plant for coal hydrogenation, at Louisiana, Missouri, was considered by private industry as largely a waste of time for what was accomplished. rather lengthy discussion developed, bringing in such points as: A government responsibility to develop a field in which it has a monopoly; the adverse effect of a high cost pilot plant; the cost of the Arco separation plant;° the necd for motivation in the power field; the overall gain which would result if a lot of people got into the power field and started thinking how they would go about developing it. At 11:00 a.m. Dr, Rabi returned and resumed the chair, At 11:05 a.m. Mr. Dean, Mr. Zuckert, and Mr. Boyer met with the Meeting with the Commis- sioners and General Committee. Mr. Tomei was absent. Reviewing recent developments, Mr. Dean mentioned the appointment of Admiral Strauss as advisor to the President. On March 18 the National , Manager Security Council adopted a resolution that a study should be made on how to Admiral cut the budget of the DOD and AKC, the latter by $300-500 x 10°; and Admiral Strauss Strauss had been directed to investigate this policy, and make a recommendation by March 31. Ports- mouth Mr. Dean went on to say that the Commission has looked at several questions related to the possible abandonment of the Portsmouth project, but had not yet got down to details. He said the argument for having a diffusion plant top at Portsmouth comes down mainly to the question of the vulnerability of the Oak Ridge top. To achieve budget cuts of the - proposed magnitude would necessitate cutting out operations of the scale of Portszouth, Mr. Dean said that the Commission had developed a power policy statePower State. ment ment, and had discussed it with the NSC. The reaction was in general favorsble, although the NSC was definitely against subsidy, whereas the AEC _ —— a2 _ DOE ARCHIVES: 51 t

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