There is no real urgency on this right at this moment. If there are no further questions, let's go to the EURATOM section of the bill. Proceed. Mr. RAMEY. The proposed amendment to section 5 of the EURATOM Cooperation Act of 1958, as amended, would authorize the Commission to transfer to Euratom up to 70,000 kilograms of contained uranium 235 and up to 500 kilograms of plutonium. The proposed amendment would add 40,000 kilograms of U235 and 491 kilograms of plutonium to the amounts presently authorized for sale or lease to the Community. These increases can be considered separately. Let me speak first of the requirements for uranium 235. The EURATOM Cooperation Act of 1958 initially authorized the transfer of 30,000 kilograms of contained U235. The transfers were to be carried out under provisions of the Agreement for Cooperation of 1958, which established the joint reactor and research and development program. Later, it became apparent that other programs within the Community would also require special nuclear materials and these requirements were included in a second agreement for cooperation negotiated in 1960, called the additional agreement. The joint program requirements for U235 however were not as large as had been expected. For this reason, the net amount of U235 to be transferred under the agreement of 1960 was to be charged to the authorized 30,000 kilograms made available under the Joint Program Agreement of 1958. As the needs of the nuclear power programs in the Community have emerged more clearly, we find that other factors must now be considered. A recent forecast, carefully studied by Euratom and the AEC staff, indicates that Euratom's enriched uranium requirements through 1970 are on the order of 68,400 to 81,400 kilograms of contained uranium 235. This estimate is based on the assumption that at least 50 percent of the additional nuclear capacity expected to be installed in the Community between 1965 and 1970 will be U.S.developed types of reactors using enriched uranium fuel. The total amount of U 235 as authorized in the proposed amendment, including the 40,000-kilogram increase, therefore includes the requirements of these additional projects for which Euratom has been requested or is expected to supply enriched uranium. It also includes, of course, the joint reactor (SENN, SENA, and KRB) and research and development program. Recognizing that there will be keen competition between exponents of enriched uranium and natural uranium reactors within the Community, we must be prepared to assure Euratom of the continued availability of quantities of U.S.-enriched uranium adequate to meet its expanding needs. The additional 40,000 kilograms of enriched uranium will provide this assurance. At the same time, you know that this material for power applications will not be transferred unless Euratom is able to enter into firm supply contracts within a reasonable period. If such fuel is not required, the United States after a given time has the right under provisions of the agreement of 1960 to reduce its commitments. The picture on plutonium requirements in the Community has changed rapidly during the last several months. This change has been brought about largely because Euratom has developed, as we in the United States also have developed, a strong interest in fast breeder reactors. Initially, an amount of 1 kilogram of plutonium was authorized for transfer to Euratom. In 1961, this was increased to 9 kilograms by an amendment to the Euratom Cooperation Act. Then in 1962, following discussions with Euratom on their plutonium needs connected with the development of fast reactors, the Commission concluded an amendment of the additional agreement permitting the supply of plutonium, at which time Euratom was advised that the Commission's ability to implement this supply provision was contingent on statutory approvals. Important further steps have followed. An analysis of U.S. plutonium supply and demand over the next few years has led to the conclusion that the United States could supply the plutonium required in Euratom's fast reactor program. These requirements include about 80 kilograms for the second core of the French Rapsodie test reactor and approximately 350 kilograms for use in the French Cadarache and German Karlsruhe fast critical facilities. On its part, Euratom has approved a second 5-year program which makes its fast reactor development program one of its principal efforts ($73 million, or about one-sixth of Euratom's budget). The total Euratom-member state fast reactor effort is expected to reach $200 million over the next 5 years as most of Euratom's $73 million budget is contributed to contracts with member states, amounting to 30 or 40 percent of the cost. The Commission has concluded, as a result of extensive study and discussions between United States and Euratom-member state technical teams, that an acceptable cooperative program in the fast reactor field would be of substantial value to advancing the objectives of the U.S. fast reactor program. This benefit can be achieved at less cost than if the United States were to proceed independently. Substantial agreement has been reached on a cooperative exchange arrangement under which all significant technical information on Community developed fast neutron facilities and reactors, together with relevant research and development, safety, and economic information, would become available to the United States. We have informed Euratom that the Commission as part of its overall fast reactor arrangements with Euratom will, subject to congressional authorization and the development of mutually satisfactory exchange arrangements, be prepared to make available the plutonium needed. If Congress enacts the proposed amendment to section 5, the Commission will be enabled to sell to Euratom approximately 430 kilograms of plutonium that is estimated to be required in Euratom's fast reactor program at the current domestic price of $43 per gram of Pu239 plus Pu241. It will be noted that we are seeking authorization to transfer to Euratom 491 additional kilograms of plutonium rather than the 430 kilograms estimated to be required by Euratom in order that the fuel element fabricators may have available a necessary working stock. As in the case of any special nuclear material transferred to Euratom pursuant to U.S.-Euratom agreements for cooperation, this special nuclear material will be subject to Euratom's multinational safeguards and inspection system to insure that the material will be used only for civil uses. Euratom has made many safeguards inspections during the past 3 years using a system developed in conjunction with the AEC and comparable to that of the United States, and which we, therefore, consider to be adequate in every way. Chairman PASTORE. May I ask you just one question? In what way is there an advantage to us, in the investment that we make in Euratom, with regard to the fast breeder reactor? I mean, how do we really get any practical benefit from that? I want to know if these arrangements are practical. Mr. RAMEY. Well, we think that in research and development work, it is helpful and practical to have these joint cooperation arrangements. We have one with the Canadians, for example, on heavy water reactor technology. We think, with respect to the breeder development work, the fast breeder work, in the Commission's report to the President it was indicated that considerable effort was going to be given to that work in the United States, that we look to breeders as the means of lengthening out our resources in uranium to several hundred years or more, and that by pursuing a joint effort we can certainly pick up quite a bit of basic or applied research information useful in our own development. Now, we also recognize that this has limitations. You learn particularly at the prototype stage, at least in my personal opinion, more from doing the work yourself. But I think in this more basic work, which this is, you can, particularly by the exchange of personnel-we will have people from our laboratories over there, working on these projects. They will have people over here working on our projects. And you can get considerable benefit. (Correspondence relating to the above matter follows:) Hon. CHET HOLIFIELD, U.S. ATOMIC ENERGY COMMISSION, Chairman, Joint Committee on Atomic Energy, DEAR MR. HOLIFIELD: This is to inform the Joint Committee that the Commission is prepared to make available to Euratom, subject to the necessary congressional and Presidential authorizations, the 400 to 500 kilograms of plutonium which it has requested to initiate an extensive fast reactor development program. Euratom and its member states have planned a fast reactor program for the next 5 years which will cost approximately $200 million; $73 million of which is to be borne by Euratom. However, in order to proceed with this program on the projected schedule, Euratom has requested the United States to supply the plutonium necessary for its initial projects, until such time as power reactors in the Community provide sufficient plutonium to satisfy fast reactor development requirements. Specifically, this plutonium is needed for the second core of the French Rapsodie reactor, involving approximately 80 kilograms. Euratom has a commitment from the United Kingdom for the first core, and for a fuel loading, requiring about 400 kilograms, to be shared between the proposed German and French fast critical assemblies at Karlsruhe and Cadarache, respectively. We have considered the Euratom request in terms of our plutonium supply and demand forecast for the period in question, as well as weighing the potential benefits to the U.S. fast reactor program. While these forecasts are subject to substantial fluctuations over relatively short periods of time, recent projections indicate that the initial needs of the Euratom program can be satisfied. We believe the planned facilities and programs for fast reactors in the Commmunity will effectively complement ours and will develop data that will be valuable to our fast reactor program. The potential benefits to our program are considered sufficiently great to warrant supplying the plutonium requested by Euratom. Toward this end, we plan to request an amendment to the Euratom Cooperation Act as a part of our legislative program for calendar year 1963 and to seek the necessary Presidential determination, pursuant to section 41b of the Atomic Energy Act. In the event the committee would like any additional information on this matter, please let us know. Sincerely yours, GLENN T. SEABORG, Chairman. U.S. ATOMIC ENERGY COMMISSION, Mr. JOHN T. CONWAY, Executive Director, Joint Committee on Atomic Energy, DEAR MR. CONWAY: In advising the Joint Committee on December 18, 1962, that the Commission is prepared to make available to Euratom 400 to 500 kilograms of plutonium, pending receipt of the necessary statutory authorizations, Chairman Seaborg noted that this action should result in benefits to our program from the development of a complementary Euratom-member state fast reactor effort. This letter is to inform you of the status of our negotiations with Euratom to obtain these benefits through a United States-Euratom fast reactor information exchange program. Recent discussions with the Euratom staff have resulted in the development, on an ad referendum basis, of detailed procedures for carrying out the exchange, including patent arrangements. The exchange, which would implement the additional agreement, would include all fast neutron reactor programs for civilian central power station application and applicable research and development activities with which the AEC or Euratom is now or will become associated over the period of the additional agreement for cooperation between Euratom and the United States. These discussions also provided an opportunity to advise Euratom of the terms and conditions under which the plutonium for Euratom's fast reactor program would be supplied; namely, (1) a straight sale arrangement at a price of $43 per gram of Pu239 plus Pu241, and (2) completion of satisfactory arrangements for a comprehensive United States-Euratom fast reactor exchange program. It was emphasized and clearly understood by Euratom that the supply of the plutonium is contingent upon receipt of the statutory authorizations necessary to permit transferring such quantities of plutonium to Euratom. Euratom must now seek agreement of its association partners in the fast reactor field, CEA (France), KBB (West Germany), and CNEN (Italy), to the proposed patent, information exchange and plutonium supply arrangements which the staffs of the AEC and Euratom have developed. We hope to have reached formal agreement with Euratom on all phases of the exchange arrangements prior to committee hearings on the proposed amendment to the Euratom-Cooperation Act increasing the quantity of plutonium which may be transferred by the AEC to Euratom from 9 to 500 kilograms. In the event any additional information is desired at this time, please let us know. Sincerely yours, A. A. WELLS, Director, Division of International Affairs. Chairman PASTORE. This $43 price that you quoted-is that a subsidized price? Or is that a true price? Mr. RAMEY. That is a price that I believe is quoted as "related" to our costs, including all of the appropriate charges to be included in it. However, for reasons of classification, for security purposes, we do not indicate how closely this is to the way we account for our costs. Chairman PASTORE. I am going to be very blunt about this. Of course, I was a great protagonist of this Euratom arrangement, sometimes disappointingly so to the chagrin of some of my colleagues on this committee, and fundamentally, I was interested in it because I thought that this was a cooperative program, where we could gain quite a bit in the area that you have just discussed so eloquently. And then, of course, there was a political aspect to this, too. We had advocated the European six countries' unification, and we thought that this would enhance that as well. And then, as a result of it all, the Common Market comes into being. And then we find that on the floor of the Senate, many of those who were for all this are beginning to find fault, because of some of the prejudicial actions that are being taken by the Common Market even against some of our own exporters. And I am speaking now about poultry products and things of that kind. I am beginning to wonder, here, if we have not gotten into something that may be to our disadvantage, or perhaps it is to our advantage. I would like to hear from Mr. Wells on this. Mr. WELLS. Senator Pastore, you are completely correct that this Euratom program has been based on the policy that it was in the U.S. interest that there should be integration among the various European nations. As a matter of fact, the Euratom program, which as you say you have supported, has made considerable progress in that direction. In the first place, let me mention that the fast reactor program that Commissioner Ramey has referred to would be a program where much of the work would be done in Karlsruhe in Germany, and other work would be done in Cadarache in France, and this is a case where these two countries are cooperating very closely in vital work. And I think we can assume if it had not been for Euratom these programs might have been done exclusively on a national basis. And that would not have been consistent with what we consider is along the lines in which our best interests lie. With reference to the question as to whether the overall question, of whether or not European integration is in the interest of the United States, I would have to say I am unable to answer that. I personally believe it is. I think we have always expected that as progress was made, there would be instances in which the United States might find in some particular areas that we were pinched. But in the long range, our best interests would be furthered. Chairman PASTORE. I believe as you believe. I am trying to clarify the record. But you will admit that there has been within the past several months quite a bit of speculation, and the suspicion of whether or not this program has progressed even in very responsible quarters in this country. And when you see a man like the distinguished Senator from Minnesota, who has been one of the greatest protagonists of this cooperative effort, and I am speaking now of the distinguished Senator from Minnesota, Mr. Humphrey, who made a very, very telling speech on the floor of the Senate indicating his disturbance and his annoyance at the attitudes of the Common Market with relation to some of the exports of poultry products from the United States to the Common Market countries, he said, "The time has come when these nations should begin to look at this thing a little |