205. Letter From the Chairman of the Atomic Energy Commission (Strauss) to the Under Secretary of State (Hoover)1

Dear Herb: You will recall that at luncheon in my office on Friday, December 7,2 we discussed some aspects of our Atoms for Peace Program and you suggested that I write you a note citing some of the difficulties the Commission is experiencing in carrying this program forward, particularly in the field of nuclear power in Europe. This letter outlines my views along the lines of our discussion.

The need for the development of nuclear power by the Western European countries is being increasingly emphasized as a result of the decreasing availability of conventional sources of power. There is little doubt that all countries of the area are now reexamining their atomic power goals in the light of the Suez crisis and are preparing for the payment of high costs of atomic power in order to improve the security of their sources of energy. The advanced technological capabilities of the countries of Western Europe provide an adequate basis on which to build nuclear power programs.

If U.S. assistance and U.S. industrial participation are to be significant parts of these Western European nuclear programs, there [Page 496] must be power bilateral agreements between the United States and the countries involved. It is in this connection that apparent inconsistencies in existing policy are impeding the progress of our Atoms for Peace Program.

To encourage the establishment of EURATOM, the Department of State has held back the negotiations of bilateral agreements in the field of nuclear power with certain countries which are members of the Community of Six.

We have been advised that the Department apprehends that negotiating power bilaterals with Italy and Germany would affect the attitude of those states toward EURATOM. The Department earlier authorized the Commission to negotiate power bilateral agreements with two states of the Community of Six, namely, France and the Netherlands. This action was taken last Spring and the agreements are now in effect.3

At the same time, the Belgian power bilateral agreement was amended to Belgium’s advantage, with the approval of the Department of State and of Mr. Spaak, one of the leading proponents of EURATOM.

What is the consequence of U.S. policy toward Western Europe on this subject as of today?

1.
The United States has power agreements with three members of the Community of Six, namely, Belgium, Netherlands and France.
2.
We have not been authorized to negotiate power agreements with Italy or Germany although both countries are planning immediate starts on atomic power programs and desire power bilaterals.
3.
We have been authorized to negotiate power bilaterals with Sweden, Spain and Norway. Norway has just agreed to such a power bilateral. We expect Spanish agreement shortly and the approval of the Swedish Government in the near future.

Thus, the AEC is confronted with a difficult and confused situation in carrying out policy. We may deal freely and discuss power bilaterals with states in Western Europe outside the Community of Six. On the other hand, we must not be responsive to requests for immediate bilateral discussions by Germany and Italy—both members of the Community—while, at the same time, we are collaborating with three others of the Community of Six, namely, Belgium, the Netherlands, and France.

In order that the Atomic Energy Commission may carry out its responsibilities, I hope that it may be possible to obtain answers to the following questions: [Page 497]

1.
Will the Department of State authorize the Commission to proceed now in the negotiation of power bilateral agreements for cooperation with Italy and Germany?
2.
If the answer is “No” to the above question, when may the Commission expect the Department’s approval to proceed with negotiations with Italy and Germany? What response are we to make to their negotiators meanwhile?

While I recognize the importance of achieving the larger objective in Western Europe of establishing effective atomic collaboration among the Community of Six, I suggest that the present policy of discrimination may not contribute to the most effective realization of the President’s Atoms for Peace policy in Western Europe.

Sincerely yours,

Lewis S.
  1. Source: Department of State, Central Files, 611.0097/12–1956. Confidential.
  2. No record of this luncheon meeting has been found in Department of State files.
  3. Bilateral agreements for cooperation covering both research and power activities were concluded with the Netherlands on June 21, 1956, and with France on June 19, 1956. The agreement with France went into effect on November 20, 1956, and that with the Netherlands on August 8, 1957.