Mr. Pittman pointed out thet in order to arrive at a figure to apply
against the domestic allocation of 20,000 kilograms of U-235, the calculations for the equivdlent amount of weapons grade material to be supplied

to these reactors were based on the same gaseous diffusion characteristics
as were used for the 1955 price, schedule.

Mr. Libby observed that the

1955 price schedule was based on estimates of costs of steady state
operations to be achieved after completion ~f the expansion program.
Therefore, since actual costs might be less, he said that approval of

AEC 835/2 should not be regarded as a precedent for the use of the 1955
price schedule in +1]. subsequent calculations vesarding the allocation of
U-235 for power reactors.
Mr. Murray remarked that he hoped that in about five years the fuel

demanc:

ov private industry could largely be met commercially.

M.. Libby asked whether the 104 license would be converted tc a”
license if the reactor beceme practical.

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Mr. Mitchell said thai, th:

Commission would not need to revise a license which had been issued.
,

Mr. Murray said he believed that the Commission should establish a

policy recognizing AEC's responsibility for the safe. efficient op*ration
of all reactors, and that funds should be requested, in accordance with
this policy, to conduct reactor experiments suppiementing and paralleling
those of private industry.
Mr. Libby said he agreea that AEC should undertake such programs and
agued that he believed it should extend to the forsign reactor projects
which AEC is supporting.

He observed that since AEC will supply fuel as

well as technology for these reactors, AFC has a responsibility for their
proper operation even if it had not participated in the project financially.
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