Department of State Atomic Energy Files

The Acting Secretary of State to the British Minister Counselor (Makins)

top secret

My Dear Mr. Makins: In our recent conversation, we discussed the effect which passage of S. 1717 (the McMahon Bill) might have on the operations of the Combined Development Trust.

Careful perusal of S. 1717, as it passed the Senate, indicates that it does not contain any provision which automatically affects the Combined Development Trust or which makes it mandatory for the proposed Atomic Energy Commission to take action which would affect adversely the Trust Agreement. It is true that the independent commission contemplated in the bill might conceivably proceed in such a manner as to affect adversely the Trust Agreement. In assessing the likelihood of such a development, however, two important considerations should be understood. The first is that it could result only from affirmative action by the commission. The second is that the proposed commission will undoubtedly be informed in detail about the Combined Development Trust. To interfere with the operations of the Trust, therefore, the commission would find it necessary to take positive action with full realization that its course was not in harmony with the intent of the Trust Agreement.

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In the event that an independent commission of the kind provided for in S. 1717 is ultimately established, the situation will not differ from many others in which it is necessary to coordinate the policies and programs of two or more Departments or agencies of this government in matters affecting the foreign relations of the United States. This coordination has been achieved with reasonable success in the past and I am confident that it can be achieved in this matter.

Sincerely yours,

Dean Acheson