Foreign Relations of the United States, 1952–1954, National Security Affairs, Volume II, Part 2

Atomic Energy files, lot 57 D 688, “Combined Development Agency–General”

Memorandum for the Files, by J. Bruce Hamilton¹

secret

[Washington,] April 13, 1953.

There follow notes on the meeting of the American Side of the Combined Development Agency on Monday, April 13. A copy of the Agenda is attached.²

Present at the meeting were Mr. Marion Boyer, Chairman,³ Messrs. Hall,⁴ Mitchell,⁵ A. A. Wells, Faulkner,⁶ J. Johnson⁷ of the AEC; Dr. C. K. Leith, Consultant; Mr. Bruce Hamilton, Department of State.

1. Arrangements were discussed for the several meetings this week with the Belgians looking to a renewal of the governmental agreement on the Congo uranium ore.

2. Mr. Johnson pointed out that the expansion in the mining and development programs in the Congo should be started in the fairly near future in order that the results could become available under the renewed agreement. Thus he felt it might be impractical to delay the start of these programs until a renewed agreement had been finalized, especially if this should require a year or more. Mr. Wells pointed out that the proposed development program would not be required to meet our demands under the present agreement but would be required if the agreement were renewed.

3. There was a brief discussion of the problem of the corporate entity under the Moroccan Agreement. General Counsel Mitchell stated that he had hoped to talk with Mr. Jesse Johnson on this point to find out just what was required and to assist in finding a way for doing it. In these circumstances it was decided to forego further discussion of the subject at this meeting.

4. Mr. Hall recalled that the Commission had been invited by the Spanish Government to send geologists to Spain for a uranium survey. He pointed out that the invitation was a very general one and that further discussion in Madrid would be required to develop details of a working program and to determine the extent of the indicated Spanish commitment to make uranium available to the United States. It was pointed out that Ambassador Dunn⁸ had presented his credentials on April 9 and could shortly be expected to take up the atomic energy problem on the basis of the instructions which had gone forward some time previously.

Dr. Leith asked whether this agreement would include Spanish Morocco. Mr. Hall responded that pending further conversations with Spanish authorities, this point could not be determined. Dr. Leith thought that it would be desirable to include Spanish Morocco, pointing out that geologically, French and Spanish Morocco were pretty much the same.

5. Reference was made to the fact that the British have requested 500 tons of U3O8 in the 1953 allocation.⁹ In addition to the stock of unallocated Congo ore in the U.K., there would be required 185 tons to round out the 500–ton figure. Although there are in the U.K. 110 tons of Portuguese ore, the U.K. has indicated that it would prefer to use other ore, probably South African, and would consider making the 110 tons available to the United States. Mr. Faulkner pointed out that under such an arrangement, 75 tons of ore from current production would be required to complete the U.K. allocation. It was felt that an attempt should be made to get the British to reduce their requirement by this amount and it was proposed to raise the subject with Sir John Cockroft.¹⁰ Since, however, it has been learned that he will not be in Washington for these sessions on the Belgian Agreement, there was some question as to whether the subject could be discussed with his replacement, Mr. J. V. Dunworth.

. . . . . . .

7. Discussion of Latin American programs centered on Argentina and Brazil. Mr. Faulkner reviewed the developments in Argentina involving Mr. Price, concluding by observing that the Embassy in Buenos Aires has been asked to bring this problem officially to the Argentine Government. Mr. Boyer noted that the Argentine sample which had been analyzed by the AEC was a very high grade one. It was also noted that the Argentine ideas of ore prices seemed unrealistically high.

Regarding Brazil, Mr. Hall observed that a visit from Admiral Alberto¹¹ was anticipated in the near future and also that Mr. Max White of the USGS would be available prior to that time to give his ideas and advice on the Brazilian situation as he had learned it from his experience of the last eight or ten months.

Mr. Johnson observed that the Pocos de Caldos ore is a complex zirconium-uranium ore and foresaw, in addition to technological problems, an economical problem regarding disposition of the zirconium. He added that Brazilian ideas of zirconium prices, even unrelated to uranium, were quite high.

8. Other subjects: Mr. Boyer noted that the recently issued report of General Smith had been critical of the CDA’s efforts in regard to areas under British jurisdiction. He mentioned specifically Northern Rhodesia, Kenya, Tanganyika and Uganda. Mr. Hall pointed out that under the terms of the CPC, the CDA was specifically excluded from British territories as it was from American territories such as Alaska. Mr. Boyer felt, nevertheless, that the CDA should go over the situation and prepare a response to this criticism. Dr. Leith suggested that we might simply ask the U.K. authorities as a matter of information what had been done about looking for uranium in these areas. Mr. Hall observed that the U.K. seemed to be increasingly sensitive concerning the important role played by the U.S. in the significant uranium operations in Australia and the Union of South Africa.

Dr. Leith said that on the basis of his recent trip to Mexico he, with some temerity, wished to express the idea that uranium exploration operations were being delayed by the necessity of working through the Department of State. Mr. Hamilton responded that it was undeniably true that a certain element of delay was entailed in working from the Commission to the State Department, to the Embassy. It was his firm opinion, however, that this delay was inconsequential compared with the considerable delay encountered in getting the Latin American authorities to take action on the problem. Mr. Boyer stated that the CDA would take note of this discussion.

1. Hamilton served in the office of the Special Assistant to the Secretary of State for Atomic Energy Matters.
2. Not printed.
3. General Manager of the U.S. Atomic Energy Commission.
4. John A. Hall, Director of the Office of Special Projects, AEC.
5. William Mitchell, General Counsel of the AEC.
6. Rafford L. Faulkner, Assistant Director for Foreign Procurement, Division of Raw Materials, AEC.
7. Jesse C. Johnson, Director of the Division of Raw Materials, AEC.
8. James Clement Dunn, U.S. Ambassador in Spain.
9. The request was transmitted by Ambassador Makins to Secretary of State Dulles in a letter of Apr. 2, not printed. (Atomic Energy files, lot 57 D 688, “Raw Materials”)
10. Director of Britain’s Atomic Energy Research Establishment.
11. Adm. Alvaro Alberto, President of the Brazilian National Research Council.