1. Where required by this Arrangement, the Government of the Netherlands will protect matter subject to the Arrangement according to the Netherlands security regulations and in particular according to “artikel 2, hoofdstuk 1” of “Beveiligingsvoorschrift - II, 1965” and the “Algemeen Beveiligingsvoorschrift voor Defensie-opdrachten 1965” (Security Directive), where appropriate.

2. Where required by this Arrangement, the Australian Government will protect matter subject to the Arrangement according to Australian security regulations and in particular according to the Protective Security Handbook, 1966 and the Handbook of Security Procedures for Contractors where appropriate.

3. Where there is to be any change in the security regulations or procedures of either country relevant to matter subject to the Arrangement the Government of that country will immediately notify the other Government of the decision to change the regulations or procedures.

4. Where there is a change in the security regulations or procedures of either country, the Government of the other country may demand that the regulations and procedures formerly applied continue to be applied in respect of matter subject to the Arrangement.

5. From the date of this Arrangement, the provisions of the Arrangement shall extend to classified matter passed from one country to the other before the date of this Arrangement unless it is otherwise agreed by both Governments in respect of any particular matter.

6. Where matter subject to this Arrangement is oral information, the fact of transmission of that information will be recorded in a “Note for File” (memo) which will be subject to the same security measures as any other written document subject to the Arrangement.

7. Where sub-contracts involving matter subject to the Arrangement are let to the country originally furnishing the matter to the contractor, that country will assume responsibility for security measures affecting the facilities used and persons employed on such projects.

Security Clearances

8. Issue of clearances of facilities and individuals will be conducted according to the regulations of the country having responsibility for administering measures for matter subject to the Arrangement.

Security Requirements for Contractors

9. Each Government will ensure that contractors or sub-contractors having access to matter subject to the Arrangement are furnished instructions setting forth their responsibilities to protect the matter in accordance with the applicable laws and regulations.

(a) The Netherlands Government will furnish such contractors and sub-contractors in the Netherlands with a copy of the Security Directive (“Algemeen Beveiligingsvoorschrift voor Defensie-opdrachten 1965”) between the contractor and the Minister for Defence, and any modification to it necessary for proper security protection in each particular case.

(b) The Australian Government will furnish such contractors and sub-contractors in Australia with a copy of the Handbook of Security Procedures for Contractors, the Security Agreement (Release of Australian Government Classified Matter to Industry - Security Document No. 4) between the contractor and the Department of Defence, the provisions of Security Document No. 1 (Secrecy and Security for Contracts Classified “Restricted”) or Security Document No. 2 (Secrecy and Security for Contracts Classified “Confidential”, “Secret” or “Top Secret”) as applicable, and any modification to the Security Agreement or Security Document No. 1 or No. 2 necessary for proper security protection in each particular case.

10. A copy of any security requirements clause required by this Arrangement to be included by either Government in a contract document, and any other security provisions related to that contract shall be furnished to the other Government.

Transmission

11.

(a) All persons to whom or from whom matter subject to this Arrangement is to be transmitted shall be informed, by the appropriate Government, of the channels of transmission to be used by them.

(b) Matter subject to this Arrangement shall be prepared for any transmission in accordance with the regulations of the country from which the material is to be despatched.

12. Each Government shall ensure that classified matter it furnishes to the other Government is marked with its appropriate classification marking and the name of the country of origin.

13. Australian classified matter, including matter produced or reproduced in the Netherlands, shall also be marked with the markings indicated in Schedule D. When no longer required, Netherlands classified matter shall be returned through the Australian Embassy, The Hague, to the designated Netherlands Intelligence Authority.

Australian Classified Matter

14.

(a) Where the Australian Government furnishes classified matter it will assign a security classification to each of the elements of that matter, mark them appropriately and advise the Director of the designated Netherlands Intelligence Authority of that classification. Upon receipt, the Netherlands Government will assign an equivalent Netherlands classification to each of the elements of classified matter furnished or to be furnished, mark them, and forward them to the appropriate contractor or agent.

(b) Where Australian classified matter is produced or reproduced in the Netherlands, the Netherlands Government will ensure that it is marked, under Government supervision, with the assigned classification marks of both countries as provided in clause 16 below. The markings will be applied in the manner prescribed in the Netherlands regulations.

(c) If Australian classified matter is disclosed orally pursuant to a visit to the contractor or agent by or on behalf of the Australian Government, that Government shall ensure that the contractor or agent is informed of the security classification of the matter.

Netherlands Classified Matter

15.

(a) Where the Netherlands Government furnishes classified matter it will assign a security classification to each of the elements of that matter, mark them appropriately and advise the Chief Security Adviser, Central Office of Industrial Security, Department of Defence of that classification. Upon receipt, the Australian Government will assign an equivalent Australian classification to each of the elements of classified matter furnished or to be furnished, mark them, and forward them to the appropriate contractor or agent.

(b) Where Netherlands classified matter is produced or reproduced in Australia, the Australian Government will ensure that it is marked, under Government supervision, with the assigned classification markings of both countries as provided in clause 16 below. The markings will be applied in the manner prescribed in the Netherlands regulations.

(c) If Netherlands classified matter is disclosed orally pursuant to a visit to the contractor or agent by or on behalf of the Netherlands Government, that Government shall ensure that the contractor or agent is informed of the security classification of the matter.

Table of Equivalent Security Classification Categories

16. The Netherlands Classification | Australian Classification

Zeer Geheim | Top Secret

Geheim | Secret

Confidentieel | Confidential

Dienstgeheim | Restricted

Ongeclassificeerd | Unclassified

17. The Government furnishing classified matter shall furnish each contractor or agent specific classification guidance pertaining to each element related to the contract. The guidance will be forwarded by that Government to the other Government for adoption and transmission to the contractor or agent. Any change to the classification guidance or to the classification of any classified element related to the contract shall similarly be forwarded to the other Government and then transmitted to the contractor or agent.

Sub-Contracts