Contribution to the development and
effective implementation of international safeguards and Non-proliferation
regimes, including participation in international expert groups and
conferences, and provision to the IAEA of consultancies, assessments, support
in R&D and training; and evaluation of the effectiveness of IAEA safeguards
and related regimes.

Milestone
C1

C1.1 A pro-active and useful contribution made to the development and
effective implementation of IAEA safeguards, with national and international
safeguards methods evaluated in an expert and thorough manner.

Activities

Australia takes an active part in the
development of safeguards, through activities such as:

• participation in SAGSI (the Standing
  Advisory Group on Safeguards Implementation) and other international expert
  bodies (see below);
• the Australian Safeguards Assistance
  Program (ASAP), comprising R&D and consultancy work in support of IAEA
  safeguards (see Milestone C3 on
  page 35);
• field testing of new safeguards techniques and approaches in
  Australia on behalf of the IAEA;
• participation in relevant DFAT policy development activities, and
  support for Australias Mission to the IAEA in Vienna and to Australian
  Missions in other capitals; and
• promotion of safeguards and
  non-proliferation concepts through experts' meetings, publications and
  conferences.

SAGSI

The Standing Advisory Group on Safeguards
Implementation is a group appointed on the basis of their personal expertise by
the Director General of the IAEA, in consultation with Governments, to advise
him on effectiveness and cost-efficiency in the implementation of IAEA
safeguards. SAGSI has provided much of
the inspiration for the current program to strengthen IAEA safeguards and
continues to review developments.
Currently SAGSI has 19 members, including ASNOs Director General, John
Carlson, and participation in SAGSI is an important aspect of ASNO's work. Some of SAGSIs work during 1999-2000 is
outlined below.

A key topic for SAGSI is the development of
integrated safeguards, that is, the optimal combination of classical safeguards and
strengthened safeguards measures (integrated safeguards are discussed further on
page 51). This is a matter of
the highest priority. SAGSI has
reviewed the IAEA Secretariats Work Plan for integrated safeguards and advised
the Secretariat on various aspects of it.
SAGSI is also examining specific subjects related to integrated
safeguards, including development of safeguards concepts and approaches,
safeguards parameters, evaluation methodologies, and quality systems. During the year one major subject, in which
Australia took the lead, was a thorough review of the role of timeliness
(e.g. frequency of inspections) in integrated safeguards. Other subjects include the role of
containment and surveillance measures, and the categorisation of nuclear material
for safeguards purposes.

Additional topics examined by SAGSI during
the year included:

• safeguards implementation and
  performance issues, including reporting aspects, and information review and
  evaluation;
• further developments in safeguards,
  including wide area environmental sampling, safeguards approaches for spent
  fuel repositories, and the application of satellite imagery; and
• possible new verification roles for
  the IAEA, including nuclear materials released from weapons programs and the
  proposed FMCT (further details on FMCT are at page 73).

Evaluation of safeguards

In evaluating
IAEA's safeguards performance, ASNO drew on a wide range of activities and
sources, including:

• the IAEAs Safeguards Implementation
  Report (SIR) and other detailed information made available to Australia as a
  member of the IAEA Board of Governors;
• appreciation of practical issues
  derived from the operation of Australias Safeguards Assistance Program in
  support of IAEA safeguards; and
• exchanges of views and information
  with IAEA staff, counterpart organisations, and relevant Australian agencies.

ASNOs assessment of IAEA data for 1999 and
related information is that the safeguards system has fulfilled its task of
verifying the non-diversion of significant quantities of nuclear material
subject to IAEA safeguards (see IAEA Safeguards Statement for 1999, on
page 84). As in previous years,
the IAEA experienced a number of problems with equipment and procedures, but
none was sufficiently serious to prevent the Agency from reaching satisfactory
conclusions from its safeguards activities.

Other work

At several international conferences (Such as annual meetings of the
Institute of Nuclear Materials Management (INMM), the European
Safeguards Research and Development Association (ESARDA), and the Japan
Atomic Industrial Forum) ASNO has taken the opportunity, to present and promote Australian
ideas on safeguards and non-proliferation development (see Milestone C2 on page 34). ASNO has established a reputation for
presenting innovative, constructive and thought provoking papers.

Performance Assessment

Australias participation in international
work is making a significant, effective and highly regarded contribution to
strengthening the IAEA safeguards system.

ASNO was closely involved with the IAEA
through high level participation in SAGSI and other expert meetings ⁽For
example, working groups on integrated safeguards.). Through the Safeguards
Support Program ASNO provided cost free consultancy services to the IAEA for
the further development of international safeguards (see Milestone C3 on page 35). The IAEA has expressed appreciation for and
satisfaction with these services. This
work has contributed to more effective international safeguards with improved
use of new technologies and methods.

ASNO has been an influential advocate for
strengthened safeguards through high level participation in international fora
such as Institute of Nuclear Materials Management and European Safeguards
Research and Development Association.

C1.2 Assessment of
developments in nuclear technology

Nuclear fuel cycle developments could have
significant implications for the implementation of safeguards measures and the
ways in which non-proliferation objectives are pursued. ASNO has followed very closely developments
in critical areas including plutonium recycling, new reactor designs, and
proliferation resistant fuel cycle concepts.
These issues have been explored in detail with the IAEA and at other
expert meetings and in bilateral consultations. ASNOs participation and good standing in these expert groups has
enabled it to stay abreast of advancements and contribute to a more thorough
understanding among experts, policy makers and the public alike. Some of these matters are discussed on pages
62
and 67.

Performance Assessment

Although Australia does not have a nuclear
industry and hence is not directly involved in substantial nuclear technology
developments, ASNO has maintained a sound understanding of important
developments or issues and made a constructive contribution in international
fora.

C1.3 Contribution to IAEA
technical training courses concerning nuclear material accountancy and control
and other safeguardrelated topics.

Activities

An important activity for ASNO has been the
provision of training in national safeguards for personnel of regional
countries. In our region, Australia and
Japan have provided such training since 1985 on behalf of and in conjunction
with the IAEA. Together they have
conducted eight courses (four each in Japan and Australia). The last regional course was held in
Australia in April 2000.

This most recent three week course was
funded by AusAID and provided training in safeguards and nuclear materials
accounting. The IAEA was extremely
pleased with the conduct and content of the course. Feedback from students was very positive. Many regional states participated, including
Cambodia, China, DPRK, Indonesia, Japan, Malaysia, Philippines, ROK, Thailand
and Vietnam. While Australia is
expected to conduct a further course in about four years, in view of the
evolving nature and importance of integrated safeguards, and increasing
regional attention being given to safeguards matters, ASNO is considering the
possibility of a follow-up course in about two years. Further details of this years course are on page 58.

During the year, Mr John Hill was a
guest lecturer at a safeguards training course in Japan, (arranged primarily
for participants from Eastern Europe and the Newly Independent States), and
with ABACC (the Brazilian-Argentine Safeguards
Agency) in Brazil.

In October 1999 the Director General, John
Carlson, was invited to present a paper to an
IAEA seminar for Asia Pacific countries on IAEA Safeguards for the 21^st
Century, at Taejon, ROK, and to participate in a discussion by a panel of
international experts.

Performance Assessment

Through its regional training course on
nuclear safeguards ASNO has contributed strongly to the IAEA's training
programs aimed at a significant contribution to improving the technical
performance of safeguards authorities in the region.

An important by-product of this work is
strengthened relationships with counterparts in the region.

Milestone C2

Highly effective liaison maintained with
the IAEA and other safeguards organisations.

Activities

During the
reporting period ASNO was active in maintaining and developing its contacts
with the IAEA, other safeguards agencies and international safeguards
practitioners in several fora, including:

• the Director General, John Carlson,
  had extensive discussions with senior IAEA officials (including the Director
  General, Dr ElBaradei and the Deputy Director General for Safeguards,
  Dr Goldschmidt) and with counterparts in Euratom and ABACC, as well as with
  senior officials of several governments and industry representatives;
• the second and third Technical Coordination Meeting on Integrated
  Safeguards Development and Implementation Support at the IAEA, Vienna. Here Dr Bragin presented ASNO's report
  on the application of the State-level safeguards integration concept to
  Australia's nuclear activities;
• the International Conference Breaking Ground on a Fissile Material
  Cut-off Treaty, Munich, and at the Second Russian International Conference on
  Nuclear Material Protection, Control, and Accounting in Obninsk
  (Dr Bragin). This latter event was
  an important opportunity to canvas Australian views on current safeguards and
  non-proliferation issues directly to a wide audience of Russian and other
  experts, and it provided insight into current views on the future development
  of nuclear power in Russia;
• ESARDA Seminar 'The Evolution of Safeguards: Integrating the New and
  the Old', Dresden, Germany, where Dr Bragin presented an ASNO paper
  Integrated Safeguards: Re-examination of Basic Safeguards Implementation
  Parameters;
• the Institute of Nuclear Materials Management (INMM) 1999 Annual
  Meeting where two papers were presented by John Carlson;
• an International Symposium on Peaceful Uses of Nuclear Energy and
  Non-Proliferation: A Challenge for the 21^st Century, organised by
  JAIF (Japan Atomic Industrial Forum) where John Carlson presented a paper;
• bilateral nuclear policy and
  safeguards meetings, including physical protection issues, with officials and
  industry in Canada, Euratom, Finland, France, Indonesia, Japan, ROK, Sweden,
  Switzerland, UK, and US.

In December 1999 Dr Amin Zarkasi, Director of the Safeguards Centre
of Indonesias Nuclear Energy Control Board (BAPETEN), came to ASNO
for a familiarisation visit and worked in Canberra for a week.
Subsequently, in February 2000, Mr Carlson visited Jakarta for
discussions with the Chairman of BAPETEN, Dr Mohammad Ridwan, and
the Chairman of the National Nuclear Energy Agency (BATAN), Mr M.
Iyos Subki. As an adjunct to the Safeguards Regional Training
Course, in April 2000 Dr Ridwan, Mr B-K Kim, Director of TCNC
(Technical Center for Nuclear Control), the ROK's safeguards authority,
and Mr Hiroyoshi Kurihara, Senior Executive Director of NMCC
(Nuclear Materials Control Centre), Japan's safeguards implementation
agency, visited ASNO for consultations.

Performance Assessment

ASNO has achieved highly effective links
with the IAEA and a wide range of safeguards organisations and regional
counterparts. Because of these links
ASNO is: abreast of developments and incipient problems in safeguards;
effective in disseminating Australian thinking on a variety of safeguards and
related issues; well able to contribute to resolving issues of safeguards
concern; and has been able to ensure that its work program is relevant to the
international non-proliferation agenda.

ASNO has been able to give the Government
sound advice on safeguards, both internationally and in their domestic context.

Milestone C3

A technical R&D program, supporting
development and enhancement of IAEA safeguards, managed efficiently.

Activities

The resources available to the IAEA have
never been sufficient to allow all necessary safeguards R&D programs to be
conducted in-house. Safeguards is an
evolving discipline and ASAP is intended to assist the IAEA develop the
equipment and procedures needed if new challenges are to be met in a
cost-effective way.

ASAP, coordinated by Dr Bragin,
incorporates consultancy work, analysis, and development of equipment and
procedures. The program embraces
safeguards projects formally agreed directly with the IAEA, and also
participation in other efforts to improve safeguards implementation such as the
International Remote Monitoring Project (IRMP), coordinated by the US
Department of Energy (DOE).

There are important conceptual changes
under way in safeguards, arising from the implementation of strengthened
safeguards and the development of integrated safeguards concepts. Support Program tasks in support of those developments
generally require considerable experience in safeguards. For that reason, consultancy work carried
out directly by ASNO officers forms a significant part of ASAP.

This program is not only an important
tangible expression of Australias support for IAEA safeguards, but plays a
major role in maintaining ASNOs technical expertise and appreciation of the
practical issues confronting the safeguards system. Fifteen formal Member State Support Programs are currently in
operation, with an aggregate annual budget of over US$20 million. In dollar terms, ASAP is very modestthis
year about $77,000 (not including time spent by ASNO staff and the staff of
some other Commonwealth agencies on ASAP projects). Nevertheless, the IAEA and other safeguards agencies judge that
work done under ASAP is effective.

Details of the various ASAP projects are
summarised at Annex G.

Performance Assessment

The results of several projects progressed
and completed under the Australian Safeguards Assistance Program have been incorporated
in the practices of the IAEA in 1999-2000. The IAEA has expressed appreciation for the valuable and vital
contribution provided by the Australian Safeguards Assistance Program to the
Agencys safeguards efforts.

Collaborative projects have strengthened
our relationship with counterparts, particularly in the United States.

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