I Letter from Mr. Clarke N. Ellis, Deputy Managing Director of
the American Institute in Taiwan to Mr. Chia-Sheng Pan, Direc-
tor of Economic Division of the Coordination Council for North
American Affairs.
June 13, 1990
Mr. C. S. Pan
Director
Economic Division
Coordination Council for
North American Affairs
4301 Connecticut Avenue, N. W.
Washington, D. C. 20008

Dear Mr. Pan:

Enclosed are three copies of Supplemental Agreement, Modificati-
on 1 to Contract DE-SC05-84UECI200. If you concur, in this modi-
fication, please indicate acceptance by signing all three copies
on behalf of Taiwan Power Company and returning two copies to me
.

Thank you for your continuing cooperation.

Sincerely,
[Signed]
Clarke N. Ellis
Deputy Managing
Director

II Letter from Mr. Chia-Sheng Pan, Director of Economic Division
of the Coordination Council for North American Affairs to Mr.
Clark N. Ellis, Deputy Managing Director of the American Ins-
titute in Taiwan.

Reference No. 79-0823
July 16, 1990
Mr. Clarke Ellis
Deputy Managing Director
American Institute in Taiwan
1700 N. Moore Street, Suite 1705
Arlington, Va. 22209

Dear Mr. Ellis:

I am referring to your letter of 13 June 1990 regarding a s-
upplemental agreement to the nuclear enrichment contract DE-SC05
-84UECI200. Enclosed please find two copies of the executed agr-
eement.

Sincerely,
[Signed]
Chia-Sheng Pan
Director
Enclosures
JS / il

Contract No. DE-SC05-84UECI200
COORDINATION COUNCIL FOR
NORTH AMERICAN AFFAIRS
on behalf of TAIWAN POWER
COMPANY
Modification No. 1

SUPPLEMENTAL AGREEMENT (CUSTOMER'S AGREEMENT TO PARTICIPATE IN
ENHANCED ORDERING PROCESS)

THIS SUPPLEMENTAL AGREEMENT, entered into this 13 day of June
, 1990, by and between the AMERICAN INSTITUTE IN TAIWAN (herein-
after referred to as 'AIT"'), acting pursuant to the Taiwan Rel-
ations Act (P. L. 96-8) and Section 161v. of the Atomic Energy
Act of 1954, as amended, and the COORDINATION COUNCIL FOR NORTH
AMERICAN AFFAIRS (hereinafter referred to as the "Customer"), a-
cting hereunder on behalf of TAIWAN POWER COMPANY;

WITNESSETH THAT:

WHEREAS, AIT and the Customer have heretofore entered into C-
ontract No. DE-SC05-84UECI200, and various modifications thereto
, pursuant to which the U. S. Department of Energy (hereinafter
referred to as "DOE") agreed to furnish the Customer certain ur-
anium enrichment services; and WHEREAS, AIT and the Customer he-
reby wish to modify the contract further pursuant to Article XI-
Amendments;and

WHEREAS, this modification is intended to authorize the Cus-
tomer's participation in an Enhanced Process for Order Spcifica-
tion by making certain specific but limited modifications to the
Customer's enrichment contract; and WHEREAS, this modification
is authorized by the Atomic Energy Act of 1954, as amended; the
Taiwan Relations Act; and other applicable law;

NOW, THEREFORE,the parties agree to the following:

Under the options provided to the Customer under this contra-
ct modification, the Customer can obtain enrichment services on
a shorter lead time when the assay of the enriched uranium prod-
uct is less than 4.5% U-235, or when the assay of the enriched
uranium product is selected from certain stated "standard assays
." In both cases, the Customer's minimum commitment to AIT must
be 70 percent or more of the Customer's requirements. It is fur-
ther agreed, however, that the charge for enrichment services w-
ill be established as if no reduction in order lead time had be-
en authorized. In this regard, the following new Section E., "E-
NHANCED ORDERING PROCESS," is hereby added to Appendix "A" of t-
he Customer's Utility Services (US) Contract and is applicable
when orders are placed for enriched uranium with an assay less
than 4.5% U-235 or when orders are placed for enriched uranium
from the "standard assays" identified from time to time by the
DOE on behalf of AIT (the terms unmodified by this contract mod-
ification shall remain applicable for orders when the assay is
4.5% or greater):

"E. ENHANCED ORDERING PROCESS

1 a The flexibility offered hereunder is applicable in years wh-
en the Customer's minimum commitment to AIT, as specified in
Article III, Paragraph l.a., is 70 percent or more of requi-
rements, and the Customer's order is for enrichment assays
of less than 4.5% U-235.
b Additionally, under this program, DOE on behalf of AIT shall
specify "standard assays, " subject to routine variation, of
enriched uranium product from which the Customer may order.
2 a If the Customer elects to specify a specific assay of mater-
ial which is not a standard assay, but which is less than 4.
5% U-235, the Customer is required to establish a firm deli-
very date no later than 180 days in advance of delivery in
accordance with Paragraph 4. of Article III. This notificat-
ion will contain a nonbinding estimate of total SWU and tra-
nsaction tails assay. The Customer is hereby authorized to
defer by 30 days its written notice confirming specific qua-
ntities (Kg U) and assays (weight percent U-235) of enriched
uranium, transaction tails assay, and other logistical info-
rmation normally provided pertaining to the order.
b If the Customer elects to order from the standard assays es-
tablished by AIT, the Customer is required to establish a f-
irm delivery date no later than 180 days in advance of deli-
very in accordance with Paragraph 4. of Article III. This n-
otification will clearly state that the Customer is ordering
enriched uranium product from standard assay material and w-
ill also contain a nonbinding estimate of total SWU and tra-
nsaction tails assay. The Customer is hereby authorized to
defer by 60 days its written notice confirming specific qua-
ntities (Kg U) and assays (weight percent U-235) of enriched
uranium, transaction tails assay, and other logistical info-
rmation normally provided pertaining to the order.

3 DOE shall, by written notification to the Customer, establish
standard assays of enriched uranium product. From time to time
, DOE shall review the standard assays to determine if changes
should be made. DOE shall give the Customer nine (9) months'
written notice of any changes.

4 After title of enriched uranium product is transferred f.o.b.
the Customer's vehicle or commercial conveyance at DOE's enri-
chment plant, DOE shall promptly submit a bill for charges. P-
ayments shall be made within 33 days from the date of AIT's b-
illing, and otherwise consistent with all other provisions of
Article IXBillings and Payment.

5 Either party may terminate its participation in this Enhanced
Ordering Process by providing nine (9) months' written notice
of its intention to the other Party.

IN WITNESS WHEREOF, the parties hereto have executed this Suppl-
emental Agreement as of the day and year first above written.

COORDINATION COUNCIL
FOR NORTH
AMERICAN AFFAIRS
on behalf of
TAIWAN POWER
COMPANY
[Signed]
BY: Chia-Sheng Pan
TITLE: Director
Economic Division/
CCNAA
DATE: July 13, 1990

AMERICAN INSTITUTE
IN TAIWAN
[Signed]
BY: Clarke N. Ellis
TITLE: Deputy Managing
Director