Addressing global nuclear issues, Dr. ElBaradei focused on the three pillars of the Agency's work - technology, safety, and verification - and emphasized the growing importance of forging stronger partnerships with UN and other organizations to meet global challenges in more effective and efficient ways.

"In looking ahead to where the Agency should be in the early years of the next millennium, I would like to stress the importance of reaching out more effectively to both traditional and new partners," he said. "Serious global challenges remain. High among them are improving social and economic conditions in much of the world, curbing the spread and eventually eliminating the threat of nuclear weapons, and stopping the degradation of the environment. The Agency has an important role to play in helping the world to meet these challenges."

He cautioned, however, that the IAEA's ability to carry out activities of high priority to its 131 Member States faces serious financial hurdles, despite successful steps to improve the Agency's management and efficiency. "Our responsibilities are growing but our resources are not," Dr. ElBaradei said. "It is imperative that there be a correlation between tasks and resources if we are to continue meeting your demands and fulfilling your expectations."

His statement covered the IAEA's work related to a range of topical issues, including nuclear verification and the security of material; global energy demands and nuclear power's future; technical cooperation for nuclear and related applications in health, agriculture, and other fields; and nuclear, radiation, and waste safety. The full statement is available over the IAEA's WorldAtom Internet services at http://www.iaea.org/GC/gc43.

Highlights follow:

Nuclear Verification and Security of Material:

• On the Agency's verification activities in Iraq and the Democratic People's Republic of Korea (DPRK), he reported little change. In Iraq, where the last IAEA nuclear inspection under UN Security Council resolutions took place some nine months ago, he said the IAEA cannot provide any measure of assurance regarding Iraq's compliance with its obligations. "One year ago we were cautiously optimistic that the Agency would be able to proceed with the full implementation of its monitoring and verification plan," he said. "This has not happened." He noted, however, that the Agency continues to be ready to resume its activities in Iraq at short notice. Regarding the DPRK, he reported no progress on the issue of preservation of information relevant to verifying the DPRK's compliance with its IAEA safeguards agreement, despite twelve rounds of technical discussions. "The measure of cooperation we receive from the DPRK continues to be limited," he said, though the Agency continues to monitor the "freeze" on the DPRK's graphite-moderated reactors and related facilities.

• Four more States have accepted Additional Protocols to their IAEA safeguards agreements. Since May 1997, the Agency's Board of Governors has approved Additional Protocols with 45 States; the Protocols grant the Agency legal authority to implement more efficient and effective safeguards, and specifically to verify the absence of any undeclared material or activities.

• Work is moving ahead on a joint initiative with the Russian Federation and the United States on the IAEA's verification of weapon-origin fissile material in the two States. Further discussions are being held today by US Secretary Richardson, Minister Adamov, and Dr. ElBaradei to review activities and set goals for the coming year. (Also featured at the General Conference is an exhibit jointly sponsored by the United States and Russia.)

• Looking ahead to the Year 2000 Review Conference on the Treaty on the Non-Proliferation of Nuclear Weapons (NPT), whose Parties are obligated to conclude safeguards agreements with the IAEA, Dr. ElBaradei appealed to NPT States to bring their safeguards agreements into force without further delay. Fifty-two States have not yet done so, he noted. He further described IAEA efforts to put into place an integrated and strengthened safeguards system, and urged all States to continue working together for the universality of the non-proliferation regime, towards nuclear disarmament, and towards a better system of global and regional security. "These are the best disincentives against using nuclear energy for military purposes," he said.

Energy and Nuclear Power

• The world's changing energy marketplace and projected growth of electricity demand is a challenge for the future of nuclear power, he said. A resurgence of nuclear power will require action on three fronts: continued improvement in the global nuclear safety record, including the "back-end" of the fuel cycle, further improvements in economic competitiveness, and the enhancement of public understanding of, and confidence in, nuclear power. "The assumption that environmental considerations alone will trigger a resurgence of investment in nuclear power generation is at best doubtful," he said. "Only if the nuclear power industry consistently reflects three crucial attributes - safety, competitiveness and public support - can it be assured of a long-term future."

• Working with eight other international organizations, the Agency is pursuing an intensive programme to assist Member States in developing their own capacity for decision-making in the energy sector, he said. With the help of specialized databases and methodologies, States can now conduct their own objective comparative evaluations of available energy options, taking into account environmental, economic and risk factors throughout the fuel cycle. Currently, over 90 countries are using these tools. The IAEA also is actively contributing to the work of the Inter-governmental Panel on Climate Change and is working with the United Nations and other organizations to prepare for discussions on energy by the United Nations Commission on Sustainable Development in 2001.

• Joint international efforts are being supported on technological advances in the nuclear field, including the assessment of new reactor designs or the use of small- and medium-size nuclear reactors in non-electrical applications such as desalination. One example is the Agency's interregional technical co-operation project which brings together technology suppliers and prospective users for the development of integrated nuclear desalination concepts. The Republic of Korea is inviting Member States to participate in its design of one medium-sized reactor, and in Morocco, the Agency has assisted in the preparatory work for a small reactor for desalination purposes.

• In other fields, Dr. El Baradei cited effective projects in health care, agriculture, and water management. The Agency and seven Member States in Africa have developed and are now field testing an isotope-based molecular technique that reduces the period for diagnosis for tuberculosis from weeks to a single day - a critical improvement in the efficacy of intervention and disease control. In Belarus, the Agency has supported projects which will assist in the decontamination of prime agricultural land affected by the 1986 Chernobyl accident. In the middle East, projects are assisting national authorities to assess scarce groundwater and reservoir resources as part of evaluation studies.

• The development of an effective worldwide safety regime is progressing in key areas, he said. Actions include work to revise the full set of IAEA safety standards, some 70 documents that represent international consensus and provide guidance to national authorities; safety reviews to nuclear installations; the acceptance by States of international conventions related to nuclear safety, and to the safety of radioactive waste management and the management of spent fuel; and greater efforts to help States strengthen their national infrastructures for nuclear, radiation, and waste safety. "The key to an effective safety regime," he said, "is the full application of conventions and standards at the workplace, with particular attention paid to managerial and organizational practices."

• In underscoring the importance of radioactive waste management, the Director General cited results of a recent IAEA symposium, which indicated that technologies exist for the safe, environmentally sound and cost-effective management of radioactive wastes. An IAEA-sponsored conference in Spain early next year further examines major issues. He emphasized the importance of demonstrating solutions. "Only when final high-level waste repositories are built will the public start to perceive and accept that the waste issue has been resolved," he said.

• The safety and security of radioactive sources, including "orphan sources" that are not under control by national regulatory authorities, are a particular concern, he said, one that the IAEA is moving to address through a multi-faceted Action Plan. Another area of urgent concern, he said, is research reactor safety, including issues such as ageing, obsolete equipment, lack of spare parts, and budgetary limitations. IAEA efforts now are being reinforced to include more advisory missions; peer reviews and assessments; establishment of safety requirements; and other measures.

• Regarding the Y2K problem, Dr. ElBaradei reviewed major elements of the IAEA's assistance to States through a special project providing guidance for Y2K readiness and contingency planning; activities cover nuclear power plants, medical facilities that use radiation sources, and nuclear fuel cycle and radioactive waste management facilities. He said that 22 Member States have responded to the Agency questionnaire reporting that they have set up Y2K readiness programmes with respect to nuclear power plants. Few countries, however, have provided the Agency with information related to Y2K readiness at radioactive waste management and nuclear fuel cycle facilities, or in medical facilities that use radiation sources. Particularly in regard to medical facilities, he urged States to ensure that adequate preparations are made in time to protect the treatment of patients. He further advised that the IAEA's Emergency Response Centre will be in a state of increased readiness for the millennium change at the end of December.