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CIRCULAR OF THE STATE COUNCIL CONCERNING STRICT IMPLEMENTATION OF THE STATE POLICY ON NUCLEAR EXPORT

    Our country advocates complete prohibition and thorough destruction of
nuclear weapons and other weapons of mass destruction and pursues a policy of
"neither advocating, encouraging and engaging in proliferation of nuclear
weapons nor helping other countries develop nuclear weapons". As one of
signatory states to the Treaty on Non-Proliferation of Nuclear Weapons, our
country has all along taken a prudent and responsible attitude in nuclear
export control.

    With a view to ensuring the application of the relevant state provisions
and current international norms and practices to the nuclear economic
relations and foreign trade in our country, all departments and units
concerned must strictly carry out our country's policy on nuclear export in
their foreign economic and trade activities, that is, neither advocating,
encouraging and engaging in proliferation of nuclear weapons nor helping other
countries develop nuclear weapons; materials and projects for nuclear export
to be used for peaceful purposes only, to be put under the safeguards and
supervision of the International Atomic Energy Agency, and non transfer to a
third country without permission of our country; no assistance offered to
nuclear facilities without safeguards and supervision of the International
Atomic Energy Agency. The relevant particulars are hereby notified as
follows:

    1. The China National Nuclear Industrial Corporation and other companies
designated by the Government shall monopolize the export of nuclear materials,
nuclear equipment, nuclear technology and non-nuclear materials used for
reactors. No other departments or companies shall engage in the export
without approval.

    2. Nuclear materials, nuclear equipment and related technology,
non-nuclear materials used for reactors, nuclear-related, dual-purpose
equipment, materials and related technology to be exported by our country (A
detailed list shall be separately published by the Ministry of Foreign
Affairs, the Ministry of Foreign Trade and Economic Cooperation and the State
Atomic Energy Agency.) shall not be provided and used for nuclear facilities
not put under the safeguards and supervision of the International
Atomic Energy Agency. No department or company shall cooperate with
nuclear facilities not put under the safeguards and supervision of
the International Atomic Energy Agency, nor shall exchange of professional
scientific and technical personnel and technological information be conducted.

    3. Countries which don't accede to the Treaty on Non-Proliferation of
Nuclear Weapons have some of their nuclear facilities under the safeguards and
supervision of the International Atomic Energy Agency and have others beyond
the safeguards and supervision (A list of signatory states to the Treaty on
Non-Proliferation of Nuclear Weapons shall be circulated separately). In the
case of export trade and cooperation described in the preceding Article 2
with countries not acceding to the Treaty on Non-Proliferation of Nuclear
Weapons, if nuclear facilities in those countries are involved, the State
Atomic Energy Agency (China National Nuclear Industrial Cooperation) shall be
referred to in advance for checking out whether or not the nuclear facilities
have been put under the safeguards and supervision of the International Atomic
Energy Agency, and the competent authorities of the importing country shall be
required to issue a document of certification for final use, guaranteeing that
the imported materials and items or the cooperation proposed between the two
parties shall not be transferred to nuclear facilities beyond the safeguards
and supervision of the International Atomic Energy Agency. If nuclear
facilities of the foreign party are not involved, the competent authorities of
the importing country shall be required in advance to issue a document of
certification which certifies reasonably and credibly the final use of its
imported items and guarantees that the imported materials, items or the
cooperation proposed for such imported materials and items between the two
parties shall not be transferred to nuclear facilities beyond the safeguards
and supervision of the International Atomic Energy Agency. Export or
cooperative activities can proceed only upon confirmation of the
above-mentioned documents of certification and approval by the Ministry of
Foreign Affairs, the Ministry of Foreign Trade and Economic Cooperation and
the State Atomic Energy Agency.