UNITED STATES ATOMIC ENERGY COMMISSION WASHINGTON, 0.C. 4Ol1i1ii 20545 Mr. Stanley S. Carpenter Director Office of Territorial Affairs Department of Interior Washington, D. C. 20240 Dear Mr. Carpenter: This is in response to your letter to Dr. Marks of March 27, 1974. The following addresses the suggestions by the Special Joint Committee Concerning Rongelap and Utirik Atolls of the Congress of Micronesia for modification of the draft interagency agreement, The suggestions were discussed in Senator Borja's letter of February 14, 1974, addressed to the Deputy High Commissioner. The numbers below refer to the items in the Senator's letter. 1. 2. The words "AND UTIRIK'" appear to apply to the cabled summary but not to the draft agreement. The phrase "BETWEEN THE TRUST TERRITORY OF THE PACIFIC ISLANDS AND THE U.S. ATOMIC ENERGY COMMISSION" is included in the draft agreement but was omitted from the summary. 3. and 5, Relative to the extension of the agreement for a ten year period, it is the practice of AEC to fund projects of this type for one year periods. Therefore, we are unable to comply with the request for a ten year agreement. However, there is every reason to believe that the program will be extended annually if it is effective. The maximum expenditure stipulated in the agreement is subject to annual review and adjustment in the light of experience. This is understood in all AEC contracts and does not need to be stated explicitly. . 4, 6. Addition of the phrase "OR THEIR SUCCESSORS" is accepted. The clause "AND PAYMENTS HEREUNDER SHALL NOT IN THE AGGREGATE AT ANY TIME EXCEED THIS AMOUNT" refers only to the time period of. the contract. It does not preclude changing the maximum payable amount in extending the Agreement at the end of any contract year as discussed in 3. and 5. ee TTT LY: