RESTRICTED

Department of Energy

MNP 022 15

ہوگا۔

Eater (9.4) (25

RECEIVED IN REGISTRY NO. 76

2. 9 MAY 1982

Thames House South Millbank London SW1P 4QJ

Telegrams Energy London SW1

OCUK OFFICER

INDEX

REGISTRY

PA

Actice Takon

Telephone Direct Lirje 01-211

Switchboard-04-244-8000-

Stephen Williams Esq

Nuclear Energy Department

Foreign and Commonwealth Office

Downing Street East

SW 1

Den Happier,

Your reference

Our reference

Date

14 May 1982

TECHNICAL CO-OPERATION:

REVISED GUIDING PRINCIPLES

In response to my letter to you of 30 April you sent me a copy of floMay. Arthur Watts' minute I am puzzled by some of his views and the (23)

questions he has raised; on others, I assume you are taking the necessary action within the FCO.

On the points raised in paragraph 1 of Arthur Watts' minute, I do not think there is any call for concern. As the Agency's letter of 15 March makes clear, the Board of Governors approved revised principles and operating rules for the provision of technical assistance in February 1979, on the basis of which a revised supplementary agreement was drafted by the Agency. The real point of the agreement lies in Article III, which requires an undertaking not to use technical assistance for any military purpose or for a nuclear explosive device. The wording of this Article was agreed by the Board but opposed by certain Member States unwilling to sign the NPT or the Treaty of Ttateloko. Its purpose is obvious. It

was not thought necessary to clear the rest of the wording of the agreement with the Board. The IAEA is not acting prematurely: on the contrary, by asking recipient Member States to conclude the revised supplementary agreement, it is simply fulfilling the remit of the Board. Moreover, its conclusion would dispense with the need for any further agreements before technical assistance is given.

I agree with the point (paragraph 2) that it should be made clear the UK is acting on behalf of Hong Kong. I would not favour the suggested alternative, if only for the reason given in my letter of 30 April.

The points in paragraph 3 of Arthur Watts' minute are very pertinent. I would not have thought they should cause any difficulty, but you will no doubt be clearing them with the relevant Department in the FCO.

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