AGREEMENT OF LEASE OF SPECIAL NUCLEAR MATERIAL BETWEEN THE GOVERNMENT OF JAPAN AND THE UNITED STATES ATOMIC ENERGY COMMISSION ACTING ON BEHALF OF THE GOVERNMENT OF THE UNITED STATES OF AMERICA

"The World and Japan" Database (Project Leader: TANAKA Akihiko)

Database of Japanese Politics and International Relations

National Graduate Institute for Policy Studies (GRIPS); Institute for Advanced Studies on Asia (IASA), The University of Tokyo

[Title] AGREEMENT OF LEASE OF SPECIAL NUCLEAR MATERIAL BETWEEN THE GOVERNMENT OF JAPAN AND THE UNITED STATES ATOMIC ENERGY COMMISSION ACTING ON BEHALF OF THE GOVERNMENT OF THE UNITED STATES OF AMERICA

[Place]

[Date] November 23, 1956

[Source] Ministry of Foreign Affairs of Japan

[Notes]

[Full text]

AGREEMENT OF LEASE OF SPECIAL NUCLEAR MATERIAL BETWEEN THE GOVERNMENT OF JAPAN AND THE UNITED STATES ATOMIC ENERGY COMMISSION ACTING ON BEHALF OF THE GOVERNMENT OF THE UNITED STATES OF AMERICA

THE GOVERNMENT OF JAPAN, AND THE UNITED STATES ATOMIC ENERGY COMMISSION (HEREINAFTER REFERRED TO AS THE UNITED STATES COMMISSION) ACTING ON BEHALF OF THE GOVERNMENT OF THE UNITED STATES OF AMERICA, WITH RESPECT TO THE LEASE OF SPECIAL NUCLEAR MATERIAL PURSUANT TO THE AGREEMENT FOR COOPERATION BETWEEN THE GOVERNMENT OF JAPAN AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA CONCERNING CIVIL USES OF ATOMIC ENERGY, SIGNED NOVEMBER 14, 1955, AND AS IT MAY BE AMENDED OR SUPERSEDED, AND SUBJECT TO ALL OF THE TERMS, CONDITIONS, PROVISIONS, AND GUARANTIES CONTAINED THEREIN, AGREE AS FOLLOWS:

ARTICLE I

THE UNITED STATES COMMISSION HEREBY AGREES TO LEASE TO THE GOVERNMENT OF JAPAN APPROXIMATELY TEN (10) KILOGRAMS OF URANIUM ENRICHED TO NINETEEN AND ONE-HALF PER CENT (19.5%) TO TWENTY PER CENT (20%) IN THE ISOTOPE U-235, I.E., CONTAINING TWO (2) KILOGRAMS OF U-235, TO BE CONTAINED IN REACTOR MATERIAL TO BE PREPARED IN THE UNITED STATES OF AMERICA BY A CONTRACTOR EMPLOYED BY THE GOVERNMENT OF JAPAN TO PREPARE SUCH MATERIAL, FOR USE IN THE OPERATION OF A SOLUTION-TYPE RESEARCH REACTOR MANUFACTURED BY NORTH AMERICAN AVIATION, INC., TO BE LOCATED AT THE JAPAN ATOMIC ENERGY RESEARCH INSTITUTE, TOKAI-MURA, NAKA-GUN, IBARAGI-KEN, JAPAN. THE UNITED STATES COMMISSION HEREBY FURTHER AGREES, UPON REQUEST BY THE GOVERNMENT OF JAPAN, TO LEASE TO THE GOVERNMENT OF JAPAN SUCH ADDITIONAL QUANTITY OF URANIUM ENRICHED TO NINETEEN AND ONE-HALF PER CENT (19.5%) TO TWENTY PER CENT (20%) IN THE ISOTOPE U-235 AS MAY BE NECESSARY TO REPLACE ANY SIGNIFICANT AMOUNTS OF REACTOR MATERIAL THAT MAY BE ACCIDENTALLY LOST OR DESTROYED.

ARTICLE II

A. WITHIN ONE HUNDRED AND TWENTY (120) DAYS AFTER RECEIPT OF A REQUEST, ENDORSED BY THE GOVERNMENT OF JAPAN, FROM THE CONTRACTOR EMPLOYED BY THE GOVERNMENT OF JAPAN TO PREPARE REACTOR MATERIAL IN THE UNITED STATES OF AMERICA FOR THE REACTOR, THE UNITED STATES COMMISSION SHALL TRANSFER TO SUCH CONTRACTOR, AT A UNITED STATES COMMISSION FACILITY, IN THE FORM OF URANIUM HEXAFLUORIDE, SUCH AMOUNT OF URANIUM ENRICHED TO NINETEEN AND ONE-HALF PER CENT (19.5%) TO TWENTY PER CENT (20%) IN THE ISOTOPE U-235 AS IS REQUIRED TO PREPARE SUCH REACTOR MATERIAL. SUCH TRANSFER TO THE CONTRACTOR SHALL BE SUBJECT TO SUCH TERMS, CHARGES AND CONDITIONS INCLUDING LICENSES NECESSARY TO RECEIVE SUCH MATERIAL AND TO PERFORM SUCH WORK IN THE UNITED STATES OF AMERICA, AS ARE REQUIRED OF SUCH CONTRACTOR BY THE UNITED STATES COMMISSION.

B. THE GOVERNMENT OF JAPAN AND THE UNITED STATES COMMISSION SHALL AGREE UPON A POINT IN THE PROCESS OF PREPARATION OF THE REACTOR MATERIAL BY THE CONTRACTOR EMPLOYED BY THE GOVERNMENT OF JAPAN, AT WHICH SAMPLES WILL BE TAKEN FOR ANALYSIS IN THE UNITED STATES OF AMERICA BY AN ANALYST TO BE SELECTED BY THE GOVERNMENT OF JAPAN AND THE UNITED STATES COMMISSION. THE RESULTS OF SUCH ANALYSIS SHALL ESTABLISH THE ENRICHMENT OF SUCH PREPARED MATERIAL. THE COSTS OF SUCH ANALYSIS SHALL BE SHARED EQUALLY BY THE GOVERNMENT OF JAPAN AND THE UNITED STATES COMMISSION. THE QUANTITY OF SUCH REACTOR MATERIAL WILL BE CERTIFIED TO THE GOVERNMENT OF JAPAN AND THE UNITED STATES COMMISSION BY THE CONTRACTOR WHO PREPARED SUCH MATERIAL.

C. UPON COMPLETION OF THE PREPARATION OF THE REACTOR MATERIAL FOR THE REACTOR BY THE CONTRACTOR EMPLOYED BY THE GOVERNMENT OF JAPAN, SAID CONTRACTOR SHALL AFTER THIRTY (30) DAYS NOTICE TO THE GOVERNMENT OF JAPAN AND THE UNITED STATES COMMISSION, DELIVER SUCH MATERIAL TO A PORT OF EMBARKATION IN THE UNITED STATES OF AMERICA TO BE DESIGNATED BY THE UNITED STATES COMMISSION AFTER CONSULTATION WITH THE GOVERNMENT OF JAPAN. THE UNITED STATES COMMISSION SHALL THEREUPON PERFORM THE ACTIONS NECESSARY FOR THE TRANSFER AND TO EFFECT THE EXPORT OF SUCH MATERIAL TO THE GOVERNMENT OF JAPAN AT SUCH DESIGNATED PORT. THE UNITED STATES COMMISSION SHALL NOT BE RESPONSIBLE FOR COSTS OF SHIPPING SUCH MATERIAL FROM SUCH CONTRACTOR TO JAPAN.

D. ACCEPTANCE AT THE POINT OF EXPORT OF THE ENRICHED URANIUM CONTAINED IN THE REACTOR MATERIAL BY THE GOVERNMENT OF JAPAN SHALL BE EVIDENCED BY APPROPRIATE RECEIPT; THEREAFTER THE GOVERNMENT OF JAPAN SHALL ASSUME FULL RESPONSIBILITY FOR SAFEKEEPING OF SUCH ENRICHED URANIUM IN ACCORDANCE WITH THE PROVISIONS OF THE AFORESAID AGREEMENT FOR COOPERATION, FOR ALL LOSS OR DESTRUCTION OF SUCH ENRICHED URANIUM, HOWEVER CAUSED, AND FOR SAFEGUARDING AGAINST HAZARDS TO HEALTH AND SAFETY.

E. ON OR BEFORE SEPTEMBER 30, 1960, UNLESS OTHERWISE AGREED, AND, IN ANY EVENT, UPON THE TERMINATION OF THIS AGREEMENT, THE GOVERNMENT OF JAPAN SHALL, AT ITS EXPENSE, DELIVER ALL REACTOR MATERIAL CONTAINING ENRICHED URANIUM LEASED TO THE GOVERNMENT OF JAPAN UNDER THIS AGREEMENT, AFTER APPROPRIATE RADIOACTIVE COOLING, AND UNDER APPROPRIATE SAFEGUARDS AGAINST HAZARDS TO HEALTH AND SAFETY, ACCEPTABLE TO THE UNITED STATES COMMISSION, TO A PORT OF ENTRY IN THE UNITED STATES OF AMERICA TO BE DESIGNATED BY THE UNITED STATES COMMISSION AFTER CONSULTATION WITH THE GOVERNMENT OF JAPAN. UNLESS THE UNITED STATES COMMISSION AGREES TO ACCEPT SUCH REACTOR MATERIAL FOR REPROCESSING, IN WHICH EVENT THE GOVERNMENT OF JAPAN AGREES TO PAY THE UNITED STATES COMMISSION CHARGES FOR REPROCESSING SUCH MATERIAL INTO URANIUM HEXAFLUORIDE MEETING THE UNITED STATES COMMISSION'S SPECIFICATIONS OR SUCH OTHER FORM AS MAY BE AGREED UPON AND TO PAY THE COSTS OF TRANSPORTING SUCH MATERIAL TO THE UNITED STATES COMMISSION FACILITY WHICH WILL PEPROCESS SUCH MATERIAL, THE UNITED STATES COMMISSION SHALL THEREUPON PERFORM THE ACTIONS NECESSARY FOR THE IMPORT AND TRANSFER OF SUCH MATERIAL AT SUCH DESIGNATED PORT TO THE CONTRACTOR WHICH THE GOVERNMENT OF JAPAN SHALL EMPLOY TO REPROCESS SUCH MATERIAL IN THE UNITED STATES OF AMERICA INTO THE FORM OF URANIUM HEXAFLUORIDE MEETING UNITED STATES COMMISSION SPECIFICATIONS OR SUCH OTHER FORM AS MAY BE AGREED UPON. SUCH TRANSFER TO THE CONTRACTOR SHALL BE SUBJECT TO SUCH TERMS, CHARGES AND CONDITIONS, INCLUDING LICENSES NECESSARY TO RECEIVE SUCH MATERIAL AND TO PERFORM SUCH WORK IN THE UNITED STATES OF AMERICA, AS ARE REQUIRED OF SUCH CONTRACTOR BY THE UNITED STATES COMMISSION. THE UNITED STATES COMMISSION SHALL NOT BE RESPOSIBLE FOR THE COSTS OF SHIPPING SUCH MATERIAL FROM JAPAN TO SUCH CONTRACTOR.

ARTICLE III

FOR THE LEASE OF URANIUM ENRICHED TO NINETEEN AND ONE-HALF PER CENT (19.5%) TO TWENTY PER CENT (20%) IN THE ISOTOPE U-235 CONTAINED IN REACTOR MATERIAL PREPARED BY THE CONTRACTOR EMPLOYED BY THE GOVERNMENT OF JAPAN TO PREPARE SUCH MATERIAL, THE GOVERNMENT OF JAPAN SHALL PAY TO THE UNITED STATES COMMISSION IN UNITED STATES CURRENCY, A SUM EQUAL TO THE CHARGES SET FORTH HEREINBELOW AT THE TIME OR TIMES THERE INDICATED:

(A) A USE CHARGE FOR THE ENRICHED URANIUM LEASED UNDER THIS AGREEMENT AND CONTAINED IN THE REACTOR MATERIAL PREPARED BY THE CONTRACTOR EMPLOYED BY THE GOVERNMENT OF JAPAN AT THE RATE OF FOUR PER CENT (4%) PER ANNUM OF THE VALUE OF THE ENRICHED URANIUM INITIALLY CONTAINED THEREIN BEGINNING WITH THE DATE SUCH REACTOR MATERIAL IS TRANSFERRED TO THE GOVERNMENT OF JAPAN AND ENDING

(1) UPON THE DATE SUCH REACTOR MATERIAL IS RETURNED TO THE UNITED STATES OF AMERICA AND TRANSFERRED TO THE CONTRACTOR EMPLOYED BY THE GOVERNMENT OF JAPAN TO REPROCESS SUCH MATERIAL INTO URANIUM HEXAFLUORIDE MEETING UNITED STATES COMMISSION SPECIFICATIONS OR SUCH OTHER FORM AS MAY BE AGREED UPON AND TO DELIVER SUCH REPROCESSED MATERIAL TO THE UNITED STATES COMMISSION, OR

(2) WHERE THE UNITED STATES COMMISSION AGREES TO ACCEPT FOR REPROCESSING SUCH REACTOR MATERIAL WHICH IS RETURNED TO THE UNITED STATES OF AMERICA, UPON COMPLETION OF SUCH REPROCESSING OR UPON THE EXPIRATION OF THAT PERIOD WHICH THE UNITED STATES COMMISSION DETERMINES TO BE THE NORMAL PERIOD FOR SUCH REPROCESSING, WHICHEVER IS EARLIER.

(B) A CONSUMPTION AND DEPLETION CHARGE EQUIVALENT TO THE DIFFERENCE BETWEEN (1) THE VALUE OF THE ENRICHED URANIUM INITIALLY CONTAINED IN THE REACTOR MATERIAL AND LEASED UNDER THIS AGREEMENT, AS DETERMINED FROM ITS QUANTITY AND ENRICHMENT, AND (2) THE VALUE OF THE URANIUM CONTAINED IN THE REACTOR MATERIAL RETURNED TO THE UNITED STATES OF AMERICA, AS DETERMINED FROM ITS QUANTITY AND ENRICHMENT. THE QUANTITY AND ENRICHMENT OF THE URANIUM CONTAINED IN THE RETURNED REACTOR MATERIAL SHALL BE DETERMINED WITHIN A REASONABLE TIME AFTER THE RETURN OF SUCH MATERIAL TO THE UNITED STATES OF AMERICA BY CERTIFIED ANALYSIS OF SUCH MATERIAL MADE IN THE UNITED STATES OF AMERICA BY AN ANALYST SELECTED BY THE GOVERNMENT OF JAPAN AND THE UNITED STATES COMMISSION, OR BY SUCH OTHER MEANS AS MAY BE AGREED UPON. THE COSTS OF SUCH ANALYSIS SHALL BE SHARED EQUALLY BY THE GOVERNMENT OF JAPAN AND THE UNITED STATES COMMISSION.

(C) FOR THE PURPOSES OF THIS ARTICLE, THE VALUE OF THE ENRICHED URANIUM CONTAINED IN EACH AMOUNT OF REACTOR MATERIAL TRANSFERRED TO THE GOVERNMENT OF JAPAN SHALL BE DETERMINED IN ACCORDANCE WITH THE SCHEDULE OF VALUES OF URANIUM OF VARIOUS ENRICHMENTS IN THE ISOTOPE U-235 ESTABLISHED BY THE UNITED STATES COMMISSION AND IN EFFECT AT THE TIME EACH SUCH AMOUNT OF REACTOR MATERIAL IS TRANSFERRED TO THE GOVERNMENT OF JAPAN. THE VALUE OF THE ENRICHED URANIUM CONTAINED IN EACH AMOUNT OF REACTER MATERIAL RETURNED TO THE UNITED STATES OF AMERICA SHALL BE DETERMINED IN ACCORDANCE WITH THE SCHEDULE OF VALUES WHICH WAS APPLIED TO THE ENRICHED URANIUM CONTAINED IN EACH SUCH AMOUNT OF REACTOR MATERIAL WHEN IT WAS TRANSFERRED TO THE GOVERNMENT OF JAPAN. WHERE THE ENRICHMENT OF THE URANIUM CONTAINED IN THE REACTOR MATERIAL TRANSFERRED OR RETURNED FALLS BETWEEN TWO SUCCESSIVE ENRICHMENTS ON SUCH SCHEDULE, THE VALUE FOR THE SPECIFIC ENRICHMENT WILL BE DETERMINED BY LINEAR INTERPOLATION BETWEEN THEM.

(D) THE USE CHARGE SHALL BE PAID ON AN ANNUAL BASIS. THE CONSUMPTION AND DEPLETION CHARGES SHALL BE PAID WITHIN THIRTY (30) DAYS OF THE RECEIPT OF THE ABOVE-MENTIONED CERTIFIED ANALYSIS BY THE GOVERNMENT OF JAPAN. IN THE EVENT THE UNITED STATES COMMISSION AGREES TO REPROCESS RETURNED REACTOR MATERIAL INTO URANIUM HEXAFLUORIDE MEETING ITS SPECIFICATIONS OR SUCH OTHER FORM AS MAY BE AGREED UPON, ITS CHARGES FOR SUCH REPROCESSING AND ANY COSTS INCURRED BY THE UNITED STATES COMMISSION IN TRANSPORTING SUCH REACTOR MATERIAL FROM THE PORT OF ENTRY TO ITS FACILITY FOR REPROCESSING, SHALL BE PAID WITHIN THIRTY (30) DAYS AFTER THE GOVERNMENT OF JAPAN'S RECEIPT OF A BILL FOR SUCH CHARGES AND COSTS FROM THE UNITED STATES COMMISSION.

ARTICLE IV

THE GOVERNMENT OF JAPAN SHALL INDEMNIFY AND SAVE HARMLESS THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE UNITED STATES COMMISSION AGAINST ANY AND ALL LIABILITY (INCLUDING THIRD PARTY LIABILITY) FOR ANY CAUSE WHATSOEVER ARISING OUT OF THE PRODUCTION OR PREPARATION, OWNERSHIP, LEASE, OR THE POSSESSION AND USE OF THE ENRICHED URANIUM CONTAINED IN REACTOR MATERIAL LEASED UNDER THIS AGREEMENT AFTER TRANSFER OF SUCH ENRICHED URANIUM BY THE UNITED STATES COMMISSION TO THE GOVERNMENT OF JAPAN.

ARTICLE V

IT IS UNDERSTOOD THAT, IN ACCORDANCE WITH THE LAWS OF THE GOVERNMENT OF THE UNITED STATES OF AMERICA, NO MEMBER OF OR DELEGATE TO THE CONGRESS OF THE UNITED STATES OF AMERICA, OR RESIDENT COMMISSIONER OF THE UNITED STATES OF AMERICA SHALL BE ADMITTED TO OR SHARE ANY PART OF THIS AGREEMENT OR ANY BENEFIT THAT MAY ARISE THEREFROM.

ARTICLE VI

ON THE DATE OF RECEIPT BY THE UNITED STATES COMMISSION OF A LETTER FROM THE GOVERNMENT OF JAPAN STATING THAT JAPAN HAS APPROVED THIS AGREEMENT IN ACCORDANCE WITH ITS LEGAL PROCEDURES, THIS AGREEMENT SHALL ENTER INTO FORCE AND SHALL REMAIN IN FORCE UNTIL THE AGREEMENT FOR COOPERATION BETWEEN THE GOVERNMENT OF JAPAN AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA CONCERNING CIVIL USES OF ATOMIC ENERGY, SIGNED NOVEMBER 14, 1955, AND AS IT MAY BE AMENDED OR SUPERSEDED, EXPIRES OR IS TERMINATED.

IN WITNESS WHEREOF THE PARTIES HERETO HAVE CAUSED THIS AGREEMENT TO BE EXECUTED PURSUANT TO DULY CONSTITUTED AUTHORITY.

DONE AT WASHINGTON, IN DUPLICATE, IN THE JAPANESE AND ENGLISH LANGUAGES, THIS 23RD DAY OF NOVEMBER, 1956.

FOR THE GOVERNMENT OF JAPAN
MASAYUKI TANI

FOR THE UNITED STATES ATOMIC ENERGY COMMISSION ACTING ON BEHALF OF THE GOVERNMENT OF THE UNITED STATES OF AMERICA
HAROLD S.VANCE

EXCHANGES OF NOTES

Dated at Washington, November 23. 1956

November 23, 1956

My dear Mr. Vance:

I have the honor to refer to the Agreement of Lease of Special Nuclear Material between the Government of Japan and the United States Atomic Energy Commission Acting on Behalf of the Government of the United States of America, which was signed today, and to state the following understandings which have been reached during our negotiations leading to the conclusion of the Agreement :

1. At the time of transfer of uranium hexafluoride from the United States Atomic Energy Commission (hereinafter referred to as the United States Commission) to the contractor, employed by the Government of Japan in accordance with Article II, paragraph A of the Agreement, the United States Commission shall state to the contractor the enrichment and purity of the uranium hexafluoride transferred and shall furnish a copy of such statement to the Government of Japan. If the quantity, enrichment and purity of the uranium hexafluoride transferred to such contractor does not conform to the specifications contained in the contract between such contractor and the United States Commission, the responsibility and liability of the Government of the United States of America shall be solely limited to the United States Commission, upon return of such uranium hexafluoride, making reasonable efforts to transfer material, at a United States Commission facility, which does conform to such specifications and reimbursing such contractor for the reasonable costs of packaging and transportation incurred by such contractor in returning to the United States Commission any such material which does not conform to such specifications.

2. Since the quantity of plutonium or by-product materials produced in the reactor material containing enriched uranium leased for use in the solution-type research reactor will be small, it is understood and agreed that no credit or payment for such materials shall be given the Government of Japan. However, such understanding is agreed to by the Government of Japan only in the case of the present Agreement, and shall not prejudice the position of the Government of Japan with regard to this subject under such lease agreements as may be entered into in the future.

3. Article II, paragraph B and Article III, sub-paragraph (b) of the Agreement provide that our two Governments will select an analyst to perform analyses of enriched uranium leased to the Government of Japan for use in the solution-type research reactor. The Parties to the Agreement included provisions for the selection of an analyst without agreeing, in advance, upon a specific analyst since there was not sufficient time to ascertain the availability of commercial analysts who could perform the required analyses. It is recognized that at the times an analysis is required, it is possible that commercial analysts may not be available to perform this service.

It is understood and agreed, therefore, that if satisfactory commercial analysts are not available at the times an analysis is to be performed, the Parties agree to select one of the United States private organizations, which operates a United States Atomic Energy Commission installation having appropriate facilities, to perform the necessary analyses at the Commission installation it operates. Present examples of such organizations are:

(1) Union Carbide Nuclear Company, which operates Oak Ridge National Laboratory at Oak Ridge, Tennessee, and the installation at Paducah, Kentucky.

(2) Goodyear Atomic Corporation, which operates the installation at Portsmouth, Ohio.

(3) General Electric Company, which operates the installation at Hanford, Washington.

(4) University of Chicago, which operates the Argonne National Laboratory at Lemont, Illinois.

4. With respect to Article V of the Agreement, it is understood that this Article is not intended to mean that the Government of Japan shall, without its consent, be subject to the Jurisdiction of the courts of the Government of the United States of America.

It would be greatly appreciated, if you would be good enough to confirm the above understandings. Sincerely yours,

Masayuki Tani,
Ambassador of Japan

The Honorable
Harold S. Vance,
Acting Chairman,
United States Atomic Energy Commission,
Washington 25, D.C.

Now. 23, 1956

My dear Mr. Ambassador: I refer to your letter dated today, in connection with the Agreement of Lease of Special Nuclear Material Between the United States Atomic Energy Commission Acting on Behalf of the Government of the United States of America and the Government of Japan, which was signed today, in which you set forth your understandings on certain matters, as follows:

1. At the time of transfer of uranium hexafiuoride from the United States Atomic Energy Commission (hereinafter referred to as the United States Commission) to the contractor employed by the Government of Japan in accordance with Article II, paragraph A of the Agreement, the United States Commission shall state to the contractor the enrichment and purity of the uranium hexafluoride transferred and shall furnish a copy of such statement to the Government of Japan. If the quantity, enrichment and purity of the uranium hexafiuoride transferred to such contractor does not conform to the specifications contained in the contract between such contractor and the United States Commission, the responsibility and liability of the Government of the United States of America shall be solely limited to the United States Commission, upon return of such uranium hexafiuoride, making reasonable efforts to transfer material, at a United States Commission facility, which does conform to such specifications and reimbursing such contractor for the reasonable costs of packaging and transportation incurred by such contractor in returning to the United States Commission any such material which does not conform to such specifications.

2. Since the quantity of plutonium or by-product materials produced in the reactor material containing enriched uranium leased for use in the solution type research reactor will be small, it is understood and agreed that no credit or payment for such materials shall be given the Government of Japan. However, such understanding is agreed to by the Government of Japan only in the case of the present Agreement, and shall not prejudice the position of the Government of Japan with regard to this subject under such lease agreements as may be entered into in the future.

(1) Union Carbide Nuclear Company, which operates Oak Ridge National Laboratory at Oak Ridge, Tennessee, and the installation at Paducah, Kentucky.

(2) Goodyear Atomic Corporation, which operates the installation at Portsmouth, Ohio.

(3) General Electric Company, which operates the installation at Hanford, Washington.

(4) University of Chicago, which operates the Argonne National Laboratory at Lemont, Illinois.

4. With respect to Article V of the Agreement, it is understood that this Article is not intended to mean that the Government of Japan shall, without its consent, be subject to the jurisdiction of the courts of the Government of the United States of America.

I would like to take this opportunity to confirm our understanding of the matters set forth above. Sincerely yours,

(Harold S. Vance)
Acting Chairman

His Excellency
Mr. Masayuki Tani
Ambassador of Japan
Washington, D.C.

November 23, 1956

My dear Mr. Vance:

Article II, paragraph E of the Agreement, contemplates that the Government of Japan may return all of the reactor material containing enriched uranium leased to the Government of Japan under the Agreement at any time prior to September 30, 1960 and, if such material has not so been returned, that the Government of Japan shall return such material, in any event, on September 30, 1960 or upon the termination of the Agreement, whichever first occurs. It is further understood that all such material shall be returned at the same time, unless otherwise agreed.

It would be greatly appreciated, if you would be good enough to confirm the above understandings. Sincerely yours,

Masayuki Tani
Ambassador of Japan

The Honorable
Harold S. Vance,
Acting Chairman,
United States Atomic Energy Commission,

Washington 25, D.C.

Now. 23 1956

My dear Mr. Ambassador: I refer to your letter dated today, in connection with the Agreement of Lease of Special Nuclear Material Between the United States Atomic Energy Commission Acting on Behalf of the Government of the United States of America and the Government of Japan, which was signed today, in which you set forth the following understandings reached with respect to the Agreement:

I would like to take this opportunity to confirm our understandings of the matter set forth above. Sincerely yours,

(Harold S. Vance)
Acting Chairman

His Excellency
Mr. Masayuki Tani
Ambassador of Japan
Washington, D.C.

MY DEAR MR. HALL: WITH REFERENCE TO THE AGREEMENT OF LEASE OF SPECIAL NUCLEAR MATERIAL BETWEEN THE GOVERNMENT OF JAPAN AND THE UNITED STATES ATOMIC ENERGY COMMISSION ACTING ON BEHALF OF THE GOVERNMENT OF THE UNITED STATES OF AMERICA, WHICH WAS SIGNED ON NOVEMBER 23, 1956, I HAVE THE HONOR TO STATE AS FOLLOWS:

ARTICLE I OF THIS AGREEMENT PROVIDES THAT THE UNITED STATES COMMISSION AGREES TO LEASE TO THE GOVERNMENT OF JAPAN URANIUM ENRICHED IN THE ISOTOPE U-235 TO NINETEEN AND ONE-HALF PER CENT TO TWENTY PER CENT TO BE CONTAINED IN REACTOR MATERIAL FOR USE IN THE OPERATION OF THE SOLUTION TYPE RESEARCH REACTOR.

IT IS UNDERSTOOD, HOWEVER, THAT THE ABOVE ENRICHMENT SPECIFICATIONS SHALL NOT NECESSARILY APPLY TO THE ENRICHMENT OF THE URANIUM LEASED TO THE GOVERNMENT OF JAPAN FOR USE IN FISSION CHAMBERS FOR THE REACTOR, THAT THE ENRICHMENT OF SUCH URANIUM SHALL NOT EXCEED TWENTY PER CENT (20%), AND THAT THE PARTIES MAY AGREE, FROM TIME TO TIME, AS TO THE ENRICHMENT IN THE ISOTOPE U-235 OF SUCH URANIUM.

I HAVE FURTHER THE HONOR TO PROPOSE THAT THIS LETTER TOGETHER WITH YOUR LETTER IN REPLY CONFIRMING THE ABOVE UNDERSTANDING SHOULD BE REGARDED AS CONSTITUTING AN AGREEMENT IN THIS MATTER, WHICH SHALL COME INTO FORCE ON THE DATE THE GOVERNMENT OF JAPAN INFORMS THE UNITED STATES COMMISSION THAT NECESSARY LEGAL PROCEDURES HAVE BEEN COMPLETED IN JAPAN FOR GIVING EFFECT TO SUCH AGREEMENT. SINCERELY YOURS,

MAY 8, 1957

TAKESO SHIMODA CHARGE D'AFFAIRES AD INTERIM

MR. JOHN A.HALL, UNITED STATES ATOMIC ENERGY COMMISSION, WASHINGTON 25, D.C.

MY DEAR MR. SHIMODA: I ACKNOWLEDGE RECEIPT OF YOUR LETTER DATED TODAY, IN CONNECTION WITH THE AGREEMENT OF LEASE OF SPECIAL NUCLEAR MATERIAL BETWEEN THE UNITED STATES ATOMIC ENERGY COMMISSION ACTING ON BEHALF OF THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF JAPAN, WHICH WAS SIGNED ON NOVEMBER 23, 1956, WHICH READS AS FOLLOWS:

"WITH REFERENCE TO THE AGREEMENT OF LEASE OF SPECIAL NUCLEAR MATERIAL BETWEEN THE GOVERNMENT OF JAPAN AND THE UNITED STATES ATOMIC ENERGY COMMISSION ACTING ON BEHALF OF THE GOVERNMENT OF THE UNITED STATES OF AMERICA, WHICH WAS SIGNED ON NOVEMBER 23, 1956, I HAVE THE HONOR TO STATE AS FOLLOWS:

I WOULD LIKE TO TAKE THIS OPPORTUNITY TO CONFIRM THE ABOVE UNDERSTANDING ON BEHALF OF MY COMMISSION. ACCORDINGLY, YOUR LETTER AND THIS REPLY SHALL BE REGARDED AS CONSTITUTING AN AGREEMENT IN THIS MATTER, WHICH SHALL COME INTO FORCE ON THE DATE THE GOVERNMENT OF JAPAN INFORMS THE UNITED STATES COMMISSION THAT NECESSARY LEGAL PROCEDURES HAVE BEEN COMPLETED IN JAPAN FOR GIVING EFFECT TO SUCH AGREEMENT. SINCERELY YOURS,

MAY 8, 1957.

MR. TAKESO SHIMODA, CHARGE D'AFFAIRES AD INTERIM OF JAPAN, WASHINGTON, D.C.

JOHN A.HALL

August 24, 1960

My dear Mr. Kratzer: I have the honor to refer to the Second Agreement of Lease of Special Nuclear Material between the Government of Japan and the United States Atomic Energy Commission Acting on Behalf of the Government of the United States of America, which was signed on May 8, 1957, pursuant to the Agreement for Cooperation between the Government of Japan and the Government of the United States of America Concerning Civil Uses of Atomic Energy, which was signed on November 14, 1955. The 1955 Agreement for Cooperation was superseded in its entirety on December 5, 1958, by the Agreement for Cooperation between the Government of Japan and the Government of the United States of America Concerning Civil Uses of Atomic Energy which was signed on June 16, 1958, as amended by the Protocol signed on October 9, 1958.

Article I, paragraph B of the Lease Agreement contemplates that the Government of Japan and the United States Atomic Energy Commission may agree as to the date of transfer and return of leased enriched uranium.

By letters exchanged on May 8, 1957, the Parties to the Lease Agreement agreed that in establishing the schedules of delivery and return, the Government of Japan might return leased material at any time prior to September 30. 1960, notwithstanding any such agreed schedule, but, in any event, would return such material on September 30, 1960, or upon earlier termination of the Lease Agreement. Article VIII provides that the Lease Agreement shall remain in force until the Agreement for Cooperation, signed on November 14, 1955, and as it may be amended or superseded, expires or is terminated. The 1955 Agreement, as stated above, has been superseded by the 1958 Agreement, the term of which is ten years.

As the Government of Japan wishes to lease the enriched uranium to be transferred to the Government of Japan under the Lease Agreement for a period through or after September 30, 1960, it is proposed that paragraph 1 of the letters exchanged on May 8, 1957, shall be revised to read as follows:

1. Article I B of the Agreement contemplates that the Government of Japan (hereinafter referred to as the Lessee) and the United States Atomic Energy Commission (hereinafter referred to as the Lessor) may agree as to the date of transfer and return of material to be leased to the Lessee. It is understood that in establishing such schedules of delivery and return, the Lessee may return such material at any time prior to September 30, 1968, notwithstanding any such agreed schedule. In any event, the Lessee shall return such material on September 30, 1968, or upon the termination of the Agreement whichever occurs first.

If the above proposal is acceptable to the United States Atomic Energy Commission Acting on Behalf of the Government of the United States of America, I suggest that this letter and your reply indicating such acceptance shall be considered as constituting an agreement on the matter between the Government of Japan and the United States Atomic Energy Commission Acting on Behalf of the Government of the United States of America.

Sincerely yours,
Takeshi Yasukawa
Counselor

Mr. N. B. Kratzer, Acting Director
Division of International Affairs
United States Atomic Energy Commission
Washington, D. C.

Aug. 24, 1960

My. dear Mr. Yasukawa: I have the honor to acknowledge the receipt of your letter dated today, which reads as follows:

"I have the honor to refer to the Second Agreement of Lease of Special Nuclear Material between the Government of Japan and the United States Atomic Energy Commission Acting on Behalf of the Government of the United States of America, which was signed on May 8, 1957, pursuant to the Agreement for Cooperation between the Government of Japan and the Government of the United States of America Concerning Civil Uses of Atomic Energy, which was signed on November 14, 1955. The 1955 Agreement for Cooperation was superseded in its entirety on December 5, 1958. by the Agreement for Cooperation between the Government of Japan and the Government of the United States of America Concerning Civil Uses of Atomic Energy which was signed on June 16, 1958, as amended by the Protocol signed on October 9, 1958.

"Article I, paragraph B of the Lease Agreement contemplates that the Government of Japan and the United States Atomic Energy Commission may agree as to the date of transfer and return of leased enriched uranium.

"By letters exchanged on May 8, 1957, the Parties to the Lease Agreement agreed that in establishing the schedules of delivery and return, the Government of Japan might return leased material at any time prior to September 30, 1960, notwithstanding any such agreed schedule, but, in any event, would return such material on September 30, 1960, or upon earlier termination of the Lease Agreement. Article VIII provides that the Lease Agreement shall remain in force until the Agreement for Cooperation, signed on November 14, 1955, and as it may be amended or superseded, expires or is terminated. The 1955 Agreement, as stated above, has been superseded by the 1958 Agreement, the term of which is ten years.

"As the Government of Japan wishes to lease the enriched uranium to be transferred to the Government of Japan under the Lease Agreement for a period through or after September 30, 1960, it is proposed that paragraph 1 of the letters exchanged on May 8, 1957, shall be revised to read as follows:

"1. Article I B of the Agreement contemplates that the Government of Japan (hereinafter referred to as the Lessee) and the United States Atomic Energy Commission (hereinafter referred to as the Lessor) may agree as to the date of transfer and return of material to be leased to the Lessee. It is understood that in establishing such schedules of delivery and return, the Lessee may return such material at any time prior to September 30, 1968, notwithstanding any such agreed schedule. In any event, the Lessee shall return such material on September 30, 1968, or upon the termination of the Agreement, whichever occurs first.

"If the above proposal is acceptable to the United States Atomic Energy Commission Acting on Behalf of the Government of the United States of America, I suggest that this letter and your reply indicating such acceptance shall be considered as constituting an agreement on the matter between the Government of Japan and the United States Atomic Energy Commission Acting on Behalf of the Government of the United States of America.''

I am pleased to advise you that we agree to the proposal set forth above, and to confirm that your letter and this reply shall be considered as constituting an agreement between the United States Atomic Energy Commission Acting on Behalf of the Government of the United States of America and the Government of Japan. Sincerely yours,

M. B. Kratzer, Acting Director
Division of International Affairs

Mr. Takeshi Yasukawa
Counselor, Embassy of Japan
2514 Massachusetts Avenue, N. W.
Washington, D. C.