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NON
PROLITERATON
ANNEX
"Ministers have agreed the following approach:
(a) No requirement for IAEA safeguards (since the FRC is
a Nuclear Weapon State);
(b) But we should seek assurances of physical protection,
no diversion from peaceful use, and no retransfer without agreement.
Non-proliferation conditions may prove to be a key factor in establishing Chinese preference between the US and France. The French have obtained President Carter's approval to their supplying on similar conditions a French built PWR based on a Westinghouse design. But the US position on direct supply to the PRC would be different. It seems likely that even if IAEA safeguards were not required bilateral US safeguards would be.
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