Foreign Relations of the United States, 1955–1957, Western Europe and Canada, Volume XXVII

169. Memorandum of a Conversation, Department of State, Washington, October 7, 1955¹

Washington, October 7, 1955

SUBJECT

• Norwegian Interests in Atomic Energy Development

PARTICIPANTS

• H.E. Mr. Halvard Lange,² Minister for Foreign Affairs, Norway
• Mr. Wilhelm Munthe de Morgenstierne, Norwegian Ambassador
• Mr. Torfinn Oftedal, Counselor, Norwegian Embassy
• Gunnar Randers—Norway, Director, Norwegian Atomic Energy Institute
• State Dept.
  • EUR—Mr. Merchant
  • BNA—Mr. Parsons
  • S/AE—Mr. Farley

Mr. Lange said that Norway was well aware of its position as virtually the only country in Western Europe which did not have an Agreement for Cooperation in the field of peaceful uses of atomic energy with the United States. This situation was explained by the special position in which Norway found itself, as a country which had built and operated a research reactor and which thus did not feel a need for the standard agreement which the United States had negotiated with many countries. His Government did wish, however, to explore the possibility of an agreement to meet their special needs and he asked Mr. Randers to describe present Norwegian plans and interests in atomic energy development.

Mr. Randers described briefly the progress of the Norwegian atomic energy project to date and the success in building and operating a natural uranium, heavy water moderated research reactor. He said it was not clear from study of the standard United States unclassified agreement whether the assistance which Norway needed in the next stages of its program could be made available under such an agreement. He wished, therefore, to describe present Norwegian interests in order to inquire whether there were prospects for cooperation between Norway and the United States to meet Norwegian needs. If it did not appear that the United States was in a position to cooperate in the fields of interest, then initiation of formal negotiations might not be worthwhile.

Norway is now interested in proceeding with a demonstration power reactor, which would be heavy water moderated and would be fueled with natural uranium “spiked” with a small amount of enriched uranium. Mr. Randers had explored the availability of fuel from the United Kingdom and it appeared that it might be possible to obtain the necessary fuel from the UK with only a simple exchange of letters rather than a formal inter-governmental agreement. He was interested in knowing whether there was a possibility that the United States might be able to supply the necessary fuel for a small power reactor, and in particular whether the United States would make a long-term commitment covering the life of the reactor.

Mr. Randers said further that Norway is interested in atomic propulsion of merchant ships and has studied this problem for some time. The possibility of cooperation in this field has been proposed to the UK, which initially was not interested, presumably because of the competitive position of UK and Norwegian shipping. Since the Geneva Conference, however, there have been indications that the UK might be willing to cooperate in this field. In addition to the approaches to the UK, Norway has had talks with General Dynamics in the United States. An informal agreement between the Norwegian Institute for Atomic Energy and General Dynamics has been drawn up (see attached copy).³ Mr. Randers emphasized that while this draft agreement represented the substance of his conversations with Gordon Dean⁴ and others at General Dynamics, it had not been reviewed by the legal staffs of the two organizations and had no formal status. The question arose whether, under an Agreement for Cooperation between Norway and the United States, cooperation between a private firm, such as General Dynamics, and the Norwegian Institute would be possible.

Mr. Merchant inquired as to the nature of the Norwegian Institute for Atomic Energy. Mr. Randers explained that it was an independent organization, established jointly by private firms and the Norwegian Government as a device to permit flexibility and efficiency in operations.

Mr. Farley said that he was glad that these questions were now being raised by Mr. Randers directly with the United States Government. He said that it was useful to explore such particular problems and what the United States can do to help meet them within the framework of the United States Atomic Energy Act, since what the United States can do in the way of atomic energy cooperation is by no means limited to research reactor agreements, as the more extensive agreements with the UK, Canada, and Belgium illustrated. It is not possible, however, to answer questions such as those raised by Mr. Randers without careful study, since they contain novel elements. Some comments could be made at this time.

With regard to the inquiry concerning fuel for a small power reactor, it would depend very much on policy now being studied by the Atomic Energy Commission in the light of supply and other considerations, and on the precise amount which would be required for the proposed Norwegian reactor. While the uranium supply picture is gradually easing, as was apparent at the Geneva Conference, there is still an immediate problem in the United States. As for the question of the possibility of a long-term commitment, Mr. Farley suggested that this might not prove to be a separate problem, since the United States has required that used fuel be returned to this country for reprocessing, and the amount of fuel in question is thus not much more than the reactor charge at any one time.

With regard to cooperation on a propulsion reactor, Mr. Farley said that this was a special problem and would require careful examination of just what information was desired. There is a special statutory problem because specific ship propulsion reactor information in this country at present relates to naval reactors and would thus, under the Atomic Energy Act, be excluded from an agreement for cooperation in peaceful uses of atomic energy. With regard to general reactor information pertinent to ship reactor development, it is likely that some such information of interest to the Norwegian Government would be classified, which would raise the question of security undertakings and of assurances that Norway is able to give security information the same protection which the United States gives it. This matter would require thorough discussion with the Atomic Energy Commission.

With regard to the participation of private United States firms and other private institutions in either country, United States policy is clear. There is specific provision in the agreements already negotiated for participation of private firms and institutions within the framework of the intergovernmental agreement. Mr. Farley referred also to the Commission policy announced by AEC Chairman Strauss this week, authorizing United States firms to engage in unclassified activities abroad not otherwise barred by the Atomic Energy Act. In answer to a question, Mr. Farley said that we would, of course, be happy to negotiate a standard research reactor agreement if it proved that such an agreement would be useful to Norway.

Mr. Farley said that he would bring the Norwegian inquiries to the attention of the Atomic Energy Commission for study. At a subsequent time, after perhaps ten days or two weeks, a meeting between Mr. Randers and Norwegian Embassy representatives, and representatives of the Atomic Energy Commission and the State Department, would be arranged to discuss the Norwegian inquiries and the prospects for negotiation of an Agreement for Cooperation.⁵

1. Source: Department of State, EUR Files: Lot 59 D 233, Norway 1949–1955. Confidential. Drafted by Farley.
2. Foreign Minister Lange was in the United States to attend the Tenth Regular Session of the U.N. General Assembly, September 20–December 20. A memorandum of his conversation with Merchant, also October 7, concerning European security arrangements, is ibid.
3. Not printed.
4. Senior Vice President and Director of General Dynamics Corporation; Chairman of the Atomic Energy Commission, 1950–1953.
5. A memorandum by Gunnar Randers of a conversation he, Oftedal, and Cappelen of the Norwegian Embassy had with Gerard C. Smith, Farley, and representatives of the AEC on October 28, is enclosed in despatch 302 from Oslo, November 29. (Department of State, Central Files, 611.5797/11–2955) In telegram 759 from Oslo, February 20, 1956, Ambassador Strong reported that the Norwegian Government wished to resume discussions with the object of negotiating a bilateral agreement with the United States on the peaceful uses of atomic energy. (Ibid., 611.5797/2–2056) An agreement was signed on February 25, 1957; for text, see TIAS 3836.