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Machine-read from the scan, so expect some errors. Lines that couldn’t be read are left out.
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Brig. Gen. Alfred D, Starbird Manuel Dupkin II 1. Executive Order on Community Dispo6al Mr. Strauss reported that an Executive Order had been issued t.?”an=fer ring certain functions under the Atomic Energy Community T.:.sposal Act to the Fede:al Hozising Administration, 2. Meeting with the Secretary of Defense and Chairman, Joint Chiefs of Staff Mr. Strauss said that on February 15, he had met with the Secretary c: Defense and the Chairman of the Joint C4igfs of Staff to discuss the
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observer program for Operation REDWING, the allocation of materials for foreign power reactors and the request for a meeting between the Joint Chiefs of Staff and the Commission. With regard to the observer program for Operation REDWING Iv r. Strauss said that JCS would like to sponsor a number of U.K. and Canadian military observers. Mr. Strauss said he had informed Admiral Radford that if foreign military observers were present at Operation REDWING, he believed it would also be necessary to invite representatives of the press. He added that it had been agreed that A EC and DOD would consider, as soon as possible, the question of observer programs. Mr. Strauss said he had read to Mr. Wilson and Admiral Radford the draft letter to the President requesting that he allocate 20,000 kilograms of U-235 for foreign power reactors, and also a letter whicPPPce1 3Ran01 01 0s
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b. That the U.S. would not use, for weapon purposes, viding the U.S.S.R. would make a similar commitment. After a brief discussitm, the Commissioners requested that a study of these suggestions be prepared.
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recognized that new facilities would be required to meet requirements for thin weapons shells and inquired why the Genesal Manager had not recommended the construction lf a new facility and the selection of a new contractor for this work. Mr. Fields replied that Oak Ridge had already established a capability in fabrication of uranium and the facility would use materials produced at Oak Ridge. He also observed that construction of the phnt at Oak Ridge wouid make it easier to integrate production and fabrication of these weapons components. Mt. Murray said it appeared to him that future requirements for this type of weapons components would increase so 8reatly that it would not be possible to perform the fabrication in modified facilities at Oak Ridge, Mr. Cook pointed out that thfs fabrication would be an integral part of the Oak Ridge operation and that any new facilfty would not be self-sufficient but would require material to be trans - ported to the faciAity and then returned to Oak Ridge for final processing. NLr. Murray said that he objected to beginning a large weapons facility at Oak Ridge and he believed AEC should anticipate the greatly increased demand for these components and plan to integrate a new facility and a new contractor into its production operations for this purpose. Mr. Cook observed that it would require considerably longer to acquire a new facility and select a new contractor and that construction at Oak Ridge would be the only way to meet military requirements. In answer to a qyestion by Mr. Libby, Mr. Cook said that appr o:.:imately $50 to $60 million had been inve steal in weapons facilities at Oak Ridge. In answer to a question by Mr. Strauss, he caid that acquisition of another facility and selection of another contractor would require about an additional 12 months. Mr. Murray sugge steal the possibility of selecting a new contractor ad establishing a new site for a part of this program. Mr. Cook pointed out that such a procedure would net meet existing rnilita~ requirements. M?. Murmy ~ wky tkose fadities should ad be coastsectad lt Rocky Plaas siaeo it was W hevc boom e umfa W-W would coacea,trate this fabrication lt oao site and under the contractor. kr. Murray pointed out that 8emtructfoa of this facility at Oak Ridge would mako it even rnor e lttractive than it was now.
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(In approving these minutes, the Commission requested that the transcript of this part of the meeting be used in lieu of tiis part of the minutes as originally written.) here to get more and different people in the program. Every time you come up it is always too late or a time scheduled or something else can’t be done. For six years this is the same sort of thing. CHAIR MAhJ STRAUSS: Tom, no. Your argument was for putting the naval construction at Westinghouse, and there you used the o+Aer argument, I thought very forcibly and we agreed with it. This is the same argument here that you used there for putting those naval vessels at Westinghouse. COIV.MISSIONER NLURRAY: It was the only place you could get your naval vessels. Only place, only place. I keep repeating that. CHAIRNUiN STRAUSS: That did not appear from the staff’s COMMISSIONER MURRAY: It is my judgment anyway for whatever it is worth. CI-TJ*,;J<MN STRAUSS: It is a matter of judgment, but not COMMISSIONER MURRAY: Sure it is. ” The Commissioners then discussed the additional cost which ‘.Y.I.:J*JMbe incurred by the construction of a uew facility, and the matezial ‘;.:h~.chwuld be available to supply it in the event of destruction of Oak The Commission=s also considered the possibility of obtainirig C-e necessary funds for the programs recommended in AEC 817/13 from
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o*&er appropriations available to AEC. Mr. Burrows said he *d not believe the AEC budget for FY 1957 provided s~ficient fie~bil-ity to fund these programs without deferring other projects. Mr. Fields said that requests for funds for the nuclear rocket propulsion program now totaled approximately $50 milEon. However~ he said he had decided not to request additional funds for this program util the AEC-DOD evaluation of it had been completed. Mr. Libby pointed out that the additional funds requested in A EC 817/13 for the rocket program might also be deferred until this evaluation was complete. He obsezved that an entirely new laboratory might be necessary for ih~s prcgram. Mr. Davis said that deter~al of the present request would delay the pro~ram approximately for one year. Mr. Fields called the Commissioners’ attention to the $9.3 mi~lon requested for the power reactor program. He said all of these funds might be required for the second round of the power demonstration reactc r program and asked whether the Commissioners believed additional funds should be requested for other power reactor projec~s which might be submitted in FY 1957. L’ir. Murray said he believed es much ae $100 million should be requested and asked whether provision had been made for third and fourth rounds of the P DRP. Mr. Cook said that no provisions had been made. N4r. Burrows added that c~ &~.I;.s had previously been requested in the Plaat and Equipment IYW?.EF+.h’..:. Davis said he beU.eved the present request would provide for the seccmd round of the P 122?Pand would provide s ~me flexibility ~m o“iher projects, but would not provide for a third round of the program. Mr. Vance pointed out that the General Manager was recommending a twenty-two percent increase in the amounts previously requested for he FY 195? budget. He said it did not seem to him that the staff paper :.~ader considerati~on properly justified the need for an increase of this ‘m.tv.re. Mr. Cook obsezved that the hventy.-two percent increase covered ~.~w r eq~e sts for aufiori~tiol~ and that new r e que sts for funds were not +Ms Iar ge. Mr. Vance mid that it had previously been stated that the 1?57 budget did not provide flex.ibiIity, but after a Bureau of the Budget reduction of $50 millions funds had been re-allocated to cover this re - hc~<.on. Mr. Fields pointed out that it might al:eady be possible that AI?(2 would need to request supplemental appropriations for FY 1957
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because of a lack of flexibility in its budget. However, he said that with approval of the requests under consideration, he hoped that requests for supplemental appr lpriations could be avoided unless it was decided that the nuclear rocket propulsion program was urgent. Mr. Vance said that it seemed very important to him to assist the Administration’s efforts to balance the budget, especially since this is the first year that it appeared possible. He said he believed a balanced budget is so important to the economy of the country that it would be desirable to consider additional fund requests very carefully even though the delay might bean that the Commission might risk the need to request supplemental appropriations later. Mr. Iv urray said he believed the AEC program, lid particularly the request for funds for the thin weapons shell fabrication facility, is so importaat that the Commission should not risk being unable to meet its responsibilities. On the contrary, ke said, he believed that after Operatioa REDWfNG, DOD requir ernemts for weapons usirq these components would be so great that if prevision ware ad made at this the it mi~t wall delay meeting these requiretwnts by as much l s two years. Mr. Murray ldded that be believed l limit had been reached in high yield weapons lad that aggressive steps should now be taken to redirect the weapons program to production of small weapons. After further discussion, the Commissioners agreed that further consideration of this matter would be deferred until February At this point Mr. Libby left the meeting. Mr. Murray referred to discussions of the possi.biAity of tke Department of Navy purchasing zirconium for Naval reactors rather than obtaining this material from AEC. He said he believed that it would be hazardous at this point in the development of sourcefi of zi:conium to permit the Department of Navy to enter into a separate purchase program for this material. Mr. Burrows said that purchase of zirconium for the Navy was becoming an increasing drain on the AEC budget since AEC was required to fund for the purchase of zirconium but was not repaid until reactor cores had been fabricated. He said it had been sugge steal that the Department of Navy fund for this
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material and that AEC continue to purchase it. The Commissioners then discussed the desirability of continuing to purchase zirconium needed for the Naval Reactor program. N.r. N.urray proposed that the Commission establish a policy that AEC would continue to purchase zirconium for the Naval Reactor program. Mr. Vance suggested that as an alternative, the Office of Defense Mobilization might be requested to purchase zirconium for both the Department of Navy and After further discussion, the Commissio?x Requested that a study be made of means of funding for fi-ement of zirconium, including the possibility of procurement by the ODM. Mr. Murray referred to the recent Commission- approval of three naval reactor projects and said he understood that an additional $2.6 million was necessary in order to begin development of these reactors. Mr. Cook said that funds had not been available in the FY 1956 budget to begin all of these projects, since requirements for them had been submitted after approval of the FY 1956 budget. He added that during the mid-year financial review not enough funds had been available for allocation to begin these projects. However, he pointed out that the necessary funds had been requested in the FY 1957 budget. Mr. Murray requested that a study of this matter be prepared including a statement as to whether the denial of these funds would or wo@d not delay these projects. (See AZC 47/13, subsequently circulated.) - 8. Additional Power Agreement with OVEC (See Minutes of With regard to previous Commission consideration of an additional agveement with OVEC for the purchase of an additional 150 megawatts of power, Mr. Murray said he believed the additional agreement should have at least a five to ten year term instead of the proposed three year term. He pqinted out that under the original long-term contract with OVEC the Commission was, in effect, paying for the plant and said he therefore be~eved the Commission was enti~ed to as long a term as it
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wished. He suggested that the Chairman ask representatives of OVEC to meet with the Commissioners to discuss this matter. Mr. Cook then reported on negotiations with OVEC to obtain the additional power agreement. He said he believed that the company had been quite fair ia agreeing to the requests which AEC had made during these nogotistioas~ especially since the original contract did not provide that A EC had any right to the ldditional power. Mr. Bloch said that AEC had begun negotiations for the additional agseement on the assumption that a longer tesm than five years would be undesirable because of the uacertaiaty of th cost of this power and the uacertaiaty of the plmt lc~lly producing the additional power. lie added that it was also uncertah whether it -d be desirable to continue to use the additional power at Portsmouth ti five years. He pointed out that this might require that A EC purchase supplemental power through OVEC from other sources. This would require that AEC pay l premium price for this power. Mr. Cod pointed out that OVEC would ask for provisions for price adjustment if a longer term were requested. The Commissioners then discussed with Mr. Cook and Mr. Bloch the desirability of requesting OVEC to consider a five year term for the agreement. Mr. Cook said he believed such l request would be a breach of good faith. However, in response to 8 question by Mr. Vance. he said he would be happy to lsk Mr. Sporn for his views on the matter. Mr, N.urray said he wished to have Mr. Sporn answer the following questions for the recor~ a. Whether OVEC would agree to 8 five year lgreement on the scme terms as a three year lgreemeat? b. If not, what the additional cost of a five year In response to a question by Mr. Straussr Wk. Murray said he would n>t be willing to authorize execution of the agreement with the unders .andiag that the l nswers to these quostioas would be furnished later. After further disassion, the Commission, with Commissioners Strauss and Vance voting in the affirmative and Mr. Murray voting in
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a. Noted that the General Manager will approve execution of the proposed Additional Power Agreement therein the renegotiation clause contained in a memorandum dated February 9, 1956, from the Director of Production to the General Manager; b. Noted that the Joint Committee on Atomic Energy will be advised of this action by Xetter such as i+ppendix “B’* to AEC 508/15, as revised, and as noted in that letter, the contract will be filed with JCAE after exeMr. Strauss observed that Mr. Libby had said, before lea”ving the meeting, ‘that he was in favor of this-action. A:proved by the C ommis siorx Meeting 1207, on June 12, 1956