These latest increases follow substantial export price rises imposed by the Canadian Government on January 1 of this year and earlier increases which have raised the prices paid by American consumers for Canadian natural gas under long term, firm contracts more than 500 percent since 1973.

U.S. officials met with Canadian officials in Ottawa on April 22 to explain our concern over the serious impact another large price increase would have on regions in the United States which are substantially dependent on Canadian gas imports.

At the meeting, we emphasized our view that such an increase constitutes a further breach of the long term contracts covering these exports. We expressed our understanding of the need to increase natural gas prices over a reasonable period of time to commodity value, which is also a U.S. policy objective.

It was noted, however, that the increase proposed by Canada, as in January, will be applied only to U.S. consumers Canada's sole export consumers not to Čanadian users. This price increase will further widen the gap between the export price and the price to Canadian consumers, thus increasing the discrimination against the United States.

At the April 22 meeting, as in previous discussions with Canadian officials, we dwelt on the importance we attach to a continuing supply of gas under these long term contracts. The question of supply continues to be of great concern to us, and we expect to have further consultations with Canada to discuss this issue.

This decision by the Canadian Government and Canada's stated intention to impose further increases in the export price for natural gas demonstrate the urgency for a clear U.S. energy policy to stimulate rapid development of our own resources and permit us to reduce dependence on foreign energy suppliers.

Dept. of State Bulletin, Vol. LXXII, No. 1874, May 26, 1975, pp. 686-687.

Atomic Energy

Civil Uses

On January 13, 1975, the United States and Israel signed an agreement (TIAS 8019; 26 UST 127; entered into force March 24, 1975) extending for two years, until April 11, 1977, the 1955 Agreement for Cooperation Concerning Civil Uses of Atomic Energy (TIAS 3311; 6 UST 2641), as amended. The extending agreement was accompanied by an exchange of notes, constituting an integral part of the Agreement for Cooperation and placing on record "the long-held understanding that no material, including equipment and devices, subject to the Agreement for Cooperation. and no material produced through the use of such material, including equipment and devices, may be used for any nuclear

explosive device, or for research on or development of any such device, regardless of how the device itself is intended to be used."

The extending agreement was submitted to Congress under Sec. 123 of the Atomic Energy Act, as amended by P.L. 93-485 (88 Stat. 1460; 42 U.S.C. 2153), approved Oct. 26, 1974. See the 1974 Digest, Ch. 10, § 8, p. 575. It was approved by concurrent resolution of Congress on Mar. 11, 1975 (S. Con. Res. 15).

On November 5, 1975, Secretary of State Kissinger and Egyptian Deputy Prime Minister and Foreign Minister Ismail Fahmy initialed a statement recording agreement in principle between the United States and Egypt to conduct a program of cooperation in the field of the peaceful uses of atomic energy. The statement envisaged a Nuclear Cooperation Agreement to be signed upon completion of technical negotiations and defined the areas of cooperation in power generation and related technology. In addition, it outlined safeguard measures to prevent the spread of nuclear weapons technology to the Middle East. The statement also envisaged that the same safeguards would be applied in any Nuclear Cooperation Agreement to be concluded between the United States and Israel.

The text of the United States-Egyptian Joint Statement on Proposed Cooperation in Fields Pertaining to the Peaceful Uses of Atomic Energy follows:

The Government of the Arab Republic of Egypt and the Government of the United States of America have agreed in principle to conduct a program of cooperation in the field of the peaceful uses of atomic energy pursuant to a proposed agreement for cooperation in accordance with the following principles:

1. The agreement is expected to cover cooperation in fields pertaining to the peaceful uses of atomic energy, including design, construction and operation of research and power reactors, desalinization, the beneficial uses of radioisotopes and radiation sources, the exploration and development of uranium resources, and related health and safety considerations.

2. The agreement for cooperation will enable Egypt at the outset to purchase from the United States nuclear power reactors having an approximate total electrical capacity of 1200 MWe and the slightly enriched uranium necessary to fuel these facilities.

3. Such cooperation will be under the terms fully compatible with the nonproliferation objectives of the two governments including their desires to assure that the introduction of nuclear power for civil uses into the Middle East will occur under carefully safeguarded conditions. These conditions will be designed to assure that the U.S.-supplied facilities, materials, and their products, as well as the associated relevant technology, are used for peaceful purposes only and will include the following main provisions to ensure that:

a. None of the assistance provided will be employed for any military purposes, including the manufacture of any nuclear explosive device.

b. The materials and facilities to be supplied as well as the produced plutonium will be subjected to international safeguards, administered by the International Atomic Energy Agency, designed to assure their continued uses for peaceful purposes.

c. The plutonium produced in the agreed upon 1200 MWe power reactors under the agreement or derived from the U.S. fuel supplied for these facilities will be reprocessed, fabricated and stored outside Egypt.

d. Facilities utilizing relevant nuclear technology obtained from the United States will be under effective safeguards.

e. The Government of Egypt guarantees to apply effective physical security measures to the facilities and nuclear material covered by the agreement.

It is the intention of the United States that at such time as negotiations are completed the same safeguard provisions and special measures will be included in both the U.S. Cooperation Agreements with Egypt and Israel respectively. If certain provisions are modified or altered in one agreement, it is the intention of the United States Government to introduce such modifications or alterations in the other agreement.

Both Governments will consult closely with their respective legislatures on the nature and details of their proposed new agreement, bearing in mind the importance that such an agreement will hold for their peaceful nuclear cooperation, and their respective non-proliferation policies.

After finalization of the text of the Agreement for Cooperation, it will enter into force after the completion of statutory and constitutional requirements of both parties.

Dept. of State Bulletin, Vol. LXXIII, No. 1900, Nov. 24, 1975, p. 732.

Defense Uses

On January 27, 1975, the United States and the United Kingdom exchanged notes bringing into force an amendment signed July 22, 1974 (TIAS 8014; 26 UST 110), to the Agreement of July 3, 1958, between the two Governments for Cooperation on the Uses of Atomic Energy for Mutual Defense Purposes (TIAS 4078; 9 UST 1028; entered into force August 4, 1958). The amendment extends, under the authority of the Atomic Energy Act of 1954, as amended (68 Stat. 919; 42 U.S.C. 2011 et seq.), those provisions of the 1958 Agreement, as amended, which provide for the transfer of materials and equipment for research on, development of, or use in atomic weapons. The amendment specifically extends the materials transfer provisions of the basic agreement for a five-year period terminating on December 31, 1979, unless extended again.

Indemnity

Public Law 94-197 (89 Stat. 1111), approved December 31, 1975, amended the Price-Anderson provisions of the Atomic Energy Act of 1954, as amended (42 U.S.C. 2014, 2210), to provide for the phaseout of governmental indemnity as a source of funds for public remuneration in the event of a nuclear incident. It also extended indemnity coverage outside the territorial limits of the United States for certain limited activities.

The report of the Joint Committee on Atomic Energy on the new legislation states, in part:

There are two situations in which the protection afforded by the Price-Anderson Act with respect to licensed activities

would be extended to nuclear incidents occurring outside the territorial limits of the United States. The first situation involves ocean shipments of new or spent fuel which may move outside the territorial limits of the United States during ocean transit from one licensed nuclear facility to another. The second situation involves nuclear facilities which are physically located outside of the territorial limits of the United States but whose construction and operation are licensed by the Nuclear Regulatory Commission, such as a floating nuclear powerplant located beyond the limits of the territorial sea of the United States. The legislation would authorize the Commission to extend PriceAnderson indemnity protection to such shipments and such facilities.

See S. Rept. No. 94-454 and H. Rept. No. 94-648, 94th Cong., 1st Sess.

Safeguards and Export Controls

President Gerald R. Ford, in a message to the Congress on May 6, 1975, forwarding a report on U.S. laws and regulations governing nuclear exports and on domestic and international safeguards, stated his conclusion that "current laws provide ample authority to control the export and re-export on nuclear related material, equipment, and technology." He added:

Nevertheless, existing policies and regulations are constantly being reexamined and changed as appropriate. Domestic safeguards are under continuing review for the purpose of making them even more effective. The international safeguard system will detect and thus help to deter efforts to divert such materials by other nations.

As the volume of material and the nature of facilities grow in the world, commensurate increases and improvements in the international safeguarding system will be needed. The United States is encouraging the strengthening of international safeguards by aiding and supporting IAEA [International Atomic Energy Agency] safeguard development efforts. It is also seeking to enhance physical security through the adoption of an international convention. The U.S. is taking the lead in advocating in-depth physical protection measures necessary to preclude terrorist groups from capturing such material or conducting sabotage activities.

I wish to assure Congress that the prevention of the proliferation of nuclear weapons or the acquisition of nuclear explosive materials for possible nonpeaceful uses is a priority concern in my Administration. Whatever efforts are needed to allow the U.S. and other countries to enjoy the benefits of nuclear power, without fear, will be taken by the Government of the United States.

Dept. of State Bulletin, Vol. LXXII, No. 1874, May 26, 1975, pp. 696-697. The President's message is also printed as H. Doc. 94-131, which includes the text of the accompanying report, submitted in accordance with § 14 of the Export

Administration Act Amendments of 1974 (P.L. 93–500; 42 U.S.C. 2153 note), approved Oct. 29, 1974.

New requirements for the issuance of licenses to export nuclearrelated commodities to non-nuclear-weapons countries not party to the Treaty on the Non-Proliferation of Nuclear Weapons (NPT) (TIAS 6839; 21 UST 483; entered into force for the United States March 5, 1970) were incorporated in the Code of Federal Regulations, Title 15, Part 378, effective July 21, 1975. Rauer H. Meyer, Director of the Office of Export Administration in the Department of Commerce, filed the following announcement in the Federal Register on July 24, 1975:

In accordance with U.S. adherence to the Nuclear Non-Proliferation Treaty and consistent with U.S. Non-Proliferation policies, special assurances must be obtained by the U.S. Government from the consignee government or appropriate international organization before a license is issued for export of certain nuclear-related commodities to a non-nuclear-weapon country not a party to the Treaty.

The list of nuclear-related commodities subject to this assurance procedure is set forth in a new Supplement No. 2 to Part 378, and the countries that are parties to the Treaty are set forth in a new Supplement No. 3 to Part 378. Effective date of action: July 21, 1975.

Accordingly, Part 378 of the Export Administration Regulations (15 CFR Part 378) is amended as follows:

2. The special assurances are set forth in a new § 378.5 as follows: § 378.5 Nuclear Non-Proliferation Treaty provisions.

Consistent with its obligation under the Nuclear Non-Proliferation Treaty (NPT) and U.S. Non-Proliferation policies, the U.S. Government will not authorize the export of the commodities listed in Supplement No. 2 to Part 378 to nonnuclear weapon states not party to the NPT for peaceful purposes until the consignee government or appropriate international organization certifies in writing to the U.S. Government either (a) that the export will be subject to the terms and conditions of an appropriate Agreement for Cooperation with the Government of the United States; or (b) that (1) the source of special fissionable material produced, processed or used in any facility in which the item is used shall not be used for nuclear weapons or other nuclear explosive devices; or for research on or development of nuclear weapons or other nuclear explosive devices, or for any military purposes;

(2) Safeguards, under an agreement with the International Atomic Energy Agency (IAEA) in accordance with its safeguards system, will be applied to such source or special fissionable material; (3) the equipment or material to be exported will fall under a safeguards agreement with the IAEA; and (4) the commodities will not be reexported to any non-nuclear-weapon state not party to the NPT unless arrangements corresponding to those required hereby are made with the government of the country or the international organization receiving such reexport. Accordingly, upon receipt in the Office of Export Administration of an application to export a commodity listed in Supplement No. 2 to a nonnuclear-weapon state not party to the NPT, the U.S. Government will initiate