Atomic Energy files, lot 57 D 688, “Uranium 1954”
The Chairman of the United States Atomic Energy Commission (Dean) to the Secretary of State
Dear Mr. Secretary: You will recall that in the course of the Commission’s briefing session with you on January 9, 1953,1 it was emphasized that the Commission’s program is dependent on supplies of uranium from abroad. In order to illustrate and emphasize our dependence on overseas uranium supplies and our urgent desire to seek out new uranium sources, we should like to outline the present status of our raw material relationships in certain countries and particularly stress areas wherein we feel more vigorous action must be taken in the future than has been taken in the past. We feel that actions taken in Belgium, South Africa and Australia have been very gratifying. However, in other areas such as Latin America, Portugal, Spain and France, this government has not achieved its objectives. These objectives are simple—to gain the agreement of the government concerned for a joint uranium exploration program and, if and when found, to make uranium available to the United States.
The Atomic Energy Commission does not have permanent representatives abroad for the purpose of negotiating uranium arrangements. We are prepared, however, to send members of our staff at any time to any place to assist in the development of our objectives. However, we rely heavily on Department of State personnel to make effective approaches to the governments concerned in order to provide a basis for the eventual development of mutually satisfactory raw material procurement contracts.
Belgium
From 1944 to the present time the Belgian Congo has been the major source of uranium for the Commission’s program. The contract is a commercial one in the sense that it does not run between governments but between the United States-United Kingdom procurement agency (established during the war and known as the Combined Development Agency) and a private Belgian corporation. However, in addition there is a governmental agreement between the United States, United Kingdom and Belgium which contains the assurance on the part of Belgium that we have first option on the material as well as our assurance to the Belgian Government that when atomic power becomes commercially feasible the Belgian [Page 1099] Government will be brought into this area on an equitable basis.2 The most important information relating to research and development of atomic power desired by the Belgians is presently classified by the Commission and therefore has not been made available. The Commission and the United Kingdom, however, have tried to assist the Belgian Government in a variety of ways to establish a small atomic energy project by providing the Belgian scientists with information which has been declassified.
An immediate and important objective of the Commission is to extend the present Belgian arrangements beyond the present termination date of February 1956 and at the same time, provide a basis for continuing the cordial relationships with the Belgian Government and the private mining interests that we have enjoyed in the past. This will mean that we undoubtedly will have to provide more technical assistance for their atomic energy program than they previously have received. However, further technical assistance would come under areas which are presently classified and in order to provide such assistance within the Atomic Energy Act, as amended, the Commission must determine that the security of the Belgian project is adequate, as well as that Belgian uranium contributes substantially to the common defense and security of the United States.
In December 1952, I suggested to Governor Ryckmans,3 the Belgian Commissioner of Atomic Energy, that we would like to hold discussions looking forward to an extension of the tripartite agreement on uranium. Governor Ryckmans, after consultation with Foreign Minister Van Zeeland,4 has informed me that the Belgian Government would be happy to hold such discussions in the near future. We are now awaiting formal word of the Belgian Government as to when and where they would desire to hold these discussions.
South Africa
The second area of importance is South Africa. Within two to three years South Africa will be our most important uranium supplier. The relationships with the South African mining interests and with the representatives of the Union Government on the South African Atomic Energy Board have been exceedingly cordial and sympathetic from the earliest discussions. The South Africans have pushed forward with great energy and enthusiasm the construction of uranium extraction plants. The South African arrangements [Page 1100] which are between the Combined Development Agency and the South African Atomic Energy Board provide for the deliveries of uranium through 1964. While the United Kingdom has been active in developing the South African supply, the United States has played the major role and has taken the initiative because of its greater need for uranium.
Diplomatic negotiations are not required in this area inasmuch as the present arrangements provide a basis for a continuing expanded program. The Commission naturally has an important interest in the political and economic stability of this area, however, and it is hoped that American policy towards the Union of South Africa takes into account the substantial contribution that this country will be making to the strength of the United States.
Portugal
Small British uranium mining holdings were purchased by the Combined Development Agency in 1945 in Portugal. These holdings are administered by the Ministry of Supply but financially supported on an equal basis by the United States and the United Kingdom. The existing governmental agreement is between Portugal and the United Kingdom and terminates in 1957. This agreement is exceedingly restrictive and limits the size of the Portuguese uranium program and the exportation of uranium from Portugal to 100 tons per annum. Additional promising uranium areas have now been brought to our attention. The United States and the United Kingdom desire to hold discussions with the Portuguese with the objective of gaining agreement to an expanded production program in Portugal.
This question was raised with Salazar in the Summer of 1952 and earlier by Commissioner Murray. However, as yet, the Portuguese Government has not given any indication as to whether it would view with sympathy a larger and more aggressive exploration and production program.
French Morocco
Since 1949 the Commission has been anxious to conclude arrangements wherein uranium and exploration and possibly production could be developed in Morocco. On the advice of the Department of State, this subject was not taken up with the French Government until the Spring of 1952, at which time a draft agreement was concluded in Paris and referred to both governments for consideration.
The Commission, as well as the Department of State, have approved the draft agreement which provides for a joint exploration and development program in French Morocco. The Commission is [Page 1101] awaiting formal approval of the French Foreign Office of this agreement.
Spain
The Commission is interested in establishing an exploration program in Spain. This subject was raised by Commissioner Murray with Franco 5 in October 1951 and subsequently by the American Ambassador in December 1951. Further discussions have not taken place with the Spanish authorities pending the conclusion of the military aid discussions which we understand have taken place during 1952. We have been advised, however, that the American Ambassador has recently raised this subject again with Franco.
Australia
In June 1952 and January 1953, agreements were signed for eventual production and procurement of uranium from Australia for the Combined Development Agency. The first arrangement concerns the Radium Hill deposits in South Australia and the second arrangement concerns the Rum Jungle deposit in the northern territory of the Commonwealth. Further exploration and development may prove that the Australian potential is substantial.
The relationship with Australia on this subject has been most cordial. The agreements are signed and the present problem is to assure rapid and efficient production in those areas. Australia too is interested in atomic power and undoubtedly will ask this government in the foreseeable future to supply technical information and assistance for its own atomic energy program.
Canada
Canada, since 1946, has been second to the Congo as the important source of uranium from abroad. The Canadian-United States relationship has been direct and most cordial. In the case of Canada, the contracts are between the Commission and the Eldorado Mining Company, Ltd., Canada (a Canadian Government corporation). We have great hopes that new prospects, particularly in the Lake Athabaska area, will make Canada one of the most important uranium sources in the world. Much is still to be done to assure a continuing enthusiasm on the part of the Canadian Government to develop this area.
It may be necessary to hold discussions with the Canadians in the near future to determine if there are ways and means by which the Commission could assist the Canadians in accelerating and expanding their exploration and production program.
[Page 1102]Latin America
In February 1951, the Commission advised the Secretary of State that it desired to open discussions with most of the Latin American countries for the purpose of starting extensive exploration programs for uranium. Approaches have been made to the governments of Mexico, Brazil, Chile, Peru, Colombia and Bolivia by the Department of State. The results have been exceedingly disappointing. No arrangements have been concluded and at the present time the United States Government has not achieved a firm agreement with a single country in Latin America wherein that country agrees to an extensive exploration program and eventual sale of uranium to the Commission, although in the case of Bolivia and Colombia, the governments appear receptive.
Despite the various political problems which must be faced in Latin America, such as internal political disturbances and the lack of a sense of the urgency of western defense on the part of the Latin American republics, it is clear that the entire approach to the Commission’s objectives in Latin America must be reexamined by the Commission and the State Department and carried forth, it is hoped, with vigor and understanding by our representatives abroad in the ensuing months.
In summary, our immediate problems relate to the following areas:
-
Western Europe;
- 1.
- The extension of the Belgian uranium agreement;
- 2.
- Development of uranium exploration and procurement programs in Portugal, Spain and French Morocco.
-
Latin America;
- 1.
- Develop uranium exploration and procurement programs with several Latin American countries including Mexico, Brazil, Chile, Peru, Bolivia and Colombia.
We send this report to you concerning the status of our procurement objectives abroad because we feel these objectives to be of urgent importance to the United States. We hope that this feeling of urgency can be communicated and emphasized to State Department personnel in the field and that our Ambassadors abroad accordingly will emphasize the importance and urgency of this subject to the heads of State of the various countries in which we are interested.
The Commission is anxious to have an opportunity to discuss our problems with the new officials of the Department of State who will be responsible for the areas of interest to us. The Commission would also like to be given the opportunity to discuss its raw material objectives with the appropriate new Ambassadors before they proceed to their missions abroad.
[Page 1103]The Commission liaison officer with the Department of State, Mr. John A. Hall, will be prepared to meet with the appropriate members of your staff in order to make the necessary arrangements for a more detailed discussion of our various problems and to develop briefing sessions as suggested above.
Sincerely yours,