VET

apne

After further discussion, Commissioners Libby and Murray indicated
that they approved the recommendation of AEC 835/2 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 835/2.
6.

AEC 785/12 - Indemnity of Privately Owed Atomic Energy Facilities

(pp» 42-55)

Mr. Mitchell said that the proposed )egislation under consideration

had been prepared on the assumption that the Commission believed that some
protection from the financial risk of a reactor catastrophe was necessary,
in addition to that available from private sources,

companizs to build anc. operate power reactcrs.

ir order to encourage

He said the staff believed

the most practical form for this protection to take was indemnity of
Lassie

particularly for third-varty public liability, above the mount

whicl was available from private sources.

Mx. Murray said he believe

aegis ation during this session of Congress was imperative.
Mr. Mitchell pointed out that the difficulty of developing an
insurance program was due to the fact that the possibility of a catastrophe
was so remote that the probability or extent of the risk could not be
calculated.

However, he said the Bureau of the Budget would probably

suggest that provision be made for a re~insurance program,

He then

reviewed at length the staff's proposals and various alternatives which
had been considered.
Mr. Murray said his major concern was whether the proposed bill

eliminated all obstacles of this nature to the construction of power
reactors by private companies.

If it would do so, he said, he favored

its approval.

~6.-

Qaida,

Select target paragraph3