of AEC, the steff later withdrew its insistence that the cale of heavy water depends upon the conclusion of an agreement with safeguard provisicns, In answe~ to 2a question by Mr, Murray, Mr. Vogel said thut a power veector-tvpe bilei2zral agreoment with Sweden is nov in preperation. After further discussion, the Commission: a. Determined that the sale of 26 metric tons of heavy water to Sweden is in the interest of the national security, and approved the sale of this quantity to Sweden subject to contract of sale which will be in the form of Appendix '’A'’ to AEC 949; b. Noted that prior to the execution of the contract of sale an assurance will be obtained from the Government of Sweden that the heavy water shall be for use only in Sweden by Atomenergi in connection with civilian reactors and shall be retained by Atomenergi and not resold or otherwise distributed; c. Noted that the Goverrment of Sweden will be advised that the Commission expects that all future sales of this kind (i.e., sale of heavy water for use in a power reactor) will bé executed pursuant to the terms and conditions of the power agreement which is now under negotiation between the United States and Sweden, and inat the Siafi will discuss with Swedish representatives inclusion in the contract of sale a provision that the terms and conditions of any agreement for coopexation relating to power reactors subsequently entered into between Sweden and the U.S. will apply to this sale; d. Noted that the Staff currently is preparing a study on the general policies thet should govern the distribution of heavy water to foreign countries in the future; 793 -