SECRET ie . since the edoption of the new declassificstion policy, the major area a stili reserved to the government is the distribution of special nucdear materials. This is requirea by law. AEC is encouraging private indus- try to develcp chemical processing services, but will continue to pyovide these services until they become commercielly available. Prioy to October 1955, industrial firms were required to obtain specific authorization fron the Commission to furnish services end materiels to foreign nations even cn én unclassified basis. As industriel acy “¥ grew and the amount of unclassified infcrmaticn increased, thd Commission announced « general authcrization for unclassified activities abrosa on the part of industrial firms. This generel authorication Fill increase in inwortance @s, in acccrdance with present policy, power pPeactor technclogry is delcessified. American industry under the generall authorization has embarked on an active commercial program. During 1956, the clessified authorization program completed its first veer. In this period 1€ authorizations were granted for activ ities in the three countries with which the United States has effective ag ree= ments permitting the exchance of classifiec infornaticn. Previous secticns of this report have referred to additional gove ori mental arrangements encouraging U.S. industriel participation abroad such as avellability of fuel, long-term commitments, purchase of plu tonium, and the chemical reprocessing of spent fuel elements. E. WUCLEAR PROPELLED MERCHANT SETP NSC 5507/2, paragraph 2&: "Make an urgent study, including estimates cf cost and time of completion, of installing at the earliest possible date a nuclear reactor propulsion unit 5507/2 Part III

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