The President has referred the enclosed letter on the subject from the Atomic
Energy Commission, to the National Security Council for written
recommendation pursuant to subsection 10(a) (3) of the Atomic Energy Act of
1946, as amended by Public Law 235, 82nd Congress.
[Annex]
The United States Atomic Energy Commission to the
President
secret
Washington, December 19,
1951.
Dear Mr. President: As you know, the 82nd
Congress, by passage of Public Law 235, amended Sections 10(a) and 5 (a) of the Atomic
Energy Act of 1946 to permit, under certain prescribed conditions and
limitations, the communication of certain categories of restricted data
to other nations and to permit the Commission to authorize persons to
engage in certain atomic energy activities outside the United States
under certain prescribed conditions.
A copy of Public Law 235 and Senate Report No. 894 accompanying S. 2233
are enclosed herewith as Appendix “C” of the attached report.* The Senate Report outlines
in detail the conditions which must be met in order to comply with the
amended sections of the Atomic Energy Act. These sections require that
specific security determinations be made, not only by the Atomic Energy
Commission, but also by the National Security Council and the President,
before the Commission may enter into arrangements with another nation
involving restricted data.
The purpose of this letter is to request that you act favorably in
accordance with the provisions of Sections 10(a) (3) and 5(a) (3) of the
Atomic Energy Act as amended so as to permit a proposed arrangement
whereby:
-
a.
- The Atomic Energy Commission may communicate to the Canadian
Government such restricted information as may be necessary to
enable the Canadians to design, construct, and operate a uranium
ore refinery incorporating the most recent U.S. technology, and
which would be capable of processing all Canadian ore
concentrates to a product meeting specifications as a feed to
the U.S. metal production chain; and
-
b.
- The Atomic Energy Commission may authorize a U.S. company to
assist the Canadians in this program.
As you know, essentially all of the uranium mined in Canada has been sold
to the United States for its atomic energy program and under an existing
agreement this arrangement will continue in effect at least until
1960.
The Canadians have determined that a new refinery is to be constructed to
handle Canadian expanding ore production and they have requested our
assistance in order that the most modern and efficient processes be
employed. This project is under the jurisdiction of the Eldorado Mining
and Refining Company (1944) Ltd., a Canadian
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crown company. This objective is of considerable
importance to the United States for the reason that the use of our
processes will result in a substantial reduction of process losses of
uranium ore. Also important is the strategic advantage of a separate and
distinct facility on the North American Continent producing a refined
oxide capable of being processed without subsequent purification into
uranium metal feed for the Hanford and Savannah River reactors. The
proposed assistance will also probably result in dollar savings to the
United States, for the reason that the use of improved processes in
Canada would obviate the need of further refining of ore in United
States plants.
Enclosed is a report† describing the proposed arrangement and the reasons
therefor, in greater detail, incorporating a record of the exchanges to
date between the parties to the proposed arrangement, together with
assurances which have been received from the Canadian Government and the
Eldorado Mining and Refining Company that they will adhere to security
standards and safeguards which the Atomic Energy Commission has found to
be adequate to protect the restricted information involved.
The Atomic Energy Commission has unanimously adjudged that the common
defense and security would be substantially promoted and would not be
endangered if the Commission enters into and carries out the specific
arrangements referred to herein and more specifically described in the
enclosed report,† with Canada and the Eldorado Mining and Refining
Company, involving an American contractor or contractors, to be selected
by the Canadians. The Commission is also prepared to authorize a United
States contractor or contractors, to be selected by the Canadians, to
assist the Canadians in carrying out the proposed arrangements under the
conditions set forth on pages 9 and 10 of the enclosed report,† upon a
determination by you pursuant to Section 5(a) (3) of the Atomic Energy
Act, that the common defense and security will not be adversely affected
thereby. The Commission has also determined that the recipient nation’s
security standards applicable to the data involved are adequate and that
the security safeguards undertaken to be maintained by the recipient
nation are acceptable, having given due consideration to the security
sensitivity of the restricted data involved and the adequacy and
sufficiency of such safeguards. All the other conditions of Sections
10(a) (3) and 5 (a)
(3) of the Atomic Energy Act as amended are met:
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-
a.
- The proposed arrangement does not involve the communication of
restricted data on design and fabrication of atomic
weapons;
-
b.
- The restricted data will be limited and circumscribed to the
maximum degree consistent with the common defense and security
objective in view;
-
c.
- The proposed arrangement does not involve a nation threatening
the security of the United States;
-
d.
- The Joint Committee on Atomic Energy has been fully informed
with respect to the proposed arrangement for a period of at
least 30 days in which Congress was in session, which fact is
evidenced by Report of Hearing held before the Joint Committee
on Atomic Energy, Wednesday, September 26, 1951, page
1765.
The Commission has made all the findings and determinations required by
Sections 10(a)(3) and 5(a)(3) of the Atomic Energy Act of 1946 as amended by Public Law
235, 82nd Congress, and now respectfully requests you to consider the
proposed specific arrangement with the Canadian Government and the
Eldorado Mining and Refining Company, involving a United States
contractor or contractors, and, if acceptable, make the determinations
required by Sections 10(a)(3) and 5(a)(3) of the Atomic Energy Act as amended, as
follows:
Section 10(a)(3):
- “(3) Nothing contained in this section shall prohibit the
Commission, when in its unanimous judgment the common defense
and security would be substantially promoted and would not be
endangered, subject to the limitations hereinafter set out, from
entering into specific arrangements involving the communication
to another nation of restricted data on refining, purification,
and subsequent treatment of source materials; reactor
development; production of fissionable materials; and research
and development relating to the foregoing: Provided”3
- . . . . . . .
- “(4) that the President, after securing the
written recommendation of the National Security Council, has
determined in writing (incorporating
the National Security Council recommendation) that the arrangement would substantially
promote and would not Endanger the common defense and
security of the United States, giving specific
consideration to the security sensitivity of the restricted data
involved and the adequacy and sufficiency of the security
safeguards undertaken to be maintained by the recipient nation;”
and
Section 5(a)(3):
- “(3) Prohibition.—It shall be unlawful
for any person to . . .;4 or (c) directly or
indirectly engaged in the production of any fissionable
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material outside of
the United States except subject to the limitations and
conditions contained in section 10(a)(3),
as authorized by the Commission upon a
determination by the President that the common defense and
security will not be adversely affected thereby.”
Upon receipt of notice that you have acted favorably on this
recommendation, the Commission will proceed immediately to consummate
the proposed arrangement with the Canadians.
Respectfully yours,
United States Atomic Energy Commission
Gordon Dean
Chairman
