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MA isenhower: Papers, 1953-61
n. oS al ied

(Ann Whitman-file)

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Director Hughes observed that the Budget had wished fo include reference to this problem because it felt that if nothink
were
said about a preference for sale or lease, we would have all sprts

of foreign countries lining up outside our doors looking for
handout, rether than to agree to rent or purchase atomic materials] and
equipment from the United States. It was at least useful to
the paper take note of such a possibility, although Mr. Hughes
that he was by no means prepared to die for the inclusion of
bracketed sentence.
The President turned to Mr. Hushes, and inquired wi
asperity on what level Mr. Hughes imagined that the United 5S
would conduct negotations, say, with a country like Colombia,
ways and means of building a power reactor there. Did Mr. Hu
imagine that such discussions would be carried on by people o
rank of corporals, or did he not think that such discussions

be at a very high level, sufficiently high to safeguard the 1
imate interests of the United States?

The President edded t

was willing for the paragraph to say that sale or lease of su
terials and equipment were preferable, but the transfer by ou

grant should be undertaken if such a course of action was est

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to be in the best interests of the United States.

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Secretary Dulles strongly supported the President's
of view, and indicated with impatience that some people seeme
believe that our diplomats enjoyed squandering the assets of

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United States. The President added with a smile that the Secr

of State had correctly described the views of the Treasury an
Budget. They seemed to believe that American officials alway

yearned to give away the property of the United States. —

After further revisions had been agreed by the Coun
the suggestion of Admiral Strauss, the latter said that he no
cared to continue his opposition to the course of action set
in paragraph 27-e, which called on the United States as soon
sible to design and construct in the U. S. a small-output civ
reactor as a step toward constructing small-output power reac
which gave most promise of being useful abroad.
When Admiral Strauss had concluded his comments and |suggestions for revision of NSC 5507/1, the President said that he Had several general questions to ask. In the first place, he wished|[to know

more about the so-called "Army package reactor" to which refewence

had been made earlier in the paper. Admiral Strauss undertool to
explain to the President the uses to which the military put sich a
reactor, notably in the provision of heat and fuel in difficu]t base
areas such as Thule, in Greenland. The President said he coujd not
understand why so expensive a device was necessary to provide [this

service.

Was it not possible to ship in other fuels?

This sgomed

rather a luxury to the President, although Admiral Redford defended

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