information pertaining to atomic energy matters, whether originating within the Commission or elsewhere in the Govern

ment."

Amendment No. 4: On page 11, strike the sentence beginning on line 1, and insert in lieu thereof the following sentence: "The Chairman (or acting Chairman in the absence of the Chairman) shall discharge such of the executive and administrative functions of the Commission as may be delegated by the Commission and as are not in conflict with functions delegated by the Commission to the General Manager or other officers pursuant to section 1610."

Amendment No. 5: On page 13, line 3, after the word "of", insert the following: "Civilian Power Application, a Division of.”

Amendment No. 6: On page 15, beginning at line 4, add the following new section, and renumber sections 27 and 28 as sections 29 and 30, respectively (this assumes that the amendment adding an Electric Power Liaison Committee will be sec. 28):

"SEC. 27. Labor-Management Advisory Committee: There shall be a Labor-Management Advisory Committee to advise the Commission on all matters relating to labormanagement relations in atomic energy plants and facilities owned or licensed by the Commission, including measures to promote collective bargaining and alleviate industrial strife, health, and safety standards and workmen's compensation provisions and other terms and conditions to be observed by contractors or licensees of the Commission, the application of Federal statutes governing employment and labor standards, personnel security procedures, and the effects of atomic energy enterprises on established industries and occupations. The Committee shall be composed of 9 members who shall be appointed by the President, 4 each representing labor and management and a Chairman representing the public. Each member shall hold office for a term of 6 years, except that (a) any member appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed, shall be appointed for the remainder of such term; and (b) the terms of office of the labor and management representatives first taking office after the effective date of this act, shall expire, as designated by the President at the time of appointment, 1 each at the end of 2 years, 2 each at the end of 4 years, and 1 each at the end of 6 years. The Committee shall meet at least 4 times in every calendar year. The members of the Committee shall receive a per diem compensation for each day spent in the work of the Committee and all members shall receive the necessary traveling or other expenses while engaged in the work of the Committee."

Amendment No. 7: On page 15, beginning line 4, add the following new section 28, and renumber present sections 27 and 28 as 29 and 30, respectively (this numbering assumes a new sec. 27 will be added, establishing a Labor-Management Advisory Committee):

"SEC. 28. Electric Power Liaison Committee: There is hereby established an Electric Power Liaison Committee consisting of

"a. A Chairman, who shall be the head thereof and who shall be appointed by the President, by and with the advice and consent of the Senate, and who shall receive compensation at the rate prescribed for the Chairman of the Military Liaison Committee; and

"b. A representative of the Federal Power Commission, the Securities and Exchange Commission, the Rural Electrification Administration, the Tennessee Valley Authority, the Bureau of Reclamation, the Bonneville Power Administration, the Southwest Power Administration, the Southeast Power Administration, the Corps of Engineers, and such other Government agencies as the President may from time to time determine. The Chairman of the Committee may designate one of the members of the Committee

as Acting Chairman to act during his absence. The Commission shall advise and consult with other Government agencies, through the Committee, on all atomic energy matters which relate to electric power applications of atomic energy, including the development, manufacture, and use of atomic reactors for power purposes, the allocation of special nuclear material for such purposes, the technical, economic, and accounting relationships between production of special nuclear material and atomic energy for electric power and for atomic weapons, appropriate policies to govern the production and distribution of electric power from atomic energy in order that the benefits of such power shall be widely distributed and maximum revenues shall be returned to the Federal treasury, and the integration of atomic power policies and administration with other power activities of the Federal Government; and shall keep other Government agencies, through the Committee, fully and currently informed of all such matters before the Commission. Other Government agencies, through the Committee, shall have the authority to make written recommendations to the Commission from time to time on matters relating to civilian applications of atomic energy as they deem appropriate."

Amendment No. 8: On page 19, line 14, after the word "authorized", insert the following: "and directed."

Amendment No. 9: On page 23, in line 8, after the word "publicly", place a comma and insert the word "cooperatively."

Amendment No. 10: On page 23, strike the sentence beginning in line 9 and insert in lieu thereof the following new sentence: "The Commission shall at all times, in disposing of such energy, give preference and priority to public bodies and cooperatives." Amendment No. 11: On page 23, after line 12, add the following new section:

"SEC. 45. Electric power production: a. The Commission is empowered to produce or provide for the production of electric power and other useful forms of energy derived from nuclear fission in its own facilities or in the facilities of other Federal agencies. In the case of energy other than electric power produced by the Commission, such energy may be used by the Commission, or transferred to other Government agencies, or sold to other users at reasonable and nondiscriminatory prices. Electric power not used in the Commission's own operations shall be delivered to the Secretary of the Interior, who shall transmit and dispose of such power in accord with the provisions of section 5 of the Flood Control Act of 1944 (58 Stat. 890).

"b. The Commission may undertake any or all of the functions provided in subsection 45a, through other Federal agencies authorized by law to engage in the production, marketing, or distribution of electric energy for use by the public, and such agencies are hereby empowered to undertake the design, construction, and operation of nuclear power facilities and the disposition of electric energy produced in such facilities when funds therefor have been appropriated by Congress. Nothing in this act shall preclude any Federal agency now or hereafter authorized by law to engage in the production, marketing, or distribution of electric energy from obtaining a license under section 103 of this act for the construction and operation of facilities for the production and utilization of special nuclear material or atomic energy for the primary purpose of producing electric energy for disposition for ultimate public consumption.”

Amendment No. 12: On page 42, beginning line 16, strike section 102 and insert in lieu thereof the following:

SEC. 102. Finding of practical value: Whenever in its opinion any industrial, commercial, or other nonmilitary use of special nuclear material or atomic energy has been sufficiently developed to be of practical value, sufficiently developed to be of practical value,

the Commission shall prepare a report to the President stating all the facts with 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. No license for any utilization or production facility shall be issued by the Commission pursuant to section 103 until after (1) the Commission has made a finding in writing that the facility is of a type sufficiently developed to be of practical value for industrial or commercial purposes; (2) a report of the finding has been filed with the Congress; and (3) a period of 90 days in which the Congress was in session has elapsed after the report has been so filed. In computing such period of 90 days, there shall be excluded the days on which either House is not in session because of an adjournment of more than 3 days."

Amendment No. 13: On page 42, in line 23, after the word "Commission", insert the following: "and report to the Congress."

Amendment No. 14: On page 43, in line 16, after the semicolon, insert the following new item (3) and renumber the present (3) as (4): "(3) who agree, if the license is for facilities for the utilization of special nuclear material for the generation of electric energy for sale, to claim no value for such facilities for ratemaking purposes in excess of the net investment in such facilities as defined in the Federal Power Act." Amendment No. 15: On page 44, in line 3, change the period to a colon and add the following proviso: "Provided, however, That upon not less than 2 years' notice in writing from the Commission the United States shall have the right upon and after the expiration of any license to take over and thereafter to maintain and operate any facility or facilities for the utilization of special nuclear material for the generation of electric energy on payment of the net investment of the licensee in such facilities, with severance damages, if any, in general accordance with the terms of section 14 of the Federal Power Act: And provided further, That, if the United States does not exercise its right to take over the facility or facilities on the expiration of any license, States, municipalities, and cooperatives shall have a prior right of acquisition on the same terms in connection with the issuance of a new license for such facility or facilities."

Amendment No. 16: On page 47, beginning in line 21, after the letter "b", insert the following new sentence: "Where activities under any license might serve to maintain or to foster the growth of monopoly, restraint of trade, unlawful competition, or other trade position inimical to the entry of new, freely competitive enterprises in the field, the Commission is authorized and directed to refuse to issue such license or to establish such conditions to prevent these results as the Commission, in consultation with the Attorney General, may determine."

Amendment No. 17: On page 52, in line 12, strike the word "approved" and insert in lieu thereof the following: "submitted to the President."

Amendment No. 18: On page 52, in line 22, after the word "purpose" and before the semicolon insert the following: "except where the President determines that such uses will bring reciprocal benefits and be otherwise advantageous to the United States."

Amendment No. 19: On page 53, in line 16, before the period, insert the following: "after which period of time the agreement shall take effect."

Amendment No. 20: On page 53, beginning at line 17, strike the wording of section 124 and insert the following in lieu thereof:

SEC. 124. International atomic pool: The President is authorized to enter into an international arrangement with any nation

or number of nations or with an organization representing any or all of such nations providing for international cooperation in the nonmilitary applications of atomic energy. The President is further authorized to request the cooperation of or the use of the services and facilities of the United Nations, its organs, its specialized agencies, or other international organizations in carrying out the purposes of this section. Any agreements made by the United States under the authority of this section with other governments and with international organizations shall be registered with the Secretariat of the United Nations in accordance with the provisions of article 102 of the United Nations Charter. In the event further legislation is necessary to implement an international arrangement authorized by this section, the President shall transmit recommendations therefor to the Congress."

Amendment No. 21: On page 58, in line 18, after the word "That", insert the following: "unless the President determines that the common defense and security will be endangered thereby."

Amendment No. 22: On page 61, in line 21, after the word "the", insert the following: "production or."

Amendment No. 23: On page 62, in line 3, after the word "the", insert the following: "production or."

Amendment No. 24: On page 63, after line 4, add the following new subsection:

"e. No patent hereafter granted shall confer any rights with respect to any invention or discovery to the extent that such invention or discovery is used in the conduct of research or development activities in the fields specified in section 31. Any rights conferred by any patent heretofore granted for any invention or discovery are hereby revoked to the extent that such invention or discovery is so used, and just compensation shall be made therefor."

Amendment No. 25: On page 63, beginning line 6, strike the wording of section 152 and insert in lieu thereof the following new language:

"SEC. 152. Nonmilitary utilization:

"a. It shall be the duty of the Commission to declare any patent to be affected with the public interest if: (1) the invention or discovery covered by the patent utilizes or is essential in the utilization of special nuclear material or atomic energy; and (2) the licensing of such invention or discovery under this section will effectuate the policies and purposes of this act.

"b. Whenever any patent has been declared affected with the public interest, pursuant to subsection 152a

"(1) the Commission is hereby licensed to use the invention or discovery covered by such patent in performing any of its powers under this act; and

"(2) any person to whom a license has been issued under sections 53, 62, 63, 81, 103, or 104, or to whom a permit or lease has been issued under section 67, or who is engaged in activities otherwise authorized by this act, is hereby licensed to use the invention or discovery covered by such patent to the extent such invention or discovery is used by him in carrying on the activities authorized by his license, permit, lease or otherwise.

"c. In the event the Commission fails to declare any patent to be affected with the public interest or finds any patent not to be so affected, under subsection 152a, any person conducting activities authorized under this act may at any time make application to the Commission for a patent license for the use of an invention or discovery useful in the production or utilization of special nuclear material or atomic energy covered by a patent. Each such application shall set forth the nature and purpose of the use which the applicant intends to make of the patent license, the steps taken by the appli

cant to obtain a patent license from the owner of the patent, and a statement of the effects, as estimated by the applicant, on the authorized activities which will result from failure to obtain such patent license and which will result from the granting of such patent license.

"d. Whenever any person has made an application to the Commission for a patent license pursuant to subsection 152c

"(1) the Commission, within 30 days after the filing of such application, shall make available to the owner of the patent all of the information contained in such application, and shall notify the owner of the patent of the time and place at which a hearing will be held by the Commission;

"(2) the Commission shall hold a hearing within 60 days after the filing of such application at a time and place designated by the Commission; and

"(3) in the event an applicant applies for two or more patent licenses, the Commission may, in its discretion, order the consolidation of such applications, and if the patents are owned by more than one owner, such owners may be made parties to one hearing.

"e. If, after any hearing conducted pursuant to subsection 152d, the Commission finds that

"(1) the invention or discovery is to be used in the conduct of activities authorized under this act;

"(2) the licensing of such invention or discovery is of primary importance to the conduct of the activities of the applicant; and

"(3) such applicant cannot otherwise obtain a patent license from the owner of the patent on terms which the Commission deems to be reasonable for the intended use of the patent to be made by such applicant, the Commission shall license the applicant to use the invention or discovery covered by the patent for the purposes stated in such application.

"f. The Commission shall not grant any patent license pursuant to subsection 152e for any other purpose than that stated in the application. Nor shall the Commission grant any patent license to any other applicant for a patent license on the same patent without an application being made by such applicant pursuant to subsection 152c, and without separate notification and hearing as provided in subsection 152d, and without a separate finding as provided in subsection 152e.

"g. The owner of the patent affected by a declaration or a finding made by the Commission pursuant to subsection 152b or 152e shall be entitled to a reasonable royalty fee from the licensee for any use of an invention or discovery licensed by this section. Such royalty fee may be agreed upon by such owner and the patent licensee, or in the absence of such agreement shall be determined for each patent license by the Commission pursuant to subsection 156c.

"h. The provisions of this section shall apply to any patent the application for which shall have been filed before September 1, 1964."

Amendment No. 26: On page 68, in lines 12, 13, and 14, strike the word "Advisory."

Amendment No. 27 (in the event the amendment establishing a Labor-Management Advisory Committee is accepted, conforming language should be written to give forming language should be written to give the members thereof the same privileges as other advisory committees in sec. 163.): On page 79, in line 10, after the words "section 26", place a comma and add the following: "the members of the Labor-Management Advisory Committee established pursuant to section 27.”

Amendment No. 28: On page 80, in line 9, add the following new sentence: "Nothing in this section shall be deemed to authorize

the Commission to contract for electric utility services which are not delivered by the contractor directly to the installations named herein."

Amendment No. 29: On page 86, in line 18, after the comma insert the following: "to municipalities, public bodies, and cooperatives within transmission distance authorized to engage in the distribution of electric energy to the public."

Amendment No. 30: On page 86, in line 21, add the following new sentences: "In case of protests or conflicting applications or requests for the establishment of special conditions in prospective licenses, the Commission shall, prior to issuance of any license, hold public hearings on such application or applications in general accordance with the procedures established in connection with consideration of applications for licenses under the Federal Power Act and interested parties shall have the same rights of intervention in such proceedings, application for rehearing, and appeal from decisions of the Commission as are provided in that act and in the Administrative Procedure Act. In any proceeding before it the Commission, in accordance with such rules and regulations as it may prescribe, may admit as a party any interested State, State commission, municipality, public or cooperative electric system, or any competitor of a party to such proceeding, or any other person whose participation may be in the public interest."

Amendment No. 31: On page 87, in line 3, add the following new sentence: "Where conflicting applications include those submitted by public or cooperative bodies, such applications shall receive preferred consideration over any submitted by privately owned utility systems."

Amendment No. 32: On page 87, following line 20, add the following new subsection e:

"e. Every licensee under this act, holding a license from the Commission for a utilization or production facility for the generation of commercial power under section 103, shall be subject to the regulatory provisions of the Federal Power Act applicable to licensees under that act as established by sections 301, 302, 304, and 306 thereof and to such other provisions of the Federal Power Act as provide for the enforcement of the regulatory authority of the Federal Power Commission with respect to licensees for development of waterpower."

Amendment No. 33: On page 89, in line 9, change the period to a comma and add the following: "and no construction permit shall be issued by the Commission until after the completion of the procedures established by section 182 for the consideration of applications for licenses under this act."

Mr. HOLIFIELD. Mr. Speaker, the following are my comments on the amendments:

POWER AMENDMENTS

One group of amendments deals with the production of electrical power from atomic energy. These I refer to as the power amendments. They comprise amendments numbered 1, 2, 5, 7, 9, 10, 11, 14, 15, 29, 30, 31, 32, and 33. A brief description of each of the power amendments follows:

Amendment No. 1 adds to the congressional findings in section 2 of the bill the finding that a comprehensive program for the production and distribution of electrical power utilizing atomic energy is essential in achieving the maximum contribution of atomic energy to the general welfare. The finding states that such a program should be carried out by Federal agencies and by other agencies, public and private. There should be no

Amendment No. 2 is in line with amendment No. 1 and clarifies the purpose of the bill that a program of Government and non-Government production and distribution of electrical power utilizing atomic energy should be undertaken and so directed as to achieve the

maximum public benefits of atomic energy development and make the maximum contribution to the national welfare.

Amendment No. 5 provides an organizational base for the atomic power program by providing for a Division of Civilian Power Application in section 25. That section already provides for a Division of Military Application. Since this bill is intended to emphasize the peacetime development of atomic energy certainly civilian applications should have equal recognition in the organizational setup of the Atomic Energy Commission with military applications.

Amendment No. 7 follows through on amendment No. 5 and provides for an Electric-Power Liaison Committee commensurate with the Military Liaison Committee now provided in section 27. The effort here again is to put the civilian peacetime benefits of atomic-energy development on a par with the military aspects. The Electric-Power Liaison Committee would bring in other agencies of the Federal Government concerned with electric-power activities and would serve to keep these agencies and the Atomic Energy Commission in step on the atomic phases of national power politics.

Amendments Nos. 9 and 10 provide that preference and priority shall be given to public bodies and cooperatives in the disposal of byproduct electrical energy produced by the Atomic Energy Commission in connection with the production of special nuclear-fissionable material in facilities owned by the United States. These amendments bring the Federal marketing of electrical energy from atomic sources in line with the Federal marketing of energy produced at water-power sites. They eliminate the provision in section 44 that the price shall be subject to appropriate regulatory agencies, for no appropriate State or Federal agency has regulatory jurisdiction over the price at which the United States sells the energy it pro

duces.

Amendment No. 11 adds a new section 45 to the bill empowering the Atomic Energy Commission in its own facilities or through the facilities of other Government agencies to engage in the production of electrical power and other useful forms of energy derived from nuclear fission. This amendment makes it clear that the Federal Government as well as other agencies, public and private, can produce and distribute atomic power. In this way a yardstick will be provided to measure the reasonableness of atomic power prices charged

by privately owned utilities in the application of this great new source of energy.

Amendment No. 14 provides that licenses of the Atomic Energy Commission producing commercial electrical

power from nuclear material must agree as a condition of receiving their licenses that the net investment in atomic facilities, is the limit of the value they can claim for rate-making purposes. This amendment applies the standards in the Federal Power Act to atomic facilities for the production of electrical

Amendment No. 15 provides that upon 2 years' notice the United States will have the right to take over, maintain, and operate any atomic power facility for which the license has expired, upon payment of the net investment of the licensee plus severance damages, if any. If the Government does not exercise such right, States, municipalities, and cooperatives will have a prior right of acquisition on the same terms in connection with the issuance of a new license. These provisions are similar to those in the Federal Power Act relating to the licensing of waterpower sites.

Amendment No. 29 provides that before issuing licenses for the operation of atomic-power facilities, the Atomic Energy Commission must give notice in writing to municipalities, public bodies and cooperatives within transmission distance of the proposed power activity. By receiving adequate notices, such public agencies will be enabled to make an appearance before the Commission or present pertinent information affecting the application for a license.

Amendment No. 30 follows through on amendment No. 29 and provides that the Atomic Energy Commission shall hold public hearings in case of protests or conflicting applications or requests for special conditions in prospective licenses. Interested parties are to have the same rights of intervention, application for rehearing and appeal from Commission decisions as are provided in the Federal Power Act and the Administrative Procedure Act. State, municipal, and other public agencies, cooperatives, competitors of the applicant, and so forth, are to be admitted as interested parties at such proceedings.

Amendment No. 31 provides that in case of conflicting license applications for atomic-power facilities, public bodies and cooperatives shall receive preferred consideration over privately owned utilities. This amendment follows the policy laid down in the Federal Power Act for license applications for waterpower sites.

Amendment No. 32 provides generally that licensees of the Atomic Energy Commission engaged in producing atomic power shall be subject to the regulatory provisions of the Federal Power Act applicable to licensees under the act.

Amendment No. 33 follows through on amendments Nos. 29, 30, and 31 and makes the procedures of section 182 applicable to construction permits as well as licenses. Since a permit to construct an atomic-power facility would in all likelihood be followed by a license, it is

important that the same procedural safeguards in the case of licenses be applied to construction permits.

DIXON-YATES AMENDMENT Amendment No. 28 deals with a col

lateral but important issue in the power

field. It is concerned not with atomic

power production as such but with the mission to make long-term contracts authority of the Atomic Energy Comfor conventional utility services. This amendment adds a sentence to section 164 of the bill affirming the intent of Congress that AEC can make long-term stallations but not in the capacity of utility contracts for servicing its own inpower broker for other agencies or out

side parties.

Amendment No. 6 sets up a LaborManagement Advisory Committee in the Atomic Energy Commission. In view of the difficult labor-management relations in the atomic energy field, with its tight security requirements and the many new problems of health, safety, and other applications of labor standards that would arise, a Labor-Management Advisory Committee can perform many useful functions in helping to make orderly adjustments as private enterprise comes into the field.

Amendment No. 27 is related amendment No. 6 and provides that the proposed new Labor-Management Advisory Committee shall have the same status under the law as the General Advisory Committee and other advisory committees.

COMMISSION RESEARCH AMENDMENT Amendment No. 8 directs the AEC to carry on research and development activities in the atomic field. In section 32 of the bill, the Commission is only authorized to carry on such activities. The amendment makes it clear that the Congress does not want the AEC to

slacken its momentum in atomic re

search.

AMENDMENTS FOR REPORT TO CONGRESS

Amendment No. 12 reinstates the requirement in the present atomic energy law that the Atomic Energy Commission shall make a comprehensive report to

Congress on the social, political, economic, and international effects of atomic energy whenever it finds that development in the civilian field has reached the stage of "practical value." The AEC to date has evaded making such a report which the Congress should have before enacting further legislation in this important field. The amendment also requires that proposed licenses shall be submitted to the Congress for a 90-day period before being issued by the Commission.

Amendment No. 13 is a minor language change to conform to amendment No. 12.

MONOPOLY PREVENTION AMENDMENT Amendment No. 16 reinstates in section 145b the requirement in the present atomic energy law that the Atomic Energy Commission shall have an affirmative responsibility to prevent monopoly or restraint of trade in the exercise of its licensing function. The pending bill relieves the Commission of this responsibility and "passes the buck" to the Department of Justice or Federal Trade Commission. Many agencies of Government have affirmative responsibilities to prevent monopoly or encourage free competitive business, and the amendment is in line with established practices.

PATENT AMENDMENTS

Amendments Nos. 22 through 26 deal with the patent sections of the bill.

Amendment No. 22 reinstates in sec

tion 151 a requirement in the present atomic energy law that inventions used solely in the "production" of special nuclear material or atomic energy are outside the patent area. The purpose of this amendment is to prevent patent bottlenecks on basic production processes for atomic weapons. The pending The pending bill limits the patent ban to "utilization" of inventions in atomic weapons.

Amendment No. 23 is conforming language with amendment No. 22 and provides that no patent rights shall be conferred for inventions to the extent used

in production of special nuclear material or atomic energy in atomic weapons.

Amendment No. 24 reinstates a provision in the present atomic energy law that no patent rights will be granted for any invention to the extent used in the conduct of atomic research and development activities. This amendment is necessary to insure that research will not be hampered by patent restrictions.

Amendment No. 25 simplifies the procedure for declaring patents "affected with a public interest" so that the Atomic Energy Commission and other authorized users can have access to the patented inventions. The amendment also simplifies the procedures whereby authorized persons may have access to important patents even though not formally declared "affected with a public interest." Both procedures are provided in the pending bill but are so cumbersome and restrictive that access to important patents will be extremely limited unless the amendment is adopted. The period of accessibility to patents is extended by the amendment from 5 years to 10 years, because the next 10 years are the crucial period in the advancement of atomic technology, and during that period new

firms will be able to enter the field if patent monopolies do not stand in their way.

Amendment No. 26 eliminates the word "Advisory" from the Patent Compensation Advisory Board in section 156a, to make it clear that the Board can be delegated authority to make final decisions in patent compensation, awards, and royalties in the event the Atomic Energy Commission finds this work too time-consuming to the detriment of major duties.

AMENDMENTS ON INTERNATIONAL ACTIVITIES Amendments Nos. 17 through 21 deal with the international aspects of atomic energy.

Amendment No. 17 requires that proposed agreements for cooperation with other nations in authorized atomic nations in authorized atomic energy activities "be submitted" to the President by the Atomic Energy Commission or the Department of Defense. In section 123 of the pending bill, those agencies have to "approve" agreements, thereby ostensibly having authority to override a decision of the President in the international field.

Amendment No. 18 provides that the proposed limitation on other nations using our material for atomic weapons, or research and development on atomic weapons, can we waived by the President when he determines the United States will get reciprocal benefits. In this way, we can gain the benefits of atomic discoveries in other nations such as Great Britain.

when a proposed agreement for cooperaAmendment No. 19 clarifies the time tion can take effect. Since the proposal must be submitted to the joint committee for a 30-day period, the amendment allows the President to make adjustments in proposed agreements to meet congressional objections before the end of the 30-day period, at which time, according to the amendment, the agreement comes into effect.

Amendment No. 20 rewrites section 124 providing for an international atomic pool. The President's authority to make international arrangements for an international pool for nonmilitary appliternational pool for nonmilitary applications of atomic energy should not be cations of atomic energy should not be hampered by the limiting provisions of section 123. The Congress has a sufficient check in this field because concurrence of both Houses of Congress is required for an international arrangement, as defined in section 11k of the bill. The amendment also authorizes the President to call upon the United Nations and its specialized agencies in working out an atomic pool arrangement.

Amendment No. 21 provides that the restrictions on communicating atomic weapons information can be lifted by the President if he determines that otherwise the defense and security of the United States will be endangered. The purpose of this amendment is to allow for those contingencies when it may be to the best interests of our own defense and security to let our allies have certain information relating to atomic weapons.

Because the time to be allotted for debate on the atomic energy bill is so relatively brief, I believe the members will be greatly aided in their study of the

legislation by the following analysis in which Congressman PRICE concurs with

me.

INTRODUCTION

Mr. Speaker, the atomic energy bill is one of the most important bills before the Congress. It proposes to chart the future course of peacetime atomic energy development. So deep and far-reaching is its potential impact on the American economy and upon our position in world affairs that we consider it necessary to set forth our own views and reservations concerning the bill.

As members of the Joint Committee on Atomic Energy we have endeavored always to act in a spirit of nonpartisanship. The duties and responsibilities committed to the jurisdiction of our committee are too directly concerned with the Nation's security and welfare to allow the play of partisan politics. the same objective way we have tried to approach this legislation.

In

During the course of the committee hearings and conferences, we have presented what we believe were constructive proposals for improving the bill. Some were accepted in whole or in part and others rejected. Among the committee still are, many differences of opinion and members there were, and presumably interpretation regarding particular provisions of the bill. We respect those differences, and although we were willing to have the bill reported out for floor debate, the public importance of this measure compels us to recount here what lowing headings: First, "The Legislative some of us consider still its major defects. The discussion proceeds under the folSetting"; second, "Questionable Form and Timing"; third, "Evasion of 7-B Report"; fourth, "Placing AEC Chairman on Pedestal"; fifth, "Withholding Information From Commissioners"; sixth, Will"; "Overriding the Commission's seventh, "Limiting AEC Power Production"; eighth, "Inadequate Power LiDivision of Civilian Power Application"; censing Provisions"; ninth, "Need for tenth, "Passing the Buck' on Monopoly Prevention"; eleventh, "Limiting Access to Patents"; twelfth, "Built-In Subsidy Feature"; thirteenth, "Omission of Labor-Management Provision"; fourteenth, "Complicating International Arrangements"; and fifteenth, "Increasing Military Posture."

1. THE LEGISLATIVE SETTING

The atomic energy program of the United States is governed by the Atomic Energy Act of 1946, known as the McMahon Act. The basic legislation, enacted in 1946, has been amended from time to time in certain respects, but the original pattern of Government control has not been substantially altered.

The monumental contributions of the atomic energy program under the McMahon Act to the common defense and security and to the protection of the free world need not be recited here. They testify to the basic worth of the legislation and to the wisdom of those who conceived it. President Eisenhower affirmed this testimony when he said in a special message to the Congress on February 17, 1954 that "the act in the main is still adequate to the Nation's needs."

The question that now confronts the Congress is what changes are necessary and desirable in the McMahon Act. Unquestionably, some changes are in order. The swift pace of atomic technology, the development of new atomic weapons, the ending of the American monopoly in atomic bombs, all provide-as the President observed in his message-a new setting for the legislative problem.

The broad objectives to be sought by new legislation are not in dispute. Changing requirements of mutual defense demand a freer exchange of atomic information with our allies. Beyond atomic armament for mutual defense, there is the mutual benefit of working together with friendly countries to develop the peacetime uses of atomic energy. At home as well as abroad, this great source of energy holds forth the exciting promise of industrial progress and higher standards of living.

Whether the bill now before us would enhance the achievement of these objectives is an exceedingly complex question. The answers, we believe, are both "Yes" and "No." The negative side weighs so heavily that we cannot support the bill without further amendment.

2. QUESTIONABLE FORM AND TIMING The method of presentation and the timing of the proposed legislation, in our opinion, are most unfortunate. It represents a complete rewriting of the McMahon Act, carrying over some provisions of the existing law intact, modifying others and adding entirely new sections. Thus the Congress is confronted, in the closing days of this session, with a single-package bill comprehending a bewildering array of technical matters. Some are timely; others could well be postponed. The form and wording of the bill, with its many new definitions, cross-referenced and inter-related sections, make it virtually impossible for the Congress to select the more urgent matters for action at this time. It is an "all or none" proposition.

Before this bill was drafted, we took the position, and I stated publicly, that the Congress should put first things first and enact those amendments which might be necessary to implement the President's proposal, made before the United Nations General Assembly, for an atomic pool of resources to encourage peacetime development of atomic energy among nations and to prepare the way for international accord on atomic armaments. We see no compelling reason why the legislative requirements to facilitate an exchange of atomic information with friendly nations, whether for purposes of mutual defense or peacetime endeavor, have to be coupled with the granting of private ownership and patent rights in atomic energy to domestic corporations. Defense of the free nations and world peace demand more urgent attention than the desire of a few industrial and utility companies to own and operate atomic reactors.

Furthermore, international obligations and domestic aims in atomicenergy development may conflict if simultaneously pursued now. We advert to this matter below.

When President Eisenhower submitted his special message of February 17 on atomic energy, he asked the Congress to approve a number of amendments to the Atomic Energy Act. His recommendations did not contemplate a complete rewriting of the McMahon Act. Accompanying his message were drafts of two separate bills, prepared by the Atomic Energy Commission, proposing to amend the McMahon Act in order to, first, widen cooperation with our allies in certain cooperation with our allies in certain atomic-energy matters and improve procedures for the control and dissemination of atomic-energy information; and second, encourage broader industrial participation in the development of peacetime uses of atomic energy here at home.

The President's two-package presentation, whether we agree with his particular recommendations or not, at least would have afforded the Congress an opportunity to act on atomic-energy matportunity to act on atomic-energy matters of more immediate concern without having to consider, as it does now, the whole range of controversial matters embodied in H. R. 9757. Joint committee members have every right to prepare their own legislation, and indeed are to be commended for their initiative. However the sponsors of the pending bill would have been well advised to take a two-package approach and act first upon the President's suggestions relating to cooperation with our allies, rather than ask the Congress to swallow the whole mass of complicated legislation in one gulp.

Defense and peace requirements in atomic energy which involve our allies should have been first on the agenda. Then the Congress could have taken a long, hard look at the pending proposals to confer private ownership and patent rights in the atomic field.

3. EVASION OF 7-B REPORT

The framers of the McMahon Act, preoccupied as they were with the awesome implications of the atomic bomb, nevertheless registered their desire "to promote the use of atomic energy in all posmote the use of atomic energy in all possible fields for peacetime purposes"79th Congress, 2d session, Senate Report No. 1211, page 20. In anticipation of such peacetime uses, they decided that the Congress should have the benefit of a comprehensive report from the Atomic Energy Commission whenever atomic energy developments appeared to be of "practical value." Section 7 (b) of the McMahon Act reads in part as follows: Report to Congress: 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 the facts with 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 sup

plemental legislation. The President shall then transmit this report to the Congress together with his recommendations.

The Atomic Energy Commission has never seen fit to prepare and present the report required by section 7 (b) of the McMahon Act. One year ago the Commission submitted to the joint commit

tee informally a draft of legislation intended to promote wider industrial participation in the atomic energy program, asserting at the same time that atomic energy developments had not reached the stage of "practical value" and that therefore a report under section 7 (b) would be premature.

The President's message of February 17, transmitting new drafts of legislation from the Commission, states hopefully that peacetime use of atomic energy "can soon become a reality" but makes no mention whatever of a 7 (b) report. A joint committee request in writing to the Commission dated July 31, 1953, for the required report, elicited a promise to file an interim report before 1954. The final gesture as a substitute for actual compliance was an extended speculative essay on the prospects for future industrial development of atomic energy which comprised the major portion of the testimony presented by AEC Chairman Lewis Strauss in his appearance before the joint committee during the June 1954 hearings.

If a 7 (b) report is premature, as the Commission held last year and still appears to hold by its failure to produce the report, then legislation such as the pending bill, which would lay down a blueprint for industrial activities in the atomic energy field, also is premature. If, on the other hand, the stage of "practical value" is at hand, the Atomic Energy Commission has evaded the clear intent of Congress set forth in section 7 (b) of the McMahon Act.

The sponsors of H. R. 9757 propose to escape from this dilemma by the simple expedient of eliminating the requirement for a 7 (b) report to Congress. The Congress now is asked to legislate for the peacetime uses of atomic energy without the benefit of the careful and comprehensive report from the Commission contemplated by the framers of the McMahon Act. We do not agree with the contention in the majority report-page 19 that the Commission's general obligation to keep the committee informed, and the proposed new obligation of the committee to investigate the development of the atomic energy industry during the first 60 days of each session of Congress, justify discontinuance of the requirement for the report.

This omission is not a mere matter of form or one to be taken lightly. The "social, economic, political, and international effects" of using this new source of energy are certain to be profound and wideranging, even if we discount the more exaggerated and optimistic claims. Surely the Congress is entitled, before legislating, to have the expert analysis and advice of the independent Commission it created to administer the atomic energy program.

The sponsors of H. R. 9757 have retained a watered-down version of the 7 (b) report in connection with licensing activities, minus the essential feature of presentation to the Congress. In section 102 of the pending bill, the Atomic Energy Commission would have to make a finding in writing as to the practical value of "any type of utilization or production facility" before issuing a license in a given case. This is a modification