The Hon. Alexander Downer MP

Minister for Foreign Affairs

Parliament House

CANBERRA ACT 2600

Dear Mr Downer,

Pursuant to section 51 of the Nuclear Non-Proliferation (Safeguards) Act 1987, and to section 96
of the Chemical Weapons (Prohibition) Act
1994, I submit my Annual Report covering the operations of the Australian
Safeguards Office and the Chemical Weapons Convention Office for the financial
year ended 30 June 2001. This Report
also covers the operations of the Australian
Comprehensive Test-Ban Office for the same period.

As
outlined in this Report, all relevant
statutory and treaty requirements were met. In particular, all requirements under Australia's safeguards agreement
with the International Atomic Energy Agency and under the Chemical Weapons
Convention were met, and activities required in anticipation of the
entry-into-force of the Comprehensive Nuclear-Test-Ban Treaty were carried
out. ASNO found no indication of
unauthorised access to or use of nuclear materials or nuclear items in
Australia, and all Australian Obligated Nuclear Material was accounted for.

During the year ASNO made an effective contribution to the
development and strengthening of international verification regimes concerned
with weapons of mass destruction.

Yours sincerely,

John Carlson

Director General