ATOMIC ENERGY


551


                            [Annex A]
Memorandum Prepared for the American Members of the Combined
                        Policy Committee,

                  SOUTH AFRICAN NEGOTIATIONS

  1. The United Kingdom Government has informed the United
.States Government* that in January the South African Minister for
Ex-ternal Affairs raised with the British Foreign Minister the question
whether South Africa would nott, if it became an important supplier
,of uranium, be entitled to a-"special position" in hel field of
atomic
energy.
  2. The United Kingdom Government considers this conversation
'As a diplomatic approach. The South Africans have not so far made
a, diplOm tic ,approach to the United States Government, alhough
they indicated intention to do this in due course.
  3. The United Kingdom Government ,states a disposition to reply
to the Union of South Africa along the following lines, providing
the American and the Canadian Governments agree:

   That there is no objection in principle to including in a raw mate-
rial agreement with the Union provisions according some special re-
lationship ,to -the latter as a producer of uranium. These provisions
might have- the same     ' effectas _paragraph 9a of the Belgian Agreement,
and might eventually have 'to be extended to include other .advan-
tages which might be granted the Belgians.
   4. There is presented "for the consideration of the American mem-
bers of the Combined Policy Committee, the following ýalternative
proposals in which th he United Kingdom and Canadian members
would be requested to concur:
  A. That the, arrangements with South Africa, if possible, be con-
fined to a straight commercial contract between the ,CUDA and the
South African Atomic Energy Board, covering production and pro-
curement of uranium, along the lines of the memorandum developed
by 'the negoltia'tors of the Agency and Athe Board in Johannesburg last

...B. That in ýthe'event the South 'hAfricans insist on ,a "special
posi-
tion", a combined approach be arranged under the auspices of the
Combined Policy Committee which would:
       1. Be independent of the contractual negotiations.
       2. Inform the South Africans of the basis for United States-
     United Kingdom-Canadian CPC and CDA arrangements.
   *See letters to Mr. Arneson from Mr. Marten, British Embasisy, February
24
'And from Mr. Wilson, Atomic Energy Commis*sion, April 10. [Footnote in the
source text. The letters are not printed.]