Eisenhower Library, Eisenhower papers, Whitman file

The Chairman of the United States Atomic Energy Commission (Dean) to Robert Cutler, Special Assistant to the President

Dear Mr. Cutler: When the Commission’s power policy was presented to the National Security Council on March 11, 1953,1 the President suggested that a preamble might be added to the policy statement,2 with special reference to Section 7 (b) of the Atomic Energy Act and the development of industrial interest in the potentialities of nuclear power.

Enclosed, for addition to the proposed Statement of Policy for Nuclear Power Development, is a Preamble which has been approved by the Commission. It might be helpful if this could be distributed to the panel of consultants and other participants in the meeting on this subject scheduled for March 31, 1953.3

Sincerely yours,

Gordon Dean
[Page 1138]

[Enclosure]

Preface to Statement of Policy on Nuclear Power Development

1.
From the time the first self-sustaining nuclear chain reactor was demonstrated ten years ago, the eventual technical feasibility of nuclear power has been accepted. Developments in nuclear reactors since that time, including submarine power plants and production of token quantities of electric power by the Experimental Breeder Reactor and the Homogeneous Reactor Experiment, have served to reinforce confidence in the ultimate commercial practicability of nuclear power. Additional evidence of this confidence is reflected in the increasing interest on the part of industry to contribute more fully to this development.
2.
However, the general availability in this country of relatively inexpensive sources of energy such as coal, oil, and hydro power, places a severe economic requirement on competitive nuclear power. A nuclear plant built on the basis of today’s technology could not compete with conventional power. Yet it would be misleading to evaluate the future prospects for economic nuclear power on the basis of estimates of near-future performance. We must understand that the nuclear reactor research of the past years served specialized military needs and was not aimed specifically at the production of economic power. Although a difficult development period lies ahead, there is considerable optimism that economic nuclear power can be attained within a few years.
3.
It is the judgment of the Commission that now is the time to announce a positive policy designed to recognize the development of economic nuclear power as a national objective. An important element of this policy is to promote and encourage free competition and private investment in the development work, while at the same time accepting on the part of Government certain responsibilities for furthering technical progress in this field to provide a necessary basis for such development.
4.
While we conclude that atomic power has not yet been developed to the point of economic use, and that the time is not yet at hand for the report called for in Section 7 (b) of the Atomic Energy Act, we do believe it is imperative that we create a favorable atmosphere which will hasten that day. We believe that the United States should continue in its present position of leadership among [Page 1139] those nations striving to promote the peacetime applications of atomic energy. As a nation we should not delay the development of this great potential source of energy for constructive purposes until circumstances force us to attempt its practical realization on a short time scale.
5.
To this end, the Atomic Energy Commission has endorsed, as a basis for discussion with other executive agencies and the Congress, the attached statement of policy on the development of nuclear power.
  1. For the pertinent portion of the memorandum of discussion at the 136th meeting of the NSC, Mar. 11, see p. 1128.
  2. The policy statement is in NSC 145, Mar. 6, p. 1121.
  3. A handwritten notation on the source text indicates that the enclosed statement was read at the NSC meeting of Mar. 31. The source text is filed with the memorandum of discussion at that meeting, printed on p. 264.