o> In answer to a question by Mr, Murray, Mr. Hollingsworth stated that all the proposed modifications were to the advantage cf the government, After further discussion, Commissioners Libby and Murray indicated that they approved the recommendation of ARC 639/4 and suggested that the General Manager proceed with this action, Mr, Libby said that Mr, Strauss had indicated that he approved the recommendation of AEC 639/4, 4, Research Reactor for MIT (See AEC 909) Mr, Cook referred to AEC $09, which stated that the General Manager would approve issuance of a construction permit for a research reactor at the Massachusetts Institute of Technology and inquired whether the Commissioners had any cbjection to this action, Mr, Pittman then commented on the staff's review of the hazard problems arising from the project. In answer to a question by Mr. Libby, Mr, Pittman said that MIT would be obliged to meet the AEC requirements for financial responsibility for accidents if such a requirement were established. Mr, Pittman observed that the General Manager would determine that MIT was technically capable of and financially responsible for such an undertaking and would allocate special nuclear material to be used over a forty-year period, He added that if inspection of the construction indicated compliance with approved plans, and if the operation satisfied health and safety requirements, the construction permit would be converted to a license. The effect of long term material allocations to licensees on the flexibility of the total U-235 stockpile was then discussed, With regard to this problem, Mr, Libby raised the question whether government ownership of reactors would not provide more flexibility than private ownership. Mr. Mitchell said he did not believe there would be any difference, since, as a practical matter, the sarne amount of material would be allocated and, in time of military need, it would not be any more feasible to shut down a povernment plant than a private plant. Mr. Murray said - 304 -

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