AGREEMENT

on the Establishment of the ITER International Fusion Energy Organization for the Joint Implementation of the ITER Project

Table of Contents

Preamble

Article 1

Establishment of the ITER International Fusion Energy Organization

Article 2

Purpose of the ITER Organization

Article 3

Functions of the ITER Organization

Article 4

Members of the ITER Organization

Article 5

Legal Personality

Article 6

Council

Article 7

The Director-General and the Staff

Article 8

Resources of the ITER Organization

Article 9

Project Resource Management Regulations

Article 10

Information and Intellectual Property

Article 11

Site Support

Article 12

Privileges and Immunities

Article 13

Field Teams

Article 14

Public Health, Safety, Licensing and Environmental Protection

Article 15

Liability

Article 16

Decommissioning

Article 17

Financial Audit

Article 18

Management Assessment

Article 19

International Cooperation

Article 20

Peaceful Uses and Non-Proliferation

Article 21

Application with regard to Euratom

Article 22

Entry into force

Article 23

Accession

Article 24

Duration and Termination

Article 25

Settlement of Disputes

Article 26

Withdrawal

Article 27

Annexes

Article 28

Amendments

Article 29

Depositary

The European Atomic Energy Community (hereinafter ‘Euratom’), the Government of the People's Republic of China, the Government of the Republic of India, the Government of Japan, the Government of the Republic of Korea, the Government of the Russian Federation and the Government of the United States of America,

RECALLING that the successful completion of the ITER Engineering Design Activities under the auspices of the International Atomic Energy Agency (hereinafter ‘the IAEA’) has placed at the disposal of the Parties a detailed, complete and fully integrated engineering design of a research facility aimed to demonstrate the feasibility of fusion as an energy source;

EMPHASIZING the long term potential of fusion energy as a virtually limitless, environmentally acceptable and economically competitive source of energy;

CONVINCED that ITER is the next important step on the path to develop fusion energy and that now is the appropriate time to initiate the implementation of the ITER Project on the basis of progress of research and development in the field of fusion energy;

HAVING REGARD to the joint declaration by the Representatives of the Parties to the ITER negotiations, on the occasion of the ministerial meeting for ITER on 28 June 2005 in Moscow;

RECOGNIZING that the World Summit on Sustainable Development of 2002 called upon governments to promote increased research and development in the field of various energy technologies, including renewable energy, energy efficiency and advanced energy technologies;

EMPHASIZING the importance of the joint implementation of the ITER Project to demonstrate the scientific and technological feasibility of fusion energy for peaceful purposes and to stimulate the interest of young generations in fusion;

DETERMINED that the ITER Project's overall programmatic objective will be pursued by the ITER International Fusion Energy Organization through a common international research programme organized around scientific and technological goals, developed and executed with participation of leading researchers from all Parties;

EMPHASIZING the importance of safe and reliable implementation of construction, operation, exploitation, de-activation and decommissioning of the ITER facilities with a view to demonstrating safety and promoting social acceptability of fusion as an energy source;

AFFIRMING the importance of genuine partnership in implementing this long term and large scale project for the purpose of fusion energy research and development;

RECOGNIZING that while scientific and technological benefits will be shared equally among the Parties for fusion energy research purposes, other benefits associated with the implementation of the Project will be shared on an equitable basis;

DESIRING to continue the fruitful cooperation with the IAEA in this endeavour,

HAVE AGREED AS FOLLOWS:

Article 1

Establishment of the ITER International Fusion Energy Organization

1.   The ITER International Fusion Energy Organization (hereinafter ‘the ITER Organization’) is hereby established.

2.   The headquarters of the ITER Organization (hereinafter ‘the Headquarters’) shall be at St Paul-lez-Durance, Bouches-du-Rhône, France. For the purposes of this Agreement, Euratom shall be referred to as ‘the Host Party’ and France as ‘the Host State’.

Article 2

Purpose of the ITER Organization

The purpose of the ITER Organization shall be to provide for and to promote cooperation among the Members referred to in Article 4 (hereinafter ‘the Members’) on the ITER Project, an international project that aims to demonstrate the scientific and technological feasibility of fusion energy for peaceful purposes, an essential feature of which would be achieving sustained fusion power generation.

Article 3

Functions of the ITER Organization

1.   The ITER Organization shall:

(a)

construct, operate, exploit, and de-activate the ITER facilities in accordance with the technical objectives and the general design presented in the Final Report of the ITER Engineering Design Activities (ITER EDA Documentation Series No. 21) and such supplemental technical documents as may be adopted, as necessary, in accordance with this Agreement, and provide for the decommissioning of the ITER facilities;

(b)	encourage the exploitation of the ITER facilities by the laboratories, other institutions and personnel participating in the fusion energy research and development programmes of the Members;

(c)	promote public understanding and acceptance of fusion energy; and

(d)	undertake, in accordance with this Agreement, any other activities that are necessary to achieve its purpose.

2.   In the performance of its functions, the ITER Organization shall give special regard to the maintenance of good relations with local communities.

Article 4

Members of the ITER Organization

The Parties to this Agreement shall be the Members of the ITER Organization.

Article 5

Legal Personality

1.   The ITER Organization shall have international legal personality, including the capacity to conclude agreements with States and/or international organizations.

2.   The ITER Organization shall have legal personality and enjoy, in the territories of the Members, the legal capacity it requires, including to:

(a)	conclude contracts;

(b)	acquire, hold and dispose of property;

(c)	obtain licenses; and

(d)	institute legal proceedings.

Article 6

Council

1.   The Council shall be the principal organ of the ITER Organization and shall be composed of Representatives of the Members. Each Member shall appoint up to four Representatives to the Council.

2.   The Depositary referred to in Article 29 (hereinafter ‘the Depositary’) shall convene the first session of the Council no later than three months after the entry into force of this Agreement, provided that the notifications referred to in Article 12(5) have been received from all Parties.

3.   The Council shall elect from among its Members a Chair and a Vice-Chair who shall each serve for a term of one year and who may be re-elected up to three times for a maximum period of four years.

4.   The Council shall adopt its Rules of Procedure by unanimity.

5.   The Council shall meet twice a year, unless it decides otherwise. The Council may decide to hold an extraordinary session at the request of a Member or of the Director-General. Sessions of the Council shall take place at the Headquarters, unless the Council decides otherwise.

6.   When appropriate, the Council may decide to hold a session at the ministerial level.

7.   The Council shall be responsible, in accordance with this Agreement, for the promotion, overall direction and supervision of the activities of the ITER Organization in pursuit of its purpose. The Council may take decisions and make recommendations on any questions, matters or issues in accordance with this Agreement. In particular, the Council shall:

(a)	decide on the appointment, replacement and extension of the term of office of the Director-General;

(b)	adopt and amend where necessary, on the proposal of the Director-General, the Staff Regulations and the Project Resource Management Regulations of the ITER Organization;

(c)	decide, on the proposal of the Director-General, the main management structure of the ITER Organization and complement of the Staff;

(d)	appoint senior Staff on the proposal of the Director-General;

(e)	appoint the Members of the Financial Audit Board as referred to in Article 17;

(f)	decide, in accordance with Article 18, on the terms of reference for the undertaking of an assessment of the management of the ITER Organization and appoint a Management Assessor for that purpose;

(g)

decide, on the proposal of the Director-General, the total budget for the various phases of the ITER Project and allowable ranges for adjustment for the purpose of the annual updates referred to in subparagraph (j), and approve the initial ITER Project Plan and Resource Estimates referred to in Article 9;

(h)	approve changes to the overall cost sharing;

(i)	approve, with the consent of the Members concerned, modifications to the procurement allocation without changing the overall cost sharing;

(j)	approve the annual updates of the ITER Project Plan and Resource Estimates and, correspondingly, approve the annual programme and adopt the annual budget of the ITER Organization;

(k)	approve the annual accounts of the ITER Organization;

(l)	adopt the annual reports;

(m)	adopt, as necessary, the supplemental technical documents referred to in Article 3(1)(a);

(n)	establish such subsidiary bodies of the Council as may be necessary;

(o)	approve the conclusion of agreements or arrangements for international cooperation in accordance with Article 19;

(p)	decide on acquisition, sale and mortgaging of land and other titles of real property;

(q)	adopt the rules on Intellectual Property management and the dissemination of information in accordance with Article 10 on the proposal of the Director-General;

(r)	approve, on the proposal of the Director-General, the details of setting up of Field Teams with consent of the Members concerned, in accordance with Article 13. The Council shall review, on a periodic basis, the continuation of any Field Teams established;

(s)	approve, on the proposal of the Director-General, agreements or arrangements governing relations between the ITER Organization and the Members or States on whose territory the Headquarters and Field Teams of the ITER Organization are located;

(t)	approve, on the proposal of the Director-General, efforts to promote collaboration among the relevant domestic fusion research programmes of the Members and between such programmes and the ITER Organization;

(u)	decide on the accession of States or international organizations to this Agreement in accordance with Article 23;

(v)	recommend to the Parties, in accordance with Article 28, amendments to this Agreement;

(w)	decide on the taking or granting of loans, provision of assurances and guarantees and furnishing collateral and security in respect thereto;

(x)	decide whether to propose material, equipment and technology for consideration by international export control for a inclusion on their control lists, and establish a policy supporting peaceful uses and non-proliferation in accordance with Article 20;

(y)	approve compensation arrangements referred to in Article 15; and

(z)	decide on waivers of immunity in accordance with Article 12(3) and have such other powers as may be necessary to fulfill the purpose and to carry out the functions of the ITER Organization, consistent with this Agreement.

8.   The Council shall decide issues under subparagraphs (a), (b), (c), (g), (h), (o), (u), (v), (w), (x), (y) and (z) of paragraph 7, and on the weighted voting system referred to in paragraph 10, by unanimity.

9.   On all issues other than as specified in paragraph 8, the Members shall use their best efforts to achieve consensus. Failing consensus, the Council shall decide the issue in accordance with the weighted voting system referred to in paragraph 10. Decisions on issues related to Article 14 shall require the concurrence of the Host Party.

10.   The respective weights of the votes of the Members shall reflect their contributions to the ITER Organization. The weighted voting system, which shall include both the distribution of votes and the decision making rules, shall be set out in the Council Rules of Procedure.

Article 7

The Director-General and the Staff

1.   The Director-General shall be the chief executive officer and the representative of the ITER Organization in the exercise of its legal capacity. The Director-General shall act in a manner consistent with this Agreement and decisions of the Council, and shall be responsible to the Council for the execution of his/her duties.

2.   The Director-General shall be assisted by the Staff. The Staff shall consist of direct employees of the ITER Organization and personnel seconded by the Members.

3.   The Director-General shall be appointed for a term of five years. The appointment of the Director-General may be extended once for an additional period of up to five years.

4.   The Director-General shall take all measures necessary for the management of the ITER Organization, the execution of its activities, the implementation of its policies and the fulfillment of its purpose. In particular, the Director-General shall:

(a)

prepare and submit to the Council: — the total budget for the various phases of the ITER Project and allowable ranges for adjustment; — the ITER Project Plan and Resource Estimates and their annual updates; — the annual budget within the agreed total budget, including the annual contributions, and annual accounts; — proposals on senior Staff appointments and main management structure of the ITER Organization; — the Staff Regulations; — the Project Resource Management Regulations; and — the annual reports;

(b)	appoint, direct and supervise the Staff;

(c)	be responsible for safety and undertake all organizational measures needed to observe the laws and regulations referred to in Article 14;

(d)	undertake, where necessary in conjunction with the Host State, to obtain the permits and licenses required for the construction, operation and exploitation of the ITER facilities;

(e)	promote collaboration among the relevant domestic fusion research programmes of the Members and between such programmes and the ITER Organization;

(f)	ensure the quality and fitness of components and systems procured for use by the ITER Organization;

(g)	submit to the Council, as necessary, the supplemental technical documents referred to in Article 3(1)(a);

(h)	conclude, subject to prior approval of the Council, agreements or arrangements for international cooperation in accordance with Article 19 and supervise their implementation;

(i)	make arrangements for the sessions of the Council;

(j)	as requested by the Council, assist subsidiary bodies of the Council in the performance of their tasks; and

(k)	monitor and control the execution of the annual programmes with respect to timing, results and quality, and accept the completion of the tasks.

5.   The Director-General shall attend meetings of the Council unless the Council decides otherwise.

6.   Without prejudice to Article 14, the responsibilities of the Director-General and the Staff in respect of the ITER Organization shall be exclusively international in character. In the discharge of their duties they shall not seek or receive instructions from any government or from any authority external to the ITER Organization. Each Member shall respect the international character of the responsibilities of the Director-General and the Staff, and shall not seek to influence them in the discharge of their duties.

7.   The Staff shall support the Director-General in the performance of his/her duties and shall be under his/her management authority.

8.   The Director-General shall appoint the Staff in accordance with the Staff Regulations.

9.   The term of the appointment of each Member of the Staff shall be up to five years.

10.   The Staff of the ITER Organization shall consist of such qualified scientific, technical and administrative personnel as shall be required for the implementation of the activities of the ITER Organization.

11.   The Staff shall be appointed on the basis of their qualifications, taking into account an adequate distribution of posts among the Members in relation to their contributions.

12.   In accordance with this Agreement and the relevant regulations, the Members may second personnel and send visiting researchers to the ITER Organization.

Article 8

Resources of the ITER Organization

1.   The resources of the ITER Organization shall comprise:

(a)

contributions in kind, as referred to in the document ‘Value Estimates for ITER Phases of Construction, Operation, Deactivation and Decommissioning and Form of Party Contributions’, comprising: (i) specific components, equipment, materials and other goods and services in accordance with the agreed technical specifications and (ii) staff seconded by the Members;

(b)	financial contributions to the budget of the ITER Organization by the Members (hereinafter ‘contributions in cash’), as referred to in the document ‘Value Estimates for ITER Phases of Construction, Operation, Deactivation and Decommissioning and Form of Party Contributions’;

(c)	additional resources received either in cash or in kind within limits and under terms approved by the Council.

2.   The respective Members' contributions over the duration of this Agreement shall be as referred to in the documents ‘Value Estimates for ITER Phases of Construction, Operation, Deactivation and Decommissioning and Form of Party Contributions’ and ‘Cost Sharing for all Phases of the ITER Project’ and may be updated by unanimous decision of the Council.

3.   The resources of the ITER Organization shall be solely used to promote the purpose and to exercise the functions of the ITER Organization in accordance with Articles 2 and 3.

4.   Each Member shall provide its contributions to the ITER Organization through an appropriate legal entity, hereinafter ‘the Domestic Agency’ of that Member, except where otherwise agreed by the Council. The approval of the Council shall not be required for Members to provide cash contributions directly to the ITER Organization.

Article 9

Project Resource Management Regulations

1.   The purpose of the Project Resource Management Regulations is to ensure the sound financial management of the ITER Organization. These Regulations shall include, inter alia, the principal rules relating to:

(a)	the Financial Year;

(b)	the unit of account and the currency that the ITER Organization shall use for accounting, budget and resource evaluation purposes;

(c)	the presentation and structure of the ITER Project Plan and Resource Estimates;

(d)	the procedure for the preparation and adoption of the annual budget, the implementation of the annual budget and internal financial control;

(e)	the contributions by the Members;

(f)	the awarding of contracts;

(g)	the management of contributions; and

(h)	the management of the decommissioning fund.

2.   The Director-General shall prepare each year, and submit to the Council, an update of the ITER Project Plan and Resource Estimates.

3.   The ITER Project Plan shall specify the plan for the execution of all functions of the ITER Organization and shall cover the duration of this Agreement. It shall:

(a)	outline an overall plan including time schedule and major milestones, for the fulfilment of the purpose of the ITER Organization and summarise the progress of the ITER Project in relation to the overall plan;

(b)	present specific objectives and schedules of the programme of activities of the ITER Organization for the coming five years or for the period of construction, whichever will last longer; and

(c)	provide appropriate commentaries, including assessment of the risks to the ITER Project and descriptions of risk avoidance or mitigation measures.

4.   The ITER Resource Estimates shall provide a comprehensive analysis of the resources already expended and required in the future to undertake the ITER Project Plan and of the plans for the provision of the resources.

Article 10

Information and Intellectual Property

1.   Subject to this Agreement and the Annex on Information and Intellectual Property, the ITER Organization and the Members shall support the widest appropriate dissemination of information and intellectual property they generate in the execution of this Agreement. The implementation of this Article and the Annex on Information and Intellectual Property shall be equal and non-discriminatory for all Members and the ITER Organization.

2.   In carrying out its activities, the ITER Organization shall ensure that any scientific results shall be published or otherwise made widely available after a reasonable period of time to allow for the obtaining of appropriate protection. Any copyright on works based on those results shall be owned by the ITER Organization unless otherwise provided in specific provisions of this Agreement and the Annex on Information and Intellectual Property.

3.   When placing contracts for work to be performed pursuant to this Agreement, the ITER Organization and the Members shall include provisions in such contracts on any resulting intellectual property. These provisions shall address, inter alia, rights of access to, as well as disclosure and use of, such intellectual property, and shall be consistent with this Agreement and the Annex on Information and Intellectual Property.

4.   Intellectual property generated or incorporated pursuant to this Agreement shall be treated in accordance with the provisions of the Annex on Information and Intellectual Property.

Article 11

Site Support

1.   The Host Party shall make available or cause to be made available to the ITER Organization the site support required for the implementation of the ITER Project as summarized and under the terms outlined in the Annex on Site Support. The Host Party may designate an entity to act on its behalf for this purpose. Such designation shall not affect the obligations of the Host Party under this Article.

2.   Subject to the approval of the Council, the details of and the procedures for cooperation on site support between the ITER Organization and the Host Party or its designated entity shall be covered by a Site Support Agreement to be concluded between them.

Article 12

Privileges and Immunities

1.   The ITER Organization, its property and assets, shall enjoy in the territory of each Member such privileges and immunities as are necessary for the exercise of its functions.

2.   The Director-General and the Staff of the ITER Organization and the representatives of the Members in the Council and subsidiary bodies, together with their alternates and experts, shall enjoy in the territory of each of the Members such privileges and immunities as are necessary for the exercise of their functions in connection with the ITER Organization.

3.   The immunities provided for in paragraphs 1 and 2 shall be waived in any case where the authority competent to waive the immunity considers that such immunity would impede the course of justice and that waiver would not prejudice the purposes for which it was accorded and where, in the case of the ITER Organization, the Director-General, and the Staff, the Council determines that such a waiver would not be contrary to the interests of the ITER Organization and its Members.

4.   The privileges and immunities conferred in accordance with this Agreement shall not diminish or affect the duty of the ITER Organization, the Director-General or the Staff to comply with the laws and regulations referred to in Article 14.

5.   Each Party shall notify the Depositary in writing upon having given effect to paragraphs 1 and 2.

6.   The Depositary shall notify the Parties when notifications have been received from all Parties in accordance with paragraph 5.

7.   A Headquarters Agreement shall be concluded between the ITER Organization and the Host State.

Article 13

Field Teams

Each Member shall host a Field Team established and operated by the ITER Organization as required for the exercise of the ITER Organization's functions and the fulfillment of its purpose. A Field Team Agreement shall be concluded between the ITER Organization and each Member.

Article 14

Public Health, Safety, Licensing and Environmental Protection

The ITER Organization shall observe applicable national laws and regulations of the Host State in the fields of public and occupational health and safety, nuclear safety, radiation protection, licensing, nuclear substances, environmental protection and protection from acts of malevolence.

Article 15

Liability

1.   The contractual liability of the ITER Organization shall be governed by the relevant contractual provisions, which shall be construed in accordance with the law applicable to the contract.

2.   In the case of non-contractual liability, the ITER Organization shall compensate appropriately or provide other remedies for any damage caused by it, to such extent as the ITER Organization is subject to a legal liability under the relevant law, with the details of compensation arrangements to be approved by the Council. This paragraph shall not be construed as a waiver of immunity by the ITER Organization.

3.   Any payment by the ITER Organization to compensate for the liability referred to in paragraphs 1 and 2 and any costs and expenses incurred in connection therewith shall be considered as ‘operational cost’ as defined in the Project Resource Management Regulations.

4.   In case the costs of compensation for damage referred to in paragraph 2 exceed funds available to the ITER Organization in the annual budget for operations and/or through insurance, the Members shall consult, through the Council, so that the ITER Organization can compensate, according to paragraph 2 by seeking to increase the overall budget by unanimous decision of the Council in accordance with Article 6(8).

5.   Membership in the ITER Organization shall not result in liability for Members for acts, omissions, or obligations of the ITER Organization.

6.   Nothing in this Agreement shall impair, or shall be construed as a waiver of, immunity that Members enjoy in the territory of other States or in their territory.

Article 16

Decommissioning

1.   During the period of operation of ITER, the ITER Organization shall generate a Fund (hereinafter ‘the Fund’) to provide for the decommissioning of the ITER facilities. The modalities for the generation of the Fund, its estimation and updating, the conditions for changes and for its transfer to the Host State shall be set out in the Project Resource Management Regulations referred to in Article 9.

2.   Following the final phase of experimental operations of ITER, the ITER Organization shall, within a period of five years, or shorter if agreed with the Host State, bring the ITER facilities into such conditions as are to be agreed and updated as necessary between the ITER Organization and the Host State, following which the ITER Organization shall hand over to the Host State the Fund and the ITER facilities for their decommissioning.

3.   Following the acceptance by the Host State of the Fund together with the ITER facilities, the ITER Organization shall bear no responsibilities or liabilities for the ITER facilities, except when otherwise agreed between the ITER Organization and the Host State.

4.   The respective rights and obligations of the ITER Organization and the Host State and the modalities of their interactions in respect of the decommissioning shall be set out in the Headquarters Agreement referred to in Article 12, under which the ITER Organization and the Host State shall, inter alia, agree that:

(a)	after the handing over of the ITER facilities, the Host State shall continue to be bound by the provisions of Article 20; and

(b)	the Host State shall make regular reports to all Members that have contributed to the Fund on the progress of the decommissioning and on the procedures and technologies that have been used or generated for the decommissioning.

Article 17

Financial Audit

1.   A Financial Audit Board (hereinafter ‘the Board’) shall be established to undertake the audit of the annual accounts of the ITER Organization in accordance with this Article and the Project Resource Management Regulations.

2.   Each Member shall be represented on the Board by one Member. The Members of the Board shall be appointed by the Council on the recommendation of the respective Members for a period of three years. The appointment may be extended once for an additional period of three years. The Council shall appoint from among the members the Chair of the Board, who shall serve for a period of two years.

3.   The members of the Board shall be independent and shall not seek or take instructions from any Member or any other person and shall report only to the Council.

4.   The purposes of the audit shall be to:

(a)	determine whether all income/expenditure has been received/incurred in a lawful and regular manner and has been accounted for;

(b)	determine whether the financial management has been sound;

(c)	provide a statement of assurance as to the reliability of the annual accounts and the legality and regularity of the underlying transactions;

(d)	determine whether expenditures are in conformity with the budget; and

(e)	examine any matter having potential financial implications for the ITER Organization.

5.   The audit shall be based on recognized international principles and standards for accounting.

Article 18

Management Assessment

1.   Every two years, the Council shall appoint a Management Assessor who shall assess the management of the activities of the ITER Organization. The scope of the assessment shall be decided by the Council.

2.   The Director-General may also call for such assessments following consultation with the Council.

3.   The Management Assessor shall be independent and shall not seek or take instructions from any Member or any person and shall report only to the Council.

4.   The purpose of the assessment shall be to determine whether the management of the ITER Organization has been sound, in particular with respect to management effectiveness and efficiency in terms of scale of staff.

5.   The assessment shall be based on records of the ITER Organization. The Management Assessor shall be granted full access to personnel, books and records as he/she may deem appropriate for this purpose.

6.   The ITER Organization shall ensure that the Management Assessor shall abide by its requirements relating to the treatment of sensitive and/or business confidential information, in particular its policies concerning Intellectual Property, Peaceful Uses and Non-Proliferation.

Article 19

International Cooperation

Consistent with this Agreement and upon a unanimous decision of the Council, the ITER Organization may, in furtherance of its purpose, cooperate with other international organizations and institutions, non-Parties, and with organizations and institutions of non-Parties, and conclude agreements or arrangements with them to this effect. The detailed arrangements for such cooperation shall be determined in each case by the Council.

Article 20

Peaceful Uses and Non-Proliferation

1.   The ITER Organization and the Members shall use any material, equipment or technology generated or received pursuant to this Agreement solely for peaceful purposes. Nothing in this paragraph shall be interpreted as affecting the rights of the Members to use material, equipment or technology acquired or developed by them independent of this Agreement for their own purposes.

2.   Material, equipment or technology received or generated pursuant to this Agreement by the ITER Organization and the Members shall not be transferred to any third party to be used to manufacture or otherwise to acquire nuclear weapons or other nuclear explosive devices or for any non-peaceful purposes.

3.   The ITER Organization and the Members shall take appropriate measures to implement this Article in an efficient and transparent manner. To this end, the Council shall interface with appropriate international fora and establish a policy supporting peaceful uses and non-proliferation.

4.   In order to support the success of the ITER Project and its non-proliferation policy, the Parties agree to consult on any issues associated with the implementation of this Article.

5.   Nothing in this Agreement shall require the Members to transfer material, equipment or technology contrary to national export control or related laws and regulations.

6.   Nothing in this Agreement shall affect the rights and obligations of the Parties that arise from other international agreements concerning non-proliferation of nuclear weapons or other nuclear explosive devices.

Article 21

Application with regard to Euratom

In accordance with the Treaty establishing Euratom, this Agreement shall apply to the territories covered by that Treaty. In accordance with that Treaty and other relevant agreements, it shall also apply to the Republic of Bulgaria, Romania and the Swiss Confederation, participating in the Euratom fusion programme as fully associated third States.

Article 22

Entry into Force

1.   This Agreement is subject to ratification, acceptance or approval in accordance with the procedures of each Signatory.

2.   This Agreement shall enter into force 30 days after the deposit of instruments of ratification, acceptance or approval of this Agreement by the People's Republic of China, Euratom, the Republic of India, Japan, the Republic of Korea, the Russian Federation and the United States of America.

3.   If this Agreement has not entered into force within one year after signature, a meeting of the Signatories shall be convened by the Depositary to decide what course of action shall be undertaken to facilitate its entering into force.

Article 23

Accession

1.   After the entry into force of this Agreement, any State or international organization may accede to and become a Party to this Agreement following a unanimous decision of the Council.

2.   Any State or international organization that wishes to accede to this Agreement shall notify the Director-General, who shall inform the Members of this request at least six months before it is submitted to the Council for decision.

3.   The Council shall determine the conditions of accession of any State or international organization.

4.   Accession to this Agreement by a State or international organization shall take effect 30 days after the Depositary has received both the instrument of accession and the notification referred to in Article 12(5).

Article 24

Duration and Termination

1.   This Agreement shall have an initial duration of 35 years. The last five years of this period, or shorter if agreed with the Host State, shall be dedicated to the de-activation of the ITER facilities.

2.   The Council shall, at least eight years before the expiry of this Agreement, establish a Special Committee, chaired by the Director-General, that shall advise it on whether the duration of this Agreement should be extended having regard to the progress of the ITER Project. The Special Committee shall assess the technical and scientific state of the ITER facilities and reasons for the possible extension of this Agreement and, before recommending to extend this Agreement, the financial aspects in terms of required budget and impact on the de-activation and decommissioning costs. The Special Committee shall submit its report to the Council within one year after its establishment.

3.   On the basis of the report, the Council shall decide by unanimity at least six years before the expiry whether to extend the duration of this Agreement.

4.   The Council may not extend the duration of this Agreement for a period of more than 10 years in total, nor may the Council extend this Agreement if such extension would alter the nature of the activities of the ITER Organization or the framework of financial contribution of the Members.

5.   At least six years before the expiry of this Agreement, the Council shall confirm the foreseen end of this Agreement and decide the arrangements for the de-activation phase and the dissolution of the ITER Organization.

6.   This Agreement may be terminated by agreement of all Parties, allowing the necessary time for de-activation and ensuring the necessary funds for decommissioning.

Article 25

Settlement of Disputes

1.   Any issue arising among the Parties or between one or more Parties and the ITER Organization out of or in connection with this Agreement shall be settled by consultation, mediation or other procedures to be agreed, such as arbitration. The parties concerned shall meet to discuss the nature of any such issue with a view to an early resolution.

2.   If the parties concerned are unable to resolve their dispute in consultation, either party may request the Chair of the Council (or if the Chair has been elected from a Member that is a party to the dispute, a Member of the Council representing a Member that is not a party to the dispute) to act as a mediator at a meeting to attempt to resolve the dispute. Such meeting shall be convened within 30 days following a request by a party for mediation and concluded within 60 days thereafter, immediately following which the mediator shall provide a report of the mediation, which report shall be prepared in consultation with the Members other than the parties to the dispute with a recommendation for resolution of the dispute.

3.   If the parties concerned are unable to resolve their dispute through consultations or mediation, they may agree to submit the dispute to an agreed form of dispute resolution in accordance with procedures to be agreed.

Article 26

Withdrawal

1.   After this Agreement has been in force for ten years, any Party other than the Host Party may notify the Depositary of its intention to withdraw.

2.   Withdrawal shall not affect the withdrawing Party's contribution to the construction cost of the ITER facilities. If a Party withdraws during the period of operation of ITER, it shall also contribute its agreed share of the cost of decommissioning the ITER facilities.

3.   Withdrawal shall not affect any continuing right, obligation, or legal situation of a Party created through the execution of this Agreement prior to its withdrawal.

4.   The withdrawal shall take effect at the end of the Financial Year following the year the notification referred to in paragraph 1 is given.

5.   The details of withdrawal shall be documented by the ITER Organization in consultation with the withdrawing Party.

Article 27

Annexes

The Annex on Information and Intellectual Property and the Annex on Site Support shall form an integral part of this Agreement.

Article 28

Amendments

1.   Any Party may propose an amendment to this Agreement.

2.   Proposed amendments shall be considered by the Council, for recommendation to the Parties by unanimity.

3.   Amendments are subject to ratification, acceptance or approval in accordance with the procedures of each Party and shall enter into force 30 days after the deposit of the instruments of ratification, acceptance or approval by all Parties.

Article 29

Depositary

1.   The Director-General of the IAEA shall be the Depositary of this Agreement.

2.   The original of this Agreement shall be deposited with the Depositary, who shall send certified copies thereof to the Signatories, and to the Secretary-General of the United Nations for registration and publication pursuant to Article 102 of the Charter of the United Nations.

3.   The Depositary shall notify all Signatory and acceding States and international organizations of:

(a)	the date of deposit of each instrument of ratification, acceptance, approval or accession;

(b)	the date of deposit of each notification received in accordance with Article 12(5);

(c)	the date of entry into force of this Agreement and of amendments as provided for under Article 28;

(d)	any notification by a Party of its intention to withdraw from this Agreement; and

(e)	the termination of this Agreement.

AGREEMENT

on the privileges and immunities of the ITER International Fusion Energy Organization for the Joint Implementation of the ITER Project

The European Atomic Energy Community (hereinafter ‘Euratom’), the Government of the People's Republic of China, the Government of the Republic of India, the Government of Japan, the Government of the Republic of Korea and the Government of the Russian Federation (hereinafter ‘the Parties’),

WHEREAS Article 12 of the Agreement on the Establishment of the ITER International Fusion Energy Organization for the Joint Implementation of the ITER Project (hereinafter ‘the ITER Agreement’) requires the parties to that Agreement to give effect to privileges and immunities;

WHEREAS it is the purpose of this Agreement to define for the Parties to this Agreement the content and scope of such privileges and immunities in accordance with Article 12 of the ITER Agreement;

WHEREAS the Parties have confirmed their intention to conclude this Agreement on the occasion of the Ministerial Meeting for ITER in Brussels on 24 May 2006,

HAVE AGREED AS FOLLOWS:

Article 1

1.   In accordance with Article 5 of the ITER Agreement, the ITER International Fusion Energy Organization (hereinafter ‘the ITER Organization’) shall have international legal personality, including the capacity to conclude agreements with States and/or international organizations.

2.   The ITER Organization shall have legal personality and enjoy, in the territories of the Members, the legal capacity it requires, including to:

(a)	conclude contracts;

(b)	acquire, hold and dispose of property;

(c)	obtain licenses; and

(d)	institute legal proceedings.

Article 2

The buildings and premises of the ITER Organization shall be inviolable.

Article 3

The archives and documents of the ITER Organization shall be inviolable.

Article 4

1.   The ITER Organization shall enjoy immunity from jurisdiction and execution except:

(a)	to the extent that it has expressly waived such immunity in a particular case;

(b)	in respect of a civil action by a third party for damage arising from an accident caused by a motor vehicle belonging to, or operated on behalf of, the ITER Organization, or in respect of a motor traffic offence involving such a vehicle;

(c)	in respect of an enforcement of an arbitration award made under Article 23; and

(d)	in the event of an attachment of salary, enforced for a debt of a staff member of the ITER Organization, provided that such attachment results from a final and enforceable legal decision in accordance with the rules in force on the territory of enforcement.

2.   The ITER Organization's property and assets, wherever situated, shall be immune from any form of requisition, confiscation, expropriation and sequestration except:

(a)	to the extent that it has expressly waived such immunity in a particular case;

(b)	in respect of a civil action provided for in paragraph 1(b); and

(c)	in respect of the enforcement of an arbitration award made under Article 23.

3.   The ITER Organization shall also be immune from any form of administrative or provisional judicial constraint, except to the extent that it has expressly waived such immunity in a particular case and insofar as may be necessary in connection with or in respect of:

(a)	the prevention and investigation of accidents involving motor vehicles belonging to, or operated on behalf of, the ITER Organization; and

(b)	the enforcement of an arbitration award made under Article 23.

Article 5

1.   Within the scope of its official activities, the ITER Organization, its property and income shall be exempt from direct taxes.

2.   When goods or services, strictly necessary for the exercise of the official activities of the ITER Organization, are purchased or used by or on behalf of the ITER Organization, and when the price of such goods or services includes taxes or duties, appropriate measures shall, whenever possible, be taken by the Party to grant exemption from such taxes or duties or to provide for their reimbursement.

Article 6

1.   Goods imported or exported by the ITER Organization, or on its behalf, for its official activities shall be exempt from all duties and taxes. Goods imported or exported by the ITER Organization for its official activities shall be exempt from prohibitions and restrictions on imports and exports except where such prohibitions or restrictions are consistent with the laws, regulations and policies referred to in Articles 14 and 20 of the ITER Agreement.

2.   Goods which have benefited from the exemption provided for in Article 5 or imported under paragraph 1 shall not be sold or given away except in accordance with conditions laid down by the Parties which have granted exemptions.

Article 7

1.   For the purposes of Articles 5 and 6, the official activities of the ITER Organization shall include its administrative activities, including its operations in connection with any social security scheme it establishes, and activities undertaken in pursuance of the purpose of the ITER Organization as defined in the ITER Agreement.

2.   The provisions of Articles 5 and 6 shall not apply to taxes and duties that are no more than charges for public utility services.

Article 8

No exemption shall be granted under Articles 5 or 6 in respect of goods purchased or imported, or services provided for the personal benefit of the staff of the ITER Organization.

Article 9

Without prejudice to the laws, regulations and policies referred to in Articles 14 and 20 of the ITER Agreement, the circulation of publications and other information material sent by or to the ITER Organization shall not be restricted in any way.

Article 10

1.   The ITER Organization may receive and hold any kind of funds, currency, cash or securities; it may dispose of them freely for any purpose provided for in the ITER Agreement and hold accounts in any currency to the extent required to meet its obligations.

2.   In exercising its rights referred to in paragraph 1, the ITER Organization shall pay due regard to any representations by any of its Members insofar as it is considered that effect can be given to such representations without detriment to the interests of the ITER Organization.

Article 11

1.   For its official communications and the transfer of all its documents, the ITER Organization shall enjoy treatment no less favourable than that accorded by each Party to other international organizations.

2.   No censorship shall be applied to official communications of the ITER Organization by whatever means of communication.

Article 12

Parties shall take all appropriate measures to facilitate the entry into, stay in, or departure from their territories of staff of the ITER Organization.

Article 13

1.   Representatives of the Parties shall, while exercising their functions as a representative and in the course of their journeys to and from the place of meeting convened by the ITER Organization, enjoy the following privileges and immunities:

(a)	immunity from arrest and detention, and from seizure of their personal luggage;

(b)

immunity from jurisdiction, even after the termination of their mission, in respect of acts, including words spoken and written, done by them in the exercise of their functions; this immunity shall not apply, however, in the case of a motor traffic offence committed by a Representative of a Party, nor in the case of damage caused by a motor vehicle belonging to or driven by him;

(c)	inviolability for all their official papers and documents;

(d)	the right to receive documents or correspondence by special courier or sealed bag;

(e)	exemption for themselves and their spouses from measures restricting immigration and from aliens' registration formalities;

(f)	the same facilities in the matter of currency and exchange control as are accorded to the representatives of foreign governments on temporary official missions;

(g)	the same customs facilities as regards their personal luggage as are accorded to diplomatic agents.

2.   Privileges and immunities are accorded to Representatives of a Party not for their personal advantage, but in order to ensure complete independence in the exercise of their functions in connection with the ITER Organization. In accordance with Article 12 of the ITER Agreement, each Party shall waive the immunity of its Representatives in any case where it considers that retaining it would impede the course of justice and that it can be waived without prejudicing the purposes for which it was accorded.

Article 14

The staff of the ITER Organization shall enjoy the following privileges and immunities:

(a)

immunity from jurisdiction, even after they have left the service of the ITER Organization, in respect of acts, including words spoken and written, done by them in the exercise of their functions; this immunity shall not apply, however, in the case of a motor traffic offence committed by a staff member of the ITER Organization, nor in the case of damage caused by a motor vehicle belonging to or driven by him;

(b)	exemption in respect of all obligations in respect of military service;

(c)	inviolability for all their official papers and documents;

(d)	the same facilities as regards exemption from measures restricting immigration and governing aliens' registration as are normally accorded to staff members of international organizations, and members of their families forming part of their households shall enjoy the same facilities;

(e)	the same privileges in respect of exchange regulations comparably to those accorded to staff of international organizations;

(f)	in time of international crisis, the same facilities as to repatriation as diplomatic agents, and the members of their families forming part of their households shall enjoy the same facilities;

(g)

the right to import duty-free furniture and personal effects at the time of first taking up their post in the State concerned, and the right on the termination of their functions in that State to export free of duty their furniture and personal effects, subject, in both cases, to the conditions considered necessary by the State on whose territory the right is exercised.

Article 15

In addition to the privileges and immunities provided for in Article 14, the Director-General of the ITER Organization and, when the office is vacant, the person appointed to act in his place, shall enjoy the privileges and immunities to which diplomatic agents of comparable rank are entitled.

Article 16

Experts, in the exercise of their functions in connection with the ITER Organization or in carrying out missions for the ITER Organization, shall enjoy the following privileges and immunities, to the extent that these are necessary for the exercise of their functions, including during journeys made in the exercise of their functions and in the course of such missions:

(a)

immunity from jurisdiction, even after they have ceased to exercise their function of expert for the ITER Organization, in respect of acts, including words spoken and written, done by them in the exercise of their functions, this immunity shall not apply, however, in the case of a motor traffic offence committed by an expert, nor in the case of damage caused by a motor vehicle belonging to or driven by him;

(b)	inviolability for all their official papers and documents;

(c)	the same facilities as regards monetary and exchange regulations and as regards their personal luggage as are accorded to the officials of foreign governments on temporary official missions.

Article 17

1.   The salaries and emoluments paid by the ITER Organization shall be exempt from income tax to the extent that they are subject to a tax for the benefit of the ITER Organization. The Parties shall retain the right to take these salaries and emoluments into account for the purpose of assessing the amount of taxation to be applied to income from other sources.

2.   The provisions of paragraph 1 above shall not apply to annuities and pensions paid by the ITER Organization to its former Directors General and staff.

Article 18

Articles 14 and 17 shall apply to all categories of staff to which the Staff Regulations of the ITER Organization apply. The Council of the ITER Organization (hereinafter ‘the Council’) shall decide the categories of experts to which Article 16 shall apply. The names, titles and addresses of the staff and experts referred to in this Article shall be communicated from time to time to the Members of the ITER Organization.

Article 19

In the event that it establishes its own social security scheme, the ITER Organization, its Director-General and staff shall be exempt from all compulsory contributions to national social security bodies, subject to agreements concluded with the Parties and/or the Host State.

Article 20

No Party shall be obliged to accord the privileges and immunities referred to in Articles 13, 14b, d, e, f and g, 15, 16c and 19 to its own nationals or persons who, at the moment of taking up their posts as staff of the ITER Organization in that Party, are permanent residents thereof.

Article 21

1.   The privileges and immunities provided for in this Agreement are not granted to the Director-General, staff and experts of the ITER Organization for their personal advantage. They are provided solely to ensure, in all circumstances, the unimpeded functioning of the ITER Organization and the complete independence of the persons to whom they are accorded.

2.   In accordance with Article 12 of the ITER Agreement, the Council shall waive any relevant immunity in any case where the Council considers that retaining it would impede the course of justice and that such a waiver would not be contrary to the interests of the ITER Organization and its Members.

Article 22

The ITER Organization shall cooperate at all times with the competent authorities of the Parties and the Host State as defined in Article 1(2) of the ITER Agreement in order to facilitate the proper administration of justice, to ensure the observance of police regulations and regulations concerning public health and safety, licensing, environmental protection, labour inspection or other similar national legislation, and to prevent any abuse of the privileges and immunities provided for in this Agreement. The procedure for the cooperation referred to in this Article may be laid down in the Headquarters and the Field Team agreements or supplementary agreements.

Article 23

1.   When concluding written contracts, other than those concluded in accordance with the Staff Regulations, the ITER Organization may provide for arbitration. The arbitration clause or the special arbitration agreement concluded to this end shall specify the law applicable and the State where the arbitrators sit.

2.   The enforcement of the arbitration award shall be governed by the rules in force in the State on whose territory the award is to be executed.

Article 24

In accordance with the Treaty establishing Euratom, this Agreement shall apply to the territories covered by that Treaty. In accordance with that Treaty and other relevant agreements, it shall also apply to the Republic of Bulgaria, Romania and the Swiss Confederation, participating in the Euratom fusion programme as fully associated third States.

Article 25

1.   This Agreement is subject to ratification, acceptance or approval in accordance with the procedures of each Signatory.

2.   This Agreement shall enter into force thirty days after the deposit of instruments of ratification, acceptance or approval of this Agreement by the People's Republic of China, Euratom, the Republic of India, Japan, the Republic of Korea and the Russian Federation.

3.   If this Agreement has not entered into force within one year after signature, a meeting of the Signatories shall be convened by the Depositary to decide what course of action shall be undertaken to facilitate its entering into force.

Article 26

1.   Once the Council has adopted a decision in accordance with Article 23(1) of the ITER Agreement, the State or international organization concerned may accede to and become a Party to this Agreement.

2.   Accession shall take effect on the date of deposit of the instrument of accession with the Depositary.

Article 27

This Agreement shall have the same duration as the ITER Agreement. The expiry of this Agreement shall not affect the immunity provided for in Article 13(1)(b), Article 14(a) and Article 16(a).

Article 28

Any issue arising among the Parties or between one or more Parties and the ITER Organization out of or in connection with this Agreement shall be settled by consultation, mediation or other procedures to be agreed, such as arbitration. The parties concerned shall meet to discuss the nature of any such issue with a view to an early resolution.

Article 29

1.   The Director General of the IAEA shall be the Depositary of this Agreement.

2.   The original of this Agreement shall be deposited with the Depositary, who shall send certified copies thereof to the Signatories, and to the Secretary General of the United Nations for registration and publication pursuant to Article 102 of the Charter of the United Nations.

3.   The Depositary shall notify all Signatory and acceding States and international organizations of:

(a)	the date of deposit of each instrument of ratification, acceptance, approval or accession; and

(b)	the date of entry into force of this Agreement.