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which was signed today,^[1] and to state the following understandings which have been reached during our negotiations leading to the conclusion of the Agreement:

1. Article I B of the Agreement contemplates that the Government of Japan (hereinafter referred to as the Lessee) and the United States Atomic Energy Commission (hereinafter referred to as the Lessor) may agree as to the date of transfer and return of material to be leased to the Lessee. It is understood that in establishing such schedules of delivery and return, the Lessee may return such material at any time prior to September 30, 1960, notwithstanding any such agreed schedule. In any event, the Lessee shall return such material on September 30, 1960, or upon the termination of the Agreement, whichever first occurs.
2. At the time of transfer of uranium hexafluoride from the Lessor to the Contractor engaged by the Lessee in accordance with Article II A of the Agreement, the Lessor shall state to the Contractor the enrichment and purity of the uranium hexafluoride transferred and shall furnish a copy of such statement to the Lessee. If the quantity, enrichment and purity of the uranium hexafluoride transferred to such Contractor does not conform to the specifications contained in the contract between such Contractor and the Lessor, the responsibility and liability of the Government of the United States of America shall be solely limited to the Lessor, upon return of such uranium hexafluoride, making reasonable efforts to transfer material, at a Lessor's facility, which does conform to such specifications and reimbursing the Contractor for the reasonable costs of packaging and transportation incurred by the Contractor in returning to the Lessor any such material which does not conform to such specifications.
3. With reference to the provisions of Article III and Article IV A (2) (b) of the Agreement, it is the understanding of the Lessee that the Lessor, in determining whether the cost of reprocessing of returned fuel elements exceeds the value of recoverable material therein, shall furnish the Lessee with the total estimated cost of reprocessing and breakdown thereof by major items.
4. With respect to Article VI of the Agreement, it is understood that this Article is not intended to mean that the Lessee shall, without its consent, be subject to the jurisdiction of the courts of the Government of the United States of America.

It would be greatly appreciated, if you would be good enough to confirm the above understandings.

Sincerely yours,

Mr. John A. Hall
United States Atomic Energy Commission
Washington 25, D. C.

No. 4621