The Government of Japan, and the United States Atomic Energy Commission (hereinafter referred to as the United States Commission) acting on behalf of the Government of the United States of America, with respect to the lease of special nuclear material pursuant to the Agreement for Cooperation between the Government of Japan and the Government of the United States of America Concerning Civil Uses of Atomic Energy, signed November 14, 1955, and as it may be amended or superseded, and subject to all of the terms, conditions, provisions, and guaranties contained therein,

AGREE AS FOLLOWS :

　　　　　The United States Commission hereby agrees to lease to the Government of Japan approximately ten (10) kilograms of uranium enriched to nineteen and one-half per cent (19.5%) to twenty per cent (20%) in the isotope U-235, i.e., containing two (2) kilograms of U-235, to be contained in reactor material to be prepared in the United States of America by a contractor employed by the Government of Japan to prepare such material, for use in the operation of a solution-type research reactor manufactured by North American Aviation, Inc., to be located at the Japan Atomic Energy Research Institute, Tokai-mura, Naka-gun, Ibaragi-ken, Japan. The United States Commission hereby further agrees, upon request by the Government of Japan, to lease to the Government of Japan such additional quantity of uranium enriched to nineteen and one-half per cent (19.5% to twenty per cent (20%) in the isotope U-235 as may be necessary to replace any significant amounts of reactor material that may be accidentally lost or destroyed.

　　　　　A) Within one hundred and twenty (120) days after receipt of a request, endorsed by the Government of Japan, from the contractor employed by the Government of Japan to prepare reactor material in the United States of America for the reactor, the United States Commission shall transfer to such contractor, at a United States Commission facility, in the form of uranium hexafluoride, such amount of uranium enriched to nineteen and one-half per cent (19.5% to twenty percent (20% in the isotope U-235 as is required to prepare such reactor material. Such transfer to the contractor shall be subject to such terms, charges and conditions including licenses necessary to receive such material and to perform such work in the United States of America, as are required of such contractor by the United States Commission.

　　　　　B) The Government of Japan and the United States Commission shall agree upon a point in the process of preparation of the reactor material by the contractor employed by the Government of Japan, at which samples will be taken for analysis in the United States of America by an analyst to be selected by the Government of Japan and the United States Commission. The results of such analysis shall establish the enrichment of such prepared material. The Costs of such analysis shall be shared equally by the Government of Japan and the United States Commission. The quantity of such reactor material will be certified to the Government of Japan and the United States Commission by the contractor who prepared such material.

　　　　　C) Upon completion of the preparation of the reactor material for the reactor by the contractor employed by the Government of Japan, said contractor shall after thirty (30) days notice to the Government of Japan and the United Staes Commission, deliver such material to a port of embarkation in the United States of America to be designated by the United States Commission after consultation with the Government of Japan. The United States Commission shall thereupon perform the actions necessary for the transfer and to effect the export of such material to the Government of Japan at such designated port. The United States Commission shall not be responsible for costs of shipping such material from such contractor to Japan.

　　　　　D) Acceptance at the point of export of the enriched uranium contained in the reactor material by the Government of Japan shall be evidenced by appropriate receipt; thereafter the Government of Japan shall assume full responsibility for safekeeping of such enriched uranium in accordance with the provisions of the aforesaid Agreement for Cooperation, for all loss or destruction of such enriched uranium, however caused, and for safeguarding against hazards to health and safety.

　　　　　E) On or before September 30, 1960, unless otherwise agreed, and, in any event, upon the termination of this Agreement, the Government of Japan shall, at its expense, deliver all reactor material containing enriched uranium leased to the Government of Japan under this Agreement, after appropriate radioactive cooling, and under appropriate safeguards against hazards to health and safety, acceptable to the United States Commission, to a port of entry in the United States of America to be designated by the United States Commission after consultation with the Government of Japan. Unless the United States Commission agrees to accept such reactor material for reprocessing, in which event the Government of Japan agrees to pay the United States Commission charges for reprocessing such material into uranium hexafluoride meeting the United States Commission's specifications or such other form as may be agreed upon and to pay the costs of transporting such material to the United States Commission facility which will reprocess such material the United States Commission shall thereupon perform the actions necessary for the import and transfer of such material at such designated port to the contractor which the Government of Japan shall employ to reprocess such material in the United States of America into the form of uranium hexafluoride meeting United States Commission specifications or such other form as may be agreed upon. Such transfer to the contractor shall be subject to such terms, charges and conditions, including licenses necessary to receive such material and to perform such work in the United States of America, as are required of such contractor by the United States Commission. The United States Commission shall not be responsible for the costs of shipping such material from Japan to such contractor.

　　　　　For the lease of uranium enriched to nineteen and one-half per cent (19.5% to twenty per cent (20%) in the isotope U-235 contained in reactor material prepared by the contractor employed by the Government of Japan to prepare such material, the Government of Japan shall pay to the United States Commission in United States currency, a sum equal to the charges set forth hereinbelow at the time or times there indicated:

　　(a) A use charge for the enriched uranium leased under this Agreement and contained in the reactor material prepared by the contractor employed by the Government of Japan at the rate of four per cent (4%) per annum of the value of enriched uranium initially contained therein beginning with the date such reactor material is transferred to the Government of Japan and ending

(1) upon the date such reactor material is returned to the United States of America and transferred to the contractor employed by the Government of Japan to reprocess such material into uranium hexafluoride meeting United States Commission specifications or such other form as may be agreed upon and to deliver such reprocessed material to the United States Commission, or
(2) where the United States Commission agrees to accept for reprocessing such reactor material which is returned to the United States of America, upon completion of such reprocessing or upon the expiration of that period which the United States Commission determines to be the normal period for such reprocessing, whichever is earlier.

　　(b) A consumption and depletion charge equivalent to the difference between (1) the value of the enriched uranium initially contained in the reactor material and leased under this Agreement, as determined from its quantity and enrichment, and (2) the value of the uranium contained in the reactor material returned to the United States of America, as determined from its quantity and enrichment. The quantity and enrichment of the uranium contained in the returned reactor material shall be determined within a reasonable time after the return of such material to the United States of America by certified analysis of such material made in the United States of America by an analyst selected by the Government of Japan and the United States Commission, or by such other means as may be agreed upon. The costs of such analysis shall be shared equally by the Government of Japan and the United States Commission.

　　(c) For the purposes of this Article, the value of the enriched uranium contained in each amount of reactor material transferred to the Government of Japan shall be determined in accordance with the schedule of values of uranium of various enrichments in the isotope U-235 established by the United States Commission and in effect at the time each such amount of reactor material is transferred to the Government of Japan. The value of the enriched uranium contained in each amount of reactor material returned to the United States of America shall be determined in accordance with the schedule of values which was applied to the enriched uranium contained in each such amount of reactor material when it was transferred to the Government of Japan. Where the enrichment of the uranium contained in the reactor material transferred or returned falls between two successive enrichments on such schedule, the value for the specific enrichment will be determind by linear interpolation between them.

　　(d) The use charge shall be paid on an annual basis. The consumption and depletion charges shall be paid within thirty (30) days of the receipt of the above-mentioned certified analysis by the Government of Japan. In the event the United States Commission agrees to reprocess returned reactor material into uranium hexafluoride meeting its specifications or such other form as may be agreed upon, its charges for such reprocessing and any costs incurred by the United States Commission in transporting such reactor material from the port of entry to its facility for reprocessing, shall be paid within thirty (30) days after the Government of Japan's receipt of a bill for such charges and costs from the United States Commission.

　　　　　The Government of Japan shall indemnify and save harmless the Government of the United States of America and the United States Commission against any and all liability (including third party liability) for any cause whatsoever arising out of the production or preparation. ownership, lease, or the possession and use of the enriched uranium contained in reactor material leased under this Agreement after transfer of such enriched uranium by the United States Commission to the Government of Japan.

　　　　　It is understood that, in accordance with the laws of the Government of the United States of America, no Member of or Delegate to the Congress of the United States of America, or Resident Commissioner of the United States of America shall be admitted to or share any part of this Agreement or any benefit that may arise therefrom.

　　　　　On the date of receipt by the United States Commission of a letter from the Government of Japan stating that Japan has approved this Agreement in accordance with its legal procedures, this Agreement shall enter into force and shall remain in force untill the Agreement for Cooperation between the Government of Japan and the Government of the United States of America Concerning Civil Uses of Atomic Energy, signed November 14, 1955, and as it may be amended or superseded, expires or is terminated.

　　　　　IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed pursuant to duly constituted authority.

　　　　　DONE at Washington, in duplicate, in the Japanese and English languages, this 23rd day of November, 1956.

　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　FOR THE GOVERNMENT OF JAPAN
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　Masayuki Tani

　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　FOR THE UNITED STATES ATOMIC
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　ENERGY COMMISSION ACTING ON BEHALF
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　OF THE GOVERNMENT OF THE UNITED
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　STATES OF AMERICA
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　Harold S. Vance