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information pertaining to atomic energy as Acting Chairman to act during his ab- the Commission shall prepare a report to the matters, whether originating within the sence. The Commission shall advise and President stating all the facts with respect Commission or elsewhere in the Govern- consult with other Government agencies, to such use, the Commission's estimate of ment.”

through the Committee, on all atomic energy the social, political, economic, and internaAmendment No. 4: On page 11, strike the matters which relate to electric power appli- tional effects of such use, and the Commissentence beginning on line 1, and insert in cations of atomic energy, including the de- sion's recommendations for necessary or delieu thereof the following sentence: "The velopment, manufacture, and use of atomic sirable supplemental legislation. The PresiChairman (or acting Chairman in the ab- reactors for power purposes, the allocation of dent shall then transmit this report to the sence of the Chairman) shall discharge such special nuclear material for such purposes, Congress together with his recommendations. of the executive and administrative functions the technical, economic, and accounting No license for any utilization or production of the Commission as may be delegated by relationships between production of special facility shall be issued by the Commission the Commission and as are not in conflict nuclear material and atomic energy for elec- pursuant to section 103 until after (1) the with functions delegated by the Commis- tric power and for atomic weapons, appro- Commission has made a finding in writing sion to the General Manager or other officers priate policies to govern the production and that the facility is of a type sufficiently depursuant to section 1610."

distribution of electric power from atomic veloped to be of practical value for indusAmendment No. 5: On page 13, line 3, after

energy in order that the benefits of such trial or commercial purposes; (2) a report the word “of”, insert the following: “Civilian power shall be widely distributed and maxi

of the finding has been filed with the ConPower Application, a Division of.” mum revenues shall be returned to the Fed

gress; and (3) a period of 90 days in which Amendment No. 6: On page 15, beginning eral treasury, and the integration of atomic the Congress was in session has elapsed after at line 4, `add the following new section, power policies and administration with other

the report has been so filed. In computing and renumber sections 27 and 28 as sections power activities of the Federal Government; such period of 90 days, there shall be ex29 and 30, respectively (this assumes that and shall keep other Government agencies, cluded the days on which either House is the amendment adding an Electric Power through the Committee, fully and currently

not in session because of an adjournment of Liaison Committee will be sec. 28):

informed of all such matters before the Com- more than 3 days." “Sec. 27. Labor-Management Advisory mission. Other Government agencies, Amendment No. 13: On page 42, in line Committee: There shall be a Labor-Manage through the Committee, shall have the au

23, after the word “Commission”, insert ment Advisory Committee to advise the thority to make written recommendations

the following: "and report to the Congress.” Commission on all matters relating to labor- to the Commission from time to time on

Amendment No. 14: On page 43, in line management relations in atomic energy matters relating to civilian applications of 16, after the semicolon, insert the following plants and facilities owned or licensed by atomic energy as they deem appropriate."

new item (3) and renumber the present (3) the Commission, including measures to pro- Amendment No. 8: On page 19, line 14,

as (4): “(3) who agree, if the license is for mote collective bargaining and alleviate in- after the word "authorized”, insert the fol- facilities for the utilization of special nudustrial strife, health, and safety standards lowing: "and directed.”

clear material for the generation of elecand workmen's compensation provisions and Amendment No. 9: On page 23, in line 8, tric energy for sale, to claim no value for other terms and conditions to be observed by after the word "publicly”, place a comma and such facilities for ratemaking purposes in contractors or licensees of the Commission, insert the word “cooperatively."

excess of the net investment in such facilthe application of Federal statutes governing Amendment No. 10: On page 23, strike the ities as defined in the Federal Power Act." employment and labor standards, personnel sentence beginning in line 9 and insert in Amendment No. 15: On page 44, in line security procedures, and the effects of atomic

lieu thereof the following new sentence: 3, change the period to a colon and add the energy enterprises on established industries

“The Commission shall at all times, in dis- following proviso: "Provided, however, That and occupations. The Committee shall be

posing of such energy, give preference and upon not less than 2 years' notice in writcomposed of 9 members who shall be ap

priority to public bodies and cooperatives.” ing from the Commission the United States pointed by the President, 4 each representing

Amendment No. 11: On page 23, after line shall have the right upon and after the exlabor and management and a Chairman rep12, add the following new section:

piration of any license to take over and resenting the public. Each member shall hold office for a term of 6 years, except that

“Sec. 45. Electric power production: a. The

thereafter to maintain and operate any faCommission is empowered to produce or pro

cility or facilities for the utilization of spe(a) any member appointed to fill a vacancy vide for the production of electric power

cial nuclear material for the generation of occurring prior to the expiration of the term for which his predecessor was appointed, and other useful forms of energy derived

electric energy on payment of the net infrom nuclear fission in its own facilities or

vestment of the licensee in such facilities, shall be appointed for the remainder of such in the facilities of other Federal agencies.

with severance damages, if any, in general term; and (b) the terms of office of the

accordance with the terms of section 14 labor and management representatives first

In the case of energy other than electric taking office after the effective date of this

of the Federal Power Act: And provided power produced by the Commission, such act, shall expire, as designated by the Presienergy may be used by the Commission, or

further, That, if the United States does not transferred to other Government agencies, or

exercise its right to take over the facility dent at the time of appointment, 1 each at the end of 2 years, 2 each at the end of sold to other users at reasonable and non

or facilities on the expiration of any license,

States, municipalities, and cooperatives shall 4 years, and 1 each at the end of 6 years.

discriminatory prices. Electric power not
used in the Commission's own operations

have a prior right of acquisition on the same The Committee shall meet at least 4 times

terms in connection with the issuance of a in every calendar year. The members of the

shall be delivered to the Secretary of the Committee shall receive a per diem compen

new license for such facility or facilities." Interior, who shall transmit and dispose of

Amendment No. 16: On page 47, beginsation for each day spent in the work of the such power in accord with the provisions of

ning in line 21, after the letter “b”, insert Committee and all members shall receive the section 5 of the Flood Control Act of 1944

the following new sentence: “Where activnecessary traveling or other expenses while (58 Stat. 890).

ities under any license might serve to mainengaged in the work of the Committee.”

“b. The Commission may undertake any or tain or to foster the growth of monopoly, Amendment No. 7: On page 15, beginning

all of the functions provided in subsection restraint of trade, unlawful competition, or line 4, add the following new section 28, and 45a, through other Federal agencies author

other trade position inimical to the entry renumber present sections 27 and 28 as 29 ized by law to engage in the production, of new, freely competitive enterprises in and 30, respectively (this numbering as- marketing, or distribution of electric energy the field, the Commission is authorized and sumes a new sec. 27 will be added, estab- for use by the public, and such agencies are directed to refuse to issue such license or lishing a Labor-Management Advisory Com- hereby empowered to undertake the design,

to establish such conditions to prevent these mittee) :

construction, and operation of nuclear power results as the Commission, in consultation "SEC. 28. Electric Power Liaison Commit- facilities and the disposition of electric ener- with the Attorney General, may determine.” tee: There is hereby established an Electric gy produced in such facilities when funds Amendment No. 17: On page 52, in line Power Liaison Committee consisting of therefor have been appropriated by Congress. 12, strike the word “approved” and insert

"a. A Chairman, who shall be the head Nothing in this act shall preclude any Fed- in lieu thereof the following: "submitted to thereof and who shall be appointed by the eral agency now or hereafter authorized by the President." President, by and with the advice and con

law to engage in the production, marketing, Amendment No. 18: On page 52, in line 22, sent of the Senate, and who shall receive or distribution of electric energy from ob- after the word “purpose" and before the compensation at the rate prescribed for the taining a license under section 103 of this semicolon insert the following: "except Chairman of the Military Liaison Commit

act for the construction and operation of where the President determines that such tee; and

facilities for the production and utilization uses will bring reciprocal benefits and be b. A representative of the Federal Power of special nuclear material or atomic energy otherwise advantageous to the United Commission, the Securities and Exchange

for the primary purpose of producing electric States." Commission, the Rural Electrification Ad- energy for disposition for ultimate public Amendment No. 19: On page 53, in line ministration, the Tennessee Valley Authority, consumption.”

16, before the period, insert the following: the Bureau of Reclamation, the Bonneville Amendment No. 12: On page 42, beginning “after which period of time the agreement Power Administration, the Southwest Power line 16, strike section 102 and insert in lieu shall take effect.” Administration, the Southeast Power Adthereof the following:

Amendment No. 20: On page 53, beginning ministration, the Corps of Engineers, and SEC. 102. Finding of practical value: When- at line 17, strike the wording of section 124 such other Government agencies as the ever in its opinion any industrial, commer- and insert the following in lieu thereof: President may from time to time determine. cial, or other nonmilitary use of special SEC. 124. International atomic pool: The The Chairman of the Committee may desig- nuclear material or atomic energy has been President is authorized to enter into an nate one of the members of the Committee sufficiently developed to be of practical value, international arrangement with any nation or number of nations or with an organiza- cant to obtain a patent license from the the Commission to contract for electric utiltion representing any or all of such nations owner of the patent, and a statement of the ity services which are not delivered by the providing for international cooperation in effects, as estimated by the applicant, on the contractor directly to

directly to the installations the nonmilitary applications of atomic authorized activities which will result from named herein.” energy. The President is further authorized failure to obtain such patent license and Amendment No. 29: On page 86, in line 18, to request the cooperation of or the use of which will result from the granting of such after the comma insert the following: “to the services and facilities of the United patent license.

municipalities, public bodies, and cooperaNations, its organs, its specialized agencies, “d. Whenever any person has made an ap- tives within transmission distance authoror other international organizations in carry- plication to the Commission for a patent ized to engage in the distribution of electric ing out the purposes of this section. Any license pursuant to subsection 152c

energy to the public." agreements made by the United States under “(1) the Commission, within 30 days after Amendment No. 30: On page 86, in line 21, the authority of this section with other gove the filing of such application, shall make add the following new sentences: “In case ernments and with international organiza- available to the owner of the patent all of the of protests or conflicting applications or retions shall be registered with the Secretariat information contained in such application, quests for the establishment of special conof the United Nations in accordance with the and shall notify the owner of the patent of ditions in prospective licenses, the Commisprovisions of article 102 of the United Na

the time and place at which a hearing will be sion shall, prior to issuance of any license, tions Charter. In the event further legisla- held by the Commission;

hold public hearings on such application or tion is necessary to implement an interna- “(2) the Commission shall hold a hearing applications in general accordance with the tional arrangement authorized by this sec- within 60 days after the filing of such ap- procedures established in connection with tion, the President shall transmit recom- plication at a time and place designated by consideration of applications for licenses mendations therefor to the Congress.” the Commission; and

under the Federal Power Act and interested Amendment No. 21: On page 58, in line “(3) in the event an applicant applies for parties shall have the same rights of inter18, after the word “That”, insert the follow- two or more patent licenses, the Commis- vention in such proceedings, application for ing: "unless the President determines that sion may, in its discretion, order the con- rehearing, and appeal from decisions of the the common defense and security will be solidation of such applications, and if the Commission as are provided in that act and endangered thereby.”

patents are owned by more than one owner, in the Administrative Procedure Act. In any Amendment No. 22: On page 61, in line such owners may be made parties to one proceeding before it the Commission, in ac21, after the word “the”, insert the follow- hearing.

cordance with such rules and regulations as ing: "production or."

e. If, after any hearing conducted pur- it may prescribe, may admit as a party any Amendment No. 23: On page 62, in line suant to subsection 152d, the Commission interested State, State commission, munici3, after the word “the”, insert the follow- finds that

pality, public or cooperative electric system, ing: "production or.”

"(1) the invention or discovery is to be or any competitor of a party to such proAmendment No. 24: On page 63, after line used in the conduct of activities authorized ceeding, or any other person whose partici4, add the following new subsection: under this act;

pation may be in the public interest." “e. No patent hereafter granted shall con- “(2) the licensing of such invention or Amendment No. 31: On page 87, in line 3, fer any rights with respect to any invention discovery is of primary importance to the add the following new sentence: "Where conor discovery to the extent that such invention conduct of the activities of the applicant; flicting applications include those submitted or discovery is used in the conduct of re- and

by public or cooperative bodies, such applisearch or development activities in the fields “(3) such applicant cannot otherwise cations shall receive preferred consideration specified in section 31. Any rights conferred obtain a patent license from the owner of

over any submitted by privately owned utility by any patent heretofore granted for any in- the patent on terms which the Commission systems." vention or discovery are hereby revoked to deems to be reasonable for the intended use

Amendment No. 32: On page 87, following the extent that such invention or discovery of the patent to be made by such applicant, line 20, add the following new subsection e: is so used, and just compensation shall be the Commission shall license the applicant

“e. Every licensee under this act, holding made therefor.” to use the invention or discovery covered by

a license from the Commission for a utilizaAmendment No. 25: On page 63, beginning the patent for the purposes stated in such tion or production facility for the generation line 6, strike the wording of section 152 and application.

of commercial power under section 103, shall insert in lieu thereof the following new "f. The Commission shall not grant any

be subject to the regulatory provisions of language: patent license pursuant to subsection 152e

the Federal Power Act applicable to licensees "SEC. 152. Nonmilitary utilization: for any other purpose than that stated in the

under that act as established by sections 301, "a. It shall be the duty of the Commis- application. Nor shall the Commission

302, 304, and 306 thereof and to such other sion to declare any patent to be affected grant any patent license to any other ap

provisions of the Federal Power Act as prowith the public interest if: (1) the inven- plicant for a patent license on the same

vide for the enforcement of the regulatory tion or discovery covered by the patent patent without an application being made

authority of the Federal Power Commission utilizes or is essential in the utilization of by such applicant pursuant to subsection

with respect to licensees for development of special nuclear material or atomic energy; 152c, and without separate notification and

waterpower.” and (2) the licensing of such invention or hearing as provided in subsection 152d, and Amendment No. 33: On page 89, in line 9, discovery under this section will effectuate without a separate finding as provided in change the period to a comma and add the the policies and purposes of this act. subsection 152e.

following: "and no construction permit shall “b. Whenever any patent has been de- "g. The owner of the patent affected by a be issued by the Commission until after the clared affected with the public interest, pur- declaration or a finding made by the Com

completion of the procedures established by suant to subsection 152a— mission pursuant to subsection 152b or 152e

section 182 for the consideration of applica“(1) the Commission is hereby licensed to shall be entitled to a reasonable royalty fee

tions for licenses under this act." use the invention or discovery covered by from the licensee for any use of an invention

Mr. HOLIFIELD. such patent in performing any of its powers

Mr. Speaker, the or discovery licensed by this section. Such under this act; and royalty fee may be agreed upon by such

following are my comments on the “(2) any person to whom a license has owner and the patent licensee, or in the

amendments: been issued under sections 53, 62, 63, 81, 103, absence of such agreement shall be deter

POWER AMENDMENTS or 104, or to whom a permit or lease has been mined for each patent license by the Comissued under section 67, or who is engaged in mission pursuant to subsection 156c.

One group of amendments deals with activities otherwise authorized by this act, is "h. The provisions of this section shall the production of electrical power from hereby licensed to use the invention or dis- apply to any patent the application for which atomic energy. These I refer to as the covery covered by such patent to the extent shall have been filed before September 1, power amendments. They comprise such invention or discovery is used by him 1964."

amendments numbered 1, 2, 5, 7, 9, 10, in carrying on the activities authorized by Amendment No. 26: On page 68, in lines 11, 14, 15, 29, 30, 31, 32, and 33. A brief his license, permit, lease or otherwise. 12, 13, and 14, strike the word “Advisory.”

description of each of the power amend"c. In the event the Commission fails to Amendment No. 27 (in the event the

ments follows: declare any patent to be affected with the amendment establishing a Labor-Managepublic interest or finds any patent not to be ment Advisory Committee is accepted, con

Amendment No. 1 adds to the congresso affected, under subsection 152a, any per- forming language should be written to give sional findings in section 2 of the bill the son conducting activities authorized under the members thereof the same privileges as finding that a comprehensive program this act may at any time make application to other advisory committees in sec. 163.): On for the production and distribution of the Commission for a patent license for the page 79, in line 10, after the words "section

electrical power utilizing atomic energy use of an invention or discovery useful in 26", place a comma and add the following:

is essential in achieving the maximum the production or utilization of special “the members of the Labor-Management Ad

contribution of atomic energy to the nuclear material or atomic energy covered by visory Committee established pursuant to

general welfare. The finding states that a patent. Each such application shall set section 27.forth the nature and purpose of the use Amendment No. 28: On page 80, in line 9,

such a program should be carried out by which the applicant intends to make of the add the following new sentence: "Nothing Federal agencies and by other agencies, patent license, the steps taken by the appli- in this section shall be deemed to authorize public and private. There should be no objection whatever to a congressional by privately owned utilities in the appli- important that the same procedural finding of this nature. After all, the key cation of this great new source of safeguards in the case of licenses be apto the peacetime benefits of atomic en- energy.

plied to construction permits. ergy is electrical power. If those bene- Amendment No. 14 provides that li

DIXON-YATES AMENDMENT fits are to be realized, as this bill intends, censes of the Atomic Energy Commisthen the Congress should be willing to so sion producing commercial electrical lateral but important issue in the power

Amendment No. 28 deals with a colstate at the outset.

power from nuclear material must agree field. It is concerned not with atomicAmendment No. 2 is in line with as a condition of receiving their licenses power production as such but with the amendment No. 1 and clarifies the pure that the net investment in atomic fa- authority of the Atomic Energy Compose of the bill that a program of Gov- cilities, is the limit of the value they mission to make long-term contracts ernment and non-Government produc- can claim for rate-making purposes. for conventional utility services. This tion and distribution of electrical power This amendment applies the standards utilizing atomic energy should be under- in the Federal Power Act to atomic fa 164 of the bill affirming the intent of

amendment adds a sentence to section taken and so directed as to achieve the cilities for the production of electrical Congress that AEC can make long-term maximum public benefits of atomic en- power. ergy development and make the maxi- Amendment No. 15 provides that upon

utility contracts for servicing its own inmum contribution to the national 2 years' notice the United States will stallations but not in the capacity of welfare. have the right to take over, maintain, power broker for other agencies or out

side parties. Amendment No. 5 provides an organi- and operate any atomic power facility zational base for the atomic power pro- for which the license has expired, upon

AMENDMENTS ON COMMISSIONERS' STATUS gram by providing for a Division of Ci- payment of the net investment of the Amendment No. 3 makes it clear that vilian Power Application in section 25. licensee plus severance damages, if any. each member of the Atomic Energy ComThat section already provides for a Di- If the Government does not exercise such mission has equal access to all inforvision of Military Application. Since right, States, municipalities, and cooper- mation pertaining to atomic energy matthis bill is intended to emphasize the atives will have a prior right of acqui- ters, whether originating inside or outpeacetime development of atomic energy sition on the same terms in connection side the Commission. This amendment certainly civilian applications should with the issuance of a new license. is necessary because the AEC Chairman have equal recognition in the organiza- These provisions are similar to those in has kept important information on tional setup of the Atomic Energy Com- the Federal Power Act relating to the atomic energy matters to himself, claimmission with military applications. licensing of waterpower sites.

ing a special status as adviser to the Amendment No. 7 follows through on Amendment No. 29 provides that be- President on atomic energy affairs. amendment No. 5 and provides for an fore issuing licenses for the operation Amendment No. 4 eliminates the amElectric Power Liaison Committee com- of atomic-power facilities, the Atomic biguous designation of the Chairman as mensurate with the Military Liaison Energy Commission must give notice in “official spokesman” of the Atomic EnCommittee now provided in section 27. writing to municipalities, public bodies ergy Commission and makes it clear that The effort here again is to put the civil- and cooperatives within transmission any authority he exercises in an execuian peacetime benefits of atomic-energy distance of the proposed power activity. tive capacity is by delegation from the development on a par with the military By receiving adequate notices, such pub- Commission as a whole. Without this aspects. The Electric-Power Liaison lic agencies will be enabled to make an amendment, the executive and adminCommittee would bring in other agencies appearance before the Commission or istrative responsibilities of the Chairof the Federal Government concerned present pertinent information affecting man and the General Manager would be with electric-power activities and would the application for a license.

conflicting or would overlap. serve to keep these agencies and the Amendment No. 30 follows through LABOR-MANAGEMENT ADVISORY COMMITTEE Atomic Energy Commission in step on on amendment No. 29 and provides that the atomic phases of national power the Atomic Energy Commission shall Amendment No. 6 sets up a Laborpolitics.

hold public hearings in case of protests Management Advisory Committee in the Amendments Nos. 9 and 10 provide or conflicting applications or requests for Atomic Energy Commission. In view of that preference and priority shall be special conditions in prospective licenses. the difficult labor-management relations given to public bodies and cooperatives Interested parties are to have the same

in the atomic energy field, with its tight in the disposal of byproduct electrical rights of intervention, application for security requirements and the many new energy produced by the Atomic Energy rehearing and appeal from Commission problems of health, safety, and other Commission in connection with the pro- decisions as are provided in the Fed- applications of labor standards that duction of special nuclear-fissionable- eral Power Act and the Administrative would arise, a Labor-Management Admaterial in facilities owned by the Procedure Act. State, municipal, and visory Committee can perform many useUnited States. These amendments bring other public agencies, cooperatives, com- ful functions in helping to make orderly the Federal marketing of electrical petitors of the applicant, and so forth, adjustments as private enterprise comes energy from atomic sources in line with are to be admitted as interested parties into the field. the Federal marketing of energy pro- at such proceedings.

Amendment No. 27 is related

related to duced at water-power sites. They elim- Amendment No. 31 provides that in

amendment No. 6 and provides that the inate the provision in section 44 that case of conflicting license applications

case of conflicting license applications proposed new Labor-Management Adthe price shall be subject to appropriate for atomic-power facilities, public bodies visory Committee shall have the same regulatory agencies, for no appropriate and cooperatives shall receive preferred status under the law as the General AdState or Federal agency has regulatory consideration over privately owned util- visory Committee and other advisory jurisdiction over the price at which the ities. This amendment follows the pol

committees. United States sells the energy it pro- icy laid down in the Federal Power Act


for license applications for waterpower Amendment No. 11 adds a new secsites.

Amendment No. 8 directs the AEC to tion 45 to the bill empowering the Atomic Amendment No. 32 provides generally carry on research and development acEnergy Commission in its own facilities that licensees of the Atomic Energy Com- tivities in the atomic field. In section or through the facilities of other Gov- mission engaged in producing atomic 32 of the bill, the Commission is only ernment agencies to engage in the pro- power shall be subject to the regulatory authorized to carry on such activities. duction of electrical power and other provisions of the Federal Power Act The amendment makes it clear that the

Congress does not want the AEC to useful forms of energy derived from nu. applicable to licensees under the act. clear fission. This amendment makes Amendment No. 33 follows through on

slacken its momentum in atomic re

search. it clear that the Federal Government amendments Nos. 29, 30, and 31 and as well as other agencies, public and makes the procedures of section 182 ap- AMENDMENTS FOR REPORT TO CONGRESS private, can produce and distribute plicable to construction permits as well Amendment No. 12 reinstates the reatomic power. In this way a yardstick as licenses. Since a permit to construct quirement in the present atomic energy will be provided to measure the reason- an atomic-power facility would in all law that the Atomic Energy Commission ableness of atomic power prices charged likelihood be followed by a license, it is shall make a comprehensive report to


Congress on the social, political, eco- firms will be able to enter the field if legislation by the following analysis in nomic, and international effects of atom- patent monopolies do not stand in their which Congressman PRICE concurs with ic energy whenever it finds that develop- way.

me. ment in the civilian field has reached the Amendment No. 26 eliminates the word

INTRODUCTION stage of “practical value." The AEC “Advisory” from the Patent Compensa- Mr. Speaker, the atomic energy bill is to date has evaded making such a report tion Advisory Board in section 156a, to one of the most important bills before which the Congress should have before make it clear that the Board can be the Congress. It proposes to chart the enacting further legislation in this im- delegated authority to make final de future course of peacetime atomic energy portant field. The amendment also re- cisions in patent compensation, awards, development. So deep and far-reaching quires that proposed licenses shall be and royalties in the event the Atomic is its potential impact on the American submitted to the Congress for a 90-day Energy Commission finds this work too economy and upon our position in world period before being issued by the Com- time-consuming to the detriment of affairs that we consider it necessary to mission. major duties.

set forth our own views and reservations Amendment No. 13 is a minor language

AMENDMENTS ON INTERNATIONAL ACTIVITIES concerning the bill. change to conform to amendment No. 12.

Amendments Nos. 17 through 21 deal

As members of the Joint Committee MONOPOLY PREVENTION AMENDMENT with the international aspects of atomic

on Atomic Energy we have endeavored

always to act in a spirit of nonpartisanAmendment No. 16 reinstates in sec- energy. tion 145b the requirement in the present Amendment No. 17 requires that pro- ship. The duties and responsibilities atomic energy law that the Atomic En- posed agreements for cooperation with committed to the jurisdiction of our ergy Commission shall have an affirma- other nations in authorized atomic

nations in authorized atomic committee are too directly concerned tive responsibility to prevent monopoly energy activities “be submitted” to the with the Nation's security and welfare to

allow the play of partisan politics. In or restraint of trade in the exercise of President by the Atomic Energy Com

the same objective way we have tried its licensing function. The pending bill mission or the Department of Defense. relieves the Commission of this respon- In section 123 of the pending bill, those

to approach this legislation. sibility and passes the buck” to the De- agencies have to "approve” agreements, hearings and conferences, we have pre

During the course of the committee "partment of Justice or Federal Trade thereby ostensibly having authority to Commission. Many agencies of Govern- override a decision of the President in sented what we believe were constructive

proposals for improving the bill. Some ment have affirmative responsibilities to the international field. prevent monopoly or encourage free com- Amendment No. 18 provides that the

were accepted in whole or in part and petitive business, and the amendment is proposed limitation on other nations

others rejected. Among the committee

. in line with established practices.

using our material for atomic weapons, members there were, and presumably PATENT AMENDMENTS

or research and development on atomic still are, many differences of opinion and Amendments Nos. 22 through 26 deal when he determines the United States visions of the bill

. We respect those weapons, can we waived by the President interpretation regarding particular prowith the patent sections of the bill.

will get reciprocal benefits. In this way, differences, and although we were willing Amendment No. 22 reinstates in sec

we can gain the benefits of atomic dis- to have the bill reported out for floor tion 151 a requirement in the present coveries in other nations such as Great debate, the public importance of this atomic energy law that inventions used Britain.

measure compels us to recount here what solely in the "production" of special nuclear material or atomic energy are when a proposed agreement for cooperaAmendment No. 19 clarifies the time some of us consider still its major defects.

The discussion proceeds under the foloutside the patent area. The purpose of tion can take effect. Since the proposal lowing headings: First, “The Legislative this amendment is to prevent patent must be submitted to the joint commit- Setting”; second, "Questionable Form bottlenecks on basic production proc- tee for a 30-day period, the amendment and Timing”; third, "Evasion of 7-B Reesses for atomic weapons. The pending allows the President to make adjust- port”; fourth, Placing AEC Chairman bill limits the patent ban to “utilization” ments in proposed agreements to meet on Pedestal”; fifth,

“Withholding Inforof inventions in atomic weapons. congressional objections before the end

mation From Commissioners"; sixth, Amendment No. 23 is conforming lan- of the 30-day period, at which time,

“Overriding the Commission's Will”; guage with amendment No. 22 and pro- according to the amendment, the agree- seventh, “Limiting AEC Power Producvides that no patent rights shall be con- ment comes into effect.

tion"; eighth, "Inadequate Power Liferred for inventions to the extent used in production of special nuclear material providing for an international atomic tenth, “ 'Passing the Buck' on Monopoly

Amendment No. 20 rewrites section 124 censing Provisions”; ninth, “Need for

Division of Civilian Power Application"; or atomic energy in atomic weapons. pool. The President's authority to make

Amendment No. 24 reinstates a pro- international arrangements for an in- Prevention”; eleventh, “Limiting Access vision in the present atomic energy law ternational pool for nonmilitary appli

to Patents"; twelfth, "Built-In Subsidy that no patent rights will be granted for cations of atomic energy should not be Feature”; thirteenth, "Omission of Laany 'invention to the extent used in the hampered by the limiting provisions of

hampered by the limiting provisions of bor-Management Provision"; fourteenth, conduct of atomic research and develop- section 123. The Congress has a suffisection 123. The Congress has a suffi- "Complicating International Arrange

“ ment activities. This amendment is cient check in this field because concur

ments"; and fifteenth, "Increasing Milnecessary to insure that research will rence of both Houses of Congress is re

itary Posture." not be hampered by patent restrictions. quired for an international arrangement,

1. THE LEGISLATIVE SETTING Amendment No. 25 simplifies the pro

as defined in section 11k of the bill. The The atomic energy program of the cedure for declaring patents “affected amendment also authorizes the President United States is governed by the Atomic with a public interest” so that the Atomic to call upon the United Nations and its Energy Act of 1946, known as the McEnergy Commission and other author- specialized agencies in working out an Mahon Act. The basic legislation, enized users can have access to the patented atomic pool arrangement.

acted in 1946, has been amended from inventions. The amendment also sim- Amendment No. 21 provides that the time to time in certain respects, but the plifies the procedures whereby authorized restrictions on communicating atomic original pattern of Government control persons may have access to important weapons information can be lifted by the has not been substantially altered. patents even though not formally de President if he determines that other- The monumental contributions of the clared "affected with a public interest.”. wise the defense and security of the atomic energy program under the McBoth procedures are provided in the United States will be endangered. The Mahon Act to the common defense and pending bill but are so cumbersome and purpose of this amendment is to allow security and to the protection of the free restrictive that access to important pat for those contingencies when it may be world need not be recited here. They ents will be extremely limited unless the to the best interests of our own defense testify to the basic worth of the legislaamendment is adopted. The period of and security to let our allies have certain tion and to the wisdom of those who accessibility to patents is extended by information relating to atomic weapons. conceived it.

conceived it. President Eisenhower afthe amendment from 5 years to 10 years, Because the time to be allotted for firmed this testimony when he said in a because the next 10 years are the crucial debate on the atomic energy bill is so special message to the Congress on Febperiod in the advancement of atomic relatively brief, I believe the members ruary 17, 1954 that “the act in the main technology, and during that period new will be greatly aided in their study of the is still adequate to the Nation's needs.” The question that now confronts the When President Eisenhower submitted tee informally a draft of legislation inCongress is what changes are necessary his special message of February 17 on tended to promote wider industrial parand desirable in the McMahon Act. Un atomic energy, he asked the Congress to ticipation in the atomic energy program, questionably, some changes are in order. approve a number of amendments to the

approve a number of amendments to the asserting at the same time that atomic The swift pace of atomic technology, the Atomic Energy Act. His recommenda- energy developments had not reached development of new atomic weapons, the tions did not contemplate a complete re- the stage of "practical value” and that ending of the American monopoly in writing of the McMahon Act. Accom- therefore a report under section 7 (b) atomic bombs, all provide—as the Presi- panying his message were drafts of two would be premature. dent observed in his message-a new set- separate bills, prepared by the Atomic The President's message of February ting for the legislative problem.

Energy Commission, proposing to amend 17, transmitting new drafts of legislation The broad objectives to be sought by the McMahon Act in order to, first, widen from the Commission, states hopefully new legislation are not in dispute. cooperation with our allies in certain

cooperation with our allies in certain that peacetime use of atomic energy Changing requirements of mutual atomic-energy matters

matters and improve “can soon become a reality” but makes fense demand a freer exchange of atom- procedures for the control and dissem- no mention whatever of a 7 (b) report. ic information with our allies. Beyond ination of atomic-energy information;

ination of atomic-energy information; A joint committee request in writing to atomic armament for mutual defense, and second, encourage broader indus- the Commission dated July 31, 1953, for there is the mutual benefit of working trial participation in the development of the required report, elicited a promise to together with friendly countries to de- peacetime uses of atomic energy here at file an interim report before 1954. velop the peacetime uses of atomic home.

The final gesture as a substitute for acenergy. At home as well as abroad, this The President's two-package presen- tual compliance was an extended specugreat source of energy holds forth the tation, whether we agree with his par- lative essay on the prospects for future exciting promise of industrial progress ticular recommendations or not, at least industrial development of atomic energy and higher standards of living.

would have afforded the Congress an op, which comprised the major portion of Whether the bill now before us would portunity to act on atomic-energy mat- the testimony presented by AEC Chairenhance the achievement of these ob- ters of more immediate concern without man Lewis Strauss in his appearance bejectives is an exceedingly complex ques- having to consider, as it does now, the

having to consider, as it does now, the fore the joint committee during the tion. The answers, we believe, are both whole range of controversial matters June 1954 hearings. "Yes" and "No." The negative side embodied in H. R. 9757. Joint commit- If a 7 (b) report is premature, as the weighs so heavily that we cannot sup- tee members have every right to prepare Commission held last year and still apport the bill without further amend- their own legislation, and indeed are to pears to hold by its failure to produce the ment.

be commended for their initiative. How- report, then legislation such as the pend2. QUESTIONABLE FORM AND TIMING

ever thé sponsors of the pending billing bill, which would lay down a blue

would have been well advised to take a print for industrial activities in the The method of presentation and the

two-package approach and act first upon atomic energy field, also is premature. timing of the proposed legislation, in our

the President's suggestions relating to If, on the other hand, the stage of opinion, are most unfortunate. It represents a complete rewriting of the MC

cooperation with our allies, rather than “practical value” is at hand, the Atomic

ask the Congress to swallow the whole Energy Commission has evaded the clear Mahon Act, carrying over some pro

mass of complicated legislation in one visions of the existing law intact, modi

intent of Congress set forth in section gulp.

7 (b) of the McMahon Act. fying others and adding entirely new sections. Thus the Congress is confronted,

Defense and peace requirements in The sponsors of H. R. 9757 propose to in the closing days of this session, with

atomic energy which involve our allies escape from this dilemma by the simple a single-package bill comprehending a should have been first on the agenda expedient of eliminating the requirement

for a 7 (b) report to Congress. The bewildering array of technical matters. Then the Congress could have taken a Some are timely; others could well be

long, hard look at the pending proposals Congress now is asked to legislate for the postponed. The form and wording of

to confer private ownership and patent peacetime uses of atomic energy without the bill, with its many new definitions, rights in the atomic field.

the benefit of the careful and compre

hensive report from the Commission cross-referenced and inter-related sec

3. EVASION OF 7-B REPORT tions, make it virtually impossible for The framers of the McMahon Act, pre- Mahon Act. We do not agree with the

contemplated by the framers of the MCthe Congress to select the more urgent occupied as they were with the awesome

contention in the majority report-page matters for action at this time. It is an implications of the atomic bomb, never

19—that the Commission's general obli"all or none” proposition.

theless registered their desire “to pro- gation to keep the committee informed, Before this bill was drafted, we took mote the use of atomic energy in all pos

mote the use of atomic energy in all pos- and the proposed new obligation of the the position, and I stated publicly, that sible fields for peacetime purposes”—

sible fields for peacetime purposes”- committee to investigate the developthe Congress should put first things first 79th Congress, 2d session, Senate Report ment of the atomic energy industry durand enact those amendments which No. 1211, page 20. In anticipation of ing the first 60 days of each session of might be necessary to implement the such peacetime uses, they decided that Congress, justify discontinuance of the President's proposal, made before the the Congress should have the benefit of requirement for the report. United Nations General Assembly, for a comprehensive report from the Atomic

This omission is nct a mere matter of an atomic pool of resources to encourage Energy Commission whenever atomic

form or one to be taken lightly. The peacetime development of atomic energy energy developments appeared to be of "social, economic, political, and internaamong nations and to prepare the way “practical value.” Section 7 (b) of the tional effects” of using this new source for international accord on atomic ar- McMahon Act reads in part as follows:

of energy are certain to be profound maments. We see no compelling reason

Report to Congress: Whenever in its opin- and wideranging, even if we discount why the legislative requirements to fa

ion any industrial, commercial, or other the more exaggerated and optimistic cilitate an exchange of atomic informa- nonmilitary use of fissionable material or

claims. Surely the Congress is entitled, , tion with friendly nations, whether for atomic energy has been sufficiently developed before legislating, to have the expert purposes of mutual defense or peacetime to be of practical value, the Commission endeavor, have to be coupled with the shall prepare a report to the President

analysis and advice of the independent granting of private ownership and patstating all the facts with respect to such use,

Commission it created to administer the ent rights in atomic energy to domestic litical, economic, and international effects

the Commission's estimate of the social, po atomic energy program. corporations. Defense of the free na

The sponsors of H. R. 9757 have reof such use and the Commission's recom- tained a watered-down version of the 7 tions and world peace demand more mendations for necessary or desirable sup

(b) report in connection with licensing urgent attention than the desire of a few plemental legislation. The President shall

activities, minus the essential feature of industrial and utility companies to own then transmit this report to the Congress presentation to the Congress. In section and operate atomic reactors. together with his recommendations.

102 of the pending bill, the Atomic EnerFurthermore, international obliga- The Atomic Energy Commission has gy Commission would have to make a tions and domestic aims in atomic

never seen fit to prepare and present the finding in writing as to the practical energy development may conflict if report required by section 7 (b) of the value of “any type of utilization or prosimultaneously pursued now. We advert McMahon Act. One year ago the Com- duction facility” before issuing a license to this matter below.

mission submitted to the joint commit- in a given case. This is a modification

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