist any 
nonnuclear-weapon state, either directly or indirectly, in 
acquiring nuclear explosive devices or the material and 
components for such devices. This certification is based on the 
statements, policies, and actions by China that were discussed 
above in connection with the certification under section 
(b)(1)(A) of Public Law 99-183.
    Pursuant to the authority vested in me by section 902(b)(2) 
of the Foreign Relations Authorization Act, Fiscal Years 1990 
and 1991 (Public Law 101-246), I hereby report to the Congress 
that it is in the national interest of the United States to 
terminate the suspensions and automatic disapprovals under 
section 902(a)(6). A document discussing the rationale for this 
report is enclosed. I believe the Agreement will have a 
significant, positive impact in promoting U.S. nonproliferation 
and national security interests with China and in building a 
stronger bilateral relationship with China based on respect for 
international norms.
    This report under section 902(b)(2) satisfies the condition 
under section 902(a)(6)(B)(iii).
    With the submission of the certifications and reports 
called for by Public Law 99-183 and Public Law 101-246, I am 
pleased that the process is underway to begin nuclear 
cooperation with China.
            Sincerely,
                                                William J. Clinton.
    Enclosures:
    1. Presidential Determination.
    2. Unclassified Report on China's Nonproliferation 
Policies, Practices and Assurances Required by Public Law 99-
103.
    3. U.S.-PRC Memorandum of Understanding on Exchanges of 
Information and Visits and Side Notes on Protection of Business 
Confidential Information.
    4. Basis for certification under section (b)(1)(A) of 
Public Law 99-183.
    5. Rationale for Report Required by Public Law 101-246.


                  Presidential Determination No. 98-10

                                           The White House,
                                      Washington, January 12, 1998.
Memorandum for the Secretary of State
Subject: Certification Pursuant to Section (b)(1) of Public Law 99-183 
        and to Section 902 (a)(6)(B) of Public Law 101-246

    Pursuant to section (b)(1) of Public Law 99-183 of December 
16, 1985, relating to the approval and implementation of the 
Agreement for Cooperation Between the United States and the 
People's Republic of China, I hereby certify that:
          (A) the reciprocal arrangements made pursuant to 
        Article 8 of the Agreement have been designed to be 
        effective in ensuring that any nuclear material, 
        facilities, or components provided under the Agreement 
        shall be utilized solely for intended peaceful purposes 
        as set forth in the Agreement;
          (B) the Government of the People's Republic of China 
        has provided additional information concerning its 
        nuclear non-proliferation policies and that, based on 
        this and all other information available to the United 
        States Government, the People's Republic of China is 
        not in violation of paragraph (2) of section 129 of the 
        Atomic Energy Act of 1954; and
          (C) the obligation to consider favorably a request to 
        carry out activities described in Article 5(2) of the 
        Agreement shall not prejudice the decision of the 
        United States to approve or disapprove such a request.
    Pursuant to section 902(a)(6)(B)(i) of Public Law 101-246, 
I hereby certify that the People's Republic of China has 
provided clear and unequivocal assurances to the United States 
that it is not assisting and will not assist any nonnuclear-
weapon state, either directly or indirectly, in acquiring 
nuclear explosive devices or the material and components for 
such devices.
    You are authorized and directed to publish this 
determination in the Federal Register.

                                                William J. Clinton.





                            
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