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

S/S–NSC files, lot 63 D 351, NSC 145

Report to the National Security Council by the Atomic Energy Commission

official use only
NSC 145

[Washington,] March 6, 1953.

Note by the Executive Secretary to the National Security Council on the Development of Practical Nuclear Power

At the direction of the President the enclosed letter to the President on the subject from the Chairman, Atomic Energy Commission, together with its attachments, is circulated herewith and is being scheduled for discussion at the next meeting of the National Security Council on Wednesday, March 11.

James S. Lay, Jr.

[Enclosure]

The Chairman of the United States Atomic Energy Commission (Dean) to the President

official use only

Washington, March 4, 1953.

Dear Mr. President: The work of the Atomic Energy Commission has advanced to the point where it is timely to attempt to formulate a national policy looking to the development of practical nuclear power. The matter has added current importance because budgetary and legislative action will be required for any policy adopted.

The need for an early statement of policy is further accented by the approaching hearings of the Congressional Joint Committee on Atomic Energy on the subject of nuclear power at which time the Commission will be required to express its opinion on this subject.

We are, therefore, forwarding the attached statement outlining the Commission’s policy views on the development of nuclear power. We propose, unless you would prefer a different course of action, to express these views at the Congressional hearings and to indicate to the Joint Committee that they will form the basis of a report which we are preparing for your consideration. This latter report will include an analysis of budgetary implications and detailed legislative recommendations, and will, of course, be submitted through the Director of the Bureau of the Budget for coordination with other interested Executive agencies.

Along with the policy statement we are including a statement of objectives planned to implement that policy.

We would welcome the opportunity to discuss this matter with you.

Respectfully yours,

Gordon Dean

[Subenclosure 1]

Statement of Policy on Nuclear Power Development

1. We believe the attainment of economically competitive nuclear power to be a goal of national importance. Reactor technology has progressed to the point where realization of this goal seems achievable in the foreseeable future if the nation continues to support a strong development effort. It would be a major setback to the position of this country in the world to allow its present leadership in nuclear power development to pass out of its hands.

2. Accordingly, we recognize it as a responsibility of the Commission to continue research and development in this field and to promote the construction of experimental reactors which appear to contribute substantially to the power reactor art and constitute useful contributions to the design of economic units.

3. In addition, it is the conviction of the Commission that progress toward economic nuclear power can be further advanced through participation in the development program by qualified and interested groups outside the Commission.

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.

c. Interim legislation which would permit owners of reactors to use and transfer fissionable and by-product materials not purchased by the Commission, subject to regulation by the Commission in the interest of security and public safety.

d. The performance of such research and development work in Commission laboratories, relevant to specific power projects, as the Commission deems warranted in the national interest.

e. More liberal patent rights than are presently granted to outside groups as may seem appropriate to the Commission and consistent with existing law.

f. Consideration of a progressively adjusted code for safety and exclusion area requirements as may appear reasonable in the light of operational experience with reactors. Competent state authorities will be encouraged to assume increasing responsibility for safety aspects of reactor operation. Financial responsibility associated with reactor operation will be assigned to the owners, in keeping with normal industrial practice.

g. Giving full recognition to the importance of reactor technology to our national security, a progressively liberalized information policy in the power reactor field as increasing activity justifies.

5. It is the objective of this policy to further the development of nuclear plants which are economically independent of government commitments to purchase weapons-grade plutonium.

6. We view the next few years as a period of development looking toward the realization of practical nuclear power. On this basis we conclude that the time is not yet at hand for the report called for in Section 7(b) of the Atomic Energy Act of 1946 (see Appendix).

[Subenclosure 2]

Proposed Program in Support of the AEC Statement of Policy on Nuclear Power Development

1. In implementing the AEC “Statement of Policy on Nuclear Power Development”, there are three pending developments which could well materialize in the near future. The initiative for the first of these rests with the Commission itself and will entail a direct outlay of some $15 million in Federal funds. The second and third developments will rely primarily on private financing but will require Government support spread over several years. These projects are as follows:

a. Construction of an experimental power reactor having an electric power output of about 7,500 KW, to be financed by the Atomic Energy Commission.

Of the four reactor types currently showing promise as electric power producers, the sodium-cooled, graphite-moderated reactor appears to be in the most advanced technical state and ready for pilot plant test. Construction can be started as soon as funds are made available. It is hoped that a successful pilot plant would encourage private industry to construct full-scale units of this general design.

b. Construction by private industry on a partial risk basis of a full-scale (100,000–200,000 electrical KW) power reactor of conservative design.

For example, a group of privately-owned utilities has indicated an interest in pooling resources to enable the early construction of a full-scale power plant with private funds, on the condition that the Commission is willing to protect the owners against excessive losses. Power from such a reactor might be consumed by the Atomic Energy Commission. In the interest of gaining early operational experience with a large nuclear power plant, the Commission would look with favor on a proposal of this kind provided the required guarantees proved to be reasonable. Construction might commence within a year after agreement is reached on this subject.

c. Construction of a full-scale power breeder by an industrial group employing risk capital.

To further the attainment of this goal, the Commission believes it is in the public interest to offer reasonable assistance by the National Laboratories in support of this type project over the next few years.

2. Looking beyond the immediate future, we visualize that during the next ten-year period:

a. Various types of power reactors will progress to the stage where pilot plant construction will be warranted. Requests by the Atomic Energy Commission for funds to build two or three additional prototype power reactors are likely.

b. Government development efforts involving the use of unique Commission facilities and skills will be made available to responsible groups who are seeking the goal of economic nuclear power independent of financial commitments from the Government. These services will be offered only to the extent that they do not conflict with the weapon or military reactor program requirements.

3. We estimate that the programs envisaged in paragraphs 1 and 2 over the next ten years might require Government financing of the order of $10,000,000 a year. This estimate will be subject to considerable revision in coming years depending on the number of reactor designs tested, progress in reactor technology, and the amount of industrial interest and investment in the power reactor field.

4. In view of the time which must necessarily elapse before any reactor which could produce both power and weapon grade plutonium would come on-stream, the Commission does not recommend support for private projects based on a Government commitment to purchase weapons grade plutonium.

Appendix

Section 7 (b) of the Atomic Energy Act of 1946

Report to Congress.—Whenever in its opinion any industrial, commercial, or other nonmilitary use of fissionable material or atomic energy has been sufficiently developed to be of practical value, the Commission shall prepare a report to the President stating all the facts with respect to such use, the Commission’s estimate of the social, political, economic, and international effects of such use and the Commission’s recommendations for necessary or desirable supplemental legislation. The President shall then transmit this report to the Congress together with his recommendations. No license for any manufacture, production, export, or use shall be issued by the Commission under this section until after (1) a report with respect to such manufacture, production, export, or use has been filed with the Congress; and (2) a period of ninety days in which the Congress was in session has elapsed after the report has been so filed. In computing such period of ninety days, there shall be excluded the days on which either House is not in session because of an adjournment of more than three days.