At this point Mr, Murray briefly left the meeting. Mr, von Neumann discussed with Mr. Fields and Colonel Starbird the probable advantages and disadvantages of selecting a new contractor, Mr, Fields said that the Commission's decision on the budget estimates would not prejudice the ultimate decision on the course to be followed in expanding weapons development facilities, In response to a question by Mr, von Neumann he said he believed that the proposed budget would be sufficiently flexible to meet the requirements of an emergency situation, Colonel Starbird said that the DOD had not indicated a preference for any single solution to the problem of additional facilities but was anxious that a solution be found, At this point Mr, Murray re-entered the meeting, In the course of a further discussion on the desirability of selecting a new contractor for a second facility, Mr. Murray said he believed that it would be a serious mistake to rely on an expansion of Sandia to meet the expected new requirements on schedule, He also indicated that he thought it would be unwise to make Sandia the operating contractor for a new facility and observed that the advantages of competition had always been a serious consideration in the Cemmission's consideration of such questions. Mr, Libby said that these advantages inclined him to favor selecting a second contractor, It was agreed that in defending the budget estimates before the Bureau of the Budget it would be made clear that the course to be followed in expanding weapons developmentfacilities had not yet heen determined, The Commissioners indicated that the recommendations of the staff on this question shculd be submitted to the Commission as soon as possible, - 666 -

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