Foreign Relations of the United States, 1955–1957, Regulation of Armaments; Atomic Energy, Volume XX

314. Memorandum of Discussion at the 348th Meeting of the National Security Council, Washington, December 12, 1957¹

Washington, December 12, 1957

[Here follow a paragraph listing the participants at the meeting and agenda items 1–3.]

4. Peaceful Uses of Atomic Energy (NSC 5507/2; NSC Action No. 1726; NSC 5725; Memos for NSC from Executive Secretary, same subject, dated December 4 and 9, 1957; NSC Action No. 1824)²

Mr. Cutler pointed out in his briefing note that when the Council considered last week the new policy paper on the peaceful uses of atomic energy (NSC 5725), three paragraphs were postponed for decision at the meeting today, in order that the views of the Atomic Energy Commission in regard thereto could be put in writing and circulated to the Council. These views had now been stated and were before the Council. The first of the postponed issues dealt with actions which might be necessary to maintain U.S. pre-eminence in power reactor technology. This issue had been covered in paragraphs 24 and 33 of NSC 5725. Mr. Cutler then read the language for these paragraphs proposed by the Atomic Energy Commission. He noted that the Joint Chiefs of Staff were in agreement with the language proposed by the AEC for these paragraphs, and then called on Admiral Strauss to explain why the AEC had disagreed with the version of these paragraphs originally offered by the NSC Planning Board, and why the AEC was suggesting this new and more general phraseology.

Admiral Strauss explained that the AEC had objected to the earlier version of these paragraphs because the Commission could not agree that private industry in the United States was not in a position to step in and finance a domestic power reactor program with its own funds. After referring briefly to U.S. power reactors which were in the course of being built or being planned at the present time, Admiral Strauss repeated that the Commission did not yet feel that there was a need for Federal financing of the U.S. power reactor program. He admitted, however, that this could, of course, be a wrong prophecy.

The President also said that he was at a loss to understand the reason for all this pessimism about private financing of the U.S. power reactor program. On the contrary, he felt that the progress under private auspices had been miraculous.

Admiral Strauss said he thought he could undertake to answer the President’s question. The answer was that there had been earlier a certain over-optimism among some of the large companies in the United States with respect to the estimated costs of construction of atomic power plants. Since these projects were now in some cases in the red, the companies in question would like nothing better than to have Federal subsidies to bail them out.

Mr. Cutler then inquired whether the Council would accept the phraseology of paragraphs 24 and 33 submitted by Admiral Strauss. There was no dissent.

Mr. Cutler then took up the other disputed paragraph, 34–b, reading as follows:

“b. Develop and submit to the Council measures for the initiation of new large-scale prototype nuclear power projects in the United States of types which appear most promising at this date.”

Mr. Cutler explained that Admiral Strauss favored the deletion of sub-paragraph 34–b, and asked Admiral Strauss to state his reasons for favoring deletion. Admiral Strauss replied that his reasons were based on the view that it was not the function of the National Security Council to concern itself with program matters as opposed to policy matters. Mr. Gordon Gray could not agree with Admiral Strauss, and felt that the Council did have a responsibility in this area, although he said he would not contest Admiral Strauss’ recommendation for deletion of sub-paragraph 34–b.

The National Security Council:³

a. Discussed the draft revisions of paragraphs 24, 33 and 34 of NSC 5725, submitted by the Chariman, Atomic Energy Commission, pursuant to NSC Action No. 1824–b–(8) and transmitted by the reference memorandum of December 9, 1957; in the light of the views of the Joint Chiefs of Staff thereon, as read at the meeting.

b. Adopted the following revisions of paragraphs 24, 33 and 34 of NSC 5725:

(1) Page 18, paragraph 24: Revise to read as follows:

“24. World opinion equates pre-eminence in power reactor technology with leadership in the peaceful applications of atomic energy. Accordingly, the development of measures to maintain U.S. pre-eminence in power reactor technology is of continuing concern and paramount importance.”

(2) Page 25, paragraph 33: Revise to read as follows:

“33. In order to maintain U.S. leadership in the peaceful application of atomic energy, develop additional measures necessary to facilitate the use of U.S. reactor technology and full-scale prototype power reactor plants abroad.”

(3) Page 26, subparagraph 34–b: Delete the subparagraph.

Note: NSC 5725, as amended by NSC Action No. 1824–b and by the action in b above, subsequently approved by the President; circulated as NSC 5725/1; and referred for implementation to the Secretary of State and the Atomic Energy Commission, advising with the Operations Coordinating Board in order to assure coordination with respect to those matters which relate to the implementation of national security policies for which the OCB is designated as the coordinating agency.

[Here follows discussion regarding the next NSC meeting, scheduled for January 6, 1958.]

S. Everett Gleason

1. Source: Eisenhower Library, Whitman File, NSC Records. Top Secret; Eyes Only. Drafted by Gleason on December 13.
2. Regarding NSC 5507/2, NSC Action No. 1726, NSC 5725, and memorandum from the Executive Secretary, December 4, see footnote 5, Supra. Lay’s memorandum to the NSC, December 9, enclosing draft revisions of paragraphs 24, 33, and 34 of NSC 5725, submitted by the Chairman of the AEC, is not printed. (Department of State, S/S–NSC (Miscellaneous) Files: Lot 66 D 95, NSC 5725) Regarding NSC Action No. 1824, see footnote 8, Supra.
3. Paragraphs a–b and the Note that follow constitute NSC Action No. 1830, approved by the President on December 13. (Department of State, S/S–NSC (Miscellaneous) Files: Lot 66 D 95, NSC Actions)