Se ees c. Proposed a meeting between representatives of AEC, MLC, DOD and Army. 6, In its memorandum accompanying the DOD letter, the MLC asked what would be the impact on weapons material production if AEC production facilities were diverted to producing cobalt for a cobalt facility. 7. A reply to the DOD is being staffed through the AEC, and will embody the following points: a. Cobalt could be furnished at a unit $0.625 per curie price of (AEC out-of-pocket costs) while the radiation program 1s developmental; thereafter, at a rate of $2.80 per curie. b. Funds appropriated for the FIR cannot be used to provide any gamma source other than a reactor, c. AEC is willing to participate in a meeting with MLC, DOD, and Army representatives. 8, A separate reply to the MLC 1s being staffed through the AEC and will advise the MLC that the cost of cobalt, in terms of Weapons materials, would be 10 kg of plutonium or 120 em of tritium initially, with annual replenishment costing 2.5 kg of plutonium or 30 gem of tritium. 9. Meanwhile, AEC is continuing limited R&D toward the refinement of a conceptual design of the FIR into a preliminary design. Discussion 10, From time to time since the initiation of the FIR project. Suggestions have been made -- some within AEC, some within DOD -- concerning the possibility of a gamma source other than a reactor. The suitability of spent fuel elements, gross fission products, and long-lived isotopes has been examined repeatedly (Ref. AEC 719/13). It has been determined that neither spery. fuel -3-

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