, s ry 08 and Red China (except for Yugoslavia and Egypt), have not presented a fret challenge to the U.S In certain important countries, such as India (and to a lesser degree, Japan), there is a reluctance to become too closely tied to or dependent upon the United States. These countries, as well as some others, appear to be planning| programs leading to development of their own domestic or uncontrolled sources of| nuclear materials and hence relative freedom from J. S. influence. Some Buropepn countries (France and Germany, for example) show similar interests, howpver they are also showing a strong interest in enriched uranium reactors. C. ATOMIC ENERGY PROGRESS IN FREE NATIONS ABROAD. Underlying the objectives of the Atoms for Peace program are two bdsic purposes: — (a) to assist other nations in achieving the material values of atomic energy: electric power, treatment and prevention of disease, and jextra- ordinary service to agriculture, industry, and science itself; and (b) the political and psychological advantages to be derived from (1) a demonstyation of the willingness of the United States to devote its leadership in the [peaceful uses of atomic energy to the benefit of the free world, and (2) the establishment of an international atmosphere of cooperation conducive to progress toward effective agreement with the Soviet Union on the control of nuclear en ° in assessing the material progress which has been accomplished so far, the following considerations are relevant: a. the program has been in effect about three years; b. the first phase of the program has been political rather than technical and has consisted of the establishment of U. S. relationships in the field of atomic energy with other nations or groups of nations and U. S. leadership in the formation of the International Atomic Energy Agency; NSC 5507/2 -7- SECRETE Part II

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