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Duiumeiit UfoUuscU unUei tliB Alien, tulnJuimmtiuUB
Document divulgue en vertu de la Loi sur I'acces a

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DUPLICATE
OTTAWA FILE

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Despatch No

Date.. November • ±±y • 1953?;

SECURITY

CLASSIFICATION

CONFIDENTIAL

FFOM: THE CANADIAN AMBASSADOR, WASHINGTON, D . C .
TO:
THE SECRETARY OF STATE FOR EXTERNAL AFFAIRS, CANADA
Reference, .jiy. - t e l e t y p e - -No; • WA«2&amp;82- -of -November 10 ;• -1953;
Subject:.. Amendme-at-s • £e- -the • U n i t e d - S t a t e s • A-tomlts • Ene-rgy aAct • of • -19461.

Copies Referred
To....

No. of Enclosures

3

Post File
No.

In reporting on the proposal made informally by
the Chairman of the United States Atomic Energy Commission,
Admiral Strauss, that there should be an amendment to the
tripartite modus vlvendi of 1948 to permit the communication of certain information in the atomic field to the
Canadian and United Kingdom Governments, mention was made
of certain amendments to the Atomic Energy Act of 1946
which would be sought at the next session of Congress.
Apparently the President has now authorized the Chairman
of the United States Atomic Energy Commission, in consultation with the Departments of State and Defense, to
prepare certain legislative proposals which are to be
submitted to the Joint Congressional Committee on Atomic
Energy in order to facilitate co-operation with the allies
of the United States in the military applications of atomic
energy and to further atomic power development. This despatch reports the latest thinking on what the amendments
to the Atomic Energy Act of 1946 might be, and is based upon
an Interview with Mr. R. Gordon Arneson of the State Department. This despatch supplements the information contained
in the Embassy Letter No. 2449 of November 25, 1952 and
our despatches No. 1155 of June 8 and No. 1805 of September 18, 1953.
2.
Mr. Arneson said that interdepartmental discussions had begun in the middle of October and had now
progressed to the point at which there was substantial
agreement in the Executive Departments concerned about the
general nature of the amendments which should be proposed
at the next session of Congress. The United States
Atomic Energy Commission, which is the body charged under
the Aot with primary administrative responsibility, la
now working on the formulation of four main amendments.
3.
First is the so-called military amendment to permit
a greater freedom in the sharing of information with the
allies relating to the utilization of atomic weapons and
their effects. In co-operation with the Department of
Defense, a recommendation for amendment has been worked out
to change the language of Section 10,(b)(1) of the Atomic
Energy Act.(All references to the Act in this despatch
relate to the Atomic Energy Act of 1946, incorporating
amendments made by the 82nd Congress - print of the Joint
Committee on Atomic Energy, 1952, forwarded under cover of
Letter No. 2449 of November 25, 1952; three additional copies
are attached for convenience of reference.) The term
"restricted data" as at present defined by the Atomic Energy
Act is taken to include
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Document divulgue eh vertu de la Loi sur I'acces a I'information

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"all data concerning the manufacture or utilization
of atomic weapons, the production of fissionable
material, or the use of fissionable material in the
production of power, but shall not include any data
which the Commission from time to time determines may
be published without adversely affecting the common
defense and security."
What is now apparently contemplated is to delete the words
"or utilization".
4.
The Atomic Energy Commission also apparently has
in mind to simplify sub-paragraph 3 of Section 10 of the
Atomic Energy Act. This is a sub-paragraph which was amended
by the 82nd Congress in 1952 to permit the U.S.A.E.G. to
enter into specific arrangements with other countries involving the communication of restricted data on refining,
purification, and subsequent treatment of source materialsj
reactor development; production'of fissionable materials,
etc. However, the conditions under which such information
might be made available, as defined in this amendment in
1952, were of such a restrictive character that less rigid
standards are now under consideration. This would involve
loosening up the security conditions, the requirement about
a unanimous decision by the Atomic Energy Commission and the
requirement that there must be a finding that the arrangement vjould "substantially promote and would not endanger the
common defence and security of the United States". In other
words, the objective is to give the U.S.A.E.C, as Mr.
Arneson said, "more elbow room" to interpret the Act in a
manner which would facilitate international co-operation in
the raw materials field.
5.
The third amendment contemplated relates to
Section 5(a)(3) of the Act. The present language places
very restrictive limitations which are to be changed In
order to facilitate oo-operation with foreign countries
in power reactor programmes. He did not specify exactly
what language v;aa under consideration,
6.
The fourth amendment under consideration would
specifically permit the export of fissionable materials to
foreign countries and, like the preceding amendment, would
be intended to facilitate international co-operation in
the atomic power field.
7.
Arneson explained that the information he had
given should be regarded with a considerable degree of
caution since these ideas had been considered only on a
preliminary basis in interdepartmental discussions between
officials. It was intended that the subcommittee on atomic
energy of the National Security Council Joint Planning
Board, which includes representatives of the U.S.A.E.C.,
Department of Defense, and the State Department, would
shortly begin drafting the exact proposals which would be
submitted to the Joint Congressional Committee on Atomic
Ene rgy.
8.
It was still, of course, too early to predict
the exact nature of the recommendations on amendments
which would emerge, still less the reactions of the Joint
Congressional Committee. A factor which tends to create
some uncertainty is that the President has apparently asked
the Chairman of the United States Atomic Energy Commission
to give him a report on whether the time had now come to
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000059

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�Document disclosed under the Access to Information Act Document divulgue en vertu de la Loi sur I'acces a I'information

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- 3 report to Congress under Section 7(b) of the Atomic Energy
Act. This clause requires that
"Whenever in Its opinion any industrial, commercial,
or other nonmilitary use of fissionable material or
atomic energy has been sufficiently developed to be
of practical value, the Commission shall prepare a
report to the President stating all thefectswith
respect to such use, the Commission's estimate of the
social, political, economic, and international effects
of such use and the Commission's recommendations for
necessary or desirable supplemental legislation. The
President shall then transmit this report to the Congress together with his recommendations."
9.
Mr. Arneson explained that the hearings before
the Joint Committee on Atomic Energy which were held at
the last session of Congress on atomic power development,
had apparently raised in the mind of the President the
question of whether the time had not come for such a report. (These are the hearings on which we reported in our
Despatch No. 1153 of June 8, 1953.) In these hearings,
it will be recalled, Representative Holifleld (D. California)
had attacked the idea of permitting a wider participation
by industry in the atomic energy programme as an "atomic
give-away programme". Apparently Mr. Holifleld was concerned lest private industry should prematurely be given
certain rights by new legislation, before the Government,
as well as the public, had fully grasped the complex implications (social, economic, as well as political) of the
utilization of atomic energy for the development of power.
And so the President apparently has asked for a report
which would examine whether the time had arrived for the
more comprehensive review of the existing elgislation envisaged in Section 7(b) of the Atomic Energy Act, assuming
that Mr. Holifleld may be expected to raise objections
against limited and peacemealrevisions of the Act.
10.
Although the preparation of this report by the
Chairman of the U.S.A.E.C. might further delay the submission of the recommendations to the Joint Congressional
Committee, Mr. Arneson thought that on the whole the
U.S.A.E.C. would be able to convince the President of the
desirability of proceeding without delay with the more
limited programme of legislative change which the Executive
Departments concerned now have under consideration.
11.
The prospect of even having such limited changes
in the atomic energy legislation of the United States,
especially taken in conjunction with the offer to extend
technical co-operation with the British and ourselves under
the modus vlvendi, is certainly very encouraging. It will
no doubt be necessary to consider on our part how these
changes may affect Canadian interests and our co-operation
with the United States in the military applications of atomic
energy, as well as in the atomic power field. I shall continue to keep you informed of developments hers.

(signed) A.D.P. Heeney

000060

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