TOP SECRE] 1! With respect to subparagraph 41-f» reading as follows: "£. Explore the feasibility of: "(1) Placing U. S. non-military atomic energy facili- ties under the inspection system of the IAEA, on the condition that the USSR and the United Kingdom would de likewise. "/(2) Offering as an alternative proposal, shoule the USSR be unwilling to join the United States in such a comprehensive approach, to place several U. S. non-military facilities under the Agency inspection system as a confidence-breeding first step and in order to assure more extensive, world-wide experience in developing a safeguard system. /* "* Defense and AEC propose deletion.", Mr. Cutler noted that the Joint Chiefs of Staff recommented that the bracketed portion of subparagraph 4l1-f be deleted because it did not appear realistic to the Joint Chiefs of Staff to offer unilaterally U. S. non-military atomic facilities for inspection without definite assurance of some progress in international inspection systems. Mr. Cutler went on to point out, further, that the Atomic Energy Commission wished to delete the entire subparagraph, and he asked Admiral Strauss to explain why the AEC proposed such deletion. Admiral Strauss explained that the objective of inspection was primarily to prevent the plutonium derived from civilian reactors from being used to make atomic weapons. However, if the United States intended to use such plutonium for weapons purposes, there appeared to Admiral Strauss to be no sense in proposing that we set up an inspection system. Governor Stassen indicated his general agreement with Admirel Strauss' argument. Accordingly, Mr. Cutler suggested that the whole of subparagraph 41-f be deleted. After dealing briefly with the Financial Appendix to NSC 5725, Mr. Cutler suggested that the Council adopt NSC 5725 except for the three paragraphs--24, 33 and 34--which would be reconsidered by the NSC Planning Board and brought to the Council at its meeting REPRODUCED AT THE DWIGHT, D. EISENHOWER LIBRARY of next week. : In conclusion, Admiral Strauss complimented the Plenning Board on the excellent job it had done in developing NSC 5725. The National Security Council: a. Discussed the draft statement of policy on the subject contained in NSC 5725, prepared by the NSC Planning Board on the basis of an initial draft prepared under Lm -u- ita, a ao "” 4 "mop SECRET —~. By teEO vee ek