- DECLASSlFlEU ' lhority NNC 1 11'1- I ff- Q - J CONl'IJ1llNTIAL _ V Two Park Avenue New York 16 l Y April 26 1956 Dear Mr Secretary I have the honor to submit herewith as Chairman of the United states Ildegation a confidential report on the Working Level Heetines on the draft statute of the International Atomic Enerry Agency The meetinrr was held in Washinrrton D C from February 27 1956 to April 10 1956 At the conclusion thG revised text of the draft Statute of the International Atomic I nerfY Agency was unanimously adopted by the twelve Delegations present The text will be submitted to an International Conference to be convened durin the latter part of September at l nited l ations Headquarters in ilew York I recommend tile revised Statute as an acceptable basis for continuinr negotiations to establish this Agency at an early date It is based on proposals presented by the United States It includes provisior for the Agency to function as an e tomic pool i f the principal atomic pOliers reach aereement on the President's proposal for joint continuinr contributions frorl their stockpiles of fissionable tr aterials It provides the necessary pouers for an active Agency to foster the peace ll uses of atomic enerfY It incorporat es a system of safef'll rds Which if effectively applied will enforce necBssary controls over the use and dispo ition of nuclear materials The structure of the A ency lhile refiectinrr some compromises makes po sible an efficiently managed and responsible orl'anization in lhicb the United States interests will be protected l- hile certain reservations were expressed by tbe Soviet Intlian Czechoslovakian and Australian Delegations I believe that the tatute should find troad acceptance in substantially its present form and that thrre is reason to expect it to have the Bupport of those States even i f their reservations are not accepted at the eptember Conference This revised Btatute i f adopted substantially in its present fom should provide a sound casis for the operatiolm of the Arency and for participation of the United states L its lork incerely your5 Enclosures 1 2 The Report of the rhairmun of the Delegation The revised Draft Statute of the IAEA s James J Hadsworth The 1I0noral le John Foster Dulles Secretary of State CONTAINS N9 - DOdf i CLA S S ia W IFO OOOAOINlilE WI _ S'J DOE DECLASSIFICATION REVIEW E O _ BY d CQ' FI Jrl'TIAL B u t H j i D Jr DOElNN w ut A uthority l'lNO 4 b If r COHFIDEI-lTIAL I -- J Report of the Chairman United states Delegation to the Working Level leeting on the Statute of the International Atomic Ener Agency February 27 1956 through April 18 1956 I Introduction ' On January 26 1956 ' when you designated me United states Representative for International Atomic F nerpy Agency negotiations measureS to implement President isenhower's proposal for an International Atomic Enerpy A ency were at an advanced stage FOr almost a year after the President's proposal was made in Decem er 1953 the United States had sought nthollt success to make proJ ress in direct negotiations nth the Soviet Union In the faCE of this negative Soviet attitude a draft Statute for this proposed Agency was prepared at United States initiative in consultation with seven other friendly Governmente liith advanced atomic enerpy pror ra lls or material resources Australia Belgium Canada 'rance Fortugal Union of South Africa United Kingdom During the summer of 1955 at the Geneva meeting of the Heads of Governments the Soviet Union indicated a changed attitude toward the Agency Premier Eulganin offered to contribute fissionable material when an acceptable agreement had been reached on establishing the Agency In a note of October 1 1955 the Soviet Union accepted the initial draft statute transmitted to them in July as a basis for negotiation but suggested a series of substantial amendments On August 22 1955 the initial draft Statute was circulated for comment to all states which were members of the United fations or of the specialized agencies Plans for the Agency were the subject of extensive debate at the Tenth Session of the General Assembly of the United lations To offset criticism that procedures to establish the Agency statute did not provide adequate opportunity for an exchange of vielis the eight sponsorin rovernments announced their intention to invite members of the United Hations or of the specialized agencies to a conference on the final text of the Statute To prepare for this conference the novernments of Erazil Czechoslovekia India and the Soviet Union were invited to join dth the oripinal eight sponsoring J overnments in a workin level meetin to consider the draft Statute in the li ht of the comments received Y immediate task was to represent the United States at the 12-nation Workinr Level 'leetinp This l forking Level heeting convened in 1 fashington on i'etoruary 27 1956 with all invited participants in attendance and completed its labors on April 10 1956 aGBPter eirhteen sessions DECLA lrl U Authority I ____ __________________________________________________________ NI' 0 4 11 ootIFlDE' 'TIAL -2- At its last sessio' the 110rkinE Level lieeti unanimously adopted a revised text of the Statute of the International Atomic Energy Arency It also confirmed the previously announced intention to convene an international conference to conclude and open for signature the Statute of the Agency arreed that this conference would convene during the latter part of September at United flat ions Headquarters in Hew York and dec ded that invitations will be issued by the United States on behalf of the 12-nation ne otiatin roup to members of the United Hations or of the specialized 2Cl'encies The measure of unanimity achieved was the result of intensive negotiation and compromise The views of L8 nations were accommodated namely the 12 nations represented at the meetin s plus 6 other nations which submitted comments in writin Despite the reservations on certain particulars entered by Australia CZechoslovrucia India and the oviet Union all 12 Delerations present at the meetinl' voted in favor of the text of the Statute in its entirety Host of the separate provisions of the Statute were likewise adopted unanimously Only a few impor tant provisions were adopted on a split vote usually a vote of nine to three 1 th India Czechoslovakia and the Soviet Union mekinr up the minority At the start of the meetings the United states introduced comprehensive revisions of the draft Statute of August 22 1955 prepared after a careful review of the comments received on the earlier draft The United states revisions in large measure served as the basis for the negotiations at this meeting The tatute unanimously adopted by the 12-nation group incorporates the substance of the lI' ore impor tant United States proposals The new text advances the basic national policy of the United States as expressed in President Eisenhower's proposal of December 8 19 3 to share with the rest of the world under prudent safel 1lards the benefits of the development of the peaceful atom Since it also incorporates mel Y of the modifications sup gested ty other novernments not present at the rking Level tleetinr it should enjoy wide support at the fortllcomi international conference The new Statute provides a sound framework for developinp an Agency empowered to enforce adenuate safepUards and to assume as sivnifirant a role in the development of the peaceful uses of atomic enerFY as its members are willinp to entrust to it ith the fore oinf considerations in mind I recommend the present text as providing an acceptable basis for wholeheartedly continuing the nerotiations to establish this frency at an early date and ultimately for United States participation in its 1-1Ork I jor Provisions of Revised Statute The draft Statute of AUpUst 22 1955 negotiated by my predecessor Ambassador 110rehead Patterson provided all excellent basis for theBe COHFL'lFt1T IAL -3nerotia tions This draft sought to establish a broad statutory framel ork within which the Board of Governors and the membership of the Agency would have f exibility to determine the extent of the Agency's operations after it I S established This included the extent to which it would enforce safeguards against the diversion of fissionable materials to military uses o i In the revised draft the Agency's authorized functions have been both expanded and made more specific They now include not only the encouragement of research and the s eouring of technical services for recipient nstions but also the performance of these services by the Agency itself Supplies of fissionable materials for the A ency's work will be made available to the Agency at the discretion of members Provision remains in the revised Statute for the Arency to undertake the safekeepin ' of quantities of fissionarle material siphoned off fron weapons stockpiles as proposed by President Eisenh01 er Ruch a pool would be estarlished on a voluntary basis if the United states the Soviet Union and other nuclear powers subsequently enter into an apreement arlon ' thel1lSelves to deliver quantities of fissionable materials for storare by the A ency The Aflency would nOl l e charped with the positive responsibility to esta1 1ish and administer safeguards against diversion of fissionable material to military purposes The Agency is also authorized at the request of the partiilS concerned to apply its safeguards to any of its members' bilateral or multilateral arran ements for atomic enerrY assistance not otherwise under the Agency's supervision or control There Ias no discussion in the formal meetings of an agreement that all bilateral or multilateral arrangements would be placed under Agency safeguards but the question was raised privately with Ambassador Zarubin who requested a written statement of the proposal which is now being prepared by the Department of State and the Atomic Energy Commission Acceptance of the Agency's safeguards is now a precondition of receiving assistance from the A ency These safeguarde incorporate measures deemed essential by the Atomic Enerpy Commission and include accountability for fissionable materials control over chemical reprocessinp and over disposition of recovered fissionable materials establishment of a staff of inspectors and remedial measures in the event of non-compliance It is anticipated that the Agency ill have a relationship to the United Ilations similar to that of a specialized aflency thoul'h i t will not oe formally identified as such In accordance with the new draft Statute the aln eement entered into i th the United lIations will require the fi t ency to submit reports to the neneral ssemrly to the Security Council t hen appropriate and to the Econo ic and Social rouncil and other orran of the United lations on matters tdthin their fields of competence The Ar ency tdll also consider recOi'll1lendationa from United Nations orpans but Hill not re oblirated to accept direction from them CONFJDTh'T IAL -4- Eligibility for initial membership in the Agency is lilr ited to those states which are members of the United i ations or of the specialized agencies Once the A ency is esteblished approval of additional applicants for membership ill loe riven by the Foard of Goverr ors ar d General C onference of the Agenc ' lith due consideration to the ap licant's ability and uillingness to act in accordance with the purpose and principles of the Charter of the United Nations In reaching a compromise on the Foard of r ernors we rpluctantly departed from the initial emphasis on a small board composed mainly of countries contributing materials or technical assistance to the Agency Under the a reed formula for the Board it rill consist of 23 members 13 of them designated in accordance with criteria combinill ' technical qualifications for membership with the principle of equitable eographic representation These designations will be made by each outgoin Board In the case of the first Poard these desirnations will be made by a Preparatory Commission consistinv of the 12 participants in the negotiatinF group plus six additional countries to be eleeted by the September conference For the first Board i t is anticipated these 13 desipnated members will be United states United Kin dom Canada France Union of Roviet Socislist Republics Brazil Union of South Africa India Australia Japan either Felpium or Portu al either Czechoslovakia or Foland and anoth er advanced atomic energy state probably Scandinavian selected as a supplier of technical assistance The other ten members will be elected at large by the membership of the A ency on the basis of equitable peo raphic representation It is anticipated that p eo 'raphic distribution on the first Foard as a whole tull be along the following lines North America 2 Africa and the 11iddle East 3 Latin America 4 F astern Furope o ooooooo oooo 3 I oooooooo I-I Western Europe oooooooo S Southeast Asia and the Pacific oo 2 Far East ooooooooooooo 2 South Asia ooooooooooooooo oooooo 2 _23 In spite of the large size the orientation of the majority of this Board for the foreseeable future can be considered to be pro-'iestern for all important political and technical decisions At the ver y minimum 13 members United States United Kingdom Canada France Union of South Africa Australia Japan Eelgium or Portugal Brazil three additional countries from Latin America the viestern Furopea_n countl J ' elected at large and the country designated as a supplier of technical assistance can be counted on to llOrk with the United States Pos ition GBPGBP Delegations The original amendment proposed by the Soviet Union in these negotiations would if adopted have resulted in an Agency l hose activities would be minimal It would have been authorized to handle and store only token quantities of fissionable materials Its activiti es WOuld have 10 een r ONFIJ1 iNTIAI CONFIDEI 'TL L -5restricted by settin a ceilinr on its bud et and a limitation of 15%as the maximum contribution of al' Y one country It HOuld have been precluded froro operatinr as an atomic pool and its ri l'hts and responSibilities I-Ioru d have bee n susceptib 1Je of severe limitation 17 a provision requiriw that the Ar ency's activities be carried out with due regard for the sovereipn rights of states The Soviet Union also proposed that the Agency operate under the control and supervision of the General Assembq and 5ecurity rouncil of tha united lTations and that final authority within the ll 'ency itself be vested in a General Conference made up of the entire membership During the course of the negotiations the Sovip t nelepation withdre their ge d that the Apency operate under the control and supervision of the r n ral Assembq and the Security Council and supported the new provision sponsored by the United states and India that the Arency submit reports to the General Assembq to the Security Council when appropriate and to other organs of the United Nations on matters within their competence They alSo accepted the compromise language opening the way for an atomic pool o They re istered six reservations on provisions of the revised text These include 1 membership on the Foard of Governors for rommunist China 2 limiting the Agency's authority by requiring it to conduct its activities with due observance of the sovereign rirhts of states 3 opening Agency membership to all states 4 limitinl' the size of the bud et of the A 'ency 5 providing that amendments to the Statute reqllire a three-fourths rather than a two-thirds majority and 6 makine de cia ions of the General Conference binding on the Board of Governors The Dele ation of rzechoslo ia entered reservations which are identical in substance to those of the Soviet Union In addition to supportinp the foviet Union on most of the above points the Indian Deleoation advanced several proposals to Teaken the safel'Uards and control provisions First they proposed that the rir ht to enforce the safel'Uards be derived from agree 1ents Hi th recipient countries rather than from the Statute itself This would have the effect of reducillE' the bargain ing power of the Ap ency in negotiating such apreements Second they objected to including a requirement that recipients of Agency assistance be held accountable for source materials Third they objected to the Agency having the right to equire that by-product fissionable materials not useful in Agency approved projects be returned to the Agency for safekeeping The Lndian Deleration took the position that a recipient country should have the unqualified right to store such materials lnthin its own territory subject onq to A e accountabilit r procedures The Indian neleration entered reservations on all three of the A Ove points Ln addition they reservod their positi n on thu Board of r overnors bo ause of their content on that the addition of the seat for a supplier of tecm l assistance would lead to over-representation for '''estern Furope The Australian Delefation reserved its position on the provision of the Statute concerning the referral of disputes to the Lnternational Court of Justice They arl'Ued that the lan af e adopted is ambiruous and susceptible roI'FIPJ IAL ' CONFIDENTIAL -6- to a variety of interpretations and therefore should e replaced with langUB e I hicp makes it at solutely clear that any party can compel another party or parties to take such disputes to the Court The language adopted is patterned on the constitution of the I HlO which the United States regards as providinf for the referral to the Court of disputes concernin the interpretation or application of that constitution at the instance of any party uthout requirihr the consent of the respondent party or parties Except for eneurine protection of their mm interests on the Foard of Governors other deler ations participatin in this meeting for the most part supported the United s tates positions These positions were developed in close co n sultation I ith the United Kingdom and Canada As was anticipated the Board of Governors was the most difficult issue to negotiate India and the Soviet Union from the be inning insisted that more emphasis be ' ivsn to purely geor-raphic representation The group of five source material producer states Australia velgium Brazil Portue-al ani the Union of South Africa Were equally insistent that their position be protected OUr own initial position called for a Eoard 50 composed as to ensure a majority of technically qualified responsible members fUmerous formulae and proposals were put fort ard officia v and in private consultations The meeting adjourned from mrch 21 until April 18 to permit the private consultations to continue Finally India produced a proposal combining the principles of technical qualif ications and eor raphic representation which with two important amendments was considered acceptable to the United States and ei ht other delegations f ustralia Pele-ium Frazil Canada France Portul'al Union of South Africa United KiDf'dom and is the basis of the formula finally adopted The amendments considered necessary called for the addition of tHO seats on tile P oard one for a supplier of technical assistance desi cnated by the oukoin Foard which for the next few years would presumably he filled by a Western European country and another seat to be filled t7 election by the General Conference pr surnably by a Latin American country In opposin ' these amendments India arrued thet the addition of these two seats disturbed the balanced and equitable peographic representation provided for in the oricinal Indian proposal The Indian Deleration voted against the seat for a supplier of technical assistance and abstained in the voting on the additional elected seat They also abstained in the vote on the formula for the Foard of Governors in its entirety The Soviet Union made various proposals dil'ected at obtaining a maranteed fourth seat for Eastern Europe but did not press this point They also proposed cormunist China be made a member of the Foard a proposal which was defeated by a vote of 9 in favor and 3 arainst Soviet Union Czechoslovakia India They abstained in the vote on the s eat for a supplier of technical assistance and voted in favor of the additional elected seat They subsequently voted in favor of the formula as a whole but reserved their position on the question of memtership on the Foard for COl1Uil1 cnist China In recording this reservation the Soviet Delegation made it clear that in spite of their reservation they considered their CO 'FmF 'TIAL - 7vote in f avol o t he formula as a whole as an oblif'ation to support that formula at the forthcoming international conference Conclusion The af'reed statute provides 1n my jud ent a sOlJnd and Horkable basis f or an effective A ency provided that the powers granted by the Statute are actually exercised I must point out however that despite an open challenge by t he Incasn delegate the United States has refrained from undertakinf a commitment in advance as to the amount of fissionable materials it will contribute There is understandable interest among many countries acout the extent to which the United States will furnish nuclear materials throueh the Apency rat her than bilaterally and about thE ext ent to 'lhich ue will put our bilateral agreements under Agency safeguards In view of the Indian reservations on control and afeguards e I lUst continue to reserv t his pos ition in order to maintain our l argaining pOl er and protect our o m security At the opening of the Soptember conference hOl ever we should be prepared to announce an initial substantial corudtnent The iull measure of our material support of the Agency as well as our position on putting our bilateral agreements un ler the Apency safe Uards system cannot be determined until thE adequacy of the safeguards and the responsicility and eff iciency of the Afency 's management are proven One outstanding aspect of these nerotiations I as thE spirit of cooperation which prevailed throuahout diecussion of even the most controversial issues which led to the final unanimity om the ver r outset flmoassador Zaruhin Chairnan of the Soviet Delegation exhibited a willin ness to be cooperative and to seek agreement He actively sought consultations with the United States l1elepation and emphasized the L porta nce of achievin unanimity ile he adhered tenaciously to manf of the standard f ov1et ideolo ical positions he was apparently p-iven considerable l eeway in his instructions to accept compromise and in fact at times to sup-rest them He initiated the sUfpestion that a final vote be t aken on the statute as a Hhole so that we could announce despite certain r eeervations on etails that the Statllte had t een adopted Ilnaoinously Dur i na the final meeting he reaffirmed his Delegation's reservations but the tone of his statement as restrained and conciliatory and procably can oe considered a foreshado Iing of the positions the Soviet Union will take at the September conference This stat ement sugpests that the oviet Union by its vote on the Statute as a whole has asslJmed an ocligation to support that Statute at le conference in all its particulars except for those points on which it haa entered specific r eservations The Soviet Delegation's show of cooperation should ce evaluated i the of the rorldwide approval of the President's proposal and of the minimal comrr tments of the major supplier countries such as the U r ted States and the Soviet Union derivinr from the present Statute These do not include li ht CONFIDENT IAL -8- i I commitments to furnish fissjonabl materials to participate in an atomic pool to submit bilaterals to 1pency supervision or to accept any form of inspection The only specific commitment undertaken by adherinr to the tatute is the oblipation to pay the small assessment required for the administrative louciFet of the Apency It seems clear from their conduct at the ner otistions that the Soviets have accepted the fact that there will be an international agency in the peaceful uses fiEURld and that it would not l e in keepinr uith their present posture to oppose such an al'ency to which most other countries look with real hope They apparently intend to take an active role in the operation of the Agency steeriD ' it as far as pOBsiHe in the directions hich best suit their interests and gainiD ' as much propaFands loenefit fer themselves as possihle at the same time they have tried to make sure that their membership will put then under no ocli ation to make any substantial sacrifi ces for the Agency In spite of the degree of unanimity achieved the reservations entered particularlY InOia and the Soviet Union presa e a livelY lnd spiritert conference this September The present text of the Statute however represents a sound and reasonable approach which should con nd widespread support even from the smaller and less developed countries 1'he safeguards provisions while adequate cannot be considered unduly onerous when viewed in the light of the gravity of the security problem or the benefits to oe derived therefrom Representation on the Board of r vernors is equitable and qdte I'enerous from the point of view of the less developed areas of the ' rId With appropriate advance preparation aOO explanation of the U S point of vie there is every reason to expect that the September conference nll adopt a Statute substantiallY similar to the present draft In closing this report should like to pay tribute to the ability imagination and ener displayed by the advisers provided me by the Department of State and the Atomic Fner Co ission I am particularly rrateful for the understanding and support which I received at all times from you end Admiral strauss tit te - FD COiiFID - -n-IAL                     National Security Archive    Suite 701  Gelman Library 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