THE HAGUE

Your Excellency,

I have the honour to refer to consultations between representatives of our Governments relating to the establishment of security arrangements to permit and regulate the exchange of information between the Government of Australia and the Government of the Kingdom of the Netherlands.

The establishment of these arrangements has become desirable in view of the cooperation between the Netherlands and Australia as regards the production and procurement of military equipment. I am now instructed to communicate to Your Excellency that the Australian Government is prepared to conclude an arrangement to be called “The Netherlands-Australia Defence Security Arrangement”, with respect to this matter in the following terms.

Mutual Security Protection

1. The material to which this Arrangement relates is classified material of either or both countries relating to or in the nature of government-approved arrangements connected with Defence, including contracts, sub-contracts and pre-contract negotiations placed or entered into by or on behalf of the Netherlands Government or by or on behalf of the Australian Government.

2. Each Government will take all appropriate measures in accordance with this Arrangement and the Schedules thereto to protect material to which this Arrangement relates that is within its territorial jurisdiction or while possessed by or furnished to persons authorised by it to take that material abroad.

3. Matter subject to this Arrangement will be given security protection at least equal to that given each Government own classified matter of a corresponding level of security classification.

4. Each Government will observe any further requirements for security protection which may be considered necessary by the two Governments for the purpose of regulating the exchange of classified military information between them.

5. Each Government will withhold matter subject to this Arrangement from the Government, firms, or citizens of a third State unless written approval to do otherwise is first obtained from the Government furnishing the matter.

6. Matter subject to this Arrangement will not be used for purposes other than defence purposes.

7. Each Government will arrange for necessary security inspections to be made of any facility within its territorial jurisdiction to which or through which matter subject to this Arrangement may be passed, or which may in any way be connected with the use or transmission of that matter.

8. Each Government, upon request, will provide reasonable facility for periodic visits by representatives of the requesting Government to review together the security provisions presently in force with a view to achieving mutual understanding of the adequacy and reasonable compatibility of the respective security systems.

9. Where a contract or arrangement involving classified matter is negotiated by or through the Government of the country furnishing the matter and is to be performed within the other country, the Government furnishing the matter will in each case incorporate in the contract document a security requirements clause as required by Schedule B to this letter, in the case of the Netherlands Government, or Schedule C to this letter in the case of the Australian Government, or in either case an appropriate equivalent clause.

10. Transmission of matter subject to this Arrangement will be made only through Government-to-Government channels and by representatives designated by each of the Governments.

11. Matter subject to this Arrangement will be made available only to a person who requires it in the performance of his duties and who has been appropriately security cleared and authorised to have the information.

12. Visits which involve access to or the exchange or passage of classified matter must have the prior approval of both Governments. Approval for such visits will be granted only to persons possessing valid clearances.

Terminology

13. In this Arrangement, the term “classified matter” includes all matter, in whatever form transmitted from one Government to the other, that is marked with a security classification or is indicated to be so classified by or under the direction of the transmitting Government.

Protection of Private Rights

14. Each Government will respect all industrial ownership rights, including copyrights and rights originating from inventions, which are involved in information exchanged under this Arrangement.

Security Costs

15. No compensation will be paid between Governments for costs arising in connection with the carrying out of security measures.

Violation of Provisions for Security Protection

16. Violation of any security regulations or provisions for security protection of matter subject to this Arrangement will be investigated and proceeded against according to law by the appropriate authorities and in the relevant law courts.

17. If there is any loss, compromise or possible compromise of classified matter or any violation of security regulations in respect of matter subject to this Arrangement, such incident will be reported promptly to the Government which furnished the matter.

Schedules

18. Further details on the proceedings to be followed for the implementation of this Arrangement are set out in Schedules A, B, C and D attached to this letter.

Review or Termination of the Arrangement

19. This Arrangement will be reviewed on the request of either Government.

20. This Arrangement will cease to operate six months after receipt of written notice of termination by one Government from the other.

21. Unless otherwise agreed by both Governments, where the Arrangement ceases to operate all matter subject to the Arrangement will be treated according to the terms of the Arrangement.

22. This Arrangement will only apply to the part of the Kingdom of the Netherlands situated in Europe.

If the foregoing is acceptable to the Government of the Kingdom of the Netherlands, I propose that this letter and Your Excellency's confirmatory reply constitute the Arrangement which will come into effect on the date on which the Government of the Kingdom of the Netherlands informs the Government of Australia in writing that the procedures constitutionally required in the Kingdom of the Netherlands have been complied with.

I avail myself of this opportunity to renew to Your Excellency the assurance of my highest consideration.

(sd.) DAVID FAIRBAIRN

Ambassador of Australia

To

Minister of Foreign Affairs

of the Kingdom of the Netherlands

The Hague.

2 December 1977