250 



of the first United Nation's Conference on the Peaceful Uses of 

 Nuclear Energy, the AEC announced a price for enriched uranium 

 to nations which had bilateral agreements with the United States. 

 "Within the year, on February 22, 1956, at the recommendation of the 

 AEC and with the concurrence of the Departments of State and 

 Defense, President Eisenhower announced that the United States 

 would make available 40,000 kilograms of uranium-235 to assist in- 

 dustrial nuclear power development and research within the United 

 States and to enable friendly countries to develop the peaceful uses of 

 atomic energy. Of the uranium-235 thus allocated, 20,000 kilograms 

 was for domestic use and 20,000 for cooperating countries. 284 By im- 

 plication, as additional nuclear projects were undertaken, additional 

 supplies of nuclear fuel would be made available. In a parallel state- 

 ment, Chairman Strauss added that the AEC would provide uranium- 

 235 to support nuclear power development for the expected life of 

 nuclear power projects abroad. 



Although these announcements committed the United States to 

 supply nuclear fuels, there remained uncertainty as to terms and con- 

 ditions of supply. To minimize these uncertainties, the President on 

 November 18, 1956, announced details of terms and conditions of sup- 

 ply. His announcement permitted nuclear power plant operators 

 abroad to estimate more accurately the costs of nuclear power. The 

 announcement also emphasized the U.S. desire to sell rather than lease 

 nuclear fuel for foreign nuclear power plants, and set out the formal 

 criteria under which it would receive and enrich foreign owned 

 uranium. 286 



To reassure foreign users of a reliable supply, the AEC in 1968 an- 

 nounced that it would deliver supplies of enriched uranium for periods 

 as long as five years in advance of actual use so that the users could 

 have an inventory in hand. Furthermore, proposals for foreign inven- 

 tories of enriched uranium for even longer periods would be 

 considered. 286 



SPECIAL CONDITIONS FOR EURATOM 



When the Atomic Energy Act was revised in 1954, a special limita- 

 tion was included to control distribution of special nuclear materials 

 to any group of nations. Section 54 required specific authorization by 

 the Congress for such distribution. The Euratom Cooperation Act of 

 1958 subsequently authorized the transfer of specified amounts of 

 uranium-235 and plutonium. This initial authorization has subse- 

 quently increased from time to time by legislation. The latest increase 

 occurred in 1967 by Public Law 90-190, which authorized transfer 

 of up to 215,000 kilograms of contained uranium-235. In reporting 



"•D.S. Atomic Energy Commission, Twentieth Semiannual Report of Atomic Energy 

 Gomminnion (Washington, D.C. : U.S. Government Printing Office, 1956), p. vlll. 



""U.S. Atomic Energy Commission, Annual Report to the Congress of Atomic Energy 

 Commission, January-December 1966, op. clt., p. 274. 



"•U.S. Atomic Energy Commission, Annual Report to Congress of the Atomic Energy 

 Commission, 1968 (Washington, D.C: U.S. Government Printing Office, 1969), p. 210. 



