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Exchange of Letters between the Government of Canada and the Government of Sweden regarding the Retransfer of Specified Nuclear Material and constituting an Agreement on the Application of the September 27, 1977 Canada-Sweden Agreement, as amended [1991] CATSer 29 (27 November 1991)

E101774 - CTS 1991 No. 46

EXCHANGE OF LETTERS BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF SWEDEN REGARDING THE RETRANSFER OF SPECIFIED NUCLEAR MATERIAL AND CONSTITUTING AN AGREEMENT ON THE APPLICATION OF THE SEPTEMBER 27, 1977 CANADA-SWEDEN AGREEMENT, AS AMENDED

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The Ambassador of Canada to the Minister of Foreign Affairs of Sweden

CANADIAN EMBASSY

STOCKHOLM, November 20, 1991

Mrs. Margaretha af Ugglas,
Minister for Foreign Affairs,
Stockholm

Dear Madame,

I have the honour to refer to the "Agreement between the Government of Canada and the Government of Sweden Concerning the Uses of Nuclear Material, Equipment, Facilities and Information Transferred Between Canada and Sweden" signed on September 27, 1977 as amended (hereinafter referred to as "the Agreement").

2. Article III (1) of the Agreement provides in part that "Equipment, material, nuclear material and facilities referred to in Annex A to the present Agreement shall be transferred beyond the jurisdiction of a Party only with the prior written consent of the appropriate governmental authority of the other Party". In order to facilitate the application of this provision, I have the honour to propose that:

a) in the case of natural uranium, depleted uranium, other source material, uranium enriched to less than 20% in the isotope U-235 and heavy water, Canada hereby provides its consent to the future transfer of such items by Sweden beyond its jurisdiction to third parties provided that:

i) such third parties have been identified as acceptable by Canada in writing from time to time;

ii) Sweden, for each such transfer, inform the third party that the material and nuclear material transferred is subject to the provisions of a nuclear cooperation agreement between Sweden and Canada;

iii) Sweden make subject to the Agreement, upon receipt, material and nuclear material transferred to Sweden from a third party identified pursuant to i) above when the third party informs Sweden that the material and nuclear material is subject to a nuclear cooperation agreement between the third Party and Canada; and

iv) notification and reporting procedures acceptable to both Parties relating to such transfers have been established.

b) transfers other than those transfers referred to in a) above shall continue to require the written consent of Canada prior to the transfer.

3. Further to Article III (1) of the Agreement, Canada hereby provides its consent for the transfer beyond the jurisdiction of Sweden, in any given period of 12 months, to any State Party to the Treaty on the Non-Proliferation of Nuclear Weapons or to the IAEA of the following materials and quantities:

i) special fissionable material (up to 50 effective grams);

ii) natural uranium (up to 500 kilograms);

iii) depleted uranium (up to 1000 kilograms); and

iv) thorium (up to 1000 kilograms).

The appropriate governmental authorities shall establish reporting procedures for the purpose of reviewing the implementation of this provision.

4. With reference to Article II(i) of the Agreement and in light of the procedures established pursuant to 2.a. iv) above, Canada proposes that Sweden agree that, in cases where natural uranium, depleted uranium, other source material, uranium enriched to less than 20% in the isotope U-235 and heavy water are received by Sweden from a third party, identified in accordance with 2.a.i) above, which has identified the item as being subject to an agreement with Canada, the present Exchange of Letters shall be regarded as satisfying the requirement for prior specification. In such cases, the items shall be subject to the Agreement upon receipt.

I have the honour to propose that if the foregoing is acceptable to the Government of Sweden this letter, which is authentic in English and French, together with your reply to that effect shall constitute an agreement concerning the application of the Agreement.

Please accept the assurances of my highest consideration.

Michael B. Phillips

Ambassador

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The Minister of Foreign Affairs of Sweden to the Ambassador of Canada

MINISTER FOR FOREIGN AFFAIRS

STOCKHOLM, 27 November 1991

His Excellency Mr. M. B. Phillips
Ambassador Extraordinary and Plenipotentiary
of Canada

Your Excellency,

I have the honour to acknowledge receipt of your letter dated 20 November 1991 with the following content:

(See Canadian Letter of November 20, 1991)

I have the honour to confirm that your letter and this reply shall constitute an agreement between our two Governments which shall enter into force on the date of this reply.

Accept, Excellency, the assurances of my highest consideration.

Margaretha af Ugglas