Sigsenhower: Papers, 1755-01 (Ann Whitman file) The President inquired whether there would be any compensa- tion to the Dutch, or whether the Indonesian action amounted to straight confiscation. Mr. Dulles replied that there wes no clear answer as yet. The Indonesians say they will provide compensation, but it is extremely doubtful. Meanwhile, Mr. Dulles pointed out, the anti-Dutch campaign was having extremely serious repercussions in Indonesia. The price of rice had been trebled in recent weeks. Moreover, the Soviet bloc was exploiting the situation by offering the Indonesians ships, technicians, ete., to replace the Dutch. There were also unconfirmed reports that the authorities in Suwaatra would soon declare their independence of Djakerta. There vas also pretty good evidence that the Indonesian military cormander in Central Sumatra had forbidden the oi1 ccmpanies henceforth to pay their revenues to the Central Goverment in Djakarta. With respect to the situation in Iren, Mr. Dulles pointed out that the Shch was receiving blendishnents from the USSR. He is, of course, short of cash, and has been turning to us for additional help. Nevertheless, he is under great pressure to accept Soviet offers, and the situation in Iran needed to be carefully watched. The National Security Council: Noted and discussed an oral briefing by the Director of Central Intelligence on the subject, with specific reference to Soviet ballistic missiles capebilities (including the highlights of SNIE 11-10-57); the forthcoming m2eting of the Supreme Soviet; and the situations in Indonesia end Iren. 4, FEACETUL USES OF ATOMIC BUERGY (ise 5907/2; NSC Action No. 1725; NSc 5725; Memos for MSC from Executive Secretary, NSC Action No. 182k) same subject, deted December h and 9, 19573 Mr. Cutler pointed out in his briefing note that when the Council considered last week the new policy peper on the reaceful uses of atoaic energy (NSC 5725), three paragraphs were postponed for dectsion at the meeting today, in order that the views of the Atomic Ener; Commission in regard thereto covld be put in writing and circulated to the Council. These views hed now been steted and were before the Coun- cil. The first of the pestponed issues dealt with actions which might be necessary to maintain U. S. pre-auinence in power reactor technology. This issue had been covered in peregranhs 2h and 33 of NSC 5725. Mr. Cutler then read the language for these peragraphs proresed by the y REPRODUCED AT THE DWIGHT D. EISENHOWER LIBRARY ° Atomic Energy Commission. He noted thet the Joint Chiefs of Staff were in egreement with the lensuege proposed by the AEC for these per- esegrephs, and then called on Adimircl Streuss to explein why the AEC had disasreed with the version of these paresraphs originally offered by the uSC Fleanning Board, and why the AEC was suggesting this new and more general phraseolozy. st tts wea ss -iu- ae TOP SEL