The agency's program, besides promoting the beneficial uses of the atom throughout the world, will provide the basis for necessary international agreements on security controls and on the standards of health and safety to which I have referred.

The particular importance of these is emphasized by the growing use of the peaceful atom in research, in industry, agriculture, and medicine and, of course, power.

Unregulated by a common standard, these activities can conceivably create widespread hazards and risks for populations well beyond the boundaries of the countries in which the materials are used.

I know of no way except through international cooperation to promote the use of the atom under standards of control and safety which will protect everyone, ourselves included, from these hazards.

It is for this reason that I am happy that we have reached this stage in atomic energy development and that you are today considering this participation act whose passage I must sincerely advocate.

Thank you, Mr. Chairman.

Senator PASTORE. Thank you, Mr. Strauss.

Now, Mr. Wadsworth.

STATEMENT OF HON. JAMES J. WADSWORTH, DEPUTY REPRESENTATIVE OF THE UNITED STATES TO THE UNITED NATIONS

Mr. WADSWORTH. Thank you very much, Mr. Chairman, also for the opportunity of appearing before you again.

I recall your most valuable services to the United States delegation to the conference on the statute last fall in New York.

I also recall with great pleasure your consistent and helpful interest in this matter from the very outset.

Mr. Chairman, it has been suggested that in my statement this morning I give my impressions of the negotiation of the statute, cite some of its salient features and discuss briefly the prospects for future development of the agency.

Since our primary purpose today is to concentrate on the participation act, my comments will be geared to foreshadowing the problems which the future United States representatives to the agency are likely to face once it is established.

To begin with, Mr. Chairman, I should like to reiterate my belief expressed in earlier hearings, that the negotiation of the statute was a remarkable and unusual experience. Here is a document signed by 80 nations after 32 years of painstaking negotiations which nonetheless reflects all the basic elements of the United States proposal included in President Eisenhower's speech at the U. N. in December 1953.

The negotiation was certainly not one broad, smooth road to success and understanding free of detours or pitfalls.

But the power of an aroused public opinion, inspired by the President's noble concept of this agency, was so great that it was reflected time and again at the conference table in a determination to overcome all obstacles.

You will remember that for more than a year, in fact, almost 2 years, the Russians totally rejected our proposals, but when in late 1955 it became evident that others would join with the United States in pur

suing the goal of atoms for peace, with or without the Soviets, they finally participated in the negotiation group.

At several points difficult and new problems arose, such as how are we to reconcile sovereign rights of nations with the needs for adequate safeguards against the diversion of atomic recourses to military uses, or how to distribute voting participation and responsibility in the key bodies of the agency.

These troublesome matters would never have been resolved were it not for the businesslike persistent determination which characterized the approach of all the key delegations during these negotiations. If, as I hope, this spirit is maintained the establishment of this agency will become a symbol and a precedent for earnest worldwide cooperation in the quest for peace.

In turning to the statute, Mr. Chairman, it is not my intention to comment on all of its provisions. Unless members of the committee have questions on certain other articles, I shall confine my brief comments to articles III, V, IX, XI, XII, and XIV, which I think cast some light on the task which will face our representatives to the agency and thus afford us a basis for determining how to set up our arrangements for participating in the agency's activities.

Article III sets forth the functions of the Agency. These are broad in scope, but the activities in the early years are likely to be modest.

Thus, the United States representatives provided for in this participation act must sooner or later be equipped to form well-considered recommendations on a wide range of technical and political questions.

However, as Assistant Secretary Wilcox has said, the size and character of the staff they need and the nature of the backstopping and reporting arrangements can only be worked out as the Agency's plans and activities are further developed, and it is for this reason that present plans call for a very small group.

Article V deals with the role of the General Conference. The point of key significance for us today in considering the General Conference is that the United States was successful in placing in the Board of Governors the principal responsibility for policymaking for the Agency. This means that our representative on the board will have a key role in formulating policy recommendations and specific proposals relating to the Agency's program.

The General Conference, however, has important responsibilities. Among others, it reviews and approves the budget; it confirms the appointment of the director general of the Agency, and it elects 10 members of the Board of Governors.

Now, if the United States representative to the General Conference is to achieve our objectives in political negotiations of this character without substantial difficulty, we know from long experience that extensive and careful preparatory negotiations will be necessary on the part of our representative on the Board of Governors.

Article IX relates to the supply of materials. It should be noted that no nation is compelled to make materials available to the Agency. The decision to sell such materials and the terms on which they will be offered to the agency is up to the supplying government.

Working out recommendations on these terms, methods of delivery and similar problems will require the United States representatives to cope with many technical questions.

Before leaving this article, I would like to cite a key provision which is basic to the concept of the Agency. This provision is paragraph (j) of article IX, which reads as follows:

J. The materials made available pursuant to this article shall be used as determined by the Board of Governors in accordance with the provisions of this statute. No member shall have the right to require that the materials it makes available to the Agency be kept separately by the Agency, or to designate the specific project in which they must be used.

I mention this point, because it highlights the importance of the leadership which we expect to exert in the Board of Governors in examining and approving Agency projects which might call for materials being sent by the United States to some other country.

Article XI tells how the Agency's projects will be developed. Application for Agency assistance to a project can be made by a member or groups of members. The Agency can assist members in obtaining financing, but cannot be required to undertake any guaranties or assume any financial responsibility itself.

The criteria which the Board must consider in deciding upon projects are set forth in paragraph (e). You can see from reading this paragraph that the Agency is going to give careful and exhaustive consideration to Agency projects before approving them and that the work of the United States representative on the Board of this Agency is going to be quite voluminous.

Article XII deals with safeguards against diversion of Agency assistance to military uses. This key article was carefully drawn to insure that the Agency would have the authority to do its safeguards job.

As Secretary Dulles has pointed out, and Assistant Secretary Wilcox just this morning, article XII may do more than make possible the acceleration of peaceful atomic development throughout the world. It may make, and I believe it will make, a positive contribution to solving the problem of nuclear disarmament.

In this article the Agency is given authority to send inspectors into the Territory of recipient governments, these inspectors

who shall have access to all places and data and to any person who deals with materials, equipment, and facilities which are required by this statute to be safeguarded.

It can thus be seen that the United States Board member will be faced with many new technical and political problems as the Agency's safeguards policies evolve.

Article XIV is the financial one. It was drafted in a spirit of care and conservatism to avert the danger that the "have not" nations could ever launch the Agency on extravagant and unsound programs.

The Board's task of establishing appropriate charges for Agency materials, services, equipment, and facilities will require careful and resourceful thought.

Mr. Chairman, I have sought in these brief comments to point up the fact that the scope of the questions with which the Agency must deal will be broad. They will require that our representatives find solutions for novel political and technical problems of some complexity.

I do not believe that the United States delegation need be large in the early years. However, from my experience with the negotiations of the statute and I worked with the Preparatory Commission with

this Agency, I well know that the effective United States representation in this field requires active participation of staff drawn both from the Department and from the Atomic Energy Commission, and that the arrangements must be such that help will be at hand when the United States representative needs it.

The provision of this participation act will make possible the continuance of the cooperatíve arrangements which have well served the needs of the United States delegations to the negotiating group, to the conference on the statute, and to the Preparatory Commission.

I have no hesitation in supporting this proposed legislation which is to govern future participation in this great new venture. Thank you, Mr. Chairman.

Senator PASTORE. Thank you, sir.

Mr. Smith is here from the State Department; do you desire to make a formal statement, too?

Mr. SMITH. No, thank you, Senator. I will be happy to try to answer any questions.

Senator PASTORE. Now, for the purpose of the record, I think at this point we ought to insert the statute.

If there is no objection, that will be done.

Secondly, I think we ought to insert here an analysis of the statute which was prepared by our staff, which is not too long; and

Thirdly, I think we ought to insert here in the record the letter addressed by Secretary of State John Foster Dulles to Senator Fulbright, with reference to an agreement of understanding.

(The material referred to follows:)

STATUTE OF THE INTERNATIONAL ATOMIC ENERGY AGENCY

Article I. Establishment of the Agency

The Parties hereto establish an International Atomic Energy Agency (hereinafter referred to as "the Agency") upon the terms and conditions hereinafter set forth.

Article II. Objectives

The Agency shall seek to accelerate and enlarge the contribution of atomic energy to peace, health, and prosperity throughout the world. It shall ensure, so far as it is able, that assistance provided by it or at its request or under its supervision or control is not used in such a way as to further any military purpose.

Article III. Functions

A. The Agency is authorized:

1. To encourage and assist research on, and development and practical application of, atomic energy for peaceful uses throughout the world; and, if requested to do so, to act as an intermediary for the purposes of securing the performance of services or the supplying of materials, equipment, or facilities by one member of the Agency for another; and to perform any operation or service useful in research on, or development or practical application of, atomic energy for peaceful purposes;

2. To make provision, in accordance with this Statute, for materials, services, equipment, and facilities to meet the needs of research on, and development and practical application of, atomic energy for peaceful purposes, including the production of electric power, with due consideration for the needs of the underdeveloped areas of the world;

3. To foster the exchange of scientific and technical information on peaceful use of atomic energy;

4. To encourage the exchange and training of scientists and experts in the field of peaceful uses of atomic energy;

5. To establish and administer safeguards designed to ensure that special fissionable and other materials, services, equipment, facilities, and information

made available by the Agency or at its request or under its supervision or control are not used in such a way as to further any military purpose; and to apply safeguards, at the request of the parties, to any bilateral or multilateral arrangement, or, at the request of a State, to any of that State's activities in the field of atomic energy;

6. To establish or adopt, in consultation and, where appropriate, in collaboration with the competent organs of the United Nations and with the specialized agencies concerned, standards of safety for protection of health and minimization of danger to life and property (including such standards for labour conditions), and to provide for the application of these standards to its own operations as well as to the operations making use of materials, services, equipment, facilities, and information made available by the Agency or at its request or under its control or supervision; and to provide for the application of these standards, at the request of the parties, to operations under any bilateral or multilateral arrangement, or, at the request of a State, to any of that State's activities in the field of atomic energy;

7. To acquire or establish any facilities, plant and equipment useful in carrying out its authorized functions, whenever the facilities, plant, and equipment otherwise available to it in the area concerned are inadequate or available only on terms it deems unsatisfactory.

B. In carrying out its functions, the Agency shall:

1. Conduct its activities in accordance with the purposes and principles of the United Nations to promote peace and international cooperation, and in conformity with policies of the United Nations furthering the establishment of safeguarded worldwide disarmament and in conformity with any international agreements entered into pursuant to such policies;

2. Establish control over the use of special fissionable materials received by the Agency, in order to ensure that these materials are used only for peaceful purposes;

3. Allocate its resources in such a manner as to secure efficient utilization and the greatest possible general benefit in all areas of the world, bearing in mind the special needs of the underdeveloped areas of the world;

4. Submit reports on its activities annually to the General Assembly of the United Nations and, when appropriate, to the Security Council: if in connection with the activities of the Agency there should arise questions that are within the competence of the Security Council, the Agency shall notify the Security Council, as the organ bearing the main responsibility for the maintenance of international peace and security, and may also take the measures open to it under this Statute, including those provided in paragraph C of article XII; 5. Submit reports to the Economic and Social Council and other organs of the United Nations on matters within the competence of these organs.

C. In carrying out its functions, the Agency shall not make assistance to members subject to any political, economic, military, or other conditions incompatible with the provisions of this Statute.

D. Subject to the provisions of this Statute and to the terms of agreement concluded between a State or a group of States and the Agency which shall be in accordance with the provisions of the Statute, the activities of the Agency shall be carried out with due observance of the sovereign rights of States.

Article IV, Membership

A. The initial members of the Agency shall be those States Members of the United Nations or of any of the specialized agencies which shall have signed this Statute within ninety days after it is opened for signature and shall have deposited an instrument of ratification.

B. Other members of the Agency shall be those States, whether or not Members of the United Nations or of any of the specialized agencies, which deposit an instrument of acceptance of this Statute after their membership has been approved by the General Conference upon the recommendation of the Board of Governors. In recommending and approving a State for membership, the Board of Governors and the General Conference shall determine that the State is able and willing to carry out the obligations of membership in the Agency, giving due consideration to its ability and willingness to act in accordance with the purposes and principles of the Charter of the United Nations.

C. The Agency is based on the principle of the sovereign equality of all its members, and all members, in order to ensure to all of them the rights and 94441-57-3