Dr. Rabi next reported the Committee's comments on the cut in the Research: Budget, ONR-AEG Joint Program ResearchDivision's budget and on the ONR-AEC Joint Program. Mr. Nichols mentioned that there is money in the FY55 budget for the Joint Progran, if it doesn't get cut out. Mr. Zuckert made several comments on the problems involved in budgeting basic research. It is extremely difficult to show how much money is going into the direct research effort, e.g. in physics and chemistry as contrasted to how much is eaten up by fixed overhead costs.’ The present accounting system does not reflect these fixed costs, which are continually being built in, in’ machines and brick and mortar, For a given level of annual expenditure, as the installations increase the amount of research will decrease. Mr. Zuckert hoped that an accounting system would be devised which would segregate the costs of the fixed establishment from those of the direct effort. He also hoped that it would be possible to alleviate the BNL difficulties which arise from the fact that the Laboratory gets funds from three separate sources in the AEC and has no separate fund for its overall operation. Such an account~ ing plan was being worked on, and might be ready for the FY$6 budget. Dr. Rabi said the GAC has been greatly perturbed by the language of the House report, which betrayed a lack of understanding of the nature of basic research, Mr, Nichols agreed, and said a campaign on Congressmen by sclentists was probably needed, With regard to the General Manager's request for an evaluation of Boiling Water Reactor | the BWR, Dr. Rabi said the Committee had had no document which could — serve as a basis for a technical evaluation, but that the Reactor

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