sisenhoOwer : papers, (Ann Whitman file) typ5-OL Admiral Strauss explained that the AEC had objected to the earlier version of these paragraphs because the Commission could not agree thet private industry in the United States was not in a position to step in and finence a domestic power reactor progrem with its own funds. After referring briefly to U. S. power reactors which were in the course of being built or being planned at the present time, Admiral Strauss repeated that the Commission did not yet feel thet there was a need for Federal financing of the U. 5. power reactor program. He admitted, however, that this could, of course, be a wrong prophecy. The President also said that he wes at a loss to understand the reason for all this pessimism about private financing of the U. 5S. power reactor progrem. On the contrary, he felt that the progress under private euspices had been miraculous. : Admiral Strauss said he thought he could undertske to answer the President's question. The enswer was that there had been earlier a certain over-optimism among some of the large compenies in the United States with respect to the estimated costs of construction of atomic pover plents. Since these projects were now in some cases in the red, the companies in question would like nothing better than to have Fed- eral subsidies to bail them out. Mr. Cutler then ingnired vhether the Council vould accept the phraseology of paragraphs 24 and 33 submitted by Admirel Strauss. There wes no dissent. Mr. Cutler then took up the other disputed perasreph, 3h-b, reading as follows: “db. Develop and submit to the Council messures for the initiation of new lerge-sceale prototype nuclear power pro- Jects in the United States of types which appear most vrom- ising at this date." Mr. Cutler explained that Admiral Strauss favored the deletion of sub- paragraph 3h-b, and asked Admiral Strauss to state his rezsons for fevoring deletion. Admiral Streuss replied that his ressons were based on the view that it was not the function of the Netionral Security Coun- cil to concern itself with program matters as opposed to policy natters. Mr. Gordon Gray could not agree vith Admiral Strauss, and felt that the Covneil did have a responsibility in this erea, althoush he said he would not contest Admiral Stranss' recommendation for deletion of sub- REPRODUCED AT THE DWIGHT, D. EISENHOWER LIBRARY paragraph 3h-b. Yne National Security Council: @. Discussed the draft revisicns of perasraephs ah, 33 and 34 of NSC 5725, submitted by the Chainnen, Atomic Energy Commission, pursuant to NS? Action No. 182h-pb-(8) end - 12 - TOP smcnLT