[Congressional Record (Bound Edition), Volume 160 (2014), Part 6]
[Senate]
[Pages 7582-7590]
[From the U.S. Government Publishing Office, www.gpo.gov]




PROPOSED AGREEMENT FOR COOPERATION BETWEEN THE GOVERNMENT OF THE UNITED 
   STATES OF AMERICA AND THE GOVERNMENT OF THE SOCIALIST REPUBLIC OF 
       VIETNAM CONCERNING PEACEFUL USES OF NUCLEAR ENERGY--PM 42

  The PRESIDING OFFICER laid before the Senate the following message 
from the President of the United States, together with an accompanying 
report; which was referred to the Committee on Foreign Relations:

To the Congress of the United States:
  I am pleased to transmit to the Congress, pursuant to sections 123 b. 
and 123 d. of the Atomic Energy Act of 1954, as amended (42 U.S.C. 
2153(b), (d)) (the ``Act''), the text of a proposed Agreement for 
Cooperation between the Government of the United States of America and 
the Government of the Socialist Republic of Vietnam Concerning Peaceful 
Uses of Nuclear Energy (the ``Agreement''). I am also pleased to 
transmit my written approval, authorization, and determination 
concerning the Agreement, and an unclassified Nuclear Proliferation 
Assessment Statement (NPAS) concerning the Agreement. (In accordance 
with section 123 of the Act, as amended by title XII of the Foreign 
Affairs Reform and Restructuring Act of 1998 (Public Law 105- 277), a 
classified annex to the NPAS, prepared by the Secretary of State in 
consultation with the Director of National Intelligence, summarizing 
relevant classified information, will be submitted to the Congress 
separately.) The joint memorandum submitted to me by the Secretaries of 
State and Energy and a letter from the Chairman of the Nuclear 
Regulatory Commission stating the views of the Commission are also 
enclosed. An addendum to the NPAS containing a comprehensive analysis 
of Vietnam's export control system with respect to nuclear-related 
matters, including interactions with other countries of proliferation 
concern and the actual or suspected nuclear, dual-use, or missile-
related transfers to such countries, pursuant to section 102A of the 
National Security Act of 1947 (50 U.S.C. 403-1), as amended, is being 
submitted separately by the Director of National Intelligence.
  The proposed Agreement has been negotiated in accordance with the Act 
and other applicable law. In my judgment, it meets all applicable 
statutory requirements and will advance the nonproliferation and other 
foreign policy interests of the United States.
  The proposed Agreement provides a comprehensive framework for 
peaceful nuclear cooperation with Vietnam based on a mutual commitment 
to nuclear nonproliferation. Vietnam has affirmed that it does not 
intend to seek to acquire sensitive fuel cycle capabilities, but 
instead will rely upon the international market in order to ensure a 
reliable nuclear fuel supply for Vietnam. This political commitment by 
Vietnam has been reaffirmed in the preamble of the proposed Agreement. 
The Agreement also contains a legally binding provision that prohibits 
Vietnam from enriching or reprocessing U.S.-origin material without 
U.S. consent.
  The proposed Agreement will have an initial term of 30 years from the 
date of its entry into force, and will continue in force thereafter for 
additional periods of 5 years each. Either party may terminate the 
Agreement on 6 months' advance written notice at the end of the initial 
30 year term or at the end of any subsequent 5-year period. 
Additionally, either party may terminate the Agreement on 1 year's 
written notice. I recognize the importance of executive branch 
consultations with the Congress regarding the status of the Agreement 
prior to the end of the 30-year period after entry into force and prior 
to the end of each 5-year period thereafter. To that end, it is my 
strong recommendation that future administrations conduct such 
consultations with the appropriate congressional committees at the 
appropriate times.
  The proposed Agreement permits the transfer of information, material, 
equipment (including reactors), and components for nuclear research and 
nuclear power production. It does not permit transfers of Restricted 
Data, sensitive nuclear technology, sensitive nuclear facilities, or 
major critical components of such facilities. In the event of 
termination of the Agreement, key nonproliferation conditions and 
controls continue with respect to material, equipment, and components 
subject to the Agreement.
  Vietnam is a non-nuclear-weapon state party to the Treaty on the Non-
Proliferation of Nuclear Weapons. Vietnam has in force a comprehensive 
safeguards agreement and an Additional Protocol with the International 
Atomic Energy Agency. Vietnam is a party to the Convention on the 
Physical Protection of Nuclear Material, which establishes 
international standards of physical protection for the use, storage, 
and transport of nuclear material, and has ratified the 2005 Amendment 
to the Convention. A more detailed discussion of Vietnam's intended 
civil nuclear program and its nuclear nonproliferation policies and 
practices, including its nuclear export policies and practices, is 
provided in the NPAS and in a classified annex to the NPAS submitted to 
you separately. As noted above, the Director of National Intelligence 
will provide an addendum to the NPAS containing a comprehensive 
analysis of Vietnam's export control system with respect to nuclear-
related matters.
  I have considered the views and recommendations of the interested 
departments and agencies in reviewing the proposed Agreement and have 
determined that its performance will promote, and will not constitute 
an unreasonable risk to, the common defense and security. Accordingly, 
I have approved the Agreement and authorized its execution and 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 Act. My Administration is prepared to 
begin immediately the consultations with the Senate Foreign Relations 
Committee and the House Foreign Affairs Committee as provided for in 
section 123 b. Upon completion of the 30 days of continuous session 
review provided for in section 123 b., the 60 days of continuous 
session review provided for in section 123 d. shall commence.
                                                        Barack Obama.  
                                          The White House, May 8, 2014.

 Agreement For Cooperation Between the Government of the United States 
  of America and the Government of the Socialist Republic of Vietnam 
               Concerning Peaceful Uses of Nuclear Energy

       The Government of the United States of America and the 
     Government of the Socialist Republic of Vietnam,
       MINDFUL of their respective rights and obligations under 
     the 1968 Treaty on the Nonproliferation of Nuclear Weapons 
     (``NPT'') to which both the United States of America and the 
     Socialist Republic of Vietnam are parties;
       REAFFIRMING their commitment to ensuring that the 
     international development and use of nuclear energy for 
     peaceful purposes are carried out under arrangements that 
     will to the maximum possible extent further the objectives of 
     the NPT;
       AFFIRMING their desire to promote universal adherence to 
     the NPT;
       AFFIRMING their support for the International Atomic Energy 
     Agency (``IAEA'') and its safeguards system, including the 
     Additional Protocol (INFCIRC/540);
       DESIRING to cooperate in the development of peaceful uses 
     of nuclear energy;
       MINDFUL that peaceful nuclear activities must be undertaken 
     with a view to protecting the international environment from 
     radioactive, chemical, and thermal contamination;
       RECALLING the Memorandum of Understanding between them 
     concerning Cooperation in the Nuclear Energy Fields, signed 
     at Hanoi, the Socialist Republic of Vietnam on March 30, 
     2010;
       AFFIRMING in particular the goal of pursuing the safe, 
     secure, and environmentally sustainable development of civil 
     nuclear energy for peaceful purposes and in a manner that 
     supports nuclear nonproliferation and international 
     safeguards;
       AFFIRMING the intent of the Socialist Republic of Vietnam 
     to rely on existing international markets for nuclear fuel 
     services, rather than acquiring sensitive nuclear

[[Page 7583]]

     technologies, as a solution for peaceful, safe, and secure 
     uses of civilian nuclear energy, and the intent of the United 
     States to support these international markets in order to 
     ensure reliable nuclear fuel supply for Vietnam;
       HAVE AGREED AS FOLLOWS:


                         ARTICLE 1--DEFINITIONS

       For the purposes of this Agreement, including the Agreed 
     Minute:
       (A) ``Agreed Minute'' means the minute annexed to this 
     Agreement, which is an integral part of this Agreement;
       (B) ``Byproduct material'' means any radioactive material 
     (except special fissionable material) yielded in or made 
     radioactive by exposure to the radiation incident to the 
     process of producing or utilizing special fissionable 
     material;
       (C) ``Component'' means a component part of equipment or 
     other item, so designated by agreement of the Parties;
       (D) ``Conversion'' means any of the normal operations in 
     the nuclear fuel cycle, preceding fuel fabrication and 
     excluding enrichment, by which uranium is transformed from 
     one chemical form to another--for example, from UF6 to UO2 or 
     from uranium oxide to metal;
       (E) ``Decommissioning'' means the actions taken at the end 
     of a facility's useful life to retire the facility from 
     service in a manner that provides adequate protection for the 
     health and safety of the decommissioning workers and the 
     general public, and for the environment. These actions can 
     range from closing down the facility and a minimal removal of 
     nuclear material coupled with continuing maintenance and 
     surveillance, to a complete removal of residual radioactivity 
     in excess of levels acceptable for unrestricted use of the 
     facility and its site;
       (F) ``Equipment'' means any reactor, other than one 
     designed or used primarily for the formation of plutonium or 
     uranium 233, reactor pressure vessels (including closure 
     heads), reactor calandrias, complete reactor control rod 
     drive systems, reactor primary coolant pumps, online reactor 
     fuel charging and discharging machines, or any other item so 
     designated by agreement of the Parties;
       (G) ``High enriched uranium'' means uranium enriched to 
     twenty percent or greater in the isotope 235;
       (H) ``Information'' means scientific, commercial or 
     technical data or information in any form that is 
     appropriately designated by agreement of the Parties or their 
     competent authorities to be provided or exchanged under this 
     Agreement;
       (I) ``Low enriched uranium'' means uranium enriched to less 
     than twenty percent in the isotope 235;
       (J) ``Major critical component'' means any part or group of 
     parts essential to the operation of a sensitive nuclear 
     facility;
       (K) ``Material'' means nuclear material, byproduct 
     material, radioisotopes other than byproduct material, 
     moderator material, or any other such substance so designated 
     by agreement of the Parties;
       (L) ``Moderator material'' means heavy water or graphite or 
     beryllium of a purity suitable for use in a reactor to slow 
     down high velocity neutrons and increase the likelihood of 
     further fission, or any other such material so designated by 
     agreement of the Parties;
       (M) ``Nuclear material'' means source material or special 
     fissionable material.
       (N) ``Parties'' means the Government of the United States 
     of America and the Government of the Socialist Republic of 
     Vietnam;
       (O) ``Peaceful purposes'' include the use of information, 
     material, 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 device, or any military 
     purpose;
       (P) ``Person'' means any individual or any entity subject 
     to the jurisdiction of either Party but does not include the 
     Parties to this Agreement;
       (Q) ``Reactor'' means any apparatus, other than a nuclear 
     weapon or other nuclear explosive device, in which a self-
     sustaining fission chain reaction is maintained by utilizing 
     uranium, plutonium or thorium or any combination thereof;
       (R) ``Restricted Data'' means all data concerning (1) 
     design, manufacture or utilization of nuclear weapons, (2) 
     the production of special fissionable material, or (3) the 
     use of special fissionable material in the production of 
     energy, but shall not include data of a Party that it has 
     declassified or removed from the category of Restricted Data;
       (S) ``Sensitive nuclear facility'' means any facility 
     designed or used primarily for uranium enrichment, 
     reprocessing of nuclear fuel, heavy water production, or 
     fabrication of nuclear fuel containing plutonium;
       (T) ``Sensitive nuclear technology'' means any information 
     (including information incorporated in equipment or an 
     important component) that is not in the public domain and 
     that is important to the design, construction, fabrication, 
     operation or maintenance of any sensitive nuclear facility, 
     or any other such information that may be so designated by 
     agreement of the Parties;
       (U) ``Source material'' means (1) uranium, thorium, or any 
     other material so designated by agreement of the Parties, or 
     (2) ores containing one or more of the foregoing materials in 
     such concentration as the Parties may agree from time to 
     time;
       (V) ``Special fissionable material'' means (1) plutonium, 
     uranium 233, or uranium enriched in the isotope 235, or (2) 
     any other material so designated by agreement of the Parties.


                    ARTICLE 2--SCOPE OF COOPERATION

       1. The Parties shall cooperate in the use of nuclear energy 
     for peaceful purposes in accordance with the provisions of 
     this Agreement and their applicable treaties, national laws, 
     regulations and license requirements.
       2. The Parties intend to cooperate in the following areas:
       (A) Development of requirements for power reactors and fuel 
     service arrangements for the Socialist Republic of Vietnam;
       (B) Development of the Socialist Republic of Vietnam's 
     civilian nuclear energy use in a manner that contributes to 
     global efforts to prevent nuclear proliferation;
       (C) Research, development and application of civilian 
     nuclear power reactor technologies and spent fuel management 
     technologies;
       (D) Promotion of the establishment of a reliable source of 
     nuclear fuel for future civilian light water nuclear reactors 
     deployed in the Socialist Republic of Vietnam;
       (E) Civilian nuclear energy training, human resource and 
     infrastructure development, and appropriate application of 
     civilian nuclear energy and related energy technology, in 
     accordance with evolving IAEA guidance and standards on 
     milestones for infrastructure development;
       (F) Research and application of radioisotopes and radiation 
     in industry, agriculture, medicine and the environment;
       (G) Radiation protection and management of radioactive 
     waste and spent fuel;
       (H) Nuclear safety, security, safeguards and 
     nonproliferation, including physical protection, export 
     control and border security; and
       (I) Other areas of cooperation as may be mutually 
     determined by the Parties.
       3. Cooperation under paragraph 2 may be undertaken in the 
     following forms:
       (A) Exchange of scientific and technical information and 
     documentation;
       (B) Exchange of training and personnel;
       (C) Organization of symposia and seminars;
       (D) Provision of relevant technical assistance and 
     services;
       (E) Joint research; and
       (F) Other forms of cooperation as may be mutually 
     determined by the Parties.
       4. Transfer of information, material, equipment and 
     components under this Agreement may be undertaken directly 
     between the Parties or through authorized Persons. Such 
     transfers shall be subject to this Agreement and to such 
     additional terms and conditions as may be agreed by the 
     Parties.


                   ARTICLE 3--TRANSFER OF INFORMATION

       1. Information concerning the use of nuclear energy for 
     peaceful purposes may be transferred under this Agreement. 
     Transfers of information may be accomplished through various 
     means, including reports, data banks, computer programs, 
     conferences, visits, and assignments of staff to facilities. 
     Fields that may be covered may include, but shall not be 
     limited to, the following:
       (A) Research, development, design, construction, operation, 
     maintenance and use of reactors, reactor experiments, and 
     decommissioning;
       (B) The use of material in physical and biological 
     research, medicine, agriculture and industry;
       (C) Fuel cycle studies of ways to meet future world-wide 
     civil nuclear needs, including multilateral approaches to 
     guaranteeing nuclear fuel supply and appropriate techniques 
     for management of nuclear wastes;
       (D) Safeguards and physical protection of material, 
     equipment and components;
       (E) Health, safety and environmental considerations related 
     to the foregoing; and
       (F) Assessing the role nuclear power may play in national 
     energy plans.
       2. This Agreement does not require the transfer of any 
     information that the Parties are not permitted under their 
     respective treaties, national laws and regulations to 
     transfer.
       3. Restricted Data and Sensitive Nuclear Technology shall 
     not be transferred under this Agreement.


       ARTICLE 4--TRANSFER OF MATERIAL, EQUIPMENT AND COMPONENTS

       1. Material, equipment and components may be transferred 
     for applications consistent with this Agreement. Any special 
     fissionable material transferred to the Socialist Republic of 
     Vietnam under this Agreement shall be low enriched uranium 
     except as provided in paragraph 4. Sensitive nuclear 
     facilities and major critical components thereof shall not be 
     transferred under this Agreement.
       2. Low enriched uranium may be transferred, including inter 
     alia by sale or lease, for use as fuel in reactors and 
     reactor experiments, for conversion or fabrication, or for 
     such other purposes as may be agreed by the Parties.
       3. The quantity of special fissionable material transferred 
     under this Agreement shall not at any time be in excess of 
     that quantity the Parties agree is necessary for any of the 
     following purposes: use in the loading of reactors or in 
     reactor experiments; the reliable, efficient and continuous 
     operation of

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     reactors or conduct of reactor experiments; the storage of 
     special fissionable material necessary for the efficient and 
     continuous operation of reactors or conduct of reactor 
     experiments; the transfer of irradiated nuclear material for 
     storage or disposition; and the accomplishment of such other 
     purposes as may be agreed by the Parties.
       4. Small quantities of special fissionable material may be 
     transferred for use as samples, standards, detectors, targets 
     or for such other purposes as the Parties may agree. 
     Transfers pursuant to this paragraph shall not be subject to 
     the quantity limitations in paragraph 3.
       5. The Government of the United States of America shall 
     endeavor to take such actions as are necessary and feasible 
     to ensure a reliable supply of nuclear fuel to the Socialist 
     Republic of Vietnam, including the export of nuclear fuel on 
     a timely basis during the period of this Agreement. The 
     Government of the United States of America shall also give 
     serious consideration to taking such actions as are feasible 
     to assist the Government of the Socialist Republic of Vietnam 
     in safe and secure management, storage, transport, and 
     disposition of irradiated special fissionable material 
     produced through the use of material or equipment transferred 
     pursuant to this Agreement.


                   ARTICLE 5--STORAGE AND RETRANSFERS

       1. Plutonium and uranium 233 (except as contained in 
     irradiated fuel elements), and high enriched uranium, 
     transferred pursuant to this Agreement or used in or produced 
     through the use of material or equipment so transferred shall 
     only be stored in a facility to which the Parties agree.
       2. Material, equipment and components transferred pursuant 
     to this Agreement and any special fissionable material, other 
     transuranic elements and tritium produced through the use of 
     any such material or equipment shall not be transferred to 
     unauthorized Persons or, unless the Parties agree, beyond the 
     recipient Party's territorial jurisdiction.
       3. In order to facilitate management of spent fuel, 
     irradiated nuclear materials, or nuclear-related waste, 
     material transferred or produced through the use of material, 
     equipment and components transferred pursuant to this 
     Agreement may be transferred to the United States of America 
     if the Government of the United States of America designates 
     a storage or disposition option. In this event, the Parties 
     shall make appropriate implementing arrangements.


   ARTICLE 6--REPROCESSING, OTHER ALTERATION IN FORM OR CONTENT, AND 
                               ENRICHMENT

       1. Material transferred pursuant to this Agreement and 
     material used in or produced through the use of material or 
     equipment so transferred shall not be reprocessed unless the 
     Parties agree.
       2. Plutonium, uranium 233, high enriched uranium and 
     irradiated source or special fissionable material transferred 
     pursuant to this Agreement or used in or produced through the 
     use of material or equipment so transferred shall not be 
     otherwise altered in form or content, except by irradiation 
     or further irradiation, unless the Parties agree.
       3. Uranium transferred pursuant to this Agreement or used 
     in or produced through the use of any material or equipment 
     so transferred shall not be enriched after transfer unless 
     the Parties agree.


                     ARTICLE 7--PHYSICAL PROTECTION

       1. Adequate physical protection shall be maintained with 
     respect to any material and equipment transferred pursuant to 
     this Agreement and any special fissionable material used in 
     or produced through the use of material or equipment so 
     transferred.
       2. To comply with the requirement in paragraph 1, each 
     Party shall apply at a minimum measures in accordance with 
     (i) levels of physical protection at least equivalent to the 
     recommendations published in IAEA document INFCIRC/225/Rev.5 
     entitled ``The Physical Protection of Nuclear Material and 
     Nuclear Facilities'' and in any subsequent revisions of that 
     document accepted by the Parties, and (ii) the provisions of 
     the 1980 Convention on the Physical Protection of Nuclear 
     Material, as well as any amendments to the Convention that 
     enter into force for both Parties.
       3. The adequacy of physical protection measures maintained 
     pursuant to this Article shall be subject to review and 
     consultations by the Parties from time to time and whenever 
     either Party is of the view that revised measures may be 
     required to maintain adequate physical protection.
       4. The Parties shall keep each other informed through 
     diplomatic channels of those agencies or authorities having 
     responsibility for ensuring that levels of physical 
     protection for nuclear material in their territory or under 
     their jurisdiction or control are adequately met and having 
     responsibility for coordinating response and recovery 
     operations in the event of unauthorized use or handling of 
     material subject to this Article. The Parties shall inform 
     each other through diplomatic channels, as well, of the 
     designated points of contact within their national 
     authorities to cooperate on matters of out-of-country 
     transportation and other matters of mutual concern.


            ARTICLE 8--NO EXPLOSIVE OR MILITARY APPLICATION

       Material, equipment and components transferred pursuant to 
     this Agreement and material used in or produced through the 
     use of any material, equipment or components so transferred 
     shall not be used for any nuclear explosive device, for 
     research on or development of any nuclear explosive device, 
     or for any military purpose.


                         ARTICLE 9--SAFEGUARDS

       1. Cooperation under this Agreement shall require the 
     application of IAEA safeguards with respect to all nuclear 
     material in all nuclear activities within the territory of 
     the Socialist Republic of Vietnam, under its jurisdiction or 
     carried out under its control anywhere. Implementation of a 
     Safeguards Agreement concluded pursuant to Article III (4) of 
     the NPT shall be considered to fulfill this requirement.
       2. Source material or special fissionable material 
     transferred to the Socialist Republic of Vietnam pursuant to 
     this Agreement and any source material or special fissionable 
     material used in or produced through the use of material, 
     equipment or components so transferred shall be subject to 
     safeguards in accordance with the agreement between the 
     Socialist Republic of Vietnam and the IAEA for the 
     application of safeguards in connection with the NPT, signed 
     on October 2, 1989, which entered into force on February 23, 
     1990, and the Additional Protocol thereto signed on August 
     10, 2007, which entered into force on September 17, 2012.
       3. Source material or special fissionable material 
     transferred to the United States of America pursuant to this 
     Agreement and any source or special fissionable material used 
     in or produced through the use of any material, equipment or 
     components so transferred shall be subject to the agreement 
     between the United States of America and the IAEA for the 
     application of safeguards in the United States of America, 
     signed on November 18, 1977, which entered into force on 
     December 9, 1980, and the Additional Protocol thereto, which 
     entered into force on January 6, 2009.
       4. If either Party becomes aware of circumstances that 
     demonstrate that the IAEA for any reason is not or will not 
     be applying safeguards in accordance with the agreements with 
     the IAEA referred to in paragraph 2 or paragraph 3, to ensure 
     effective continuity of safeguards the Parties shall consult 
     and immediately enter into arrangements with the IAEA or 
     between themselves that conform with IAEA safeguards 
     principles and procedures, that provide assurance equivalent 
     to that intended to be secured by the system they replace, 
     and that conform with the coverage required by paragraph 2 or 
     paragraph 3.
       5. Each Party shall take such measures as are necessary to 
     maintain and facilitate the application of safeguards 
     applicable to it provided for under this Article.
       6. Each Party shall establish and maintain a system of 
     accounting for and control of source material and special 
     fissionable material transferred pursuant to this Agreement 
     and source material and special fissionable material used in 
     or produced through the use of any material, equipment or 
     components so transferred. The procedures for this system 
     shall be comparable to those set forth in IAEA document 
     INFCIRC/153 (Corrected), or in any revision of that document 
     agreed to by the Parties.
       7. Upon the request of either Party, the other Party shall 
     report or permit the IAEA to report to the requesting Party 
     on the status of all inventories of material subject to this 
     Agreement.


                 ARTICLE 10--MULTIPLE SUPPLIER CONTROLS

       If any agreement between either Party and another nation or 
     group of nations provides such other nation or group of 
     nations rights equivalent to any or all of those set forth 
     under Article 5 or Article 6 with respect to material, 
     equipment or components subject to this Agreement, the 
     Parties may, upon request of either of them, agree that the 
     implementation of any such rights will be accomplished by 
     such other nation or group of nations.


        ARTICLE 11--CESSATION OF COOPERATION AND RIGHT OF RETURN

       1. If either Party at any time following entry into force 
     of this Agreement:
       (A) does not comply with the provisions of Article 5, 6, 7, 
     8, or 9; or
       (B) terminates, abrogates or materially violates a 
     safeguards agreement with the IAEA;

     the other Party shall have the rights to cease further 
     cooperation under this Agreement and to require the return of 
     any material, equipment and components transferred under this 
     Agreement and any special fissionable material produced 
     through their use.
       2. If the Socialist Republic of Vietnam following entry 
     into force of this Agreement detonates a nuclear explosive 
     device, the United States of America shall have the same 
     rights as specified in paragraph 1.
       3. If the United States of America detonates a nuclear 
     explosive device using material, equipment or components 
     transferred pursuant to this Agreement or nuclear material 
     used in or produced through the use of such items, the 
     Government of the Socialist Republic of Vietnam shall have 
     the same rights as specified in paragraph 1.

[[Page 7585]]


       4. In determining whether to exercise its rights under 
     paragraph I of this Article based on a ``material 
     violation,'' a Party shall consider whether the facts giving 
     rise to the right to take such action in accordance with 
     paragraph 1 were caused deliberately. In the event that it 
     finds such material violation not to be deliberate, and to 
     the extent which it judges that such material violation can 
     be rectified, the non-breaching Party shall endeavor, subject 
     to its national legislation and regulations, to afford the 
     breaching Party an opportunity to cure the material violation 
     within a reasonable period.
       5. If either Party exercises its rights under this Article 
     to require the return of any material, equipment or 
     components, it shall promptly, after removal from the 
     territory of the other Party, reimburse the other Party for 
     the fair market value of such material, equipment or 
     components.


     ARTICLE 12--CONSULTATIONS, REVIEW AND ENVIRONMENTAL PROTECTION

       1. The Parties undertake to consult at the request of 
     either Party regarding the implementation of this Agreement 
     and the development of further cooperation in the field of 
     peaceful uses of nuclear energy.
       2. The Parties shall consult, with regard to activities 
     under this Agreement, to identify the international 
     environmental implications arising from such activities and 
     shall cooperate in protecting the international environment 
     from radioactive, chemical or thermal contamination arising 
     from peaceful nuclear activities under this Agreement and in 
     related matters of health and safety.


                       ARTICLE 13--IMPLEMENTATION

       1. The terms of this Agreement shall be implemented in good 
     faith and with due regard to the legitimate commercial 
     interests, whether international or domestic, of either 
     Party. This Agreement shall be implemented in a manner 
     designed:
       (A) to avoid hampering or delaying the nuclear activities 
     in the territory of either Party;
       (B) to avoid interference in such activities;
       (C) to be consistent with prudent management practices 
     required for the economic and safe conduct of such 
     activities; and
       (D) to take full account of the long-term requirements of 
     the Parties' nuclear energy programs.
       2. The provisions of this Agreement shall not be used for 
     the purpose of securing unfair commercial or industrial 
     advantages, or of restricting trade to the disadvantage of 
     persons and undertakings of either Party or hampering their 
     commercial or industrial interests, whether international or 
     domestic.


                   ARTICLE 14--SETTLEMENT OF DISPUTES

       The Parties shall address any dispute concerning the 
     interpretation or application of this Agreement through 
     negotiation or any other mutually agreed upon peaceful means 
     of dispute settlement.


                 ARTICLE 15--ADMINISTRATIVE ARRANGEMENT

       1. Upon request by either Party, the appropriate 
     authorities of the Parties shall, by mutual consent, 
     establish an Administrative Arrangement in order to provide 
     for the effective implementation of the provisions of this 
     Agreement.
       2. The principles of fungibility and equivalence shall 
     apply to nuclear material and moderator material subject to 
     this Agreement. Detailed provisions for applying these 
     principles shall be set forth in such an Administrative 
     Arrangement.
       3. The Administrative Arrangement established pursuant to 
     this Article may be modified by mutual consent of the 
     appropriate authorities of the Parties.


         ARTICLE 16--ENTRY INTO FORCE, AMENDMENT, AND DURATION

       1. This Agreement shall enter into force on the date of the 
     later note of an exchange of diplomatic notes between the 
     Parties informing each other that they have completed all 
     applicable requirements for entry into force.
       2. This Agreement may be amended by written agreement of 
     the Parties. Amendments to this Agreement shall enter into 
     force on the date of the later note of an exchange of 
     diplomatic notes between the Parties informing each other 
     that they have completed all applicable requirements for 
     entry into force.
       3. This Agreement shall remain in force for a period of 30 
     years and shall continue in force thereafter for additional 
     periods of five years each. Either Party may, by giving six 
     months written notice to the other Party, terminate this 
     Agreement at the end of the initial 30-year period or at the 
     end of any subsequent five-year period. Additionally, this 
     Agreement may be terminated at any time by either Party on 
     one year's written notice to the other Party.
       4. Notwithstanding the termination or expiration of this 
     Agreement or any cessation of cooperation hereunder for any 
     reason, Articles 5, 6, 7, 8, 9, and 11 and the Agreed Minute 
     shall continue in effect so long as any material, equipment 
     or components subject to these articles remains in the 
     territory of the Party concerned or under its jurisdiction or 
     control anywhere, or until such time as the Parties agree 
     that such material, equipment or components are no longer 
     usable for any nuclear activity relevant from the point of 
     view of safeguards.
       IN WITNESS WHEREOF the undersigned, being duly authorized, 
     have signed this Agreement.
       DONE at Hanoi, this 6th day of May 2014, in duplicate, in 
     the English and Vietnamese languages, both texts being 
     equally authentic.
     FOR THE GOVERNMENT OF THE UNITED STATES OF AMERICA:
                                 ______
                                 
     FOR THE GOVERNMENT OF THE SOCIALIST REPUBLIC OF VIETNAM:
                                 ______
                                 

                             AGREED MINUTE

       During the negotiation of the Agreement for Cooperation 
     between the Government of the United States of America and 
     the Government of the Socialist Republic of Vietnam 
     Concerning Peaceful Uses of Nuclear Energy (``the 
     Agreement'') signed today, the following understandings, 
     which shall be an integral part of the Agreement, were 
     reached.


                        1. Coverage of Agreement

       a. Material, equipment and components transferred from the 
     territory of one Party to the territory of the other Party, 
     whether directly or through a third country, shall be 
     regarded as having been transferred pursuant to the Agreement 
     only upon confirmation, by the appropriate government 
     authority of the recipient Party to the appropriate 
     government authority of the supplier Party, that such 
     material, equipment or components shall be subject to the 
     Agreement.
       b. With respect to the definition of ``Restricted Data'' in 
     subparagraph (R) of Article 1 of the Agreement, it is the 
     understanding of the Parties that all information on the use 
     of special fissionable material in the production of energy 
     from standard civilian reactors has been declassified or 
     removed from the category of ``Restricted Data.''
       c. For the purposes of implementing the rights specified in 
     Article 5 and Article 6 of the Agreement with respect to 
     special fissionable material produced through the use of 
     nuclear material transferred pursuant to the Agreement and 
     not used in or produced through the use of equipment 
     transferred pursuant to the Agreement, such rights shall in 
     practice be applied to that proportion of special fissionable 
     material produced that represents the ratio of transferred 
     material used in the production of the special fissionable 
     material to the total amount of material so used, and 
     similarly for subsequent generations.
       d. Material, nuclear material, equipment and components 
     subject to this Agreement shall no longer be subject to this 
     Agreement if:
       (1) Such items have been transferred beyond the territory 
     of the receiving Party in accordance with the relevant 
     provisions of this Agreement and are no longer under its 
     jurisdiction or control anywhere;
       (2) In the case of nuclear material, if the Parties agree, 
     taking into account among other factors an IAEA 
     determination, if any, in accordance with the provisions for 
     the termination of safeguards in the relevant agreement 
     referred to in paragraphs 2 or 3 of Article 9, whichever is 
     applicable, that the nuclear material is no longer usable for 
     any nuclear activity relevant from the point of view of 
     safeguards; or
       (3) In the case of material (other than nuclear material), 
     equipment and components, it is agreed by the Parties.


                             2. Safeguards

       a. If either Party becomes aware of circumstances referred 
     to in paragraph 4 of Article 9 of the Agreement, either Party 
     (hereinafter ``the safeguarding Party'') shall have the 
     rights listed below, which rights shall be suspended if both 
     Parties agree that the need to exercise such rights is being 
     satisfied by the application of IAEA safeguards under 
     arrangements pursuant to paragraph 4 of Article 9 of the 
     Agreement:
       (1) To review in a timely fashion the design of any 
     equipment transferred pursuant to the Agreement, or of any 
     facility that is to use, fabricate, process, or store any 
     material so transferred or any special fissionable material 
     used in or produced through the use of such material or 
     equipment;
       (2) To require the maintenance and production of records 
     and of relevant reports for the purpose of assisting in 
     ensuring accountability for material transferred pursuant to 
     the Agreement and any source material or special fissionable 
     material used in or produced through the use of any material, 
     equipment or components so transferred; and
       (3) To designate personnel acceptable to the other Party 
     (hereinafter ``the safeguarded Party''), who shall have 
     access to all places and data necessary to account for the 
     material referred to in paragraph 2, to inspect any equipment 
     or facility referred to in paragraph 1, and to install any 
     devices and make such independent measurements as may be 
     deemed necessary to account for such material. The 
     safeguarded Party shall not unreasonably withhold its 
     acceptance of personnel designated by the safeguarding Party 
     under this paragraph. Such personnel shall, if either Party 
     so requests, be accompanied by personnel designated by the 
     safeguarded Party.

[[Page 7586]]

       b. The simultaneous application of safeguards with respect 
     to one Party by the IAEA and by the other Party is not 
     intended.
       c. Upon the request of either Party, the other Party will 
     authorize the IAEA to make available to the Government of the 
     requesting Party information on the implementation of the 
     applicable safeguards agreement with the IAEA within the 
     scope of cooperation under this Agreement.
       d. To the extent consistent with its applicable national 
     legislation and regulations, each Party shall ensure that all 
     information provided under this Section 2 of the Agreed 
     Minute by the other Party or the IAEA will not be publicly 
     disclosed, and will be accorded appropriate protections with 
     a view to providing the same level of protection accorded to 
     such information by the other Party or the IAEA. The Parties 
     shall consult regarding the appropriate protections for such 
     information.
     FOR THE GOVERNMENT OF THE UNITED STATES OF AMERICA:
                                 ______
                                 
     FOR THE GOVERNMENT OF THE SOCIALIST REPUBLIC OF VIETNAM:
                                 ______
                                 
     [Presidential Determination No. 2014-08]


                                              The White House,

                                    Washington, February 24, 2014.
     Memorandum for the Secretary of State, the Secretary of 
         Energy.
     Subject: Proposed Agreement for Cooperation Between the 
         Government of the United States of America and the 
         Government of the Socialist Republic of Vietnam 
         Concerning Peaceful Uses of Nuclear Energy.

       I have considered the proposed Agreement for Cooperation 
     Between the Government of the United States of America and 
     the Government of the Socialist Republic of Vietnam 
     Concerning Peaceful Uses of Nuclear Energy, along with the 
     views, recommendations, and statements of the interested 
     agencies.
       I have determined that the performance of the Agreement 
     will promote, and will not 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 and 
     authorize the Secretary of State to arrange for its 
     execution.
       The Secretary of State is authorized to publish this 
     determination in the Federal Register.

     Barack Obama.
                                  ____


               Nuclear Proliferation Assessment Statement

Pursuant to Section 123a. of the Atomic Energy Act of 1954, as Amended, 
  with Respect to the Proposed Agreement for Cooperation Between the 
 Government of the United States of America and the Government of the 
   Socialist Republic of Vietnam Concerning Peaceful Uses of Nuclear 
                                 Energy


                              INTRODUCTION

       This Nuclear Proliferation Assessment Statement (``NPAS'') 
     relates to the proposed Agreement for Cooperation Between the 
     Government of the United States of America and the Government 
     of the Socialist Republic of Vietnam Concerning Peaceful Uses 
     of Nuclear Energy (the ``Agreement''). The Agreement is being 
     submitted to the President jointly by the Secretary of State 
     and Secretary of Energy for his approval and authorization 
     for signature.
       Section 123a. of the Atomic Energy Act, as amended (the 
     ``Atomic Energy Act'' or ``Act''), provides that an NPAS be 
     submitted by the Secretary of State to the President on each 
     new or amended agreement for cooperation concluded pursuant 
     to that section. Pursuant to Section 123a., the NPAS must 
     analyze the consistency of the text of the proposed agreement 
     with all the requirements of the Act, with specific attention 
     to whether the proposed agreement is consistent with each of 
     the criteria set forth in Section 123.a. The NPAS must also 
     address the adequacy of the safeguards and other control 
     mechanisms and the peaceful use assurances contained in the 
     agreement for cooperation to ensure that any assistance 
     furnished thereunder will not be used to further any military 
     or nuclear explosive purpose.
       With this statutory mandate in mind, this NPAS: (a) 
     provides background information on Vietnam's nonproliferation 
     policies and its civil nuclear program and aspirations (Part 
     I); (b) describes the nature and scope of the cooperation 
     contemplated in the proposed Agreement (Part II); (c) reviews 
     the applicable substantive requirements of the Act and the 
     Nuclear Non-Proliferation Act of 1978 (NNPA) and details how 
     they are met by the proposed Agreement (Part III); and (d) 
     sets forth the net assessment, conclusions, views, and 
     recommendations of the Department of State as contemplated by 
     section 123a. of the Act (Part IV).


   I. NUCLEAR PROGRAM AND NONPROLIFERATION POLICIES OF THE SOCIALIST 
                          REPUBLIC OF VIETNAM

                                Overview

       Vietnam has been carefully building the infrastructure 
     necessary to operate a safe and secure civil nuclear power 
     program. In January 2006, the Vietnamese government approved 
     the Strategy for Peaceful Utilization of Atomic Energy up to 
     the year 2020. This strategy included three main objectives:
       To enhance applications of radiation and radioisotopes in 
     industry, agriculture, health care, environmental protection, 
     etc.
       To construct and put the first nuclear power plant into 
     safe operation in 2020.
       To build up national infrastructure for safe management of 
     radioactive materials and nuclear power plants.
       This was followed by approval of a master plan for 
     implementation of the strategy in July 2007, completion of 
     the pre-feasibility study for the first nuclear power plant, 
     and approval of the first nuclear power plant project plan by 
     the National Assembly in 2009. An updated Master Plan for 
     Peaceful Utilization of Atomic Energy up to 2020 was approved 
     June 2010; the Direction for Nuclear Power Plant (NPP) 
     Development Plan up to 2030 was approved June 2010; and the 
     National Master Plan for Power Development for 2011-2020 with 
     the Vision to 2030 was approved July 2011.
       In May 2013, Prime Minister Nguyen Tan Dung announced that 
     the government would set up a National Council for Atomic 
     Energy Development, tasked with identifying strategies and 
     priorities for the development of nuclear energy in the 
     country.
       Vietnam has plans to have six reactors (6,000 MW) in 
     operation by 2025 and to develop a total of ten reactors 
     (10,700 MW) by 2030. Vietnam has entered into agreements for 
     cooperation on peaceful uses of nuclear energy with 
     Argentina, Canada, China, France, India, Japan, Russia, and 
     South Korea. Vietnam's Ministry of Industry and Trade (MOIT) 
     signed an agreement October 2010 with the Russian State 
     Atomic Energy Corporation ``Rosatom'' for the provision of 
     two pressurized water reactors (total of 2,000 MW) at Phuoc 
     Dinh in Ninh Thuan province. Vietnam PM Nguyen Tan Dung and 
     Japanese PM Naoto Kan released a Joint Statement October 
     2010, announcing that Vietnam had chosen Japan to supply two 
     additional reactors (total 2,000 MW) at Vinh Hai in Ninh 
     Thuan province. Feasibility studies are currently being 
     undertaken for both contracts in advance of selecting 
     specific reactor designs for these first four power reactors. 
     (The planned construction start date for the Russian reactors 
     has been pushed back three years to 2017.) In 2012, Vietnam 
     also signed an agreement with the Republic of South Korea to 
     initiate a joint preliminary feasibility study, which 
     commenced in June 2013.


                      Nonproliferation Credentials

       Under the Atomic Energy Law (No. 18/2008/QH12) (``Atomic 
     Energy Law''), Vietnam has prohibited researching, 
     developing, manufacturing, trading in, transporting, 
     transferring, storing, using, or threatening to use nuclear 
     or radiological weapons.
       Vietnam has signed and ratified or acceded to and/or 
     brought into force the following key nonproliferation 
     treaties and instruments:
       Treaty on the Non-Proliferation of Nuclear Weapons: Acceded 
     June 14, 1982
       IAEA Safeguards Agreement (published as INFCIRC/376, March 
     1990): Signed October 2, 1989; in force February 23, 1990
       The Additional Protocol to its Safeguards Agreement 
     (published as INFCIRC/376 Add.1, September 26, 2012: Signed 
     August 10, 2007; in force September 17, 2012
       Convention on the Physical Protection of Nuclear Material: 
     instrument of accession deposited October 4, 2012; in force 
     November 3, 2012
       Amendment to the Convention on the Physical Protection of 
     Nuclear Material: instrument of ratification deposited 
     November 3, 2012
       Comprehensive Nuclear Test Ban Treaty: Signed September 24, 
     1996; ratified March 10, 2006
       Treaty of Bangkok (Southeast Asian Nuclear-Weapon-Free Zone 
     Treaty): Signed December 15, 1995; ratified November 26, 1996
       In addition, Vietnam has committed itself to conclude the 
     International Convention for the Suppression of Acts of 
     Nuclear Terrorism.
       Vietnam additionally has demonstrated its commitment to 
     prevent nuclear terrorism by its participation in the Global 
     Initiative to Combat Nuclear Terrorism (GICNT) and in the 
     Nuclear Security Summit (NSS) process. Prime Minister Nguyen 
     Tan Dung participated in the first NSS in Washington, DC, in 
     2010, and the second NSS in Seoul, South Korea, in 2012. As 
     pledged at the April 2010 Nuclear Security Summit, Vietnam 
     completed conversion of the Dalat research reactor from 
     utilizing highly-enriched uranium (HEU) as fuel to utilizing 
     low-enriched uranium (LEU) in 2011. Its remaining HEU fresh 
     fuel (4.3 kg) was returned to Russia in 2007 and all the HEU 
     spent fuel (11 kg) was returned to Russia in 2013, rendering 
     Vietnam essentially free of any weapon-usable nuclear 
     materials.
       In addition to the Dalat commitment, Vietnam fulfilled its 
     2010 NSS commitments to endorse the GICNT and to ratify the 
     Convention on the Physical Protection of Nuclear Material and 
     its 2005 Amendment. Vietnam has not yet ratified the 
     International

[[Page 7587]]

     Convention for the Suppression of Acts of Nuclear Terrorism, 
     but has informed the U.S. Embassy of its intention to do so 
     at the earliest opportunity. Vietnam and South Korea 
     announced at the 2012 NSS that the two countries are working 
     on a pilot project to establish within Vietnam a system to 
     track radiological materials using GPS technology in 
     cooperation with the IAEA. The project will contribute to 
     securing and preventing the theft of radiological materials.
       Following signature of a Memorandum of Understanding 
     between the Department of Energy of the United States of 
     America and the Ministry of Finance of the Socialist Republic 
     of Vietnam Concerning the Cooperation to Prevent the Illicit 
     Trafficking in Nuclear and Other Radioactive Material on July 
     2, 2010, Vietnam and the United States have begun cooperative 
     projects under the Department of Energy's Second Line of 
     Defense program to deter, detect, and interdict illicit 
     smuggling of nuclear and other radioactive material.
       The Department of Energy's International Nuclear Safeguards 
     and Engagement Program has partnered with Vietnam since 2004. 
     Vietnam is an active partner on nuclear infrastructure 
     development collaboration, including activities such as 
     radiation protection and health physics, research reactor 
     operations, environmental radiological surveillance, 
     radioactive waste management, implementation of the 
     Additional Protocol, and development of State Systems of 
     Accounting for and Control (SSAC) of nuclear material.
       Vietnam has been a strong advocate for nonproliferation 
     through the United Nations. During Vietnam's tenure on the 
     United Nations Security Council in 2008-2009, Vietnam 
     supported measures to increase sanctions on Iran (UNSCR 1803) 
     and North Korea (UNSCR 1874), extend the mandate of the UNSCR 
     1540 Committee (UNSCR 1810), and support nuclear 
     nonproliferation and disarmament (UNSCR 1887). In September 
     2010, Vietnam, in partnership with the United Nations Office 
     for Disarmament Affairs, hosted a workshop on implementing 
     UNSCR 1540 for countries in Southeast Asia.
       Vietnam has established under its Atomic Energy Law a legal 
     regime for radioactive materials and nuclear equipment that 
     are subject to import and export control procedures.
       Vietnam has been working with the U.S. Export Control and 
     Related Border Security Program (EXBS) since 2003. The bulk 
     of EXBS assistance to Vietnam to date has focused on 
     Commodity Identification Training, industry/enterprise 
     outreach, and maritime security activities. As Vietnam 
     currently lacks a comprehensive strategic trade management 
     law, the primary focus of near-term EXBS work will be 
     assisting Vietnam in developing the legal and regulatory 
     framework for managing strategic trade, including drafting a 
     strategic trade law, while continuing to develop capacity for 
     enforcement at seaports and borders.
       The National Nuclear Security Administration (NNSA) 
     conducted an International Consequence Management training 
     course in Hanoi November 2013 as part of Vietnam's 
     preparation for building a nuclear power plant. In addition, 
     NNSA is assisting Vietnam to set up an emergency operations 
     center and graphic information system to assist with sharing 
     information during an emergency.


                  Nuclear Science and Technology Base

       Vietnam has been working closely with the IAEA and 
     international partners to develop the technical expertise 
     needed to operate a safe and secure nuclear power program. 
     Recognizing the need for a technically trained domestic 
     workforce, Vietnam in 2010 approved the Master Plan on 
     Training and Developing of Human Resources in the Field of 
     Atomic Energy up to 2020 (Prime Minister Decision No. 1558/
     QD-TTg) (the ``Plan''). Under the plan, Vietnam is upgrading 
     nuclear programs at six universities and developing a Nuclear 
     Science and Technology Center. The government is also 
     providing funds to send Vietnamese students, researchers, and 
     managers abroad for training. The plan aims to produce a 
     total of 2,400 engineers and 350 MA and PhD specialists in 
     nuclear power by 2020. In 2011, Vietnam set up a State 
     Steering Committee to direct the implementation of the plan. 
     Vietnamese university graduates are currently training in 
     Russia and Japan to become nuclear technicians.
       In 2008, the Vietnam Agency for Radiation and Nuclear 
     Safety (VARANS) signed a cooperation agreement with the U.S. 
     Nuclear Regulatory Commission to share technical information 
     on nuclear energy as well as exchange information on 
     regulations, environmental impacts, and safety of nuclear 
     sites. This agreement was extended for another five years in 
     May 2013. Over the past ten years, VARANS has rapidly 
     expanded its staff to over ninety people, including 
     scientists and technical specialists.
       Vietnam operates one research reactor (500 kW; VVR-M, IVV-
     9) at the Institute of Nuclear Research in Dalat. The 
     original reactor, a TRIGA Mark II design (250 kW) provided by 
     General Atomics, became operational in 1963. From 1968 to 
     1975, the reactor was in extended shutdown. In 1974-1975, the 
     U.S.-origin HEU nuclear fuel (approximately 13 kg) was 
     removed and returned to the United States and the reactor was 
     decommissioned. Vietnam reconstructed the reactor in the 
     1980s with the assistance of the Union of Soviet Socialist 
     Republics (USSR) and the reactor became operational in 1983. 
     According to the Vietnam Atomic Energy Commission, the 
     reactor has been operating for the purposes of radioisotope 
     production, neutron activation analysis, fundamental and 
     applied research, and manpower training.
       Vietnam is negotiating a contract with Russian 
     Atomstroyexport for the provision of an additional research 
     reactor for the Vietnamese Nuclear Science and Technology 
     Center. (No final decision has been made for the location of 
     this center.)


                           Nuclear Fuel Cycle

       Vietnam has affirmed that it does not intend to seek to 
     acquire sensitive fuel cycle capabilities but instead will 
     rely upon the international market. This political commitment 
     not to pursue enrichment and reprocessing was first included 
     in the Memorandum of Understanding between the Socialist 
     Republic of Vietnam and the United States of America 
     Concerning Cooperation in the Nuclear Energy Field, signed in 
     Hanoi on March 30, 2010 (the ``MOU''). In the MOU, Vietnam 
     affirmed its intent ``to rely on existing international 
     markets for nuclear fuel services, rather than acquiring 
     sensitive nuclear technologies, as a solution for peaceful, 
     safe and secure uses of civilian nuclear energy. . . .'' This 
     commitment has been reaffirmed in the preamble of the 
     proposed Agreement.


                    Nuclear Regulations and Statutes

       Vietnam passed an Atomic Energy Law in June 2008, which 
     took effect January 1, 2009. Key provisions address:
       Establishment of the national nuclear regulatory authority
       Licensing and permitting regime
       Enforcement, assessment, and inspection
       Security and safeguards
       Physical protection and safety
       Control over orphan sources
       Emergency preparedness and response
       Safe transport of radioactive material
       Import and export controls
       Waste management and spent fuel management
       Decommissioning
       Civil liability for nuclear damage
       Criminal and civil offences and penalties
       Insurance
       In June 2010, Prime Minister Nguyen Tan Dung signed 
     Decision No. 45/2010/QD-TTg, which provides regulations on 
     nuclear control in support of the Atomic Energy Law. Vietnam 
     is in the process of further updating its Atomic Energy Law.
       Vietnam acceded to both the Convention on Early 
     Notification of a Nuclear Accident and the Convention on 
     Assistance in the Case of a Nuclear Accident or Radiological 
     Emergency on October 30, 1987. Vietnam acceded to the 
     Convention on Nuclear Safety on July 15, 2010, and Vietnam 
     deposited its instrument of ratification for the Joint 
     Convention on the Safety of Spent Fuel Management and on the 
     Safety of Radioactive Waste Management with the IAEA on 
     October 9, 2013. It came into force for Vietnam on January 7, 
     2014.
       Vietnam is currently considering whether to accede to the 
     Vienna Convention on Civil Liability for Nuclear Damage and 
     whether to ratify the Convention on Supplementary 
     Compensation for Nuclear Damage.


 II. NATURE AND SCOPE OF THE COOPERATION CONTEMPLATED BY THE PROPOSED 
                               AGREEMENT

       Article 2.2 of the proposed Agreement describes in general 
     terms the kinds of cooperative activities envisaged. These 
     include:
       Development of requirements for power reactors and fuel 
     service arrangements for the Socialist Republic of Vietnam.
       Development of the Socialist Republic of Vietnam's civilian 
     nuclear energy use in a manner that contributes to global 
     efforts to prevent nuclear proliferation.
       Research, development, and application of civilian nuclear 
     power reactor technologies and spent fuel management 
     technologies.
       Promotion of the establishment of a reliable source of 
     nuclear fuel for future civilian light water nuclear reactors 
     deployed in the Socialist Republic of Vietnam.
       Civilian nuclear energy training, human resource and 
     infrastructure development, and appropriate application of 
     civilian nuclear energy and related energy technology, in 
     accordance with evolving IAEA guidance and standards on 
     milestones for infrastructure development.
       Research and application of radioisotopes and radiation in 
     industry, agriculture, medicine, and the environment.
       Radiation protection and management of radioactive waste 
     and spent fuel.
       Nuclear safety, security, safeguards, and nonproliferation, 
     including physical protection, export control, and border 
     security.
       Other areas of cooperation as may be mutually determined by 
     the Parties.
       Article 3.1 of the proposed Agreement further specifies the 
     types of information concerning the peaceful uses of nuclear 
     energy that may be transferred. Fields that may be covered 
     include the following:
       Research, development, design, construction, operation, 
     maintenance, and use of reactors, reactor experiments, and 
     decommissioning.
       The use of material in physical and biological research, 
     medicine, agriculture, and industry.

[[Page 7588]]

       Fuel cycle studies of ways to meet future world-wide civil 
     nuclear needs, including multilateral approaches to 
     guaranteeing nuclear fuel supply and appropriate techniques 
     for management of nuclear wastes.
       Safeguards and physical protection of material, equipment, 
     and components.
       Health, safety, and environmental considerations related to 
     the foregoing.
       Assessing the role nuclear power may play in national 
     energy plans.
       The Agreement states that restricted data, sensitive 
     nuclear technology, sensitive nuclear facilities, or major 
     critical components of such facilities shall not be 
     transferred under the Agreement (Articles 3.3 and 4.1).
       Transfers of special fissionable material to Vietnam under 
     the Agreement shall be low-enriched uranium, except small 
     quantities for use as samples, standards, detectors, targets, 
     or for other agreed purposes (Articles 4.1 and 4.4). Any such 
     transfers of low-enriched uranium may not be in excess of the 
     quantity that the Parties agree is necessary for the 
     activities envisaged (Article 4.3).
       The Agreed Minute, under ``Coverage of Agreement,'' 
     provides that material, equipment, and components transferred 
     from the territory of one Party to the territory of the other 
     Party, either directly or through a third country, shall be 
     regarded as having been transferred pursuant to the Agreement 
     only upon confirmation by the recipient Party that such items 
     will be subject to the Agreement.
       The proposed Agreement will have a term of 30 years from 
     the date of its entry into force and shall continue 
     thereafter for additional periods of five years. Either Party 
     may, by giving six months written notice to the other Party, 
     terminate this Agreement at the end of the initial 30 year 
     period or at the end of any subsequent five-year period. 
     Additionally, the proposed Agreement may be terminated at any 
     time by either Party on one year's written notice to the 
     other Party (Article 16.3). In the event of termination of 
     the Agreement, key nonproliferation conditions and controls 
     provided for in the Agreement will continue in effect as long 
     as any material, equipment, or components subject to the 
     Agreement remains in the territory of the Party concerned or 
     under its jurisdiction or control anywhere, or until such 
     time as the Parties agree that such material, equipment, or 
     components are no longer usable for any nuclear activity 
     relevant from the point of view of safeguards (Article 16.4).


                      III. SUBSTANTIVE CONDITIONS

       The proposed Agreement meets the applicable requirements of 
     the Atomic Energy Act and the NNPA. Section 123 of the Act, 
     as amended by the NNPA, sets forth certain substantive 
     requirements that must be met in agreements for cooperation. 
     Sections 402 and 407 of the NNPA set forth supplementary 
     requirements. The provisions contained in the proposed 
     Agreement satisfy these legal requirements as follows:
       (1) Application of Safeguards: Section 123(a)(1) of the Act 
     requires a guaranty from the cooperating party that 
     safeguards in perpetuity will be maintained with respect to 
     all nuclear materials and equipment transferred pursuant to 
     an agreement for cooperation and with respect to all special 
     nuclear material used in or produced through the use of such 
     transferred nuclear materials and equipment, so long as the 
     material or equipment remains under the jurisdiction or 
     control of the cooperating party, irrespective of the 
     duration of the other provisions of the agreement or whether 
     the agreement is terminated or suspended for any reason.
       This requirement is satisfied by Articles 9 and 16 of the 
     proposed Agreement. Article 9.2 stipulates that source or 
     special nuclear material (referred to in this Agreement as 
     ``special fissionable material'') transferred to Vietnam 
     pursuant to this Agreement and any other nuclear material 
     used in or produced through the use of any material (which 
     under the Agreement includes source material, special nuclear 
     material, byproduct material, radioisotopes other than 
     byproduct material, moderator material, or any other such 
     substance so designated by agreement of the Parties), 
     equipment, or components transferred shall be subject, to the 
     extent applicable, to the Agreement between Vietnam and the 
     IAEA for the application of safeguards in connection with the 
     Treaty on the Non-Proliferation of Nuclear Weapons (``NPT''), 
     signed on October 2, 1989, which entered into force on 
     February 23, 1990, and an Additional Protocol thereto signed 
     on August 10, 2007, which entered into force on September 17, 
     2012. Article 9.4 provides for ``back-up'' safeguards in the 
     event the IAEA safeguards agreement with Vietnam is not being 
     implemented. Article 9 is one of the articles of the 
     Agreement that, pursuant to Article 16.4, continues in effect 
     so long as any material, equipment, or components subject 
     thereto remains in the territory of the United States of 
     America or Vietnam or under the jurisdiction or control of 
     either Party to the Agreement anywhere, unless that item is 
     no longer usable for any nuclear activity relevant from the 
     point of view of safeguards.
       (2) Full-Scope Safeguards: The requirement for full-scope 
     safeguards as a condition of cooperation mandated by section 
     123 a.(2) is met by Article 9.1 of the proposed Agreement.
       (3) Peaceful Use: The requirement of section 123 a.(3) of 
     the Act for a guaranty against explosive or military uses of 
     nuclear materials and equipment transferred and special 
     nuclear material produced through the use of such items is 
     met by Article 8 of the proposed Agreement. It is not 
     necessary to include a peaceful uses guarantee with respect 
     to sensitive nuclear technology transferred under the 
     Agreement or special nuclear materials (referred to in the 
     proposed Agreement as ``special fissionable materials'') 
     produced through the use of sensitive nuclear technology 
     transferred, as would otherwise be required by section 123 
     a.(3), because Article 3.3 of the proposed Agreement provides 
     that sensitive nuclear technology shall not be transferred 
     under the Agreement.
       (4) Right of Return: The requirement in section 123 a.(4) 
     of the Act that, in the event of a nuclear detonation by a 
     non-nuclear weapon state cooperating party, the United States 
     has a right to the return of any nuclear materials and 
     equipment transferred pursuant to an agreement for 
     cooperation and any special nuclear material produced through 
     the use of such transferred items is met by Articles 11.1 and 
     11.2 of the proposed Agreement. This right would be triggered 
     if Vietnam should detonate a nuclear explosive device, does 
     not comply with the provisions of Articles 5, 6, 7, 8 or 9 of 
     the Agreement, or terminates, abrogates, or materially 
     violates its IAEA safeguards agreement.
       Article 11.4 of the proposed Agreement requires that a 
     Party, in determining whether to exercise its rights under 
     Article 11.1 based on a ``material violation,'' shall 
     consider whether the facts giving rise to the right to take 
     such action in accordance with Article 11.1 were caused 
     deliberately. In the event that Party finds such material 
     violation not to be deliberate, and to the extent that it 
     judges that such material violation can be rectified, the 
     non-breaching Party is obligated to endeavor, subject to its 
     national legislation and regulations, to afford the breaching 
     Party an opportunity to cure the material violation within a 
     reasonable period.
       (5) Retransfer Consent: The requirement of Section 123 
     a.(5) of the Act for a guaranty by the cooperating party that 
     ``any material or any Restricted Data and any production or 
     utilization facility transferred pursuant to the agreement or 
     any special nuclear material produced through the use of any 
     such facility or material'' will not be transferred to 
     unauthorized persons or beyond the jurisdiction or control of 
     the cooperating party without prior U.S. consent is met by 
     Article 5.2 of the proposed Agreement. A retransfer consent 
     right over Restricted Data (``RD'') is not provided because 
     RD transfers are prohibited under Article 3.3 of the 
     Agreement.
       (6) Physical Security: The requirement of Section 123 a.(6) 
     of the Act for a guaranty that adequate physical security 
     will be maintained with respect to any nuclear material 
     transferred pursuant to an agreement of cooperation and any 
     special nuclear material used in or produced through the use 
     of nuclear material, production facility, or utilization 
     facility transferred pursuant to such agreement is met by 
     Article 7 of the proposed Agreement.
       (7) Enrichment/Reprocessing/Alteration Consent Right: The 
     requirement of section 123 a.(7) of the Act for a guaranty 
     that ``no material transferred pursuant to the agreement for 
     cooperation and no material used in or produced through the 
     use of any material, production facility, or utilization 
     facility transferred pursuant to the agreement will be 
     reprocessed, enriched or (in the case of plutonium, uranium 
     233, or uranium enriched to greater than 20 per cent in the 
     isotope 235, or other nuclear materials which have been 
     irradiated) otherwise altered in form or content without the 
     prior approval of the United States,'' is met by Article 6 of 
     the proposed Agreement. Article 6.1 provides that 
     ``(m)aterial transferred pursuant to the Agreement and 
     material used in or produced through the use of material or 
     equipment so transferred shall not be reprocessed unless the 
     Parties agree.'' Article 6.2 further specifies that 
     plutonium, uranium 233, high enriched uranium, and irradiated 
     source material or special fissionable material transferred 
     pursuant to the Agreement or used in or produced through the 
     use of material or equipment so transferred shall not be 
     altered in form or content, except by irradiation or further 
     irradiation, unless the Parties agree. Article 6.3 specifies 
     that uranium transferred pursuant to the Agreement or used in 
     or produced through the use of any material or equipment so 
     transferred shall not be enriched after transfer unless the 
     Parties agree.
       Article 6 also satisfies Section 402(a) of the NNPA, which 
     states that, except as specifically provided in any agreement 
     for cooperation, no source or special nuclear material 
     exported from the United States after the date of the NNPA 
     may be enriched after export without the prior approval of 
     the United States for such enrichment.
       (8) Storage Consent Right: The requirement of Section 123 
     a.(8) of the Act for a guaranty of a right of prior U.S. 
     approval over facilities for the storage of specified nuclear 
     materials is met by Article 5.1 of the proposed Agreement.

[[Page 7589]]

       (9) Sensitive Nuclear Technology: The requirement of 
     section 123 a.(9) of the Act pertains to situations that may 
     result when sensitive nuclear technology is transferred 
     pursuant to a Section 123 agreement for cooperation. Article 
     3.3 of the proposed Agreement provides that sensitive nuclear 
     technology shall not be transferred under the Agreement, and 
     Article 4.1 provides that sensitive nuclear facilities and 
     major critical components thereof shall not be transferred 
     under the proposed Agreement. Accordingly, the requirement in 
     Section 123 a. (9) is not relevant to the proposed Agreement, 
     and the requirement in Section 402 (b) of the NNPA precluding 
     the transfer of major critical components of facilities for 
     uranium enrichment, nuclear fuel reprocessing, or heavy water 
     production unless an agreement for cooperation ``specifically 
     designates such components as items to be exported pursuant 
     to [such] agreement'' is also satisfied.
       Environmental: Article 12.2 of the proposed Agreement 
     requires the Parties to consult, with regard to activities 
     under the Agreement, to identify the international 
     environmental implications arising from such activities and 
     to cooperate in protecting the international environment from 
     radioactive, chemical, or thermal contamination arising from 
     peaceful nuclear activities under the proposed Agreement and 
     in related matters of health and safety, thereby satisfying 
     the requirements of section 407 of the NNPA.
       Article 10 of the proposed Agreement is not required by the 
     Act or the NNPA, but it is consistent with these laws. It 
     provides that the parties may, by mutual agreement, arrange 
     for a third party to exercise U.S. consent rights with 
     respect to particular items subject to the agreement if the 
     third party already enjoys the same consent rights over those 
     items. All applicable provisions of U.S. law, including 
     Section 131 of the Act governing subsequent arrangements, 
     would have to be satisfied. Similar provisions have been 
     included in all post-NNPA agreements for cooperation, 
     although they have never been applied.
       Proportionality: For the purpose of implementing rights 
     specified in Articles 5 and 6 of the proposed Agreement, 
     ``produced'' special nuclear material is defined in terms of 
     proportionality in the Agreed Minute to the Agreement. Thus, 
     if U.S. nuclear material is used in a non-U.S. reactor, the 
     special nuclear material produced will be attributed to the 
     U.S. in the proportion of the U.S. nuclear material to the 
     total amount of nuclear material used, and similarly for 
     subsequent generations. It has been our consistent view that 
     Sections 123 and 127 of the Act allow this concept of 
     proportionality to be used in determining the reasonable 
     application of U.S. consent rights. We are aware of no course 
     of practice or legislative history to the contrary. 
     Agreements negotiated since the enactment of the NNPA in 1978 
     generally contain a similar proportionality provision.
       In sum, the proposed Agreement satisfies all the 
     substantive requirements specified for agreements for 
     cooperation by the Act and the NNPA.


                             IV. CONCLUSION

       Entry into force of the proposed Agreement will put in 
     place a framework for mutually beneficial civil nuclear 
     cooperation between the United States and Vietnam, and 
     provide a foundation for continued collaboration on nuclear 
     nonproliferation goals.
       On the basis of the analysis in this NPAS and all pertinent 
     information of which it is aware, the Department of State has 
     arrived at the following assessment, conclusions, views, and 
     recommendations:
       1. The safeguards and other control mechanisms and the 
     peaceful use assurances in the proposed Agreement are 
     adequate to ensure that any assistance furnished thereunder 
     will not be used to further any military or nuclear explosive 
     purpose.
       2. The Agreement meets all the legal requirements of the 
     Act and the NNPA.
       3. Execution of the proposed Agreement would be compatible 
     with the nonproliferation program, policy, and objectives of 
     the United States.
       4. Therefore, it is recommended that the President approve 
     and authorize the execution of the proposed Agreement; and 
     that the President determine that the performance of the 
     proposed Agreement will promote, and will not constitute an 
     unreasonable risk to, the common defense and security.
                                  ____



                                       The Secretary of State,

                                Washington, DC, February 18, 2014.

     Memorandum for the President
     From: John F. Kerry, Secretary of State, Ernest Moniz, 
         Secretary of Energy.
     Subject: Proposed Agreement for Cooperation Between the 
         Government of the United States of America and the 
         Government of the Socialist Republic of Vietnam 
         Concerning Peaceful Uses of Nuclear Energy.
       The United States and Vietnam have completed negotiations 
     of a proposed Agreement for Cooperation Between the 
     Government of the United States of America and the Government 
     of the Socialist Republic of Vietnam Concerning Peaceful Uses 
     of Nuclear Energy (the ``Agreement''). If you authorize 
     execution of the Agreement, it will be signed by 
     representatives of the United States and Vietnam. After 
     signature, in accordance with Sections 123 b. and d. of the 
     Atomic Energy Act of 1954, as amended (the ``Act''), the 
     Agreement must be submitted to both houses of Congress for a 
     review period of 90 days of continuous session. Unless a 
     joint resolution of disapproval is enacted, the Agreement may 
     be brought into force upon completion of the review period.
       The proposed Agreement provides a comprehensive framework 
     for peaceful nuclear cooperation with Vietnam based on a 
     mutual commitment to nuclear nonproliferation. The United 
     States and Vietnam would enter into it in the context of a 
     stated intention by Vietnam to rely on existing international 
     markets for nuclear fuel services rather than acquiring 
     sensitive fuel services, and a stated intention by the United 
     States to support those international markets in order to 
     ensure reliable nuclear fuel supply for Vietnam. These 
     intentions are explicitly stated in the preamble to the 
     Agreement.
       The Agreement will have an initial term of 30 years from 
     the date of its entry into force, and will continue in force 
     thereafter for additional periods of five years each. Either 
     Party may terminate the proposed Agreement on six months 
     advance written notice at the end of the initial 30 year term 
     or at the end of any subsequent five year period. 
     Additionally, either Party may terminate the proposed 
     Agreement on one year's written notice.
       The Agreement permits the transfer of information, 
     material, equipment (including reactors), and components for 
     nuclear research and nuclear power production. It does not 
     permit transfers of restricted data, sensitive nuclear 
     technology, sensitive nuclear facilities, or major critical 
     components of such facilities. In the event of termination of 
     the Agreement, key nonproliferation conditions and controls 
     continue with respect to material, equipment, and components 
     subject to the Agreement.
       Vietnam is a non-nuclear-weapon State party to the Treaty 
     on the Nonproliferation of Nuclear Weapons. Vietnam has in 
     force a comprehensive safeguards agreement and an Additional 
     Protocol with the International Atomic Energy Agency. Vietnam 
     is a party to the Convention on the Physical Protection of 
     Nuclear Material, which establishes international standards 
     of physical protection for the use, storage, and transport of 
     nuclear material, and has ratified the 2005 Amendment to the 
     Convention. A more detailed discussion of Vietnam's intended 
     civil nuclear program and its nuclear nonproliferation 
     policies and practices, including its nuclear export policies 
     and practices, is provided in the Nuclear Proliferation 
     Assessment Statement (``NPAS''), and in a classified annex to 
     the NPAS submitted to you separately. An addendum to the NPAS 
     containing a comprehensive analysis of the export control 
     system of Vietnam with respect to nuclear-related matters, 
     including interactions with countries of proliferation 
     concern and the actual or suspected nuclear, dual-use, or 
     missile-related transfers to such countries, pursuant to 
     section 102A of the National Security Act of 1947 (50 U.S.C. 
     403-1), as amended, is being submitted to you separately by 
     the Director of National Intelligence.
       In accordance with the provisions of section 123 of the 
     Act, the proposed Agreement was negotiated by the Department 
     of State, with the technical assistance and concurrence of 
     the Department of Energy. The proposed Agreement has also 
     been reviewed by the members of the Nuclear Regulatory 
     Commission. The Commission's views are being submitted to you 
     separately.
       In our judgment, the proposed Agreement satisfies all 
     requirements of U.S. law for agreements of this type. We 
     believe, as well, that U.S. cooperation with Vietnam in the 
     peaceful uses of nuclear energy under the proposed Agreement 
     will be supportive of U.S. nonproliferation, foreign policy, 
     and commercial interests. We recommend, therefore, that you 
     determine, pursuant to section 123 b. of the Act, that 
     performance of the Agreement will promote, and will not 
     constitute an unreasonable risk to, the common defense and 
     security; and that you approve the Agreement and authorize 
     its execution.


                             Recommendation

       That you sign the determination, approval, and 
     authorization at Attachment 1 and the transmittal letter to 
     Congress at Attachment 2. (The transmittal will be held until 
     the Agreement is signed.)


                              Attachments:

       Tab 1--Draft Presidential determination, approval, and 
     authorization.
       Tab 2--Draft transmittal letter to the Congress (To be held 
     until after the Agreement is signed).
       Tab 3--Text of Proposed Agreement for Cooperation Between 
     the United States of America and the Socialist Republic of 
     Vietnam Concerning Peaceful Uses of Nuclear Energy.
       Tab 4--Unclassified Nuclear Proliferation Assessment 
     Statement.
                                  ____

                                                     United States


                                Nuclear Regulatory Commission,

                                 Washington, DC, December 3, 2013.
     The President,
     The White House,
     Washington, DC.
       Dear Mr. President: In accordance with the provisions of 
     Section 123 of the Atomic

[[Page 7590]]

     Energy Act of 1954, as amended, the Nuclear Regulatory 
     Commission reviewed the proposed Agreement for Cooperation 
     between the Government of the United States of America and 
     the Government of the Socialist Republic of Vietnam 
     Concerning Peaceful Uses of Nuclear Energy. It is the view of 
     the Commission that the proposed Agreement includes all of 
     the provisions required by law and provides a sufficient 
     framework for civilian nuclear cooperation between the United 
     States and Vietnam. The Commission therefore recommends that 
     you make the requisite positive statutory determination, 
     approve the proposed Agreement, and authorize its execution.
           Respectfully,
     Allison M. Macfarlane.

                          ____________________