(Japanese Note)

November 23, 1956

My dear Mr. Vance :

     I have the honor to refer to the Agreement of Lease of Special Nuclear Material between the Government of Japan and the United States Atomic Energy Commission Acting on Behalf of the Government of the United States of America, which was signed today, and to state the following understandings which have been reached during our negotiations leading to the conclusion of the Agreement :

1. At the time of transfer of uranium hexafluoride from the United States Atomic Energy Commission (hereinafter referred to as the United States Commission) to the contractor employed by the Government of Japan in accordance with Article II, Paragraph A of the Agreement, the United States Commission shall state to the contractor the enrichment and purity of the uranium hexafluoride transferred and shall furnish a copy of such statement to the Government of Japan. If the quantity, enrichment and purity of the uranium hexafluoride transferred to such contractor does not conform to the specifications contained in the contract between such contractor and the United States Commission, the responsibility and liability of the Government of the United States of America shall be solely limited to the United States Commission, upon return of such uranium hexafluoride, making reasonable efforts to transfer material, at a United States Commission facility, which does conform to such specifications and reimbursing such contractor for the reasonable costs of packaging and transportation incurred by such contractor in returning to the United States Commission any such material which doee not conform to such specifications.

2. Since the quantity of plutonium or by-product materials produced in the reactor material containing enriched uranium leased for use in the solution-type research reactor will be small, it is understood and agreed that no credit or payment for such materials shall be given the Government of Japan. However, such understanding is agreed to by the Government of Japan only in the case of the present Agreement, and shall not prejudice the position of the Government of Japan with regard to this subject under such lease agreements as may be entered into in the future.

3. Article II, Paragraph B and Article III, subparagraph (b) of the Agreement provide that our two Governments will select an analyst to perform analyses of enriched uranium leased to the Government of Japan for use in the solution-type research reactor. The Parties to the Agreement included provisions for the selection of an analyst without agreeing, in advance, upon a specific analyst since there was not sufficient time to ascertain the availability of commercial analysts who could perform the required analyses. It is recognized that at the times an analysis is required, it is possible that commercial analysts may not be available to perform this service.

     It is understood and agreed, therefore, that if satisfactory commercial analysts are not available at the times an analysis is to be performed, the Parties agree to select one of the United States private organizations, which operates a United States Atomic Energy Commission installation having appropriate facilities, to perform the necessary analyses at the Commission installation it operates. Present examples of such organizations are :

(1) Union Carbide Nuclear Company, which operates Oak Ridge National Laboratory at Oak Ridge, Tennessee, and the installation at Paducah, Kentucky.
(2) Goodyear Atomic Corporation, which operates the installation at Portsmouth, Ohio.
(3) General Electric Company, which operates the installation at Hanford, Washington.
(4) University of Chicago, which operates the Argonne National Laboratory at Lemont, Illinois.

4. With respect to Article V of the Agreement, it is understood that this Article is not intended to mean that the Government of Japan shall, without its consent, be subject to the jurisdiction of the courts of the Government of the United States of America.

     It would be greatly appreciated, if you would be good enough to confirm the above understandings.

Sincerely yours,
Masayuki Tani,
Ambassador of Japan

   The Honorable
    Harold S. Vance,
     Acting Chairman,
      United States Atomic Energy Commission,
       Washington 25, D.C.

(U.S. Note)

Nov. 23 1956

My dear Mr. Ambassador :

     I refer to your letter dated today, in connection with the Agreement of Lease of Special Nuclear Material Between the United States Atomic Energy Commission Acting on Behalf of the Government of the United States of America and the Government of Japan, which was signed today, in which you set forth your understandings on certain matters, as follows :

   1. ..........
   2. ..........
   3. ..........
   4. ..........

     I would like to take this opportunity to confirm our understanding of the matters set forth above.

Sincerely yours,
(Harold S. Vance)
Acting Chairman

   His Excellency
    Mr. Masayuki Tani
     Ambassador of Japan
      Washingtonf D.C.

(Japanese Note)

November 23, 1956

My dear Mr. Vance :

     I have the honor to refer to the Agreement of Lease of Special Nuclear Material between the Government of Japan and the United States Atomic Energy Commission Acting on Behalf of the Government of the United States of America, which was signed today, and to state the following understandings which have been reached during our negotiations leading to the conclusion of the Agreement :

Article II, paragraph E of the Agreement, contemplates that the Government of Japan may return all of the reactor material containing enriched uranium leased to the Government of Japan under the Agreement at ay time prior to September 30, 1960 and, if such material has not so been returned, that the Government of Japan shall return such material, in any event, on September 30, 1960 or upon the termination of the Agreement, whichever first occurs. It is further understood that all such material shall be returned at the same time, unless otherwise agreed.

     It would be greatly appreciated, if you would be good enough to confirm the above understandings.

Sincerely yours,
Masayuki Tani
Ambassador of Japan

   The Honorable
    Harold S. Vance,
     Acting Chairman,
      United States Atomic Energy Commission,
       Washington 25, D.C.

(U.S. Note)

Nov. 23 1956

My Dear Mr. Ambassador :

     I refer to your letter dated today, in connection with the Agreement of Lease of Special Nuclear Material Between the United States Atomic Energy Commission Acting on Behalf of the Government of the United States of America and the Government of Japan, which was signed today, in which you set forth the following understandings reached with respect to the Agreement :

Article II, paragraph E of the Agreement, contemplates that the Government of Japan may return all of the reactor material containing enriched uranium leased to the Government of Japan under the Agreement at any time prior to September 30, 1960, and if such material has not so been returned, that the Government of Japan shall return such material, in any event, on September 30, 1960 or upon the termination of the Agreement, whichever first occurs. It is further understood that all such material shall be returned at the same time, unless otherwise agreed.

     I would like to take this opportunity to confirm our understandings of the matter set forth above.

Sincerely yours,
(Harold S. Vance)
Acting Chairman

   His Excellency
    Mr. Masayuki Tani
     Ambassador of Japan
      Washington, D.C.