199 



In 1961 the International Agency adopted guidelines for a safe- 

 guards system. The AEC in turn adopted these principles and pro- 

 cedures to be applied under its bilateral agreements, and the countries 

 involved indicated their willingness to consult with the United States 

 about future transfer of safeguards for U.S. -supplied materials to the 

 IAEA. 157 During 1962 the IAEA and AEC completed negotiations 

 for application of Agency safeguards to the four reactors, and two trial 

 inspections were carried out by IAEA inspectors at these reactors. 158 



In 1963 the AEC and a bilateral partner completed an agreement 

 to transfer to the IAEA the function of safeguarding U.S. -supplied 

 material. While most of the nuclear power bilateral agreements of the 

 United States were with European countries, the first such agreement 

 was executed with Japan. Entering into force on November 1, 1963, 

 this trilateral agreement of the United States, Japan, and the Inter- 

 national Agency provided for the Agency to safeguard any nuclear 

 material, equipment, and facilities supplied to Japan by the United 

 States. It also specified that Agency safeguards would apply to any 

 fissionable material produced in the Japanese facilities upon its 

 return to the United States for reprocessing unless the U.S. substi- 

 tuted an equivalent quantity of like material in Japan. 159 This pro- 

 vision was doubly innovative: it recognized the idea that IAEA 

 safeguards should follow the return flow of safeguarded material from 

 a recipient country to the country where it was processed or used; 

 and it provided a way for the supplying nations to break the chain 

 of safeguards simply by substituting a like amount of material at 

 the recipient country. By this device, a supplier country like the United 

 States, or the U.S.S.R. or the United Kingdom could avoid IAEA 

 inspection of nuclear material sent by a third party. 



The IAEA Board of Governors in 1963 provisionally approved a 

 system of safeguards for small power reactors and the Seventh General 

 Conference that year adopted a. U.S. -proposed resolution endorsing 

 the Board's action. AEC Chairman Seaborg recommended to the 

 Conference that the Agency consider extending safeguards to facilities 

 for fabricating and for reprocessing nuclear fuel ; also that the Agency 

 compile and publish an international registry of ocean disposal sites 

 for radioactive wastes and undertake the development of international 

 or regional wastes burial grounds. 160 



In 1964 IAEA safeguards were expanded to include power reactors 

 of any size. At this time, many members of the Agency called for 

 clarification and simplification by revising the whole safeguards sys- 

 tem. A start was made in that year. 



In 1965 the IAEA Board of Governors provisionally approved a 

 clarification and simplification of the Agency's safeguards system. 

 The General Conference that year adopted a U.S.-proposed resolu- 

 tion to approve this revision and the Board of Governors effectuated 

 the revised system on September 28, 1965. 161 The State Department 



157 U.S. Atomic Unersrv Commission. Annual Report to Congress of the Atomic Energy 

 Commission for 1961 (Washington, DC. : U.S. Government Printing Office. 1002), p. 2::3. 



^U.S. Atomic Enerjrv Commission. Annual Report to Congress of the Atomic Energy 

 Commission for 1962 (Washington, D.C. : T T .S. Governmpnt Printing Office, 196^), p. 296. 



1C8 U.S. Atomic Energy Commission. Annual Report to Congress of the Atomic Energy 

 Commission for 1963 (Washington, D.C: U.S. Government Printing Office, 1964), p. 2:!4. 



160 Ibid., p. 233. 



161 U.S. Atomic Energv Commission. Annual Report to Congress of the Atomic Energy 

 Commission for 1965 (Washington, D.C: U.S. Government Printing Office, 1960), p. 254. 



