Such a policy need not impede future commercial production of isotopes in privately owned reactors, since the Commission could, if desirable, easily bear 80 percent of the cost of all isotopes sold for medical research. While this situation may not develop for some years, when it does, it will involve a continuation of the subsidy of medical research and will not introduce any new subsidy of private atomic energy licensees.

A second problem was raised concerning the use of isotopes in medical research, as outlined below, and the subcommittee would appreciate having the benefit of the Commission's thinking on it. One of the witnesses pointed out the lack of standards in chemical compounds used in radioisotope research work. As an example, he stated that the radioactive acetate used in his laboratory was very difficult to compare accurately with the radioactive acetate used in other laboratories on related research throughout the country. The witness asked:

Would it not be feasible for either the Commission or the Bureau of Standards to make available a wider variety of radioactive standardized compounds for research purposes?

Lastly, in view of the potentially enormous and manifold benefits that can accrue to mankind as a result of employing radioactive isotopes in research, the subcommittee believes that furnishing such isotopes as elements and in chemical compounds at less than cost for employment in selected other fields, such as biology, would be very much in the public interest.

Approved by the Research and Development Subcommittee and submitted to the Joint Committee on Atomic Energy on July 22, 1954.

CARL HINSHAW, Chairman,
JAMES E. VAN ZANDT,

CARL T. DURHAM,

MELVIN PRICE,

WILLIAM F. KNOWLAND,

JOHN W. BRICKER,

JOHN O. PASTORE,

Subcommittee on Research and Development.

Received on July 29, 1954, by the Joint Committee on Atomic Energy and approved on July 29, 1954, by resolution directing that the report of the subcommittee be forwarded to the Atomic Energy Commission.

STERLING COLE,

Chairman, Joint Committee on Atomic Energy.

Excerpts of Remarks by Lewis L. Strauss, Chairman, United States Atomic Energy Commission, to Veterans of Foreign Wars of the United States Fifty-Fifth National Encampment, Philadelphia, Pa., August 5, 1954

"TO PROMOTE WORLD PEACE"

It was faith in the feasibility of the reduction of atomic weapons, and their ultimate abolition, that moved President Eisenhower, last December, to propose before the General Assembly of the United Nations the establishment of an international agency to receive contributions of normal uranium and fissionable materials from nations, including the Soviets, able to make such contributions. The International Atomic Energy Agency, which he proposed, would be set up to use these materials to bring the benign forces of the atom to the service of men everywhere and nuclear energy to the powerstarved areas of the world. Let me quote from the President's speech for his words deserve to be heard over and over again:

"The United States would seek more than the mere reduction or elimination of atomic materials for military purposes. It is not enough to take this weapon out of the hands of the soldiers. It must be put into the hands of those who will know how to strip its military casing and adapt it to the arts of peace. The United States knows that if the fearful trend of atomic military buildup can be reversed, this greatest of destructive forces can be developed into a great boon, for the benefit of all mankind. The United States knows that peaceful power from atomic energy is no dream of the future. That capability, already proved, is here-now-today. Who can doubt, if the entire body of the world's scientists and engineers had adequate amounts of fissionable material with which to test and develop their ideas, that this capability would rapidly be transformed into universal, efficient, and economic usage."

The President's proposal was simple and straightforward. The International Agency he envisaged can demonstrate to the world that atomic energy can be used to raise the standards of living in other nations as well as in the United States.

Since December, private diplomatic conversations with other nations have been carried on by our Government. The attitude of Soviet Russia is not encouraging, but this is not surprising in the light of the dismal record of efforts to reach agreements with that Government since 1945. Nevertheless, President Eisenhower has not in any way abandoned hope for the eventual acceptance of his proposal. Only yesterday at his press conference he reaffirmed his resolution to press forward with or without Soviet participation.

Mr. COLE of New York, from the committee of conference, submitted the following

SECOND CONFERENCE REPORT

[To accompany H. R. 9757]

The committee of conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H. R. 9757) to amend the Atomic Energy Act of 1946, as amended, and for other purposes, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows: That the House recede from its disagreement to the amendment of the Senate and agree to the same with an amendment as follows:

In lieu of the matter proposed to be inserted by the Senate amendment insert the following: That the Atomic Energy Act of 1946, as amended, is amended to read as follows:

"ATOMIC ENERGY ACT OF 19541

STATEMENT OF THE MANAGERS ON THE PART OF THE HOUSE

The managers on the part of the House at the conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H. R. 9759) to amend the Atomic Energy Act of 1946, as amended, and for other purposes, submit the following statement in explanation of the effect of the action agreed upon by the conferees and recommended in the accompanying conference report:

The Senate struck out all of the House bill after the enacting clause and inserted a substitute amendment. The committee of conference has agreed to a substitute for both the House bill and the Senate amendment. Except for technical, clarifying, and conforming changes, the following statement explains the differences between the House bill and the substitute agreed to in conference.

1 See text of act, Public Law 703, 83d Cong., p. 209.

203

DIVISIONS OF THE COMMISSION

The House bill continued in effect the provision of existing law which establishes within the Atomic Energy Commission a Division of Military Application and such other program divisions, not exceeding 10, as the Commission may determine (subsec. 25 a.). The Senate amendment added to the House bill a requirement that there be within the Commission "a division or divisions the primary responsibilities of which include the application of civilian uses". The conference substitute retains the substance of the language added by the Senate amendment.

DISPOSITION OF ENERGY PRODUCED AT COMMISSION FACILITIES

The House bill provided for the disposition of energy produced in the production of special nuclear material at production or experimental utilization facilities owned by the United States (sec. 44). It also provided for a preference to public bodies and cooperatives in the disposition of such energy, and prohibited the Commission from engaging in the sale or disposition of energy for commercial use except in the case of energy produced incidental to the operation of research and development or production facilities of the Commission.

The Senate amendment retained the provisions relating to disposition of energy produced by the Commission, but added a preference for high-cost power areas and a new section 45 which would authorize the Commission to engage in the production of electric power in its own facilities. It also would authorize other Federal agencies to be licensees of the Commission.

The committee of conference eliminated the Senate section 45 and revised section 44 so as to make it applicable to the disposition of energy produced at facilities of the Commission. It retained the requirement that the Commission give preference to public bodies and cooperatives and to utilities in high-cost areas. It also retained the provision prohibiting the Commission from engaging in the sale of energy for commercial use except in the case of energy produced by the Commission incident to the operation of research and development facilities of the Commission and of facilities of the Commission for the production of special nuclear material.

The committee of conference amended section 31 a. (4) so as to clarify the authority of the Commission to build or contract for the building of large-scale atomic energy utilization facilities for the purpose of demonstrating the practical value of such facilities in the generation of electric energy, or for other industrial or commercial purposes. The construction of such large-scale demonstration facilities would require specific authorization by the Congress as provided in section 261.

For the purpose of clarity, sections 103 and 104 (which relate to the licensing of production and utilization facilities) were amended by the committee of conference so as to include the authority to issue licenses to "persons applying therefor" instead of to "applicants". The effect of this amendment is to make it clear that Government agencies are on an equal footing with all others before the Commission with respect to obtaining licenses from the Commission, since the definition of "persons" (subsec. 11 n.) specifically includes Government agencies

(other than the Commission). In order to make this effect even more specific, a new section 273 was added to the bill to incorporate the substance of the final sentence of section 45 as added by the Senate amendment. This new section states that nothing in the act shall preclude any Government agency authorized by law to engage in the production, marketing, or distribution of electric energy from obtaining a license under section 103, if qualified under the provisions of section 103, for the construction and operation of production or utilization facilities for the primary purpose of producing electric energy for distribution for ultimate public consumption.

Since there was no thought that the Commission, in carrying out its obligations under this act, should not be required to get congressional approval for its operations, the amendment made by the Senate to section 261 which exempted the Commission from the necessity of obtaining congressional approval for certain construction and acquisition projects was deleted by the conference substitute.

NOTICE OF LICENSES

The House bill contained a provision requiring the Commission to give notice of proposed licenses under section 103 to those within transmission distance who might be engaged in the distribution of electricity. The Senate amendment required that notice be given to private utilities as well as to those persons included within the House provision. The conference substitute retains the Senate language with a minor amendment.

LICENSE PREFERENCES

The House bill contained a provision requiring the Commission to give preferred consideration in issuing licenses under section 103 to facilities which will be located in high cost power areas where there is a limited opportunity for such licenses (sec. 182 c.). The Senate amendment added a provision requiring that in such situations applications submitted by public and cooperative bodies were also to be given preferred consideration. The conference substitute follows the Senate amendment.

APPLICABILITY OF FEDERAL POWER ACT

The Senate amendment added to the House bill a requirement that licensees under section 103 transmitting electric energy in interstate commerce or marketing such energy at wholesale in interstate commerce are to be subject to the Federal Power Act. The conference substitute retains the substance of the provision added by the Senate amendment and makes it a new section (sec. 272) in the bill.

SOURCE MATERIALS

In connection with the leasing of lands belonging to the United States for prospecting for or mining of deposits of source material, the House bill provided for the award of leases or permits on a competitive bidding basis after notice has been published in a newspaper in the county in which the lands are situated (sec. 67). The Senate amendment deleted this provision, and the conference substitute follows the Senate amendment.