Foreign Relations of the United States, 1952–1954, National Security Affairs, Volume II, Part 2

711.5611/11–2053

Memorandum by R. Gordon Arneson to the Secretary of State¹

top secret

[Washington,] November 20, 1953.

• Subject:
• Representative Cole’s Inquiry Concerning the Possible Conflict Between the Administration’s Position on the Private Ownership of Nuclear Power Facilities and Continued United States Support of the United Nations Plan for the International Control of Atomic Energy.

Discussion

Attached as Tab A is a letter dated November 17 from Chairman Cole of the Joint Congressional Committee on Atomic Energy which requests your advice on any possible conflict between the Administration’s recommendations for private ownership and continued support of the UN plan for international control of atomic energy.

Chairman Cole quotes a part of the NSC statement of policy on the development of nuclear power made public on June 25 which advocates private ownership of nuclear power facilities.² He then quotes a portion of General Smith’s testimony given that same day before the Joint Committee (see Tab B)³ which comments on the UN international control plan. Chairman Cole said that the NSC statement of policy clearly advocates private ownership of the nuclear power facilities which, according to General Smith, would be subject to international ownership, operation and movement under the UN plan. He asks for your comments as soon as possible in order to avoid “any extensive possible discussion of this conflict”.

General Smith’s secret testimony before the Committee on June 4 alluded to the question now raised by Mr. Cole. He stated that “To the extent that new legislation results in the relaxation of domestic controls and safeguards, impetus would be given to hasty and premature demands both at home and abroad to modify our position on international control of atomic energy.” He continued however, “it seems probable that experience gained by this kind of domestic program may well provide useful guidance if a program of effective international control can one day be negotiated.” A copy of the June 4 testimony is attached (Tab C).⁴

The preparation of a substantive reply to Mr. Cole is difficult, if not impossible, pending completion of the review and report called for by NSC Action 899 of September 9, 1953.⁵ Under NSC Action 899, you, the Secretary of Defense, and the Chairman of the Atomic Energy Commission are to review current policy as contained in NSC 112 with particular reference to the international control of atomic energy.

I have received reports, which I am unable to verify, that Chairman Strauss believes the United States should announce withdrawal of support for any international control plan because of Soviet intransigence and, to demonstrate its interest in the peaceful application of atomic energy, should set up atomic power reactors in various countries as well as expand the export of radioactive isotopes. Should a report along the foregoing lines be made to the National Security Council, as envisaged by Action 899, and approved, an answer to Mr. Cole’s inquiry would be of academic interest only.

However, without knowing what might be contained in the forthcoming report, it is not possible, at this juncture, to prepare a meaningful reply to Mr. Cole.

In a news account of Mr. Cole’s speech of November 19 at a conference on industrial use of atomic energy at Buffalo, New York, he is reported to have said that “outright ownership of fissionable materials might not be desirable or necessary to a private program. A leasing arrangement might be more satisfactory.…”

The receipt of Mr. Cole’s letter has been acknowledged (Tab D).⁴

Recommendation

That a substantive reply be deferred until such time as the report and recommendations envisaged by NSC Action 899 have been acted upon by the NSC.

R. Gordon Arneson

[Tab A]

The Chairman of the Joint Committee on Atomic Energy (Cole) to the Secretary of State

[Washington], November 17, 1953.

Dear Mr. Secretary: On June 25, the Under Secretary of State, Mr. Smith, in testimony before the Joint Committee indicated that the Secretary of State—as a member of the National Security Council—had approved the statement of policy on the development of nuclear power made public that same day by the Atomic Energy Commission. One part of that policy statement is as follows:⁶

“… 4. We recognize the need for reasonable incentives to encourage wider participation in power reactor development and propose the following moves to attain this end:

(a) Interim legislation to permit ownership and operation of nuclear power facilities by groups other than the Commission.

(b) Interim legislation to permit lease or sale of fissionable material under safeguards adequate to assure national security.…”

This statement of policy clearly advocates private ownership of nuclear power facilities which Under Secretary Smith described earlier in his testimony as “… making or using these (fissionable) materials in dangerous quantities.…” The full quotation from which this excerpt is drawn reads thusly:

“… To guard against the danger of diversion of materials from these facilities, the United Nations plan provides for the international ownership of source and fissionable materials, and international ownership, operation, and management of facilities making or using these materials in dangerous quantities.…”

The Joint Committee would undoubtedly find your personal advice on domestic nuclear power legislation helpful in resolution of any possible conflict between Administration recommendations for private ownership and continued support of the proposal to the United Nations calling for international ownership. It is now anticipated that the Joint Committee will hold hearings on specific legislation starting in next January. Your advices as long in advance of that time as possible would assist us in avoiding any extensive public discussion of this conflict in the event that it proves irreconcilable and should require a modification of position in either domestic or international proposals.

A copy of this letter is being sent to Chairman Strauss of the Atomic Energy Commission.

Thank you for your attention to this matter of such broad consequence.

Sincerely yours,

Sterling Cole

1. Transmitted through the Under Secretary.
2. The NSC statement of policy is included in NSC 145, Mar. 6, p. 1121.
3. For text, see p. 1180.
4. Not printed.
5. For NSC Action No. 899, see footnote 3, p. 1212.
4. Not printed.
6. Ellipses in this document are in the source text.