    [Public Papers of the Presidents of the United States: WILLIAM J. CLINTON (1999, Book II)]
    [November 3, 1999]
    [Pages 1963-1965]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Congress Transmitting the Australia-United States
    Peaceful Nuclear Technology Transfer Agreement
    November 3, 1999

    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 text of a proposed Agreement for Cooperation Between
    the United States of America and Australia Concerning Technology for the
    Separation of Isotopes of Uranium by Laser Excitation, with accompanying
    annexes and agreed minute. 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 Central
    Intelligence, summarizing relevant classified information, will be
    submitted to the Congress separately.) The joint memorandum submitted to
    me by the Secretary of State and the Secretary of Energy, which includes
    a summary of the provisions of the Agreement and the views of the
    Nuclear Regulatory Commission, is also enclosed.
        A U.S. company and an Australian company have entered into a
    contract jointly to develop and evaluate the commercial potential of a
    particular uranium enrichment process (known as the ``SILEX'' process)
    invented by the Australian company. If the commercial viability of the
    process is demonstrated, the U.S. company may adopt it to enrich uranium
    for sale to U.S. and foreign utilities for use as reactor fuel.
        Research on and development of the new enrichment process may
    require transfer from the United States to Australia of technology
    controlled by the United States as sensitive nuclear technology or
    Restricted Data. Australia exercises similar controls on the transfer of
    such technology outside Australia. There is currently in force an
    Agreement Between the United States of America and Australia Concerning
    Peaceful Uses of Nuclear Energy, signed at Canberra July 5, 1979 (the
    ``1979 Agreement''). However, the 1979 Agreement does not permit
    transfers of sensitive nuclear technology and Restricted Data between
    the parties unless specifically provided for by an amendment or by a
    separate agreement.
        Accordingly, the United States and Australia have negotiated, as a
    complement to the 1979 Agreement, a specialized agreement for peaceful
    nuclear cooperation to provide the necessary legal basis for transfer of
    the relevant technology between the two countries for peaceful purposes.
        The proposed Agreement provides for cooperation between the parties
    and authorized persons within their respective jurisdictions in research
    on and development of the SILEX process (the particular process for the
    separation of isotopes of uranium by laser excitation). The Agreement
    permits the transfer for peaceful purposes from Australia to the United
    States

    [[Page 1964]]

    and from the United States to Australia, subject to the nonproliferation
    conditions and controls set forth in the Agreement, of Restricted Data,
    sensitive nuclear technology, sensitive nuclear facilities, and major
    critical components of such facilities, to the extent that these relate
    to the SILEX technology.
        The nonproliferation conditions and controls required by the
    Agreement are the standard conditions and controls required by section
    123 of the Atomic Energy Act, as amended by the Nuclear Non-
    Proliferation Act of 1978 (NNPA), for all new U.S. agreements for
    peaceful nuclear cooperation. These include safeguards, a guarantee of
    no explosive or military use, a guarantee of adequate physical
    protection, and rights to approve re-transfers, enrichment,
    reprocessing, other alterations in form or content, and storage. The
    Agreement contains additional detailed provisions for the protection of
    sensitive nuclear technology, Restricted Data, sensitive nuclear
    facilities, and major critical components of such facilities transferred
    pursuant to it.
        Material, facilities, and technology subject to the Agreement may
    not be used to produce highly enriched uranium without further agreement
    of the parties.
        The Agreement also provides that cooperation under it within the
    territory of Australia will be limited to research on and development of
    SILEX technology, and will not be for the purpose of constructing a
    uranium enrichment facility in Australia unless provided for by an
    amendment to the Agreement. The United States would treat any such
    amendment as a new agreement pursuant to section 123 of the Atomic
    Energy Act, including the requirement for congressional review.
        Australia is in the forefront of nations supporting international
    efforts to prevent the spread of nuclear weapons to additional
    countries. It is a party to the Treaty on the Non-Proliferation of
    Nuclear Weapons (NPT) and has an agreement with the International Atomic
    Energy Agency (IAEA) for the application of full-scope safeguards to its
    nuclear program. It subscribes to the Nuclear Supplier Group (NSG)
    Guidelines, which set forth standards for the responsible export of
    nuclear commodities for peaceful use, and to the Zangger (NPT Exporters)
    Committee Guidelines, which oblige members to require the application of
    IAEA safeguards on nuclear exports to nonnuclear weapons states. In
    addition, Australia is a party to the Convention on the Physical
    Protection of Nuclear Material, whereby it has agreed to apply
    international standards of physical protection to the storage and
    transport of nuclear material under its jurisdiction or control
        The proposed Agreement with Australia has been negotiated in
    accordance with the Atomic Energy Act of 1954, as amended, and other
    applicable law. In my judgment, it meets all statutory requirements and
    will advance the nonproliferation, foreign policy, and commercial
    interests of the United States.
        A consideration in interagency deliberations on the Agreement was
    the potential consequences of the Agreement for U.S. military needs. If
    SILEX technology is successfully developed and becomes operational, then
    all material produced by and through this technology would be precluded
    from use in the U.S. nuclear weapons and naval nuclear propulsion
    programs. Furthermore, all other military uses of this material, such as
    tritium production and material testing, would also not be possible
    because of the assurances given to the Government of Australia. Yet, to
    ensure the enduring ability of the United States to meet its common
    defense and security needs, the United States must maintain its military
    nuclear capabilities. Recognizing this requirement and the restrictions
    being placed on the SILEX technology, the Department of Energy will
    monitor closely the development of SILEX but ensure that alternative
    uranium enrichment technologies are available to meet the requirements
    for national security.
        I have considered the views and recommendations of the interested
    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.
        Because this Agreement meets all applicable requirements of the
    Atomic Energy Act, as amended, for agreements for peaceful nuclear
    cooperation, I am transmitting it to the Congress without exempting it
    from any requirement contained in section 123 a. of that Act. This
    transmission shall constitute a submittal for purposes of both sections
    123 b. and 123 d. of the Atomic Energy Act. My Administration is
    prepared to begin immediately the consultations with the

    [[Page 1965]]

    Senate Foreign Relations Committee and House International Relations
    Committee as provided in section 123 b. Upon completion of the 30-day
    continuous session period provided for in section 123 b., the 60-day
    continuous session period provided for in section 123 d. shall commence.

                                                          William J. Clinton

    The White House,

    November 3, 1999.